As of the quarter ended September 30, 2000, the company had
$2.9 billion in cash and cash equivalents, and over one third
of its $26 billion of assets were in cash, cash equivalents,
and accounts receivable.
Meanwhile, the company's debt stood slightly above $1
billion which, when combined with the improving cash flows and
overall operations at Compaq, give it enough financial
flexibility to support the stock buyback without impairing the
credit rating or outlook.
The way I read it, the ratings confirmed section doesn't say they are present liabilities. These may represent past transactions or revolving loan arrangements. The section does appear to be in conflict with the above clear statement of just over $1 billion in debt. I'm not a CPA so I'm relying on the plain statement preceding the list of ratings.
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