HP 2009 Annual Report Download - page 133

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Borrowings (Continued)
February 2008 credit facility expired in February 2009, at which time HP entered into a new $3.5 billion
364-day credit facility. HP terminated the July 2008 credit facility in June 2009, which reduced the total
amount available under its credit facilities to $6.4 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 $6.4 billion supported these credit facilities is subject to a number of factors, including liquidity
conditions and business performance.
HP also maintains uncommitted lines of credit from a number of financial institutions that are
available through various foreign subsidiaries. The amount available for use as of October 31, 2009 was
approximately $1.6 billion.
Included in Other, including capital lease obligations, are borrowings that are collateralized by
certain financing receivable assets. As of October 31, 2009, the carrying value of the assets
approximated the carrying value of the borrowings of $10 million.
At October 31, 2009, HP was able 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 $17.8 billion of available borrowing
resources, including $16.2 billion under its commercial paper programs, $6.4 billion of which is
supported by its credit facilities, and approximately $1.6 billion under other programs.
Aggregate future maturities of long-term debt at face value (excluding a fair value adjustment
related to hedged debt of $369 million, a premium on debt issuance of $56 million, and a discount on
debt issuance of $28 million) were as follows at October 31, 2009:
2010 2011 2012 2013 2014 Thereafter Total
In millions
Aggregate future maturities of debt
outstanding including capital lease
obligations ......................... $1,143 $2,121 $3,406 $2,654 $3,520 $1,882 $14,726
Interest expense on borrowings was approximately $597 million in fiscal 2009, $467 million in fiscal
2008, and $531 million in fiscal 2007.
Note 14: Taxes on Earnings
The domestic and foreign components of earnings were as follows for the following fiscal years
ended October 31:
2009 2008 2007
In millions
U.S. .................................................... $2,569 $ 2,232 $3,577
Non-U.S. ................................................ $6,846 $ 8,241 $5,600
$9,415 $10,473 $9,177
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