10-Q 1 avgo-20220130.htm 10-Q avgo-20220130
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MARK ONE)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Broadcom Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3844935-2617337
(State or other jurisdiction of
incorporation or organization)
(Commission file Number)
(I.R.S. Employer
Identification No.)
1320 Ridder Park Drive
San Jose,CA95131-2313
(408) 
433-8000
(Address, including zip code, of principal executive offices and
registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerþAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.001 par valueAVGOThe NASDAQ Global Select Market
8.00% Mandatory Convertible Preferred Stock, Series A, $0.001 par valueAVGOPThe NASDAQ Global Select Market

As of February 25, 2022, there were 408,281,170 shares of our common stock outstanding.




BROADCOM INC.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended January 30, 2022




PART I — FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements — Unaudited
BROADCOM INC.

1

BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
January 30,
2022
October 31,
2021
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents$10,219 $12,163 
Trade accounts receivable, net2,539 2,071 
Inventory1,520 1,297 
Other current assets1,063 1,055 
Total current assets15,341 16,586 
Long-term assets:
Property, plant and equipment, net2,303 2,348 
Goodwill43,450 43,450 
Intangible assets, net10,244 11,374 
Other long-term assets1,886 1,812 
Total assets$73,224 $75,570 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$1,078 $1,086 
Employee compensation and benefits531 1,066 
Current portion of long-term debt300 290 
Other current liabilities4,378 3,839 
Total current liabilities6,287 6,281 
Long-term liabilities:  
Long-term debt39,205 39,440 
Other long-term liabilities4,738 4,860 
Total liabilities50,230 50,581 
Commitments and contingencies (Note 10)
Preferred stock dividend obligation26 27 
Stockholders’ equity:
Preferred stock, $0.001 par value; 100 shares authorized; 8.00% Mandatory Convertible Preferred Stock, Series A, 4 shares issued and outstanding; aggregate liquidation value of $3,737 as of January 30, 2022 and October 31, 2021
  
Common stock, $0.001 par value; 2,900 shares authorized; 410 and 413 shares issued and outstanding as of January 30, 2022 and October 31, 2021, respectively
  
Additional paid-in capital23,083 24,330 
Retained earnings 748 
Accumulated other comprehensive loss(115)(116)
Total stockholders’ equity22,968 24,962 
Total liabilities and equity$73,224 $75,570 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
Fiscal Quarter Ended
January 30,
2022
January 31,
2021
(In millions, except per share data)
Net revenue:
Products$6,053 $5,081 
Subscriptions and services1,653 1,574 
Total net revenue7,706 6,655 
Cost of revenue:
Cost of products sold1,769 1,672 
Cost of subscriptions and services156 142 
Amortization of acquisition-related intangible assets730 874 
Restructuring charges2 15 
Total cost of revenue2,657 2,703 
Gross margin5,049 3,952 
Research and development1,206 1,211 
Selling, general and administrative321 339 
Amortization of acquisition-related intangible assets397 494 
Restructuring, impairment and disposal charges17 71 
Total operating expenses1,941 2,115 
Operating income3,108 1,837 
Interest expense(407)(570)
Other income (expense), net(14)117 
Income before income taxes2,687 1,384 
Provision for income taxes215 6 
Net income2,472 1,378 
Dividends on preferred stock(74)(74)
Net income attributable to common stock$2,398 $1,304 
Net income per share attributable to common stock:
Basic$5.82 $3.20 
Diluted$5.59 $3.05 
Weighted-average shares used in per share calculations:
Basic412 407 
Diluted429 428 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED
Fiscal Quarter Ended
January 30,
2022
January 31,
2021
(In millions)
Net income$2,472 $1,378 
Other comprehensive income, net of tax:
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans
1 1 
Other comprehensive income, net of tax1 1 
Comprehensive income$2,473 $1,379 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
Fiscal Quarter Ended
January 30,
2022
January 31,
2021
(In millions)
Cash flows from operating activities:
Net income$2,472 $1,378 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets1,151 1,395 
Depreciation136 138 
Stock-based compensation387 444 
Deferred taxes and other non-cash taxes70 (149)
Loss on debt extinguishment 172 
(Gain) loss on investments16 (119)
Non-cash interest expense32 22 
Other(1)10 
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net(468)(247)
Inventory(223)51 
Accounts payable 44 
Employee compensation and benefits(528)(375)
Other current assets and current liabilities521 408 
Other long-term assets and long-term liabilities(79)(59)
Net cash provided by operating activities3,486 3,113 
Cash flows from investing activities:
Purchases of property, plant and equipment(101)(114)
Purchases of investments(200) 
Other(8)(8)
Net cash used in investing activities(309)(122)
Cash flows from financing activities:
Proceeds from long-term borrowings 9,904 
Payments on debt obligations(255)(9,200)
Payments of dividends(1,764)(1,543)
Repurchases of common stock - repurchase program(2,724) 
Shares repurchased for tax withholdings on vesting of equity awards(375)(225)
Issuance of common stock1 35 
Other(4)(28)
Net cash used in financing activities(5,121)(1,057)
Net change in cash and cash equivalents(1,944)1,934 
Cash and cash equivalents at beginning of period12,163 7,618 
Cash and cash equivalents at end of period$10,219 $9,552 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5


BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY — UNAUDITED
Fiscal Quarter Ended January 30, 2022
8.00% Mandatory Convertible Preferred Stock
Common Stock Additional
Paid-in Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesPar Value
(In millions)
Balance as of October 31, 20214 $ 413 $ $24,330 $748 $(116)$24,962 
Net income— — — — — 2,472 — 2,472 
Other comprehensive income— — — — — — 1 1 
Dividends to common stockholders
— — — — — (1,689)— (1,689)
Dividends to preferred stockholders
— — — — — (74)— (74)
Common stock issued
— — 2  1 — — 1 
Stock-based compensation— — — — 387 — — 387 
Repurchases of common stock— — (4) (1,267)(1,457)— (2,724)
Shares repurchased for tax withholdings on vesting of equity awards
— — (1) (368)— — (368)
Balance as of January 30, 20224 $ 410 $ $23,083 $ $(115)$22,968 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6


BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY — UNAUDITED
Fiscal Quarter Ended January 31, 2021
8.00% Mandatory Convertible Preferred Stock
Common Stock Additional
Paid-in Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesPar Value
(In millions)
Balance as of November 1, 20204 $ 407 $ $23,982 $ $(108)$23,874 
Net income— — — — — 1,378 — 1,378 
Other comprehensive income— — — — — — 1 1 
Dividends to common stockholders
— — — — (164)(1,304)— (1,468)
Dividends to preferred stockholders— — — — — (74)— (74)
Common stock issued
— — 2  35 — — 35 
Stock-based compensation— — — — 444 — — 444 
Shares repurchased for tax withholdings on vesting of equity awards
— — (1) (217)— — (217)
Balance as of January 31, 20214 $ 408 $ $24,080 $ $(107)$23,973 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

BROADCOM INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Overview, Basis of Presentation and Significant Accounting Policies
Overview
Broadcom Inc. (“Broadcom”), a Delaware corporation, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. We develop semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. We have a history of innovation in the semiconductor industry and offer thousands of products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms. Our portfolio of infrastructure and security software is designed to modernize, optimize, and secure the most complex hybrid environments, enabling scalability, agility, automation, insights, resiliency and security. We also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our” and “us” mean Broadcom and its consolidated subsidiaries. We have two reportable segments: semiconductor solutions and infrastructure software.
Basis of Presentation
We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31 in a 52-week year and the first Sunday in November in a 53-week year. Our fiscal year ending October 30, 2022 (“fiscal year 2022”) is a 52-week fiscal year. The first quarter of our fiscal year 2022 ended on January 30, 2022, the second quarter ends on May 1, 2022 and the third quarter ends on July 31, 2022. Our fiscal year ended October 31, 2021 (“fiscal year 2021”) was also a 52-week fiscal year.
The accompanying condensed consolidated financial statements include the accounts of Broadcom and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The October 31, 2021 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in its Annual Report on Form 10-K for fiscal year 2021 as filed with the Securities and Exchange Commission. All intercompany transactions and balances have been eliminated in consolidation. The operating results for the fiscal quarter ended January 30, 2022 are not necessarily indicative of the results that may be expected for fiscal year 2022, or for any other future period.
Significant Accounting Policies
Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The inputs into certain of these estimates and assumptions include the consideration of the economic impact of the COVID-19 pandemic. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods. As the impact of the COVID-19 pandemic continues to develop, many of these estimates could require increased judgment and carry a higher degree of variability and volatility, and may change materially in future periods.
Recently Adopted Accounting Guidance
In October 2021, the Financial Accounting Standards Boards issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers, as if it had originated the contracts. We early adopted ASU 2021-08 at the beginning of fiscal year 2022 and it did not impact our condensed consolidated financial statements.
8

2. Revenue from Contracts with Customers
We account for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable we will collect substantially all of the consideration we are entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer.
Disaggregation
We have considered (1) information that is regularly reviewed by our Chief Executive Officer, who has been identified as the chief operating decision maker (the “CODM”) as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues. The principal category we use to disaggregate revenues is the nature of our products and subscriptions and services, as presented in our condensed consolidated statements of operations. In addition, revenues by reportable segment are presented in Note 9. “Segment Information”.
The following tables present revenue disaggregated by type of revenue and by region for the periods presented:
Fiscal Quarter Ended January 30, 2022
AmericasAsia PacificEurope, the Middle East and AfricaTotal
(In millions)
Products$548 $4,984 $521 $6,053 
Subscriptions and services (a)
1,109 128 416 1,653 
Total$1,657 $5,112 $937 $7,706 
Fiscal Quarter Ended January 31, 2021
AmericasAsia PacificEurope, the Middle East and AfricaTotal
(In millions)
Products$390 $4,320 $371 $5,081 
Subscriptions and services (a)
1,004 191 379 1,574 
Total$1,394 $4,511 $750 $6,655 
_______________
(a) Subscriptions and services predominantly include software licenses with termination for convenience clauses.
Although we recognize revenue for the majority of our products when title and control transfer in Penang, Malaysia, we disclose net revenue by region based primarily on the geographic shipment location or delivery location specified by our distributors, original equipment manufacturer customers, contract manufacturers, channel partners, or software customers.
Contract Balances
Contract assets and contract liabilities balances were as follows:
January 30,
2022
October 31,
2021
(In millions)
Contract Assets$105 $126 
Contract Liabilities$3,545 $3,185 
9

Changes in our contract assets and contract liabilities primarily result from the timing difference between our performance and the customer’s payment. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. We recognize a contract asset when we transfer products or services to a customer and the right to consideration is conditional on something other than the passage of time. Accounts receivable are recorded when the customer has been billed or the right to consideration is unconditional. We recognize contract liabilities when we have received consideration or an amount of consideration is due from the customer and we have a future obligation to transfer products or services. Contract liabilities include amounts billed or collected and advanced payments on contracts or arrangements, which may include termination for convenience provisions. The amount of revenue recognized during the fiscal quarter ended January 30, 2022 that was included in the contract liabilities balance as of October 31, 2021 was $1,216 million. The amount of revenue recognized during the fiscal quarter ended January 31, 2021 that was included in the contract liabilities balance as of November 1, 2020 was $1,132 million.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. Remaining performance obligations include unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, but do not include contracts for software, subscriptions or services where the customer is not committed. The customer is not considered committed when termination for convenience without payment of a substantive penalty exists, either contractually or through customary business practice. The majority of our customer software contracts include termination for convenience clauses without a substantive penalty and are not considered committed. Additionally, as a practical expedient, we have not included contracts that have an original duration of one year or less, nor have we included contracts with sales-based or usage-based royalties promised in exchange for a license of intellectual property (“IP”).
Certain multi-year customer contracts in our semiconductor solutions segment contain firmly committed amounts and the remaining performance obligations under these contracts as of January 30, 2022 were approximately $15.3 billion. We expect approximately 28% of this amount to be recognized as revenue over the next 12 months. Although the majority of our software contracts are not deemed to be committed, our customers generally do not exercise their termination for convenience rights. In addition, the majority of our contracts for products, subscriptions and services have a duration of one year or less. Accordingly, our remaining performance obligations disclosed above are not indicative of revenue for future periods.
3. Supplemental Financial Information
Cash Equivalents
Cash equivalents included $3,315 million and $4,668 million of time deposits and $1,080 million and $1,607 million of money-market funds as of January 30, 2022 and October 31, 2021, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds, which was consistent with their carrying value, was determined using unadjusted prices in active, accessible markets for identical assets, and as such, they were classified as Level 1 assets in the fair value hierarchy.
Accounts Receivable Factoring
We sell certain of our trade accounts receivable on a non-recourse basis to third-party financial institutions pursuant to factoring arrangements. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the condensed consolidated statements of cash flows. Total trade accounts receivable sold under the factoring arrangements were $1,200 million and $927 million during the fiscal quarters ended January 30, 2022 and January 31, 2021, respectively. Factoring fees for the sales of receivables were recorded in other income (expense), net and were not material for any of the periods presented.
Inventory
January 30,
2022
October 31,
2021
(In millions)
Finished goods$526 $423 
Work-in-process779 680 
Raw materials215 194 
Total inventory$1,520 $1,297 
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Other Current Assets
January 30,
2022
October 31,
2021
(In millions)
Prepaid expenses$579 $539 
Other (miscellaneous)484 516 
Total other current assets $1,063 $1,055 
Other Current Liabilities
January 30,
2022
October 31,
2021
(In millions)
Contract liabilities$3,027 $2,619 
Tax liabilities556 541 
Interest payable417 282 
Other (miscellaneous)378 397 
Total other current liabilities$4,378 $3,839 
Other Long-Term Liabilities
January 30,
2022
October 31,
2021
(In millions)
Unrecognized tax benefits$3,366 $3,407 
Other (miscellaneous)1,372 1,453 
Total other long-term liabilities$4,738 $4,860 
Supplemental Cash Flow Information
Fiscal Quarter Ended
January 30,
2022
January 31,
2021
(In millions)
Cash paid for interest$240 $372 
Cash paid for income taxes$186 $147 
11

4. Intangible Assets
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
(In millions)
As of January 30, 2022:   
Purchased technology$23,597 $(17,542)$6,055 
Customer contracts and related relationships8,335 (4,857)3,478 
Order backlog1,279 (1,085)194 
Trade names698 (316)382 
Other183 (75)108 
Intangible assets subject to amortization34,092 (23,875)10,217 
In-process research and development27 — 27 
Total$34,119 $(23,875)$10,244 
As of October 31, 2021:   
Purchased technology$23,932 $(17,148)$6,784 
Customer contracts and related relationships8,356 (4,533)3,823 
Order backlog2,579 (2,352)227 
Trade names787 (386)401 
Other239 (127)112 
Intangible assets subject to amortization35,893 (24,546)11,347 
In-process research and development27 — 27 
Total$35,920 $(24,546)$11,374 
Based on the amount of intangible assets subject to amortization at January 30, 2022, the expected amortization expense for each of the next five years and thereafter was as follows:
Fiscal Year:Expected Amortization Expense
(In millions)
2022 (remainder)$3,235 
20233,237 
20242,367 
2025659 
2026323 
Thereafter396 
Total$10,217 
The weighted-average remaining amortization periods by intangible asset category were as follows:
Amortizable intangible assets:January 30,
2022
(In years)
Purchased technology4
Customer contracts and related relationships3
Order backlog1
Trade names8
Other9

12

5. Net Income Per Share
Basic net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period.
Diluted shares outstanding include the dilutive effect of unvested restricted stock units (“RSUs”), in-the-money stock options and employee stock purchase plan rights under the Broadcom Inc. Employee Stock Purchase Plan, as amended (“ESPP”), (collectively referred to as “equity awards”), as well as Mandatory Convertible Preferred Stock, as defined in Note 7. “Stockholders’ Equity.” Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.
The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and purchasing shares under the ESPP and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares. The dilutive effect of Mandatory Convertible Preferred Stock is calculated using the if-converted method. The if-converted method assumes that these securities were converted at the beginning of the reporting period to the extent that the effect is dilutive.
For each of the fiscal quarters ended January 30, 2022 and January 31, 2021, diluted net income per share excluded the potentially dilutive effect of 12 million shares of common stock issuable upon the conversion of Mandatory Convertible Preferred Stock as their effect was antidilutive.
The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:
Fiscal Quarter Ended
January 30,
2022
January 31,
2021
(In millions, except per share data)
Numerator:
Net income$2,472 $1,378 
Dividends on preferred stock
(74)(74)
Net income attributable to common stock$2,398 $1,304 
Denominator:
Weighted-average shares outstanding - basic412 407 
Dilutive effect of equity awards17 21 
Weighted-average shares outstanding - diluted429 428 
Net income per share attributable to common stock:
Basic$5.82 $3.20 
Diluted$5.59 $3.05 

13

6. Borrowings
Effective Interest RateJanuary 30,
2022
October 31,
2021
(In millions, except percentages)
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 %1,965 1,965 
2,717 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 %2,679 2,679 
4.300% notes due November 2032
4.39 %2,000 2,000 
5,684 5,684 
April 2020 Senior Notes - fixed rate
4.700% notes due April 2025
4.88 %1,020 1,020 
5.000% notes due April 2030
5.18 %1,086 1,086 
2,106 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 %944 944 
4.750% notes due April 2029
4.95 %1,958 1,958 
3,524 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 
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 
14

Effective Interest RateJanuary 30,
2022
October 31,
2021
(In millions, except percentages)
Assumed CA Senior Notes - fixed rate
4.500% notes due August 2023
4.10 %143 143 
4.700% notes due March 2027
5.15 %265 265 
408 408 
Other borrowings
2.500% - 4.500% senior notes due August 2022 - August 2034
2.59% - 4.55%
22 22 
Total principal amount outstanding41,244 41,499 
Less: Unamortized discount and issuance costs(1,803)(1,834)
Total debt$39,441 $39,665 
As of January 30, 2022 and October 31, 2021, short-term finance lease liabilities of $31 million and $26 million, respectively, were included in the current portion of long-term debt and long-term finance lease liabilities of $33 million and $39 million, respectively, were included in long-term debt.
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. We had no borrowings outstanding under the Revolving Facility at either January 30, 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 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. We had no Commercial Paper outstanding at either January 30, 2022 or October 31, 2021.
Fair Value of Debt
As of January 30, 2022, the estimated aggregate fair value of debt was $41,558 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.
15

Future Principal Payments of Debt
The future scheduled principal payments of debt as of January 30, 2022 were as follows:
Fiscal Year:Future Scheduled Principal Payments
(In millions)
2022 (remainder)$9 
2023403 
20241,563 
20251,515 
20262,596 
Thereafter35,158 
Total$