Hewlett-Packard (HPQ)

Note 16: Commitments

        HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine maintenance and include escalation clauses. Rent expense was approximately $744 million in fiscal 2006, $770 million in fiscal 2005 and $766 million in fiscal 2004. Sublease rental income was approximately $47 million in fiscal 2006, and $43 million in fiscal 2005 and fiscal 2004, respectively.

        Future annual minimum lease payments and sublease rental income commitments, excluding future obligations included in the restructuring liabilities on the Consolidated Balance Sheets, at October 31, 2006 were as follows:

        At October 31, 2006, HP had unconditional purchase obligations of approximately $2.8 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP 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. Purchase obligations exclude agreements that are cancelable without penalty. These unconditional purchase obligations are related principally to cost of sales, inventory and other items. Future unconditional purchase obligations at October 31, 2006 were as follows:

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Note 16: Commitments

        HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine maintenance and include escalation clauses. Rent expense was approximately $770 million in fiscal 2005, $766 million in fiscal 2004 and $703 million in fiscal 2003. Sublease rental income was approximately $43 million in fiscal 2005, $43 million in fiscal 2004 and $46 million in fiscal 2003.

        Future annual minimum lease payments and sublease rental income commitments, excluding future obligations included in the restructuring liabilities on the Consolidated Balance Sheets, at October 31, 2005 were as follows:

        At October 31, 2005, HP had unconditional purchase obligations of approximately $2.1 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP 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. Purchase obligations exclude agreements that are cancelable without penalty. These unconditional purchase obligations are related principally to cost of sales, inventory and other items.

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        Future unconditional purchase obligations at October 31, 2005 were as follows:

Note 16: Commitments

        HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine maintenance, and include escalation clauses. Rent expense was approximately $766 million in fiscal 2004, $703 million in fiscal 2003 and $566 million in fiscal 2002. Sublease rental income was approximately $43 million in fiscal 2004, $46 million in fiscal 2003 and $17 million in fiscal 2002.

        Future annual minimum lease payments and sublease rental income commitments, excluding future obligations included in the restructuring liabilities on the consolidated balance sheets, at October 31, 2004 are as follows:

        At October 31, 2004, HP had unconditional purchase obligations of approximately $1.0 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP 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. Purchase obligations exclude agreements that are cancelable without penalty. These unconditional purchase obligations are principally related to cost of sales, inventory and other items.