HP 2008 Annual Report Download - page 76

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
At October 31, 2008, we had the following resources available to obtain short-term or long-term
financings if we need additional liquidity:
At October 31, 2008
Original amount
available Used Available
In millions
2002 Shelf Registration Statement(1)
Debt, U.S. global securities and up to $1,500 of Series B
Medium-Term Notes ............................... $ 3,000 $ 2,000 $ 1,000
Uncommitted lines of credit ............................. 2,600 1,400(2) 1,200
Commercial paper programs
U.S. ............................................ 16,000 6,960 9,040
Euro. ........................................... 500 186 314
$22,100 $10,546 $11,554
(1) We are unable to issue any additional securities under the 2002 Shelf Registration Statement as of
December 1, 2008.
(2) Approximately $863 million of this amount was recorded as debt as of October 31, 2008; the
remaining amount was used to satisfy business operational requirements.
In addition to the financing resources listed above, we had the additional borrowing resources
described below.
In May 2006, we filed a shelf registration statement (the ‘‘2006 Shelf Registration Statement’’) with
the SEC to enable us to offer and sell, from time to time, in one or more offerings, an unlimited
amount of debt securities, common stock, preferred stock, depositary shares and warrants.
We have a $2.9 billion U.S. credit facility expiring in May 2012. In February and July 2008, we
entered into additional 364-day credit facilities of $3.0 billion and $8.0 billion, respectively. The credit
facilities are senior unsecured committed borrowing arrangements that we put in place primarily to
support our U.S. commercial paper program. Under the terms of the July 2008 credit facility, the
amount of credit available declines in an amount equal to the proceeds of any future issuance of
long-term debt by us. On December 5, 2008, we issued $2.0 billion of global notes under the 2006 Shelf
Registration Statement, which resulted in a reduction in the amount of credit available under the July
2008 credit facility to $6.0 billion. Our ability to have a U.S. commercial paper outstanding balance that
exceeds the $11.9 billion supported by our credit facilities is subject to a number of factors, including
liquidity conditions and business performance.
In October 2008, we registered for the Commercial Paper Funding Facility (CPFF) provided by the
Federal Reserve Bank of New York. The facility enables us 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 we may issue at any time through this program is
$10.4 billion less the total principal amount of all other outstanding commercial paper that we have
issued. We will be unable to issue commercial paper under the program after April 30, 2009. As of
October 31, 2008, we had not issued any commercial paper under the CPFF program.
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