MICROSOFT CORP Debt Disclosure
NOTE 10 — DEBT
Short-term Debt
As of June 30, 2025, we had no commercial paper issued or outstanding. As of June 30, 2024, we had $6.7 billion of commercial paper issued and outstanding, with a weighted average interest rate of 5.4% and maturities ranging from 28 days to 152 days. The estimated fair value of this commercial paper approximates its carrying value.
Long-term Debt
The components of long-term debt were as follows:
(In millions, issuance by calendar year) |
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Maturities (calendar year) |
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Stated Interest Rate |
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Effective Interest Rate |
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June 30, 2025 |
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June 30, 2024 |
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2009 issuance of $3.8 billion |
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2039 |
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5.20% |
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5.24% |
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$ |
520 |
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$ |
520 |
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2010 issuance of $4.8 billion |
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2040 |
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4.50% |
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4.57% |
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486 |
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486 |
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2011 issuance of $2.3 billion |
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2041 |
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5.30% |
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5.36% |
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718 |
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718 |
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2012 issuance of $2.3 billion |
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2042 |
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3.50% |
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3.57% |
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454 |
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454 |
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2013 issuance of $5.2 billion |
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2043 |
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3.75% |
– |
4.88% |
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3.83% |
– |
4.92% |
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314 |
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314 |
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2013 issuance of €4.1 billion |
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2028 |
– |
2033 |
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2.63% |
– |
3.13% |
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2.69% |
– |
3.22% |
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2,700 |
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2,465 |
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2015 issuance of $23.8 billion |
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2025 |
– |
2055 |
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3.13% |
– |
4.75% |
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3.18% |
– |
4.78% |
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7,555 |
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9,805 |
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2016 issuance of $19.8 billion |
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2026 |
– |
2056 |
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2.40% |
– |
3.95% |
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2.46% |
– |
4.03% |
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7,930 |
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7,930 |
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2017 issuance of $17.1 billion |
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2026 |
– |
2057 |
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3.30% |
– |
4.50% |
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3.38% |
– |
5.49% |
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6,833 |
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6,833 |
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2020 issuance of $10.1 billion |
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2030 |
– |
2060 |
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1.35% |
– |
2.68% |
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2.53% |
– |
5.43% |
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10,111 |
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10,111 |
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2021 issuance of $8.2 billion |
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|
2052 |
– |
2062 |
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2.92% |
– |
3.04% |
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2.92% |
– |
3.04% |
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8,185 |
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8,185 |
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2023 issuance of $0.1 billion |
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2026 |
– |
2050 |
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1.35% |
– |
4.50% |
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5.16% |
– |
5.49% |
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56 |
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56 |
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2024 issuance of $3.3 billion |
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2026 |
– |
2050 |
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1.35% |
– |
4.50% |
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5.16% |
– |
5.49% |
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3,344 |
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3,344 |
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Total face value |
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49,206 |
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51,221 |
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Unamortized discount and issuance costs |
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(1,155 |
) |
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(1,227 |
) |
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Hedge fair value adjustments (a) |
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(36 |
) |
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(81 |
) |
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Premium on debt exchange |
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(4,864 |
) |
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(4,976 |
) |
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Total debt |
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43,151 |
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44,937 |
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Current portion of long-term debt |
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(2,999 |
) |
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(2,249 |
) |
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Long-term debt |
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$ |
40,152 |
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$ |
42,688 |
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As of June 30, 2025 and 2024, the estimated fair value of long-term debt, including the current portion, was $40.4 billion and $42.3 billion, respectively. The estimated fair values are based on Level 2 inputs.
Debt in the table above is comprised of senior unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid semi-annually, except for the Euro-denominated debt, which is paid annually. Cash paid for interest on our debt for fiscal years 2025, 2024, and 2023 was $1.6 billion, $1.7 billion, and $1.7 billion, respectively.
The following table outlines maturities of our long-term debt, including the current portion, as of June 30, 2025:
(In millions) |
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Year Ending June 30, |
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2026 |
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$ |
3,000 |
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2027 |
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9,250 |
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2028 |
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0 |
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2029 |
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2,054 |
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2030 |
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0 |
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Thereafter |
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34,902 |
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Total |
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$ |
49,206 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 30, 2025 | Showing above |
| 2024 | Jul 30, 2024 | |
| 2023 | Jul 27, 2023 | |
| 2022 | Jul 28, 2022 | |
| 2021 | Jul 29, 2021 | |
| 2020 | Jul 30, 2020 | |
| 2019 | Aug 1, 2019 | |
| 2018 | Aug 3, 2018 | |
| 2017 | Aug 2, 2017 | |
| 2016 | Jul 28, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.