HP 2005 Annual Report Download - page 98

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 8: Financial Instruments
Investments in Debt and Equity Securities
Investments in available-for-sale debt and equity securities at fair value were as follows for the
following fiscal years ended October 31:
2005 2004
Gross Gross Estimated Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Estimated
Cost Gains Losses Value Cost Gains Losses Fair Value
In millions
Available-for-Sale Securities
Debt securities:
Repurchase agreements ...... $— $— $— $ — $ 70 $— $— $ 70
Time deposits ............. 3 — — 3 241 — — 241
Corporate debt ............ 15 — — 15 — — — —
Other debt securities ........ 18 — — 18 22 — — 22
Total debt securities .......... 36 — — 36 333 — — 333
Equity securities in public
companies ................ 30 38 (4) 64 35 40 (5) 70
$66 $38 $(4) $100 $368 $40 $(5) $403
Corporate debt consist primarily of loans to the other companies that are guaranteed by standby
letters of credit issued by third party banks. Equity securities in public companies are primarily
common stock.
HP estimated the fair values based on quoted market prices or pricing models using current
market rates. These estimated fair values may not be representative of actual values that could have
been realized as of year-end or that will be realized in the future.
The gross unrealized losses as of October 31, 2005 and 2004 were associated with investments in
public equity securities with a fair value of $10 million and $9 million, respectively, and have been in a
continuous loss position for fewer than 12 months.
Contractual maturities of available-for-sale debt securities were as follows at October 31, 2005:
Available-for-Sale
Securities
Estimated
Cost Fair Value
In millions
Due in less than one year ........................................... $18 $18
Due in 1-5 years .................................................. 18 18
$36 $36
Proceeds from sales or maturities of available-for-sale and other securities were $2.1 billion in
fiscal 2005, $4.3 billion in fiscal 2004 and $875 million in fiscal 2003. The gross realized gains and losses
totaled $31 million and $1 million, respectively, in fiscal 2005. Gross realized gains and losses totaled
94