HP 2010 Annual Report Download - page 117

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 10: Financial Instruments (Continued)
position for more than twelve months. HP does not intend to sell these debt securities, and it is not
likely that HP will be required to sell these debt securities prior to the recovery of the amortized cost.
HP determined the declines in value of certain investments to be other-than-temporary declines.
Accordingly, HP recorded impairments relating to credit losses of approximately $12 million in fiscal
2010, $24 million in fiscal 2009 and $27 million in fiscal 2008. HP includes these impairments in
Interest and other, net in the Consolidated Statements of Earnings. Depending on market and other
conditions, HP may record additional impairments with respect to its investment portfolio in the future.
Contractual maturities of short-term and long-term investments in available-for-sale debt securities
at October 31, 2010 were as follows:
October 31, 2010
Estimated
Cost Fair Value
In millions
Due in less than one year ............................................ $ 5 $ 5
Due in 1-5 years .................................................. 15 15
Due in more than five years .......................................... 392 420
$412 $440
Proceeds from sales and maturities of available-for-sale and other securities were $200 million and
$171 million in fiscal years 2010 and 2009, respectively. There were $8 million of gross realized gains
on total investments in fiscal 2010. There were no realized gains or losses on total investments 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 as of October 31, 2010 and October 31, 2009 was as follows:
October 31, October 31,
2010 2009
In millions
Time deposits ................................................ $ — $ 55
Available-for-sale debt securities ................................... 5 —
Short-term investments ........................................ 5 55
Time deposits ................................................ 8 —
Available-for-sale debt securities ................................... 427 423
Available-for-sale equity securities ................................. 9 5
Equity securities in privately-held companies .......................... 154 129
Other investments ............................................. 9 13
Included in long-term financing receivables and other assets ............. 607 570
Total investments .............................................. $612 $625
Equity securities in privately held companies include cost basis and equity method investments.
Other investments include marketable trading securities held to generate returns that HP expects to
109