HP 2009 Annual Report Download - page 123

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 10: Financial Instruments (Continued)
Contractual maturities of short-term and long-term investments in available-for-sale securities at
October 31, 2009 were as follows:
Available-for-Sale
Securities
Estimated
Cost Fair Value
In millions
Due in less than one year ............................................ $ 55 $ 55
Due in 1-5 years .................................................. 26 26
Due in more than five years .......................................... 393 397
$474 $478
Proceeds from sales and maturities of available-for-sale and other securities were $171 million in
fiscal 2009. There were no realized gains or losses on available-for-sale and other securities in fiscal
2009. The specific identification method is used to account for gains and losses on available-for-sale
securities.
A summary of the carrying values and balance sheet classification of all short-term and long-term
investments in debt and equity securities at the following fiscal years ended October 31 was as follows:
2009 2008
In millions
Available-for-sale debt securities ......................................... $ 55 $ 93
Short-term investments ............................................... 55 93
Available-for-sale debt securities ......................................... 423 95
Available-for-sale equity securities ........................................ 5 5
Equity securities in privately-held companies ................................. 129 145
Marketable trading securities and other investments ........................... 13 280
Included in long-term financing receivables and other assets .................... 570 525
Total investments ..................................................... $625 $618
Equity securities in privately-held companies include cost basis and equity method investments.
Marketable trading securities and other investments consist primarily of marketable trading securities
held to generate returns that HP expects to offset changes in certain liabilities related to deferred
compensation arrangements. HP includes gains or losses from changes in fair value of these securities,
offset by losses or gains on the related liabilities, in Interest and other, net, in HP’s Consolidated
Statements of Earnings. The net losses associated with these securities were $14 million for fiscal 2009.
The net gains associated with these securities were $5 million for fiscal 2008.
Derivative Financial Instruments
On February 1, 2009, HP adopted the accounting standards related to derivative instruments and
hedging. The adoption requires additional disclosures about HP’s objectives and strategies for using
derivative instruments, the accounting for the derivative instruments and related hedged items and the
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