Attached files
| file | filename |
|---|---|
| 8-K - Q3 FORM 8-K - HP INC | q3form8-k_081910.htm |
| EX-99.1 - Q3 EXHIBIT 99.1 - HP INC | q3ex99-1_081910.htm |
| EXHIBIT 99.2 | ||||||||||||
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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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July 31,
2010
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April 30,
2010
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July 31,
2009
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Net revenue
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$ | 30,729 | $ | 30,849 | $ | 27,585 | ||||||
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Costs and expenses(a):
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Cost of sales
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23,402 | 23,601 | 21,031 | |||||||||
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Research and development
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742 | 722 | 667 | |||||||||
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Selling, general and administrative
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3,154 | 3,064 | 2,874 | |||||||||
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Amortization of purchased intangible assets
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383 | 347 | 379 | |||||||||
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Restructuring charges
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598 | 180 | 362 | |||||||||
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Acquisition-related charges
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127 | 77 | 59 | |||||||||
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Total costs and expenses
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28,406 | 27,991 | 25,372 | |||||||||
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Earnings from operations
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2,323 | 2,858 | 2,213 | |||||||||
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Interest and other, net
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(134 | ) | (91 | ) | (177 | ) | ||||||
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Earnings before taxes
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2,189 | 2,767 | 2,036 | |||||||||
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Provision for taxes(b)
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416 | 567 | 365 | |||||||||
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Net earnings
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$ | 1,773 | $ | 2,200 | $ | 1,671 | ||||||
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Net earnings per share:
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Basic
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$ | 0.76 | $ | 0.94 | $ | 0.70 | ||||||
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Diluted
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$ | 0.75 | $ | 0.91 | $ | 0.69 | ||||||
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Cash dividends declared per share
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$ | 0.16 | $ | - | $ | 0.16 | ||||||
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Weighted-average shares used to compute net earnings per share:
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Basic
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2,322 | 2,345 | 2,382 | |||||||||
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Diluted
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2,376 | 2,406 | 2,436 | |||||||||
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(a) Stock-based compensation expense was as follows:
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Cost of sales
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$ | 43 | $ | 48 | $ | 41 | ||||||
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Research and development
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11 | 16 | 12 | |||||||||
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Selling, general and administrative
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111 | 136 | 94 | |||||||||
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Acquisition-related charges
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1 | - | 3 | |||||||||
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Total costs and expenses
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$ | 166 | $ | 200 | $ | 150 | ||||||
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(b) Tax benefit from stock-based compensation
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$ | (54 | ) | $ | (64 | ) | $ | (51 | ) | |||
1
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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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Nine months ended
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July 31,
2010
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July 31,
2009
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Net revenue
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$ | 92,755 | $ | 83,775 | ||||
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Costs and expenses(a):
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Cost of sales
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71,065 | 64,049 | ||||||
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Research and development
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2,145 | 2,115 | ||||||
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Selling, general and administrative
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9,150 | 8,647 | ||||||
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Amortization of purchased intangible assets
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1,060 | 1,171 | ||||||
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In-process research and development charges
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- | 6 | ||||||
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Restructuring charges
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909 | 602 | ||||||
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Acquisition-related charges
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242 | 182 | ||||||
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Total costs and expenses
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84,571 | 76,772 | ||||||
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Earnings from operations
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8,184 | 7,003 | ||||||
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Interest and other, net
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(424 | ) | (589 | ) | ||||
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Earnings before taxes
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7,760 | 6,414 | ||||||
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Provision for taxes(b)
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1,537 | 1,166 | ||||||
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Net earnings
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$ | 6,223 | $ | 5,248 | ||||
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Net earnings per share:
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Basic
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$ | 2.66 | $ | 2.19 | ||||
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Diluted
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$ | 2.60 | $ | 2.15 | ||||
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Cash dividends declared per share
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$ | 0.32 | $ | 0.32 | ||||
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Weighted-average shares used to compute net earnings per share:
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Basic
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2,342 | 2,395 | ||||||
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Diluted
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2,398 | 2,442 | ||||||
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(a) Stock-based compensation expense was as follows:
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Cost of sales
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$ | 138 | $ | 141 | ||||
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Research and development
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41 | 47 | ||||||
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Selling, general and administrative
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366 | 288 | ||||||
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Acquisition-related charges
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2 | 25 | ||||||
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Total costs and expenses
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$ | 547 | $ | 501 | ||||
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(b) Tax benefit from stock-based compensation
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$ | (176 | ) | $ | (158 | ) | ||
2
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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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July 31,
2010
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October 31,
2009 |
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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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$ | 14,718 | $ | 13,279 | ||||
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Short-term investments
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5 | 55 | ||||||
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Accounts receivable
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15,621 | 16,537 | ||||||
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Financing receivables
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2,799 | 2,675 | ||||||
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Inventory
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7,206 | 6,128 | ||||||
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Other current assets
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14,016 | 13,865 | ||||||
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Total current assets
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54,365 | 52,539 | ||||||
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Property, plant and equipment
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11,477 | 11,262 | ||||||
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Long-term financing receivables and other assets
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11,681 | 11,289 | ||||||
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Goodwill and purchased intangible assets
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42,494 | 39,709 | ||||||
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Total assets
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$ | 120,017 | $ | 114,799 | ||||
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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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$ | 7,842 | $ | 1,850 | ||||
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Accounts payable
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14,885 | 14,809 | ||||||
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Employee compensation and benefits
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3,703 | 4,071 | ||||||
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Taxes on earnings
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947 | 910 | ||||||
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Deferred revenue
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6,583 | 6,182 | ||||||
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Other accrued liabilities
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15,328 | 15,181 | ||||||
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Total current liabilities
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49,288 | 43,003 | ||||||
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Long-term debt
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12,204 | 13,980 | ||||||
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Other liabilities
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15,690 | 17,052 | (a) | |||||
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Stockholders' equity
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HP Stockholders' equity
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42,535 | 40,517 | ||||||
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Noncontrolling interests
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300 | 247 | (a) | |||||
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Total stockholders' equity
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42,835 | 40,764 | ||||||
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Total liabilities and stockholders' equity
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$ | 120,017 | $ | 114,799 | ||||
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(a) Reflects the adoption of the accounting standard related to the presentation of noncontrolling interests in consolidated financial statements.
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3
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
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SEGMENT INFORMATION
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(Unaudited)
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(In millions)
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Three months ended
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July 31,
2010
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April 30,
2010
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July 31,
2009(a)
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Net revenue:
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Services
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$ | 8,609 | $ | 8,712 | $ | 8,520 | ||||||
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Enterprise Storage and Servers
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4,449 | 4,542 | 3,735 | |||||||||
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HP Software
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863 | 871 | 847 | |||||||||
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HP Enterprise Business
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13,921 | 14,125 | 13,102 | |||||||||
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Personal Systems Group
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9,918 | 9,956 | 8,441 | |||||||||
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Imaging and Printing Group
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6,167 | 6,396 | 5,660 | |||||||||
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HP Financial Services
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764 | 755 | 670 | |||||||||
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Corporate Investments
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607 | 315 | 193 | |||||||||
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Total Segments
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31,377 | 31,547 | 28,066 | |||||||||
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Eliminations of intersegment net revenue and other
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(648 | ) | (698 | ) | (481 | ) | ||||||
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Total HP Consolidated
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$ | 30,729 | $ | 30,849 | $ | 27,585 | ||||||
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Earnings from operations:
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Services
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$ | 1,366 | $ | 1,382 | $ | 1,302 | ||||||
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Enterprise Storage and Servers
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549 | 571 | 381 | |||||||||
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HP Software
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183 | 162 | 153 | |||||||||
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HP Enterprise Business
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2,098 | 2,115 | 1,836 | |||||||||
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Personal Systems Group
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469 | 465 | 387 | |||||||||
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Imaging and Printing Group
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1,040 | 1,098 | 960 | |||||||||
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HP Financial Services
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72 | 69 | 53 | |||||||||
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Corporate Investments
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83 | 12 | (10 | ) | ||||||||
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Total Segments
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3,762 | 3,759 | 3,226 | |||||||||
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Corporate and unallocated costs and eliminations
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(175 | ) | (112 | ) | (81 | ) | ||||||
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Unallocated costs related to stock-based compensation expense
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(156 | ) | (185 | ) | (132 | ) | ||||||
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Amortization of purchased intangible assets
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(383 | ) | (347 | ) | (379 | ) | ||||||
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Restructuring charges
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(598 | ) | (180 | ) | (362 | ) | ||||||
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Acquisition-related charges
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(127 | ) | (77 | ) | (59 | ) | ||||||
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Interest and other, net
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(134 | ) | (91 | ) | (177 | ) | ||||||
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Total HP Consolidated Earnings Before Taxes
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$ | 2,189 | $ | 2,767 | $ | 2,036 | ||||||
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(a) As a result of HP's adoption in fiscal 2009 of the revenue recognition standards related to multiple-deliverable revenue arrangements and revenue arrangements that included software, certain previously reported segment and business unit results have been restated. The adoption primarily impacted the Services, Enterprise Storage and Servers and Personal Systems Group financial reporting segments.
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4
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
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SEGMENT INFORMATION
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(Unaudited)
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(In millions)
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Nine months ended
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July 31,
2010
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July 31,
2009(a)
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Net revenue:
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Services
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$ | 25,972 | $ | 25,767 | ||||
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Enterprise Storage and Servers
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13,382 | 11,141 | ||||||
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HP Software
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2,612 | 2,605 | ||||||
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HP Enterprise Business
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41,966 | 39,513 | ||||||
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Personal Systems Group
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30,458 | 25,443 | ||||||
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Imaging and Printing Group
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18,769 | 17,557 | ||||||
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HP Financial Services
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2,238 | 1,947 | ||||||
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Corporate Investments
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1,158 | 577 | ||||||
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Total Segments
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94,589 | 85,037 | ||||||
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Eliminations of intersegment net revenue and other
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(1,834 | ) | (1,262 | ) | ||||
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Total HP Consolidated
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$ | 92,755 | $ | 83,775 | ||||
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Earnings from operations:
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Services
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$ | 4,112 | $ | 3,600 | ||||
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Enterprise Storage and Servers
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1,672 | 1,037 | ||||||
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HP Software
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512 | 450 | ||||||
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HP Enterprise Business
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6,296 | 5,087 | ||||||
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Personal Systems Group
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1,464 | 1,201 | ||||||
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Imaging and Printing Group
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3,192 | 3,139 | ||||||
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HP Financial Services
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208 | 140 | ||||||
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Corporate Investments
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114 | (48 | ) | |||||
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Total Segments
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11,274 | 9,519 | ||||||
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Corporate and unallocated costs and eliminations
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(375 | ) | (119 | ) | ||||
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Unallocated costs related to stock-based compensation expense
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(504 | ) | (436 | ) | ||||
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Amortization of purchased intangible assets
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(1,060 | ) | (1,171 | ) | ||||
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In-process research and development charges
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- | (6 | ) | |||||
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Restructuring charges
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(909 | ) | (602 | ) | ||||
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Acquisition-related charges
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(242 | ) | (182 | ) | ||||
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Interest and other, net
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(424 | ) | (589 | ) | ||||
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|
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Total HP Consolidated Earnings Before Taxes
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$ | 7,760 | $ | 6,414 | ||||
|
(a) As a result of HP's adoption in fiscal 2009 of the revenue recognition standards related to multiple-deliverable revenue arrangements and revenue arrangements that included software, certain previously reported segment and business unit results have been restated. The adoption primarily impacted the Services, Enterprise Storage and Servers and Personal Systems Group financial reporting segments.
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5