HP 2012 Annual Report Download - page 137

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 13: Borrowings (Continued)
paper issued under those programs at any one time cannot exceed the $16.0 billion Board
authorization. The HP subsidiary’s Euro Commercial Paper/Certificate of Deposit Programme provides
for the issuance of commercial paper in various currencies of up to a maximum aggregate principal
amount of $500 million.
HP maintains senior unsecured committed credit facilities primarily to support the issuance of
commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a
$4.5 billion four-year credit facility that expires in February 2015. Both facilities support the U.S.
commercial paper program, and the five-year credit facility was amended in September 2012 to also
support the euro commercial paper program. The amounts available under the five-year credit facility
in euros and pounds sterling are limited to the U.S. Dollar equivalent of $2.2 billion and $300 million,
respectively. Commitment fees, interest rates and other terms of borrowing under the credit facilities
vary based on HP’s external credit ratings. HP’s ability to have a U.S. commercial paper outstanding
balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of
factors, including liquidity conditions and business performance.
Within Other, including capital lease obligations, are borrowings that are collateralized by certain
financing receivable assets. As of October 31, 2012, the carrying value of the assets approximated the
carrying value of the borrowings of $225 million.
As of October 31, 2012, HP had the capacity to issue an unspecified amount of additional debt
securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf
Registration Statement. As of that date, HP also had up to approximately $17.4 billion of available
borrowing resources, including $16.1 billion in authorized capacity under its commercial paper
programs and approximately $1.3 billion relating to uncommitted lines of credit. The extent to which
HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as
sources of liquidity at any given time is subject to a number of factors, including market demand for
HP securities and commercial paper, HP’s financial performance, HP’s credit ratings and market
conditions generally.
Aggregate future maturities of long-term debt at face value (excluding a fair value adjustment
related to hedged debt of $399 million, a premium on debt issuance of $23 million, and a discount on
debt issuance of $21 million) were as follows at October 31, 2012:
2013 2014 2015 2016 2017 Thereafter Total
In millions
Aggregate future maturities of debt
outstanding including capital lease
obligations ....................... $5,689 $5,143 $2,510 $2,979 $2,852 $7,959 $27,132
Interest expense on borrowings was approximately $865 million in fiscal 2012, $551 million in fiscal
2011 and $417 million in fiscal 2010.
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