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Current portion of long-term debt
The slice of long-term borrowings due within a year, how it differs from a maturity schedule, and Microsoft's fiscal 2026 balance sheet.
The short answer
The current portion of long-term debt is the principal on borrowings originally classified as long-term that is due within the next year. It is a current liability on the balance sheet. It is not the same thing as a full debt-maturity schedule, which looks out several years, and it is not the same as short-term borrowings such as commercial paper that were short-term from the start.
What the line is
When a company issues a bond due in ten years, most of the principal sits in long-term debt. As the due date comes inside the next twelve months (or the next operating cycle, if longer), that principal is reclassified as current. The reclassification does not, by itself, move cash. Cash moves when the principal is paid, refinanced, or rolled, and the repayment is a financing outflow on the cash flow statement.
Microsoft's balance sheet and debt note
Microsoft's 10-K for fiscal 2026 lists current portion of long-term debt of $9,227 million among current liabilities at June 30, 2026, compared with $2,999 million a year earlier. In the debt note, the same $9,227 million is subtracted from total debt to arrive at the long-term debt line ($31,067 million). The current portion grew year over year, which means more principal was inside the next twelve months at the later balance-sheet date. Whether that principal will be paid in cash or refinanced is a liquidity question, discussed in the MD&A and in any subsequent issuance notes, not something the balance-sheet line settles by itself.
Source: Microsoft 10-K for fiscal 2026, filed Jul 29, 2026
How it differs from related figures
- A debt-maturity schedule is a multi-year table of when borrowings come due. The current portion is only the first year of that idea, presented as a balance-sheet liability.
- Commercial paper and other short-term notes were current from issuance. They are usually a separate line, not the current portion of long-term debt.
- Refinancing can change the presentation. If a company has both the intent and a refinancing that meets the accounting tests, amounts otherwise due within a year may remain classified as long-term. The 10-K will say so when that happens.
Common questions
What is the current portion of long-term debt?
The principal on long-term borrowings that is due within the next year, presented as a current liability. Microsoft reported $9,227 million at June 30, 2026.
Does a larger current portion mean the company is in trouble?
Not by itself. It means more principal is due in the next year. The company may pay it, refinance it, or already have a plan described in the liquidity discussion.
Is this the same as a debt-maturity schedule?
No. The schedule usually covers several years. The current portion is the amount already pulled into current liabilities.
Where does repayment show up in cash flow?
Principal repayments of debt are financing outflows. The reclassification from long-term to current is not a cash event.
Where do I find it?
On the balance sheet among current liabilities, and again in the debt note, where it is often subtracted from total debt to arrive at long-term debt.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 10, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
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