HP 2010 Annual Report Download - page 72

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
at the end of fiscal 2010. Our debt-equity ratio decreased by 0.07x in fiscal 2009 due primarily to the
net repayment of $2.0 billion in debt.
Our weighted-average interest rate reflects the average effective rate on our borrowings prevailing
during the year; it factors in the impact of swapping some of our global notes with fixed interest rates
for global notes with floating interest rates. For more information on our interest rate swaps, see
Note 10 to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
The lower weighted-average interest rates over the past three years is a result of the combination of
lower market interest rates and swapping some of our fixed interest obligations associated with some of
our fixed global notes for variable rate obligations through interest rate swaps in a declining rates
environment.
For more information on our borrowings, see Note 13 to the Consolidated Financial Statements in
Item 8, which is incorporated herein by reference.
Available Borrowing Resources
At October 31, 2010, we had the following resources available to obtain short-term or long-term
financings if we need additional liquidity:
At October 31, 2010
In millions
2009 Shelf Registration Statement(1) .................................... Unspecified
Commercial paper programs(1) ........................................ $12,100
Uncommitted lines of credit(1) ........................................ $ 1,500
Revolving trade receivables-based facilities(2) .............................. $ 175
(1) For more information on our available borrowings resources, see Note 13 to the Consolidated
Financial Statements in Item 8, which is incorporated herein by reference.
(2) For more information on our revolving trade receivables-based facilities, see Note 4 to the
Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Credit Ratings
Our credit risk is evaluated by three independent rating agencies based upon publicly available
information as well as information obtained in our ongoing discussions with them. The ratings for the
fiscal year ended October 31, 2010 were:
For the fiscal year ended October 31, 2010
Standard & Poor’s Moody’s Investors Fitch Ratings
Ratings Services Service Services
Short-term debt ratings ....................... A-1 Prime-1 F1
Long-term debt ratings ....................... A A2 A+
We do not have any rating downgrade triggers that would accelerate the maturity of a material
amount of our debt. However, a downgrade in our credit rating would increase the cost of borrowings
under our credit facilities. Also, a downgrade in our credit rating could limit our ability to issue
commercial paper under our current programs. If this occurs, we would seek alternative sources of
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