HP 2014 Annual Report Download - page 155

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 11: Financial Instruments (Continued)
information related to the potential effect of HP’s master netting agreements and collateral security
agreements was as follows:
As of October 31, 2014
In the Consolidated Balance Sheets
(i) (ii) (iii) = (i)ᎈ(ii) (iv) (v) (vi) = (iii)ᎈ(iv)ᎈ(v)
Gross Amounts
Not Offset
Gross Gross
Amount Amount Net Amount Financial
Recognized Offset Presented Derivatives Collateral Net Amount
In millions
Derivative assets ............. $980 $— $980 $361 $452 $167
Derivative liabilities ........... $405 $— $405 $361 $ 29(1) $15
(1) Collateral posted through re-use of counterparty cash collateral.
As of October 31, 2013
In the Consolidated Balance Sheets
(i) (ii) (iii) = (i)ᎈ(ii) (iv) (v) (vi) = (iii)ᎈ(iv)ᎈ(v)
Gross Amounts
Not Offset
Gross Gross
Amount Amount Net Amount Financial
Recognized Offset Presented Derivatives Collateral Net Amount
In millions
Derivative assets ....... $452 $— $452 $372 $ 30 $50
Derivative liabilities ..... $656 $— $656 $372 $283(1) $1
(1) Of the $283 million of collateral posted, $30 million was through re-use of counterparty cash
collateral and $253 million was in cash.
Effect of Derivative Instruments on the Consolidated Statements of Earnings
The pre-tax effect of derivative instruments and related hedged items in a fair value hedging
relationship for fiscal years ended October 31, 2014, 2013 and 2012 was as follows:
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument Location 2014 2013 2012 Hedged Item Location 2014 2013 2012
In millions In millions
Interest rate contracts . . Interest and other, net $1 $(270) $(130) Fixed-rate debt Interest and other, net $(1) $270 $134
147