Borrowings (Tables)

12 Months Ended

Oct. 31, 2019

Schedule of notes payable and short-term borrowings, including the current portion of long-term debt

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



	As of October 31,
	2019				2018
	Amount Outstanding		Weighted-Average Interest Rate		Amount Outstanding		Weighted-Average Interest Rate
	Dollars in millions
Current portion of long-term debt⁽¹⁾	$	3,441	4.1	%	$	1,196	2.2	%
FS Commercial paper	698		(0.1	)%	392		(0.2	)%
Notes payable to banks, lines of credit and other⁽²⁾	286		2.7	%	417		2.5	%
Total notes payable and short-term borrowings	$	4,425			$	2,005


(1)	As of October 31, 2019, Current portion of long-term debt includes $390 million associated with the Company issued asset-backed debt securities.

(2)

Notes payable to banks, lines of credit and other includes $204 million and $361 million at October 31, 2019 and 2018, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries.

Schedule of long-term debt

Long-Term Debt



	As of October 31,
	2019			2018
	In millions
Hewlett Packard Enterprise Senior Notes
$1,100 issued at discount to par at a price of 99.994% in September 2017 at 2.10%, paid October 4, 2019, interest payable semi-annually on April 4 and October 4 of each year	$	—		$	1,100
$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	3,000			3,000
$500 issued at par in September 2019 at three-month USD LIBOR plus 0.68% due March 12, 2021, interest payable quarterly on March 12, June 12, September 12 and December 12 of each year	500			—
$500 issued at discount to par at a price of 99.861% in September 2018 at 3.5%, due October 5, 2021, interest payable semi-annually on April 5 and October 5 of each year	500			499
$800 issued at par in September 2018 at three-month USD LIBOR plus 0.72% due October 5, 2021, interest payable semi-annually on April 5 and October 5 of each year	800			800
$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	1,349			1,348
$1,000 issued at discount to par at a price of 99.979% in September 2019 at 2.25%, due April 1, 2023, interest payable semi-annually on April 1 and October 1 of each year	1,000			—
$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	2,495			2,495
$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
Other, including capital lease obligations, at 0.00%-5.52%, due in calendar years 2019-2030⁽¹⁾	166			236
Asset backed securities⁽²⁾	763			—
Fair value adjustment related to hedged debt	61			(353		)
Unamortized debt issuance costs	(47		)	(42		)
Less: current portion	(3,441		)	(1,196		)
Total long-term debt	$	9,395		$	10,136

(1)

Other, including capital lease obligations includes $80 million and $131 million as of October 31, 2019 and 2018, 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.


(2)	In September 2019, the Company issued $763 million asset-backed debt securities in six tranches at a discount to par, at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019. For more information on the asset-backed debt securities, see Note 10 “Financing Receivables and Operating Leases”.

Schedule of interest expense on borrowings recognized in the Combined and Consolidated Statements of Earnings

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



		Fiscal years ended October 31,
Expense	Location	2019		2018		2017
		In millions
Financing interest	Financing interest	$	297	$	278	$	265
Interest expense	Interest and other, net	311		353		334
Total interest expense		$	608	$	631	$	599

Schedule of aggregate future maturities of long-term debt at face value

As of October 31, 2019, aggregate future maturities of the Company's long-term debt at face value (excluding a fair value adjustment related to hedged debt of $61 million and a net discount on debt issuance of $7 million), including capital lease obligations were as follows:



Fiscal year	In millions
2020	$	3,456
2021	2,078
2022	1,487
2023	1,017
2024	5
Thereafter	4,786
Total	$	12,829

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details