Borrowings

9 Months Ended

Jul. 31, 2012

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:

	July 31, 2012					October 31, 2011
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	4,576		1.3	%	$	4,345		2.4	%
Commercial paper		574		0.9	%		3,215		0.4	%
Notes payable to banks, lines of credit and other		531		2.8	%		523		2.9	%
	$	5,681				$	8,083

        Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $357 million and $355 million at July 31, 2012 and October 31, 2011, respectively.

• Long-Term Debt

        Long-term debt was as follows:

	July 31, 2012			October 31, 2011
	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%, paid July 2012	$	—		$	500
2006 Shelf Registration Statement:
$600 issued at par in February 2007 at three-month USD LIBOR plus 0.11%, paid March 2012		—			600
$900 issued at discount to par at a price of 99.938% in February 2007 at 5.25%, paid March 2012		—			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			1,500
$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		1,997			1,996
$1,000 issued at discount to par at a price of 99.956% in February 2009 at 4.25%, paid February 2012		—			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:
$250 issued at discount to par at a price of 99.984% in May 2009 at 2.95%, paid 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		1,100			1,099
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,100			1,099
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			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			1,348
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, due May 2013		1,750			1,750
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500			500
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500			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			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			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			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			1,198
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014		350			350
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014		650			—
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		848			—
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,496			—
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			—
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			—
		26,079			24,082
EDS Senior Notes
$1,100 issued June 2003 at 6.0%, due August 2013		1,111			1,120
$300 issued October 1999 at 7.45%, due October 2029		314			315
		1,425			1,435
Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2012-2024		689			836
Fair value adjustment related to hedged debt		446			543
Less: current portion		(4,576	)		(4,345	)
Total long-term debt	$	24,063		$	22,551

        As disclosed in Note 8, 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 interest rates in the table above have not been adjusted to reflect the impact of any interest rate swaps.

        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 respective prospectus supplements relating thereto. The Global Notes are senior unsecured debt.

        In May 2012, HP filed a shelf registration statement (the "2012 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 2012 Shelf Registration Statement replaced the registration statement filed in May 2009.

        HP's Board of Directors has approved the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper, of which $500 million of capacity was available as of July 31, 2012 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 March 2017 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.

        Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of July 31, 2012, the carrying value of the assets approximated the carrying value of the borrowings of $219 million.

        As of July 31, 2012, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement. As of that date, HP also had up to approximately $17.4 billion of available borrowing resources, including $15.9 billion under its commercial paper programs and approximately $1.5 billion relating to uncommitted lines of credit.