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Borrowings
6 Months Ended
Apr. 30, 2011
Borrowings  
Borrowings

Note 11: Borrowings

  • Notes Payable and Short-Term Borrowings

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

 
  April 30, 2011   October 31, 2010  
 
  Amount
Outstanding
  Weighted-
Average
Interest
Rate
  Amount
Outstanding
  Weighted-
Average
Interest
Rate
 
 
  In millions
 

Current portion of long-term debt

  $ 4,502     2.1 % $ 2,216     2.2 %

Commercial paper

    3,405     0.3 %   4,432     0.3 %

Notes payable to banks, lines of credit and other

    499     2.9 %   398     1.5 %
                       

 

  $ 8,406         $ 7,046        
                       

        Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $388 million and $348 million at April 30, 2011 and October 31, 2010, respectively.

  • Long-Term Debt

        Long-term debt was as follows:

 
  April 30,
2011
  October 31,
2010
 
 
  In millions
 

U.S. Dollar Global Notes

             
 

2002 Shelf Registration Statement:

             
   

$500 issued at discount to par at a price of 99.505% in June 2002 at 6.5%, due July 2012

  $ 500   $ 500  
 

2006 Shelf Registration Statement:

             
   

$600 issued at par in February 2007 at three-month USD LIBOR plus 0.11%, due March 2012

    600     600  
   

$900 issued at discount to par at a price of 99.938% in February 2007 at 5.25%, due March 2012

    900     900  
   

$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017

    499     499  
   

$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, due March 2013

    1,499     1,499  
   

$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018

    750     750  
   

$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014

    1,995     1,994  
   

$275 issued at par in February 2009 at three-month USD LIBOR plus 1.75%, paid February 2011

        275  
   

$1,000 issued at discount to par at a price of 99.956% in February 2009 at 4.25%, due February 2012

    1,000     1,000  
   

$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014

    1,500     1,500  
 

2009 Shelf Registration Statement:

             
   

$750 issued at par in May 2009 at three-month USD LIBOR plus 1.05%, paid May 2011

    750     750  
   

$1,000 issued at discount to par at a price of 99.967% in May 2009 at 2.25%, paid May 2011

    1,000     1,000  
   

$250 issued at discount to par at a price of 99.984% in May 2009 at 2.95%, due August 2012

    250     250  
   

$800 issued at par in September 2010 at three-month USD LIBOR plus 0.125%, due September 2012

    800     800  
   

$1,100 issued at discount to par of 99.921% in September 2010 at 1.25% due September 2013

    1,099     1,099  
   

$1,100 issued at discount to par of 99.887% in September 2010 at 2.125% due September 2015

    1,099     1,099  
   

$650 issued at discount to par of 99.911% in December 2010 at 2.2% due December 2015

    649      
   

$1,350 issued at discount to par of 99.827% in December 2010 at 3.75% due December 2020

    1,347      
           

 

    16,237     14,515  
           

EDS Senior Notes

             
 

$1,100 issued June 2003 at 6.0%, due August 2013

    1,125     1,130  
 

$300 issued October 1999 at 7.45%, due October 2029

    315     315  
           

 

    1,440     1,445  
           

Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2011-2024

    867     845  

Fair value adjustment related to hedged debt

    470     669  

Less: current portion

    (4,502 )   (2,216 )
           

Total long-term debt

  $ 14,512   $ 15,258  
           

        As disclosed in Note 8 to the Consolidated Financial Statements, HP uses interest rate swaps to mitigate the market risk exposures in connection with certain fixed interest global notes to achieve primarily U.S. dollar LIBOR-based floating interest expense. The table above does not reflect the interest rate swap impact on the interest rate.

        HP may redeem some or all of the Global Notes set forth in the above table at any time at the redemption prices described in the prospectus supplements relating thereto. The Global Notes are senior unsecured debt.

        In May 2009, HP filed a shelf registration statement (the "2009 Shelf Registration Statement") with the SEC to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2009 Shelf Registration Statement replaced other registration statements filed in March 2002 and May 2006.

        In May 2008, HP's Board of Directors approved an increase in the capacity of HP's U.S. commercial paper program by $10.0 billion to $16.0 billion. HP's subsidiaries are authorized to issue up to an additional $1.0 billion of commercial paper, of which $500 million of capacity is currently available to be used by Hewlett-Packard International Bank PLC, a wholly-owned subsidiary of HP, for its Euro Commercial Paper/Certificate of Deposit Programme.

        HP has a $3.0 billion five-year credit facility expiring in May 2012. In February 2010, HP entered into a $3.5 billion 364-day credit facility. The February credit facility expired in February 2011, at which time HP entered into a new $4.5 billion four-year credit facility, increasing the total amount available under its credit facilities to $7.5 billion. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. The credit facilities are senior unsecured committed borrowing arrangements primarily to support the issuance of U.S. commercial paper. HP's ability to have a U.S. commercial paper outstanding balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance.

        Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of April 30, 2011, the carrying value of the assets approximated the carrying value of the borrowings of $250 million.

        As of April 30, 2011, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2009 Shelf Registration Statement. As of that date, HP also had up to approximately $14.4 billion of available borrowing resources, including $13.0 billion under its commercial paper programs and approximately $1.4 billion relating to uncommitted lines of credit.

  • Subsequent Event

        On May 31, 2011, HP issued $5.0 billion of U.S. Dollar Global Notes under the 2009 Shelf Registration Statement. The Global Notes consisted of floating rate notes with maturities of two and three years from the date of issuance and fixed rate notes at market rates with maturities of three, five and ten years from the date of issuance.