HP 2009 Annual Report Download - page 132

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Borrowings (Continued)
2009 2008
In millions
EDS Senior Notes
$700 issued October 1999 at 7.125%, due October 2009 ................... — 712
$1,100 issued June 2003 at 6.0%, due August 2013 ....................... 1,140 1,150
$300 issued October 1999 at 7.45%, due October 2029 .................... 315 316
1,455 2,178
Other, including capital lease obligations, at 3.75%-8.63%, due in calendar year
2009-2029 and at 3.75%-8.63%, due in calendar year 2008-2029 ............. 785 597
Fair value adjustment related to hedged debt ............................ 369 78
Less: current portion .............................................. (1,143) (2,674)
Total long-term debt .............................................. $13,980 $ 7,676
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.
HP registered the sale of up to $3.0 billion of debt or global securities, common stock, preferred
stock, depositary shares and warrants under a shelf registration statement in March 2002 (the ‘‘2002
Shelf Registration Statement’’). The 2002 Shelf Registration Statement expired on December 1, 2008,
and, accordingly, HP is no longer able to issue any additional securities under this registration
statement.
In May 2009, HP filed a shelf registration statement (the ‘‘2009 Shelf Registration Statement’’)
with the Securities and Exchange Commission (‘‘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 a
similar registration statement filed in May 2006 that expired in May 2009.
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.
In October 2008, HP registered for the Commercial Paper Funding Facility (‘‘CPFF’’) provided by
the Federal Reserve Bank of New York. The facility enables HP to issue three-month unsecured
commercial paper through a special purpose vehicle of the Federal Reserve at a rate established by the
CPFF program, which is currently equal to a spread over the three-month overnight index swap rate.
The maximum amount of commercial paper that HP may issue at any time through this program is
$10.4 billion less the total principal amount of all other outstanding commercial paper that HP has
issued. The CPFF program is currently scheduled to expire on February 1, 2010. As of October 31,
2009, HP had not issued any commercial paper under the CPFF program.
HP has a $2.9 billion five-year credit facility expiring in May 2012. In February and July 2008, HP
entered into additional 364-day credit facilities of $3.0 billion and $8.0 billion, respectively. The
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