Borrowings

12 Months Ended

Oct. 31, 2011

Borrowings

Borrowings

Note 13: Borrowings

• Notes Payable and Short-Term Borrowings

        Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows for the following fiscal years ended October 31:

	2011					2010
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions
Commercial paper	$	3,215		0.4	%	$	4,432		0.3	%
Current portion of long-term debt		4,345		2.4	%		2,216		2.2	%
Notes payable to banks, lines of credit and other		523		2.9	%		398		1.5	%
	$	8,083				$	7,046

        Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $355 million and $348 million at October 31, 2011 and 2010, respectively.

• Long-Term Debt

        Long-term debt was as follows for the following fiscal years ended October 31:

			2011			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		1,500			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		1,996			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
		$1,000 issued at discount to par at a price of 99.967% in May 2009 at 2.25%, paid May 2011		—			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 at a price of 99.921% in September 2010 at 1.25% due September 2013		1,099			1,099
		$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125% due September 2015		1,099			1,099
		$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2% due December 2015		650			—
		$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75% due December 2020		1,348			—
		$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, due May 2013		1,750			—
		$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500			—
		$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500			—
		$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			—
		$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			—
		$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			—
		$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0% , due September 2016		1,297			—
		$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375% due September 2021		998			—
		$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0% due September 2041		1,198			—
		$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014		350			—
				24,082			14,515
EDS Senior Notes
	$1,100 issued June 2003 at 6.0%, due August 2013			1,120			1,130
	$300 issued October 1999 at 7.45%, due October 2029			315			315
				1,435			1,445
Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2012-2024				836			845
Fair value adjustment related to hedged debt				543			669
Less: current portion				(4,345	)		(2,216	)
Total long-term debt			$	22,551		$	15,258

        As disclosed in Note 10 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.

        HP's Board of Directors has approved a $16.0 billion U.S. commercial paper program. 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 that expires in May 2012 and a $4.5 billion four-year credit facility that expires in February 2015. 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.

        In August 2011, HP entered in to a new £5.0 billion ($8.1 billion) 364-day senior unsecured bridge term loan agreement (the "Bridge Facility") to support the funding of the Autonomy acquisition. Under the terms of the Bridge Facility, the amount of credit available declines in an amount equal to the proceeds of any future issuance by HP of certain equity securities or the incurrence by HP of certain indebtedness. As of October 31, 2011, £2.2 billion ($3.6 billion) in borrowing capacity remained available under the Bridge Facility. The Bridge Facility was terminated in November 2011.

        Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of October 31, 2011, the carrying value of the assets approximated the carrying value of the borrowings of $247 million.

        As of October 31, 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 $14.6 billion of available borrowing resources, including $13.3 billion under its commercial paper programs, approximately $1.3 billion relating to uncommitted lines of credit, and £2.2 billion ($3.6 billion) under the Bridge Facility.

        Aggregate future maturities of long-term debt at face value (excluding a fair value adjustment related to hedged debt of $543 million, a premium on debt issuance of $35 million, and a discount on debt issuance of $21 million) were as follows at October 31, 2011:

	2012		2013		2014		2015		2016		Thereafter		Total
	In millions
Aggregate future maturities of debt outstanding including capital lease obligations	$	4,312	$	5,685	$	5,067	$	1,858	$	2,955	$	6,462	$	26,339

        Interest expense on borrowings was approximately $551 million in fiscal 2011, $417 million in fiscal 2010 and $597 million in fiscal 2009.

Subsequent Event

        On December 9, 2011, HP issued $3 billion of U.S. Dollar Global Notes under the 2009 Shelf Registration Statement. The Global Notes consisted of fixed rate notes at market rates with maturities of three, five and ten years from the date of issuance.