Question
Reproduced below is the debt footnote from the 2016 10-K report of Oracle Corporation. $ millions May 31, 2016 May 31, 2015 Revolving credit agreements:
Reproduced below is the debt footnote from the 2016 10-K report of Oracle Corporation.
$ millions | May 31, 2016 | May 31, 2015 |
---|---|---|
Revolving credit agreements: | ||
$3,750, LIBOR plus 0.35%, due June 2016 | $3,750 | $- |
Floating-rate senior notes: | ||
$1,000, three-month LIBOR plus 0.20%, due July 2017 | 1,000 | 1,000 |
$500, three-month LIBOR plus 0.58%, due January 2019 | 500 | 500 |
$750, three-month LIBOR plus 0.51%, due October 2019 | 750 | 750 |
Fixed-rate senior notes: | ||
$2,000, 5.25%, due January 2016 | 2,000 | |
$2,500, 1.20%, due October 2017 | 2,500 | 2,500 |
$2,500, 5.75%, due April 2018 | 2,500 | 2,500 |
$1,500, 2.375%, due January 2019 | 1,500 | 1,500 |
$1,750, 5.00%, due July 2019 | 1,750 | 1,750 |
$2,000, 2.25%, due October 2019 | 2,000 | 2,000 |
$1,000, 3.875%, due July 2020 | 1,000 | 1,000 |
1,250, 2.25%, due January 2021 | 1,394 | 1,352 |
$1,500, 2.80%, due July 2021 | 1,500 | 1,500 |
$2,500, 2.50%, due May 2022 | 2,500 | 2,500 |
$2,500, 2.50%, due October 2022 | 2,500 | 2,500 |
$1,000, 3.625%, due July 2023 | 1,000 | 1,000 |
$2,000, 3.40%, due July 2024 | 2,000 | 2,000 |
$2,500, 2.95%, due May 2025 | 2,500 | 2,500 |
750, 3.125%, due July 2025 | 836 | 810 |
$500, 3.25%, due May 2030 | 500 | 500 |
$1,750, 4.30%, due July 2034 | 1,750 | 1,750 |
$1,250, 3.90%, due May 2035 | 1,250 | 1,250 |
$1,250, 6.50%, due April 2038 | 1,250 | 1,250 |
$1,250, 6.125%, due July 2039 | 1,250 | 1,250 |
$2,250, 5.375%, due July 2040 | 2,250 | 2,250 |
$1,000, 4.50%, due July 2044 | 1,000 | 1,000 |
$2,000, 4.125%, due May 2045 | 2,000 | 2,000 |
$1,250, 4.375%, due May 2055 | 1,250 | 1,250 |
Total senior notes and other borrowings | 43,980 | 42,162 |
Unamortized discount/issuance costs | (247) | (278) |
Hedge accounting fair value adjustments | 122 | 74 |
Total notes payable and other borrowings | 43,855 | 41,958 |
Notes payable and other borrowings, current | (3,750) | (1,999) |
Notes payable, non-current | $40,105 | $39,959 |
Future principal payments (adjusted for the effects of the cross-currency swap agreements associated with the January 2021 Notes) for all of our borrowings at May 31, 2016 were as follows:
$ millions | |
---|---|
Fiscal 2017 | $3,750 |
Fiscal 2018 | 6,000 |
Fiscal 2019 | 2,000 |
Fiscal 2020 | 4,500 |
Fiscal 2021 | 2,655 |
Thereafter | 25,336 |
Total | $44,241 |
Reproduced below is a summary of the market values as of December 2016 of select Oracle bonds (from Morningstar, www.morningstar.com).
Name | Maturity Date | Amount $ | Price | Coupon % | Yield to Maturity % |
---|---|---|---|---|---|
Oracle 2.95% | 5/15/25 | 2,500 | 97.9 | 2.950 | 3.23 |
Oracle 4% | 7/15/46 | 3,000 | 94.3 | 4.000 | 4.34 |
Oracle 4.375% | 5/15/55 | 1,250 | 93.2 | 4.375 | 4.76 |
(a) What is the amount of debt reported on Oracle's May 31, 2016 balance sheet? $Answer
million What are the scheduled maturities for this indebtedness?
2017 | $Answer
| million |
2018 | $Answer
| million |
2019 | $Answer
| million |
2020 | $Answer
| million |
2021 | $Answer
| million |
Thereafter | $Answer
| million |
Oracles $3,000 million 4% notes traded at 94.3 or 94.3% of par, as of December 2016. What is the market value of these notes on that date? (Round your answer to one decimal place.)
$Answer
million
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