Borrowings (Tables)

3 Months Ended

Feb. 02, 2020



	February 2, 2020						November 3, 2019
	Effective Interest Rate			Aggregate Principal Amount			Effective Interest Rate			Aggregate Principal Amount

	(In millions)
2020 Term Loans - floating rate
LIBOR plus 1.125% term loan due through November 2022	3.13	%		$	7,750					$	—
LIBOR plus 1.250% term loan due through November 2024	3.14	%		7,750						—
				15,500						—
2019 Senior Notes - fixed rate
3.125% notes due April 2021	3.61	%		2,000			3.61	%		2,000
3.125% notes due October 2022	3.53	%		1,500			3.53	%		1,500
3.625% notes due October 2024	3.98	%		2,000			3.98	%		2,000
4.250% notes due April 2026	4.54	%		2,500			4.54	%		2,500
4.750% notes due April 2029	4.95	%		3,000			4.95	%		3,000
				11,000						11,000
2019 Term Loans - floating rate
LIBOR plus 1.250% term loan due through May 2024	3.10	%		300			3.36	%		800
LIBOR plus 1.375% term loan due through May 2026	3.19	%		300			3.45	%		800
				600						1,600
2017 Senior Notes - fixed rate
2.375% notes due January 2020				—			2.62	%		2,750
2.200% notes due January 2021	2.41	%		750			2.41	%		750
3.000% notes due January 2022	3.21	%		3,500			3.21	%		3,500
2.650% notes due January 2023	2.78	%		1,000			2.78	%		1,000
3.625% notes due January 2024	3.74	%		2,500			3.74	%		2,500
3.125% notes due January 2025	3.23	%		1,000			3.23	%		1,000
3.875% notes due January 2027	4.02	%		4,800			4.02	%		4,800
3.500% notes due January 2028	3.60	%		1,250			3.60	%		1,250
				14,800						17,550
Assumed CA Senior Notes - fixed rate
5.375% notes due December 2019				—			3.43	%		750
3.600% notes due August 2022	4.07	%		500			4.07	%		500
4.500% notes due August 2023	4.10	%		250			4.10	%		250
4.700% notes due March 2027	5.15	%		350			5.15	%		350
				1,100						1,850

Commercial paper	2.27	%	^(a)	2,000			2.55	%	^(a)	1,000
1.375% convertible notes due January 2020				—			0.63	%		37
2.500% - 4.500% senior notes due August 2022 - August 2034	2.59% - 4.55%			22			2.59% - 4.55%			22
Total principal amount outstanding				45,022						33,059
Less: Unaccreted net discount and unamortized debt issuance costs				(359		)				(261		)
Total debt				$	44,663					$	32,798

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(a) Represents the weighted average interest rate on outstanding commercial paper for each of the periods presented.

As of February 2, 2020, $11 million and $44 million of short-term and long-term finance lease liabilities were included in the current portion of long-term debt and long-term debt, respectively, on the condensed consolidated balance sheet.

2020 Term Loans

On November 4, 2019, in connection with the Symantec Asset Purchase, we entered into a credit agreement (the “2020 Credit Agreement”), which provides for a $7,750 million unsecured term A-3 facility and a $7,750 million unsecured term A-5 facility, collectively referred to as the “2020 Term Loans”. Interest on our 2020 Term Loans is based on a floating rate and is payable monthly. We used $10.7 billion of the net proceeds from the 2020 Term Loans to fund the Symantec Asset Purchase. During the fiscal quarter ended February 2, 2020, we also used the net proceeds to pay off $750 million principal amount of 5.375% notes due December 1, 2019 and $2,750 million principal amount of 2.375% notes due January 15, 2020, on their respective maturity dates. Our obligations under the 2020 Credit Agreement are guaranteed on an unsecured basis by Broadcom Corporation (“BRCM”) and Broadcom Technologies Inc. (“BTI”).

2019 Term Loans

In January 2020, we repaid $500 million of each of our unsecured term A-5 and A-7 facilities, collectively referred to as the “2019 Term Loans”, under the credit agreement entered into in May 2019 (the “2019 Credit Agreement), using net proceeds from Commercial Paper, as defined below.

The 2019 Credit Agreement provides for a five-year $5 billion unsecured revolving facility (the “Revolving Facility”), of which $500 million was 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 2019 Credit Agreement, we are permitted to borrow, repay and reborrow revolving loans at any time, prior to the earlier of (a) May 2024 or (b) the date of termination, in whole of the revolving lenders’ commitments under the 2019 Credit Agreement in accordance with the terms thereof. As of February 2, 2020 and November 3, 2019, 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. As of February 2, 2020 and November 3, 2019, we had $2 billion and $1 billion, respectively, of Commercial Paper outstanding with maturities generally less than seventy-five days. As our commercial paper program is supported by the Revolving Facility, we have the ability and intent to continuously refinance our Commercial Paper with newly issued Commercial Paper upon maturity. As a result, we have recorded Commercial Paper, net of discount, as long-term debt. 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.

Fair Value of Debt

As of February 2, 2020, the estimated aggregate fair value of debt was $46,381 million. The fair value of our senior notes was determined using quoted prices from less active markets. The estimated fair value of our 2019 and 2020 Term Loans approximated carrying value due to their floating interest rates and consistency in our credit ratings. The estimated fair value of our Commercial Paper approximated its carrying value due to the short-term nature of these borrowings. 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 February 2, 2020 were as follows:

Schedule of future principal payments of debt

The future scheduled principal payments of debt as of February 2, 2020 were as follows:



Fiscal Year:	Future Scheduled Principal Payments
	(In millions)
2020 (remainder)	$	3,162
2021	4,300
2022	7,059
2023	7,644
2024	5,582
Thereafter	17,275
Total	$	45,022