Borrowings (Tables)

9 Months Ended

Jul. 31, 2017

Debt Disclosure [Abstract]

Notes Payable and Short-term Borrowings

Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows:

	As of
	July 31, 2017				October 31, 2016
	Amount Outstanding		Weighted-Average Interest Rate		Amount Outstanding		Weighted-Average Interest Rate
	Dollars in millions
Current portion of long-term debt	$	1,221	2.6	%	$	2,772	1.7	%
FS Commercial paper	375		—	%	326		0.1	%
Notes payable to banks, lines of credit and other(1)	473		2.3	%	429		2.0	%
Total notes payable and short-term borrowings	$	2,069			$	3,527

(1) Notes payable to banks, lines of credit and other includes $418 million and $381 million at July 31, 2017 and October 31, 2016, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries.

Long-Term Debt

Long-Term Debt

	As of
	July 31, 2017			October 31, 2016
	In millions
Hewlett Packard Enterprise Senior Notes(1)
$2,250 issued at discount to par at a price of 99.944% in October 2015 at 2.45%, due October 5, 2017, interest payable semi-annually on April 5 and October 5 of each year	$	750		$	2,249
$2,650 issued at discount to par at a price of 99.872% in October 2015 at 2.85%, due October 5, 2018, interest payable semi-annually on April 5 and October 5 of each year	2,648			2,648
$3,000 issued at discount to par at a price of 99.972% in October 2015 at 3.6%, due October 15, 2020, interest payable semi-annually on April 15 and October 15 of each year	2,999			2,999
$1,350 issued at discount to par at a price of 99.802% in October 2015 at 4.4%, due October 15, 2022, interest payable semi-annually on April 15 and October 15 of each year	1,348			1,348
$2,500 issued at discount to par at a price of 99.725% in October 2015 at 4.9%, due October 15, 2025, interest payable semi-annually on April 15 and October 15 of each year	2,494			2,494
$750 issued at discount to par at a price of 99.942% in October 2015 at 6.2%, due October 15, 2035, interest payable semi-annually on April 15 and October 15 of each year	750			750
$1,500 issued at discount to par at a price of 99.932% in October 2015 at 6.35%, due October 15, 2045, interest payable semi-annually on April 15 and October 15 of each year	1,499			1,499
$350 issued at par in October 2015 at three-month USD LIBOR plus 1.74%, due October 5, 2017, interest payable quarterly on January 5, April 5, July 5 and October 5 of each year	350			350
$250 issued at par in October 2015 at three-month USD LIBOR plus 1.93%, due October 5, 2018, interest payable quarterly on January 5, April 5, July 5 and October 5 of each year	250			250
Seattle SpinCo Inc. Term Loan
$2,600 issued at discount to par at a price of 99.750% in June 2017 at three-month LIBOR plus 2.75%, due June 21, 2024, interest payable quarterly	2,594			—
Other, including capital lease obligations, at 0.00%-6.05%, due in calendar years 2017-2021(2)	213			300
Fair value adjustment related to hedged debt	(99		)	103
Unamortized debt issuance costs(3)	(48		)	(50		)
Less: current portion	(1,221		)	(2,772		)
Total long-term debt	$	14,527		$	12,168

(1) The Company may redeem some or all of the fixed-rate Hewlett Packard Enterprise Senior Notes at any time in accordance with the terms thereof.

(2) Other, including capital lease obligations includes $147 million and $181 million as of July 31, 2017 and October 31, 2016, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings.

(3) In April 2015, the FASB issued ASU 2015-03, which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. During the first quarter of fiscal 2017, the Company adopted the standard retrospectively for the prior period presented.

Interest Expense on Borrowings Recognized in the Condensed Consolidated and Combined Statements of Earnings

Interest expense on borrowings recognized in the Condensed Consolidated Statements of Earnings was as follows:

		Three months ended July 31,				Nine months ended April 30,
Expense	Location	2017		2016		2017		2016
		In millions
Financing interest	Financing interest	$	66	$	64	$	197	$	183
Interest expense	Interest and other, net	98		73		267		225
Total interest expense		$	164	$	137	$	464	$	408

Available Borrowing Resources

The Company had the following resources available to obtain short- or long-term additional liquidity if needed:

	As of July 31, 2017
	In millions
Commercial paper programs	$	4,125
Uncommitted lines of credit	$	1,814