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Borrowings | 9 Months Ended
--- | ---
Aug. 01, 2021
Debt Disclosure [Abstract] |
Borrowings | Borrowings
|  | Effective Interest Rate |  | August 1, 2021 |  | November 1, 2020
|  | (In millions, except percentages)
March 2021 Senior Notes - fixed rate |  |  |  |  |  |
3.419% notes due April 2033 |  | 4.66 | % |  | $ | 2,250 |  |  | $ | — |
3.469% notes due April 2034 |  | 4.63 | % |  | 3,250 |  |  | — |
|  |  |  | 5,500 |  |  | — |
January 2021 Senior Notes - fixed rate |  |  |  |  |  |
1.950% notes due February 2028 |  | 2.10 | % |  | 750 |  |  | — |
2.450% notes due February 2031 |  | 2.56 | % |  | 2,750 |  |  | — |
2.600% notes due February 2033 |  | 2.70 | % |  | 1,750 |  |  | — |
3.500% notes due February 2041 |  | 3.60 | % |  | 3,000 |  |  | — |
3.750% notes due February 2051 |  | 3.84 | % |  | 1,750 |  |  | — |
|  |  |  | 10,000 |  |  | — |
June 2020 Senior Notes - fixed rate |  |  |  |  |  |
3.459% notes due September 2026 |  | 4.19 | % |  | 1,695 |  |  | 1,695 |
4.110% notes due September 2028 |  | 5.02 | % |  | 2,222 |  |  | 2,222 |
|  |  |  | 3,917 |  |  | 3,917 |
May 2020 Senior Notes - fixed rate |  |  |  |  |  |
2.250% notes due November 2023 |  | 2.40 | % |  | 105 |  |  | 1,000 |
3.150% notes due November 2025 |  | 3.29 | % |  | 1,418 |  |  | 2,250 |
4.150% notes due November 2030 |  | 4.27 | % |  | 2,750 |  |  | 2,750 |
4.300% notes due November 2032 |  | 4.39 | % |  | 2,000 |  |  | 2,000 |
|  |  |  | 6,273 |  |  | 8,000 |
April 2020 Senior Notes - fixed rate |  |  |  |  |  |
4.700% notes due April 2025 |  | 4.88 | % |  | 1,247 |  |  | 2,250 |
5.000% notes due April 2030 |  | 5.18 | % |  | 2,250 |  |  | 2,250 |
|  |  |  | 3,497 |  |  | 4,500 |
November 2019 Term Loans - floating rate |  |  |  |  |  |
LIBOR plus 1.125% term loan due November 2022 |  | 1.54 | % |  | — |  |  | 1,819 |
LIBOR plus 1.250% term loan due November 2024 |  | 1.56 | % |  | — |  |  | 4,069 |
|  |  |  | — |  |  | 5,888 |
April 2019 Senior Notes - fixed rate |  |  |  |  |  |
3.125% notes due April 2021 |  | 3.61 | % |  | — |  |  | 525 |
3.125% notes due October 2022 |  | 3.53 | % |  | — |  |  | 693 |
3.625% notes due October 2024 |  | 3.98 | % |  | 622 |  |  | 1,044 |
4.250% notes due April 2026 |  | 4.54 | % |  | 1,183 |  |  | 2,500 |
4.750% notes due April 2029 |  | 4.95 | % |  | 3,000 |  |  | 3,000 |
|  |  |  | 4,805 |  |  | 7,762 |
2017 Senior Notes - fixed rate |  |  |  |  |  |
2.200% notes due January 2021 |  | 2.41 | % |  | — |  |  | 282 |
3.000% notes due January 2022 |  | 3.21 | % |  | 255 |  |  | 842 |
2.650% notes due January 2023 |  | 2.78 | % |  | 260 |  |  | 1,000 |
3.625% notes due January 2024 |  | 3.74 | % |  | 829 |  |  | 1,352 |
|  | Effective Interest Rate |  | August 1, 2021 |  | November 1, 2020
|  | (In millions, except percentages)
3.125% notes due January 2025 |  | 3.23 | % |  | 585 |  |  | 1,000 |
3.875% notes due January 2027 |  | 4.02 | % |  | 3,813 |  |  | 4,800 |
3.500% notes due January 2028 |  | 3.60 | % |  | 1,250 |  |  | 1,250 |
|  |  |  | 6,992 |  |  | 10,526 |
Assumed CA Senior Notes - fixed rate |  |  |  |  |  |
3.600% notes due August 2022 |  | 4.07 | % |  | — |  |  | 283 |
4.500% notes due August 2023 |  | 4.10 | % |  | 143 |  |  | 250 |
4.700% notes due March 2027 |  | 5.15 | % |  | 350 |  |  | 350 |
|  |  |  | 493 |  |  | 883 |
Other borrowings |  |  |  |  |  |
2.500% - 4.500% senior notes due August 2022 - August 2034 |  | 2.59% - 4.55% |  | 22 |  |  | 22 |
Total principal amount outstanding |  |  |  | 41,499 |  |  | 41,498 |
Less: Unamortized discount and issuance costs |  |  |  | (1,100) |  |  | (504) |
Total debt |  |  |  | $ | 40,399 |  |  | $ | 40,994 |
As of August 1, 2021 and November 1, 2020, short-term finance lease liabilities of $24 million and $20 million, respectively, were included in the current portion of long-term debt and long-term finance lease liabilities of $34 million and $48 million, respectively, were included in long-term debt. March 2021 Senior Notes In March 2021, we completed our private offers to exchange $5.5 billion of certain of our outstanding notes maturing between 2024 and 2027 (the “Exchange Offer”) for $2,250 million of 3.419% new senior unsecured notes due April 2033 and $3,250 million of 3.469% new senior unsecured notes due April 2034 (collectively, the “March 2021 Senior Notes”). As a result of the Exchange Offer, we paid premiums of $581 million, which were included in unamortized discount and issuance costs. At our option, we may redeem or purchase, in whole or in part, any of the March 2021 Senior Notes prior to their respective maturities, subject to a specified make-whole premium determined in accordance with the indenture governing the March 2021 Senior Notes, plus accrued and unpaid interest. In the event of a change in control, note holders will have the right to require us to repurchase their notes at a price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest. As of August 1, 2021, the March 2021 Senior Notes were recorded as long-term debt, net of discount and issuance costs, which are amortized to interest expense over the respective terms of these borrowings. In connection with the Exchange Offer, Broadcom Corporation and Broadcom Technologies Inc. were automatically and unconditionally released from their guarantees in accordance with the respective indentures governing the January 2021 Senior Notes, June 2020 Senior Notes, May 2020 Senior Notes, April 2020 Senior Notes, and April 2019 Senior Notes. January 2021 Senior Notes In January 2021, we issued $10 billion of senior unsecured notes (the “January 2021 Senior Notes”). At our option, we may redeem or purchase, in whole or in part, any of the January 2021 Senior Notes prior to their respective maturities, subject to a specified make-whole premium determined in accordance with the indenture governing the January 2021 Senior Notes, plus accrued and unpaid interest. In the event of a change in control, note holders will have the right to require us to repurchase their notes at a price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest. As of August 1, 2021, the January 2021 Senior Notes were recorded as long-term debt, net of discount and issuance costs, which are amortized to interest expense over the respective terms of these borrowings. During the fiscal quarter ended January 31, 2021, we used the net proceeds from the January 2021 Senior Notes to repay an aggregate of $5,888 million, or the outstanding balance, of our unsecured term A-3 facility and unsecured term A-5 facility under the credit agreement entered into on November 4, 2019 (the “November 2019 Credit Agreement”). Additionally, pursuant to a cash tender offer that we announced on January 4, 2021 (the “Tender Offer”), we early settled and repurchased $2,902 million of certain of our outstanding notes maturing between 2021 and 2023. As a result of these transactions, we incurred premiums of $128 million and wrote off $44 million of unamortized discount and issuance costs, both of which were included in interest expense. We also repaid $282 million of our 2.200% notes upon maturity in January 2021. During the fiscal quarter ended May 2, 2021, we completed the Tender Offer and repurchased an additional $9 million of certain outstanding notes maturing between 2021 and 2023. Using the remaining proceeds from the January 2021 Senior Notes, we repurchased $606 million, or the outstanding balances, of our 3.125% notes due April 2021, 3.125% notes due October 2022, and 3.600% notes due August 2022 and repurchased $314 million of our 3.000% notes due January 2022. As a result of these repurchases, we incurred premiums of $23 million. January 2021 Credit Agreement In January 2021, we entered into a credit agreement (the “January 2021 Credit Agreement”), which provides for a five-year $7.5 billion unsecured revolving credit facility (the “Revolving Facility”), of which $500 million is available for the issuance of multi-currency letters of credit. The issuance of letters of credit and certain other instruments would reduce the aggregate amount otherwise available under the Revolving Facility for revolving loans. Subject to the terms of the January 2021 Credit Agreement, we are permitted to borrow, repay and reborrow revolving loans at any time prior to the earlier of (a) January 19, 2026 and (b) the date of termination in whole of the revolving lenders’ commitments under the January 2021 Credit Agreement. In connection with the January 2021 Credit Agreement, we terminated the credit agreement entered into on May 7, 2019, which provided for a five-year $5 billion unsecured revolving credit facility, and the November 2019 Credit Agreement. As of August 1, 2021, we had no borrowings outstanding under the Revolving Facility. Commercial Paper In February 2019, we established a commercial paper program pursuant to which we may issue unsecured commercial paper notes (“Commercial Paper”) in principal amount of up to $2 billion outstanding at any time with maturities of up to 397 days from the date of issue. Commercial Paper is sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of their issuance. The discount associated with the Commercial Paper is amortized to interest expense over its term. Outstanding Commercial Paper reduces the amount that would otherwise be available to borrow for general corporate purposes under the Revolving Facility. As our commercial paper program is supported by the Revolving Facility, we have the ability and intent to continuously refinance Commercial Paper. As of August 1, 2021 and November 1, 2020, we had no Commercial Paper outstanding. Fair Value of Debt As of August 1, 2021, the estimated aggregate fair value of debt was $45,379 million. The fair value of our senior notes was determined using quoted prices from less active markets. All of our debt obligations are categorized as Level 2 instruments. Future Principal Payments of Debt The future scheduled principal payments of debt as of August 1, 2021 were as follows:
Fiscal Year: |  | Future Scheduled Principal Payments
|  | (In millions)
2021 (remainder) |  | $ | — |
2022 |  | 264 |
2023 |  | 403 |
2024 |  | 1,563 |
2025 |  | 1,832 |
Thereafter |  | 37,437 |
Total |  | $ | 41,499 |
As of August 1, 2021 and November 1, 2020, we accrued interest payable of $471 million and $304 million, respectively, and were in compliance with all debt covenants.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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