HP 2010 Annual Report Download - page 69

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
our intent is that cash balances would remain outside of the United States and we would meet United
States liquidity needs through ongoing cash flows, external borrowings, or both. We utilize a variety of
tax planning and financing strategies in an effort to ensure that our worldwide cash is available in the
locations in which it is needed.
LIQUIDITY
We use cash generated by operations as our primary source of liquidity; we believe that internally
generated cash flows are generally sufficient to support business operations, capital expenditures and
the payment of stockholder dividends, in addition to a level of discretionary investments and share
repurchases. We are able to supplement this near-term liquidity, if necessary, with broad access to
capital markets and credit line facilities made available by various foreign and domestic financial
institutions. Our liquidity is subject to various risks including the market risks identified in the section
entitled ‘‘Qualitative and Quantitative Disclosures about Market Risk’’ in Item 7A.
For the fiscal years ended October 31
2010 2009 2008
In billions
Cash and cash equivalents ............................... $10.9 $13.3 $10.2
Total debt ........................................... $22.3 $15.8 $17.9
Available borrowing resources(1) ........................... $13.8 $18.1 $11.7
(1) In addition to these available borrowing resources, we are able 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 under a shelf registration statement filed with the SEC in May 2009
(the ‘‘2009 Shelf Registration Statement’’).
Our cash position remains strong, and we believe our cash balances and anticipated cash flow
generated from operations are sufficient to cover cash outlays expected in fiscal 2011.
On December 2, 2010, HP issued $2.0 billion of U.S. Dollar Global Notes under the 2009 Shelf
Registration Statement. The Global Notes were fixed rate notes at market rates with maturities of five
and ten years from the date of issuance.
Cash Flows
The following table summarizes the key cash flow metrics from our consolidated statements of
cash flow:
For the fiscal years ended October 31
2010 2009 2008
In millions
Net cash provided by operating activities ................... $11,922 $13,379 $ 14,591
Net cash used in investing activities ...................... (11,359) (3,580) (13,711)
Net cash used in financing activities ...................... (2,913) (6,673) (2,020)
Net increase (decrease) in cash and cash equivalents .......... $ (2,350) $ 3,126 $ (1,140)
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