Microsoft 2011 Annual Report Download - page 31

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31
offset in part by a $1.7 billion increase in cash received from common stock issued. Cash used for investing
decreased $4.5 billion due to a $3.3 billion decrease in cash used for combined investment purchases, sales, and
maturities along with a $1.1 billion decrease in additions to property and equipment.
Debt
Short-term debt
During fiscal year 2011, we repaid $1.0 billion of commercial paper, leaving zero outstanding.
On November 5, 2010, our $1.0 billion 364-day credit facility expired. This facility served as a back-up for our
commercial paper program. No amounts were drawn against the credit facility during any of the periods
presented.
Long-term debt
We issued debt during the periods presented to take advantage of favorable pricing and liquidity in the debt
markets, reflecting our superior credit rating and the low interest rate environment. The proceeds of these
issuances were used to partially fund discretionary business acquisitions and share repurchases.
As of June 30, 2011, the total carrying value and estimated fair value of our long-term debt, including convertible
debt, were $11.9 billion and $12.1 billion, respectively. This is compared to a carrying value and estimated fair
value of $4.9 billion and $5.2 billion, respectively, as of June 30, 2010. The estimated fair value is based on
quoted prices for our publicly-traded debt as of June 30, 2011 and 2010, as applicable.
The components of long-term debt, the associated interest rates, and the semi-annual interest record and
payment dates were as follows as of June 30, 2011:
Due Date Face Value
Stated
Interest
Rate
Effective
Interest
Rate
Interes
t
Record Date
Interest
Pay Date
Interes
t
Record Date
Interest
Pay Date
(In millions)
Notes
September 27, 2013 $ 1,000 0.875% 1.000% March 15 March 27 September 15 September 27
June 1, 2014 2,000 2.950% 3.049% May 15 June 1 November 15 December 1
September 25, 2015 1,750 1.625% 1.795% March 15 March 25 September 15 September 25
February 8, 2016 750 2.500% 2.642% February 1 February 8
A
ugust 1 August 8
June 1, 2019 1,000 4.200% 4.379% May 15 June 1 November 15 December 1
October 1, 2020 1,000 3.000% 3.137% March 15 April 1 September 15 October 1
February 8, 2021 500 4.000% 4.082% February 1 February 8
A
ugust 1 August 8
June 1, 2039 750 5.200% 5.240% May 15 June 1 November 15 December 1
October 1, 2040 1,000 4.500% 4.567% March 15 April 1 September 15 October 1
February 8, 2041 1,000 5.300% 5.361% February 1 February 8 August 1 August 8
Total 10,750
Convertible Debt
June 15, 2013 1,250 0.000% 1.849%
Total unamortized discount (79)
Total $ 11,921
Notes
The Notes are senior unsecured obligations and rank equally with our other unsecured and unsubordinated debt
outstanding.