XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Borrowings
 9 Months Ended
Jul. 31, 2022
Debt Disclosure [Abstract]  
Borrowings Borrowings
Effective Interest RateJuly 31,
2022		October 31,
2021
(In millions, except percentages)
April 2022 Senior Notes - fixed rate
4.000% notes due April 2029
4.17 %$750 $— 
4.150% notes due April 2032
4.30 %1,200 — 
4.926% notes due May 2037
5.33 %2,500 — 
4,450 — 
September 2021 Senior Notes - fixed rate
3.137% notes due November 2035
4.23 %3,250 3,250 
3.187% notes due November 2036
4.79 %2,750 2,750 
6,000 6,000 
March 2021 Senior Notes - fixed rate
3.419% notes due April 2033
4.66 %2,250 2,250 
3.469% notes due April 2034
4.63 %3,250 3,250 
5,500 5,500 
January 2021 Senior Notes - fixed rate
1.950% notes due February 2028
2.10 %750 750 
2.450% notes due February 2031
2.56 %2,750 2,750 
2.600% notes due February 2033
2.70 %1,750 1,750 
3.500% notes due February 2041
3.60 %3,000 3,000 
3.750% notes due February 2051
3.84 %1,750 1,750 
10,000 10,000 
June 2020 Senior Notes - fixed rate
3.459% notes due September 2026
4.19 %752 752 
4.110% notes due September 2028
5.02 %1,118 1,965 
1,870 2,717 
May 2020 Senior Notes - fixed rate
2.250% notes due November 2023
2.40 %105 105 
3.150% notes due November 2025
3.29 %900 900 
4.150% notes due November 2030
4.27 %1,856 2,679 
4.300% notes due November 2032
4.39 %2,000 2,000 
4,861 5,684 
April 2020 Senior Notes - fixed rate
4.700% notes due April 2025
4.88 %— 1,020 
5.000% notes due April 2030
5.18 %606 1,086 
606 2,106 
April 2019 Senior Notes - fixed rate
3.625% notes due October 2024
3.98 %622 622 
4.250% notes due April 2026
4.54 %— 944 
4.750% notes due April 2029
4.95 %1,655 1,958 
2,277 3,524 
2017 Senior Notes - fixed rate
3.000% notes due January 2022
3.21 %— 255 
2.650% notes due January 2023
2.78 %260 260 
Effective Interest RateJuly 31,
2022		October 31,
2021
(In millions, except percentages)
3.625% notes due January 2024
3.74 %829 829 
3.125% notes due January 2025
3.23 %495 495 
3.875% notes due January 2027
4.02 %2,922 2,922 
3.500% notes due January 2028
3.60 %777 777 
5,283 5,538 
Assumed CA Senior Notes - fixed rate
4.500% notes due August 2023
4.10 %143 143 
4.700% notes due March 2027
5.15 %215 265 
358 408 
Other borrowings
2.500% - 4.500% senior notes due August 2022 - August 2034
2.59% - 4.55%
22 22 
Total principal amount outstanding$41,227 $41,499 
Current portion of principal amount outstanding$269 $264 
Short-term finance lease liabilities35 26 
Total current portion of long-term debt$304 $290 
Non-current portion of principal amount outstanding$40,958 $41,235 
Long-term finance lease liabilities26 39 
Unamortized discount and issuance costs(1,793)(1,834)
Total long-term debt$39,191 $39,440 
April 2022 Senior Notes
In April 2022, we issued $750 million of 4.000% senior unsecured notes due 2029 and $1,200 million of 4.150% senior unsecured notes due 2032. Using the net proceeds, we redeemed the outstanding balance of $1,020 million of our 4.700% notes due 2025 and $944 million of our 4.250% notes due 2026. As a result of these redemptions, we incurred premiums of $85 million and wrote off $15 million of unamortized discount and issuance costs. Both amounts were included in interest expense.
In April 2022, we issued $2,500 million of 4.926% new senior unsecured notes due 2037 in exchange for $2,502 million of certain of our outstanding notes maturing between 2027 and 2030. We paid premiums of $47 million, which were included in unamortized discount and issuance costs. The 4.926% notes due 2037, the 4.000% notes due 2029 and the 4.150% notes due 2032 are collectively referred as the “April 2022 Senior Notes”.
We may redeem or purchase, in whole or in part, any of the April 2022 Senior Notes prior to their respective maturities, subject to a specified make-whole premium determined in accordance with the indentures governing the April 2022 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.
Credit Agreement
In January 2021, we entered into a credit agreement (the “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 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 Credit Agreement. We had no borrowings outstanding under the Revolving Facility at either July 31, 2022 or October 31, 2021.
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 our revolving credit facility. We had no Commercial Paper outstanding at either July 31, 2022 or October 31, 2021.
Fair Value of Debt
As of July 31, 2022, the estimated aggregate fair value of debt was $37,003 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 July 31, 2022 were as follows:
Fiscal Year:Future Scheduled Principal Payments
(In millions)
2022 (remainder)$9 
2023403 
20241,563 
2025495 
20261,652 
Thereafter37,105 
Total$41,227 
As of July 31, 2022 and October 31, 2021, we accrued interest payable of $415 million and $282 million, respectively, and were in compliance with all debt covenants.