HP 2015 Annual Report Download - page 82

Table of Contents
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The contractual and other obligations for HP (including Hewlett Packard Enterprise) as of October 31, 2015, were as follows:
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Principal payments on debt(1) $ 24,538 $ 2,860 $ 5,635 $ 3,409 $ 12,634
Interest payments on debt(2) 8,445 721 1,344 1,147 5,233
Operating lease obligations(3) 2,791 603 870 527 791
Purchase obligations(4) 2,654 1,126 944 451 133
Capital lease obligations 104 28 51 8 17
Total(5)(6)(7)(8) $ 38,532 $ 5,338 $ 8,844 $ 5,542 $ 18,808
(1) Amounts represent the principal cash payments relating to our short-term and long-term debt and do not include any fair value
adjustments, discounts or premiums. Subsequent to the Separation, HP Inc. expects the total future principal payments on debt to be
approximately $8.7 billion.
(2) Amounts represent the expected interest payments relating to our short-term and long-term debt. We have outstanding interest rate
swap agreements accounted for as fair value hedges that have the economic effect of changing fixed interest rates associated with
some of our U.S. Dollar Global Notes to variable interest rates. The impact of our outstanding interest rate swaps at October 31, 2015
was factored into the calculation of the future interest payments on debt. Subsequent to the Separation, HP Inc. expects the total future
interest payments on debt to be approximately $2.9 billion.
(3) Amounts represent the operating lease obligations net of total sublease income of $77 million. Subsequent to the Separation, HP Inc.
expects the total remaining future minimum operating lease commitments to be approximately $367 million, net of sublease income
of $118 million.
(4) Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify
all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the
approximate timing of the transaction. These purchase obligations are related principally to inventory and other items. Purchase
obligations exclude agreements that are cancelable without penalty. Purchase obligations also exclude open purchase orders that are
routine arrangements entered into in the ordinary course of business as they are difficult to quantify in a meaningful way. Even though
open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule,
and adjust terms based on our business needs prior to the delivery of goods or performance of services. Subsequent to the Separation,
HP Inc. expects the total remaining future unconditional purchase obligations to be approximately $915 million.
(5)  As of October 31, 2015, HP (including Hewlett Packard Enterprise)
expects to contribute approximately $384 million to its non-U.S. pension plans, approximately $37 million to cover benefit payments
to U.S. non-qualified plan participants and approximately $46 million to cover benefit claims for HP's post-retirement benefit plans in
fiscal 2016. Subsequent to the Separation, HP Inc. expects to contribute approximately
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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