HP 2015 Annual Report Download - page 78

Table of Contents
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Amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs, although a portion of those amounts may from time to time
be subject to short-term intercompany loans into the U.S. Most of the amounts held outside of the U.S. could be repatriated to the U.S. but, under current law,
some would be subject to U.S. federal income taxes, less applicable foreign tax credits. Repatriation of some foreign earnings is restricted by local law.
Except for foreign earnings that are considered indefinitely reinvested outside of the U.S., we have provided for the U.S. federal tax liability on these earnings
for financial statement purposes. Repatriation could result in additional income tax payments in future years. Where local restrictions prevent an efficient
intercompany transfer of funds, our intent is that cash balances would remain outside of the U.S. and we would meet liquidity needs through ongoing cash
flows, external borrowings, or both. We do not expect restrictions or potential taxes incurred on repatriation of amounts held outside of the U.S. to have a
material effect on our overall liquidity, financial condition or results of operations.
In connection with the Separation, we reviewed our capital structure during fiscal 2015 to ensure that each company, HP Inc. and Hewlett Packard
Enterprise, would be well capitalized after the Separation. In October 2015, prior to the Separation, Hewlett Packard Enterprise completed its offering of
$14.6 billion senior unsecured notes and we redeemed and paid $6.6 billion of U.S. Dollar Global Notes as a result of early extinguishment of debt. In
connection with our ongoing operations and in part due to the Separation, we repaid a short-term loan of $3.5 billion, issued $18.2 billion and repaid
$18.4 billion of commercial paper in fiscal 2015. On November 4, 2015, we incrementally redeemed and paid $2.1 billion U.S. Dollar Global Notes as part of
the final settlement of the debt redemption issued as a part of the Separation.
Liquidity
Our cash and cash equivalents, total debt and available borrowing resources were as follows:
Our key cash flow metrics were as follows:
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     
   
Cash and cash equivalents $ 17.4 $ 15.1 $ 12.2
Total debt $ 24.7 $ 19.5 $ 22.6
Available borrowing resources(1) $ 19.0 $ 17.8 $ 17.8
(1) For more information on our available borrowing resources, see Note 13 to the Consolidated Financial Statements in Item 8, which is
incorporated herein by reference.
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     
   
Net cash provided by operating activities $ 6,490 $ 12,333 $ 11,608
Net cash used in investing activities (5,534) (2,792) (2,803)
Net cash provided by (used in) financing activities 1,344 (6,571) (7,943)
Net increase in cash and cash equivalents $ 2,300 $ 2,970 $ 862
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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