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Borrowings | 6 Months Ended
--- | ---
May 05, 2024
Debt Disclosure [Abstract] |
Borrowings | Borrowings
|  | Effective Interest Rate |  | May 5, 2024 |  | October 29, 2023
|  | (Dollars in millions)
2023 Term Loans - floating rate |  |  |  |  |  |
SOFR plus 1.125% term loan due November 2025 |  | 7.10 | % |  | $ | 9,195 |  |  | $ | — |
SOFR plus 1.250% term loan due November 2026 |  | 7.01 | % |  | 11,195 |  |  | — |
SOFR plus 1.625% term loan due November 2028 |  | 7.21 | % |  | 8,000 |  |  | — |
|  |  |  | 28,390 |  |  | — |
April 2022 Senior Notes - fixed rate |  |  |  |  |  |
4.000% notes due April 2029 |  | 4.17 | % |  | 750 |  |  | 750 |
4.150% notes due April 2032 |  | 4.30 | % |  | 1,200 |  |  | 1,200 |
4.926% notes due May 2037 |  | 5.33 | % |  | 2,500 |  |  | 2,500 |
|  |  |  | 4,450 |  |  | 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 |  |  | 1,118 |
|  |  |  | 1,870 |  |  | 1,870 |
May 2020 Senior Notes - fixed rate |  |  |  |  |  |
2.250% notes due November 2023 |  | 2.40 | % |  | — |  |  | 105 |
3.150% notes due November 2025 |  | 3.29 | % |  | 900 |  |  | 900 |
4.150% notes due November 2030 |  | 4.27 | % |  | 1,856 |  |  | 1,856 |
4.300% notes due November 2032 |  | 4.39 | % |  | 2,000 |  |  | 2,000 |
|  |  |  | 4,756 |  |  | 4,861 |
April 2020 Senior Notes - fixed rate |  |  |  |  |  |
5.000% notes due April 2030 |  | 5.18 | % |  | 606 |  |  | 606 |
April 2019 Senior Notes - fixed rate |  |  |  |  |  |
3.625% notes due October 2024 |  | 3.98 | % |  | 622 |  |  | 622 |
4.750% notes due April 2029 |  | 4.95 | % |  | 1,655 |  |  | 1,655 |
|  |  |  | 2,277 |  |  | 2,277 |
|  | Effective Interest Rate |  | May 5, 2024 |  | October 29, 2023
|  | (Dollars in millions)
2017 Senior Notes - fixed rate |  |  |  |  |  |
3.625% notes due January 2024 |  | 3.74 | % |  | — |  |  | 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 |
|  |  |  | 4,194 |  |  | 5,023 |
Assumed VMware Senior Notes - fixed rate |  |  |  |  |  |
1.000% notes due August 2024 |  | 5.80 | % |  | 1,250 |  |  | — |
4.500% notes due May 2025 |  | 5.81 | % |  | 750 |  |  | — |
1.400% notes due August 2026 |  | 5.60 | % |  | 1,500 |  |  | — |
4.650% notes due May 2027 |  | 5.60 | % |  | 500 |  |  | — |
3.900% notes due August 2027 |  | 5.50 | % |  | 1,250 |  |  | — |
1.800% notes due August 2028 |  | 5.44 | % |  | 750 |  |  | — |
4.700% notes due May 2030 |  | 5.75 | % |  | 750 |  |  | — |
2.200% notes due August 2031 |  | 5.74 | % |  | 1,500 |  |  | — |
|  |  |  | 8,250 |  |  | — |
Assumed CA Senior Notes - fixed rate |  |  |  |  |  |
4.700% notes due March 2027 |  | 5.15 | % |  | 215 |  |  | 215 |
Other senior notes - fixed rate |  |  |  |  |  |
3.500% notes due August 2024 |  | 3.55 | % |  | 7 |  |  | 7 |
4.500% notes due August 2034 |  | 4.55 | % |  | 6 |  |  | 6 |
|  |  |  | 13 |  |  | 13 |
Total principal amount outstanding |  |  |  | $ | 76,521 |  |  | $ | 40,815 |
Current portion of principal amount outstanding |  |  |  | $ | 2,374 |  |  | $ | 1,563 |
Short-term finance lease liabilities |  |  |  | 52 |  |  | 45 |
Total current portion of long-term debt |  |  |  | $ | 2,426 |  |  | $ | 1,608 |
Non-current portion of principal amount outstanding |  |  |  | $ | 74,147 |  |  | $ | 39,252 |
Long-term finance lease liabilities |  |  |  | 21 |  |  | 4 |
Unamortized discount and issuance costs |  |  |  | (2,578) |  |  | (1,635) |
Total long-term debt |  |  |  | $ | 71,590 |  |  | $ | 37,621 |
2023 Term Loans On August 15, 2023, we entered into a credit agreement (the “2023 Credit Agreement”), which provided us with the ability to borrow term loans in connection with the VMware Merger. Upon completion of the VMware Merger, we entered an $11,195 million unsecured term A-2 facility (the "Term A-2 Loan”), an $11,195 million unsecured term A-3 facility (the “Term A-3 Loan”), and an $8,000 million unsecured term A-5 facility (the “Term A-5 Loan”, collectively, the “2023 Term Loans”). The term loans under the Term A-2 Loan, Term A-3 Loan and Term A-5 Loan bear interest, payable monthly or every three months at our election, at floating interest rates tied to the Secured Overnight Financing Rate (“SOFR”). The term loans will mature and be payable on the second, third or fifth anniversary, respectively, of the date of the VMware Merger. Subject to the terms of the 2023 Credit Agreement, we are permitted to v oluntarily make prepayments of the term loans without penalty. Our obligations under the 2023 Credit Agreement are unsecured and are not guaranteed by any of our subsidiaries. During the fiscal quarter ended May 5, 2024, we made a repayment of $2.0 billion on our Term A-2 Loan. Assumed VMware Senior Notes In connection with the VMware Merger, we assumed $8,250 million of VMware’s outstanding senior unsecured notes (the “Assumed VMware Senior Notes”). We may redeem all or a portion of the Assumed VMware Senior Notes at any time, subject to a specified make-whole premium as set forth in the indenture. Upon the occurrence of a change of control and certain downgrades of the ratings, each note holder will have the right to require us to repurchase all or any part of the holders’ notes in cash at a price equal to 101% of the principal amount plus accrued and unpaid interest. Each series of the Assumed VMware Senior Notes pays interest semi-annually. 2021 Credit Agreement In January 2021, we entered into a credit agreement (the “2021 Credit Agreement”), which provides for a five-year $7.5 billion unsecured revolving credit 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 our revolving credit facility for revolving loans. Subject to the terms of the 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 2021 Credit Agreement. We had no borrowings outstanding under our revolving credit facility at either May 5, 2024 or October 29, 2023. 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 May 5, 2024 or October 29, 2023. Fair Value of Debt As of May 5, 2024, the estimated aggregate fair value of debt was $70,754 million. The fair value of our senior notes was determined using quoted prices from less active markets. The carrying value of the 2023 Term Loans approximates its fair value as the 2023 Term Loans are carried at a market observable interest rate that resets periodically. 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 May 5, 2024 were as follows:
Fiscal Year: |  | Future Scheduled Principal Payments
|  | (In millions)
2024 (remainder) |  | $ | 1,879 |
2025 |  | 1,245 |
2026 |  | 12,347 |
2027 |  | 16,082 |
2028 |  | 3,395 |
Thereafter |  | 41,573 |
Total |  | $ | 76,521 |
As of May 5, 2024 and October 29, 2023, we were in compliance with all debt covenants.

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