Attached files
| file | filename |
|---|---|
| 8-K - Q12013 FORM 8-K - HP INC | q1form8-k_022013.htm |
| EX-99.1 - Q12013 EXHIBIT 99.1 - HP INC | q1ex99-1_022013.htm |
EXHIBIT 99.2
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
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(Unaudited)
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(In millions except per share amounts)
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Three months ended
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January 31,
2013
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October 31,
2012
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January 31,
2012
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Net revenue
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$ | 28,359 | $ | 29,959 | $ | 30,036 | ||||||
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Costs and expenses:
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Cost of sales
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22,029 | 22,711 | 23,313 | |||||||||
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Research and development
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794 | 909 | 786 | |||||||||
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Selling, general and administrative
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3,300 | 3,227 | 3,367 | |||||||||
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Amortization of purchased intangible assets
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350 | 372 | 466 | |||||||||
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Impairment of goodwill and purchased intangible assets
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- | 8,847 | - | |||||||||
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Restructuring charges
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130 | 378 | 40 | |||||||||
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Acquisition-related charges
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4 | 3 | 22 | |||||||||
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Total costs and expenses
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26,607 | 36,447 | 27,994 | |||||||||
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Earnings (loss) from operations
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1,752 | (6,488 | ) | 2,042 | ||||||||
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Interest and other, net
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(179 | ) | (188 | ) | (221 | ) | ||||||
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Earnings (loss) before taxes
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1,573 | (6,676 | ) | 1,821 | ||||||||
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Provision for taxes
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(341 | ) | (178 | ) | (353 | ) | ||||||
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Net earnings (loss)
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$ | 1,232 | $ | (6,854 | ) | $ | 1,468 | |||||
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Net earnings (loss) per share:
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Basic
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$ | 0.63 | $ | (3.49 | ) | $ | 0.74 | |||||
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Diluted
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$ | 0.63 | $ | (3.49 | ) | $ | 0.73 | |||||
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Cash dividends declared per share
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$ | 0.26 | $ | - | $ | 0.24 | ||||||
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Weighted-average shares used to compute net earnings (loss) per share:
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Basic
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1,953 | 1,964 | 1,981 | |||||||||
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Diluted
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1,956 | 1,964 | 1,998 | |||||||||
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
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CONSOLIDATED CONDENSED BALANCE SHEETS
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(In millions)
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January 31,
2013
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October 31,
2012
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 12,589 | $ | 11,301 | ||||
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Accounts receivable
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14,236 | 16,407 | ||||||
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Financing receivables
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3,316 | 3,252 | ||||||
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Inventory
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6,374 | 6,317 | ||||||
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Other current assets
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13,037 | 13,360 | ||||||
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Total current assets
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49,552 | 50,637 | ||||||
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Property, plant and equipment
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11,686 | 11,954 | ||||||
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Long-term financing receivables and other assets
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10,249 | 10,593 | ||||||
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Goodwill and purchased intangible assets
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35,214 | 35,584 | ||||||
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Total assets
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$ | 106,701 | $ | 108,768 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Notes payable and short-term borrowings
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$ | 6,475 | $ | 6,647 | ||||
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Accounts payable
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11,660 | 13,350 | ||||||
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Employee compensation and benefits
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3,520 | 4,058 | ||||||
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Taxes on earnings
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851 | 846 | ||||||
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Deferred revenue
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7,603 | 7,494 | ||||||
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Other accrued liabilities
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14,277 | 14,271 | ||||||
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Total current liabilities
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44,386 | 46,666 | ||||||
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Long-term debt
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21,752 | 21,789 | ||||||
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Other liabilities
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17,273 | 17,480 | ||||||
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Stockholders' equity:
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HP stockholders' equity
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22,895 | 22,436 | ||||||
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Non-controlling interests
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395 | 397 | ||||||
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Total stockholders' equity
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23,290 | 22,833 | ||||||
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Total liabilities and stockholders' equity
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$ | 106,701 | $ | 108,768 | ||||
| HEWLETT-PACKARD COMPANY AND SUBSIDIARIES | ||||||||||||
| SEGMENT INFORMATION | ||||||||||||
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| (In millions) | ||||||||||||
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Three months ended
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January 31,
2013
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October 31,
2012
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January 31,
2012
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Net revenue:(a)
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Personal Systems
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$ | 8,204 | $ | 8,727 | $ | 8,892 | ||||||
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Printing
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5,926 | 6,080 | 6,258 | |||||||||
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Total Printing and Personal Systems Group(b)
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14,130 | 14,807 | 15,150 | |||||||||
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Enterprise Group
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6,984 | 7,459 | 7,282 | |||||||||
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Enterprise Services
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5,919 | 6,352 | 6,371 | |||||||||
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Software
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926 | 1,171 | 946 | |||||||||
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HP Financial Services
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957 | 966 | 950 | |||||||||
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Corporate Investments
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4 | 10 | 30 | |||||||||
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Total segments
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28,920 | 30,765 | 30,729 | |||||||||
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Elimination of intersegment net revenue and other
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(561 | ) | (806 | ) | (693 | ) | ||||||
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Total HP consolidated net revenue
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$ | 28,359 | $ | 29,959 | $ | 30,036 | ||||||
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Earnings before taxes:(a)
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Personal Systems
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$ | 223 | $ | 309 | $ | 459 | ||||||
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Printing
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953 | 1,067 | 761 | |||||||||
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Total Printing and Personal Systems Group(b)
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1,176 | 1,376 | 1,220 | |||||||||
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Enterprise Group
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1,084 | 1,229 | 1,329 | |||||||||
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Enterprise Services
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76 | 423 | 145 | |||||||||
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Software
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157 | 318 | 162 | |||||||||
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HP Financial Services
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101 | 104 | 91 | |||||||||
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Corporate Investments
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(65 | ) | (78 | ) | (50 | ) | ||||||
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Total segment earnings from operations
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2,529 | 3,372 | 2,897 | |||||||||
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Corporate and unallocated costs and eliminations
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(109 | ) | (120 | ) | (153 | ) | ||||||
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Unallocated costs related to stock-based compensation expense
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(184 | ) | (140 | ) | (174 | ) | ||||||
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Amortization of purchased intangible assets
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(350 | ) | (372 | ) | (466 | ) | ||||||
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Impairment of goodwill and purchased intangible assets
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- | (8,847 | ) | - | ||||||||
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Restructuring charges
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(130 | ) | (378 | ) | (40 | ) | ||||||
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Acquisition-related charges
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(4 | ) | (3 | ) | (22 | ) | ||||||
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Interest and other, net
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(179 | ) | (188 | ) | (221 | ) | ||||||
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Total HP consolidated earnings (loss) before taxes
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$ | 1,573 | $ | (6,676 | ) | $ | 1,821 | |||||
| (a) |
HP has implemented certain organizational realignments. As a result of these realignments, HP has re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013, created two new financial reporting segments, the Enterprise Group segment and the Enterprise Services segment, and eliminated two other financial reporting segments, the Enterprise Servers, Storage and Networking (“ESSN”) segment and the Services segment. The Enterprise Group segment consists of the business units within the former ESSN segment and most of the services offerings of the Technology Services (“TS”) business unit, which was previously a part of the former Services segment. The Enterprise Services segment consists of the Applications and Business Services (“ABS”) and Infrastructure Technology Outsourcing (“ITO”) business units from the former Services segment, along with the end-user workplace support services business that was previously a part of the TS business unit. Taking into account these changes, HP has the following seven financial reporting segments: Personal Systems, Printing, the Enterprise Group, Enterprise Services, Software, HP Financial Services and Corporate Investments.
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Also as a result of these realignments, the financial results of the Personal Systems commercial products support business, which were previously reported as part of the TS business unit, will now be reported as part of the Other business unit within the Personal Systems segment, and the financial results of the portion of the business intelligence services business that had continued to be reported as part of the Corporate Investments segment following the implementation of prior realignment actions will now be reported as part of the ABS business unit. In addition, the end-user workplace support services business, which, as noted above, was previously a part of the TS business unit and will now become a part of the Enterprise Services segment, will be reported as part of the ITO business unit within that segment.
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To provide improved visibility and comparability, HP has reflected these changes to its reporting structure in prior financial reporting periods on an as-if basis, which has resulted in the transfer of revenue and operating profit among the Personal Systems, the Enterprise Group, Enterprise Services and Corporate Investments segments. These changes had no impact on the previously reported financial results for the Printing, Software or HP Financial Services segments. In addition, none of these changes impacted HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
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| (b) | The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group (“PPS”). While PPS is not a financial reporting segment, HP provides financial data aggregating the segments within it in order to provide a supplementary view of its business. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||