Note 17: Commitments

Lease Commitments

HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine maintenance and include renewal options and escalation clauses. Rent expense was approximately $1.0 billion in fiscal 2014, 2013 and 2012.

Property under capital leases comprised primarily of equipment and furniture. Capital lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were $229 million and $437 million as of October 31, 2014 and October 31, 2013, respectively. Accumulated depreciation on the property under capital lease was $207 million and $404 million as of October 31, 2014 and October 31, 2013, respectively.

As of October 31, 2014, future minimum lease commitments were as follows:

	Operating Lease
	In millions
Fiscal year
2015	$	744
2016		555
2017		416
2018		308
2019		237
Thereafter		804
Less: Sublease rental income		(63	)

Total	$	3,001

Unconditional Purchase Obligations

At October 31, 2014, HP had unconditional purchase obligations of approximately $2.1 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. These unconditional purchase obligations are related principally to inventory and other items. Unconditional purchase obligations exclude agreements that are cancelable without penalty.

As of October 31, 2014, future unconditional purchase obligations were as follows:

	2015		2016		2017		2018		2019		Thereafter		Total
	In millions
Unconditional purchase obligations	$	1,383	$	289	$	229	$	212	$	—	$	—	$	2,113