XML 104 R18.htm IDEA: XBRL DOCUMENT
v3.20.1

Borrowing Facilities and Debt | 6 Months Ended
--- | ---
Apr. 26, 2020
Debt Disclosure [Abstract] |
Borrowing Facilities and Debt | Borrowing Facilities and Debt Revolving Credit Facilities In February 2020, Applied entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which Applied may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2025, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement replaced Applied’s prior $1.5 billion credit agreement that was scheduled to expire in September 2021. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings. In March 2020, Applied borrowed the full $1.5 billion available under the Revolving Credit Agreement in order to increase its cash position and preserve financial flexibility in light of recent uncertainty in the global markets resulting from the COVID-19 outbreak. Applied may at any time and from time to time, borrow, repay and reborrow under the Revolving Credit Agreement during the term of the facility. The maturity date of the Revolving Credit Agreement is February 21, 2025, unless extended, at which time the outstanding amount of loans, if any, must be repaid in full. The initial interest rate for the borrowing under the Revolving Credit Agreement is one-month LIBOR plus a margin of 0.875%, based on Applied’s public debt credit ratings. A s of April 26, 2020, Applied had $1.5 billion outstanding under the Revolving Credit Agreement. No amounts were outstanding under the Revolving Credit Agreement as of October 27, 2019. On May 13, 2020, Applied repaid the full $1.5 billion of borrowings under the Revolving Credit Agreement. In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $74 million in aggregate at any time. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. As of April 26, 2020 and October 27, 2019, no amounts were outstanding under these revolving credit facilities. Term Loan and Short-term Commercial Paper In August 2019, Applied entered into a term loan credit agreement with a group of lenders. Under the agreement, the lenders have committed to make an unsecured term loan to Applied of up to $2.0 billion to finance in part Applied’s planned acquisition of all outstanding shares of Kokusai Electric, to pay related transaction fees and expenses and for general corporate purposes. The commitments of the lenders to make the term loan will terminate if the transactions contemplated by the Share Purchase Agreement are not consummated on or before June 30, 2020, which date may be extended by three months on two separate occasions if, on the applicable date, the only remaining conditions to closing relate to required regulatory approvals. The term loan, if advanced, will bear interest at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings, and must be repaid in full on the third anniversary of the funding date of the term loan. No amounts were outstanding under this term loan credit agreement at both April 26, 2020 and October 27, 2019. Applied has a short-term commercial paper program under which Applied may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. At April 26, 2020 and October 27, 2019, Applied did not have any commercial paper outstanding. Debt outstanding as of April 26, 2020 and October 27, 2019 was as follows:
| Principal Amount |  |  |  |  |  |
| April 26, 2020 |  | October 27, 2019 |  | Effective Interest Rate |  | Interest Pay Dates
| (In millions) |  |  |  |  |  |
Current portion of long-term debt: |  |  |  |  |  |  |
2.625% Senior Notes Due 2020 | $ | 600 |  |  | $ | 600 |  |  | 2.640% |  | April 1, October 1
Total current portion of long-term debt | 600 |  |  | 600 |  |  |  |  |
Long-term debt, net of current portion: |  |  |  |  |  |  |
4.300% Senior Notes Due 2021 | 750 |  |  | 750 |  |  | 4.326% |  | June 15, December 15
3.900% Senior Notes Due 2025 | 700 |  |  | 700 |  |  | 3.944% |  | April 1, October 1
3.300% Senior Notes Due 2027 | 1,200 |  |  | 1,200 |  |  | 3.342% |  | April 1, October 1
5.100% Senior Notes Due 2035 | 500 |  |  | 500 |  |  | 5.127% |  | April 1, October 1
5.850% Senior Notes Due 2041 | 600 |  |  | 600 |  |  | 5.879% |  | June 15, December 15
4.350% Senior Notes Due 2047 | 1,000 |  |  | 1,000 |  |  | 4.361% |  | April 1, October 1
| 4,750 |  |  | 4,750 |  |  |  |  |
Total unamortized discount | (9) |  |  | (10) |  |  |  |  |
Total unamortized debt issuance costs | (26) |  |  | (27) |  |  |  |  |
Total long-term senior notes | $ | 4,715 |  |  | $ | 4,713 |  |  |  |  |
Revolving Credit Agreement | 1,500 |  |  | — |  |  |  |  |
Total long-term debt, net of current portion | $ | 6,215 |  |  | $ | 4,713 |  |  |  |  |
Total debt | $ | 6,815 |  |  | $ | 5,313 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration