HP 2011 Annual Report Download - page 73

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
of $3.0 billion of U.S Dollar Global Notes and a $4 billion net increase in commercial paper at the end
of fiscal 2010.
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 rate 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.
On December 9, 2011, HP issued $3 billion of U.S. Dollar Global Notes under the 2009 Shelf
Registration Statement. The Global Notes consisted of fixed rate notes at market rates with maturities
of three, five and ten years from the date of issuance.
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, 2011, we had the following resources available to obtain short-term or long-term
financings if we need additional liquidity:
At October 31, 2011
In millions
2009 Shelf Registration Statement(1) .................................... Unspecified
Commercial paper programs(1) ........................................ $13,285
364-day senior unsecured bridge term loan agreement(1)(2) .................... $ 3,604
Uncommitted lines of credit(1) ........................................ $ 1,300
Revolving trade receivables-based facilities(3) .............................. $ 701
(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) The 364-day senior unsecured bridge term loan agreement was terminated in November 2011.
(3) 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 as of
October 31, 2011 were:
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+
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