Borrowings

9 Months Ended

Jul. 31, 2011

Note 11: Borrowings

Notes Payable and Short-Term Borrowings

Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows:

	July 31, 2011					October 31, 2010

	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions
Current portion of long-term debt	$	3,323		2.2	%	$	2,216		2.2	%
Commercial paper		2,864		0.3	%		4,432		0.3	%
Notes payable to banks, lines of credit and other		479		2.3	%		398		1.5	%

	$	6,666				$	7,046

Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $417 million and $348 million at July 31, 2011 and October 31, 2010, respectively.

Long-Term Debt

Long-term debt was as follows:

			July 31, 2011			October 31, 2010

			In millions
U.S. Dollar Global Notes
	2002 Shelf Registration Statement:
		$500 issued at discount to par at a price of 99.505% in June 2002 at 6.5%, due July 2012	$	500		$	500
	2006 Shelf Registration Statement:
		$600 issued at par in February 2007 at three-month USD LIBOR plus 0.11%, due March 2012		600			600
		$900 issued at discount to par at a price of 99.938% in February 2007 at 5.25%, due March 2012		900			900
		$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017		499			499
		$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, due March 2013		1,500			1,499
		$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
		$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014		1,996			1,994
		$275 issued at par in February 2009 at three-month USD LIBOR plus 1.75%, paid February 2011		—			275
		$1,000 issued at discount to par at a price of 99.956% in February 2009 at 4.25%, due February 2012		1,000			1,000
		$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014		1,500			1,500
	2009 Shelf Registration Statement:
		$750 issued at par in May 2009 at three-month USD LIBOR plus 1.05%, paid May 2011		—			750
		$1,000 issued at discount to par at a price of 99.967% in May 2009 at 2.25%, paid May 2011		—			1,000
		$250 issued at discount to par at a price of 99.984% in May 2009 at 2.95%, due August 2012		250			250
		$800 issued at par in September 2010 at three-month USD LIBOR plus 0.125%, due September 2012		800			800
		$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, due September 2013		1,099			1,099
		$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,099			1,099
		$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		649			—
		$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,348			—
		$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, due May 2013		1,750			—
		$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500			—
		$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500			—
		$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			—
		$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			—

				19,488			14,515

EDS Senior Notes
	$1,100 issued June 2003 at 6.0%, due August 2013			1,122			1,130
	$300 issued October 1999 at 7.45%, due October 2029			315			315

				1,437			1,445

Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2011-2024				895			845
Fair value adjustment related to hedged debt				533			669
Less: current portion				(3,323	)		(2,216	)

Total long-term debt			$	19,030		$	15,258

As disclosed in Note 8 to the Consolidated Financial Statements, HP uses interest rate swaps to mitigate the market risk exposures in connection with certain fixed interest global notes to achieve primarily U.S. dollar LIBOR-based floating interest expense. The table above does not reflect the interest rate swap impact on the interest rate.

HP may redeem some or all of the Global Notes set forth in the above table at any time at the redemption prices described in the prospectus supplements relating thereto. The Global Notes are senior unsecured debt.

In May 2009, HP filed a shelf registration statement (the "2009 Shelf Registration Statement") with the SEC to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2009 Shelf Registration Statement replaced other registration statements filed in March 2002 and May 2006.

In May 2008, HP's Board of Directors approved an increase in the capacity of HP's U.S. commercial paper program by $10.0 billion to $16.0 billion. HP's subsidiaries are authorized to issue up to an additional $1.0 billion of commercial paper, of which $500 million of capacity is currently available to be used by Hewlett-Packard International Bank PLC, a wholly-owned subsidiary of HP, for its Euro Commercial Paper/Certificate of Deposit Programme.

HP has a $3.0 billion five-year credit facility that expires in May 2012 and a $4.5 billion four-year credit facility that expires in February 2015. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. The credit facilities are senior unsecured committed borrowing arrangements primarily to support the issuance of U.S. commercial paper. 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 July 31, 2011, the carrying value of the assets approximated the carrying value of the borrowings of $284 million.

As of July 31, 2011, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2009 Shelf Registration Statement. As of that date, HP also had up to approximately $14.7 billion of available borrowing resources, including $13.6 billion under its commercial paper programs and approximately $1.1 billion relating to uncommitted lines of credit.