Attached files
| file | filename |
|---|---|
| EX-99.1 - Q42012 EXHIBIT 99.1 - HP INC | ex99-1_112012.htm |
| 8-K - Q42012 FORM 8-K - HP INC | q4form8-k_112012.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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October 31,
2012
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July 31,
2012
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October 31,
2011
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Net revenue
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$ | 29,959 | $ | 29,669 | $ | 32,122 | ||||||
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Costs and expenses:(a)
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Cost of sales
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22,711 | 22,820 | 25,304 | |||||||||
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Research and development
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909 | 854 | 829 | |||||||||
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Selling, general and administrative
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3,227 | 3,366 | 3,605 | |||||||||
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Amortization of purchased intangible assets
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372 | 476 | 411 | |||||||||
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Impairment of goodwill and purchased intangible assets
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8,847 | 9,188 | 885 | |||||||||
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Restructuring charges
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378 | 1,795 | 179 | |||||||||
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Acquisition-related charges
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3 | 3 | 114 | |||||||||
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Total costs and expenses
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36,447 | 38,502 | 31,327 | |||||||||
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(Loss) earnings from operations
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(6,488 | ) | (8,833 | ) | 795 | |||||||
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Interest and other, net
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(188 | ) | (224 | ) | (401 | ) | ||||||
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(Loss) earnings before taxes
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(6,676 | ) | (9,057 | ) | 394 | |||||||
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Provision (benefit) for taxes
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178 | (200 | ) | 155 | ||||||||
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Net (loss) earnings
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$ | (6,854 | ) | $ | (8,857 | ) | $ | 239 | ||||
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Net (loss) earnings per share:
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Basic
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$ | (3.49 | ) | $ | (4.49 | ) | $ | 0.12 | ||||
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Diluted
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$ | (3.49 | ) | $ | (4.49 | ) | $ | 0.12 | ||||
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Cash dividends declared per share
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$ | - | $ | 0.26 | $ | - | ||||||
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Weighted-average shares used to compute net (loss) earnings per share:
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Basic
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1,964 | 1,971 | 1,989 | |||||||||
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Diluted
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1,964 | 1,971 | 2,005 | |||||||||
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(a)
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In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.
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Page 1 of 5
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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
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(In millions except per share amounts)
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Twelve months ended
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October 31,
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2012
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2011
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(Unaudited)
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Net revenue
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$ | 120,357 | $ | 127,245 | ||||
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Costs and expenses:(a)
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Cost of sales
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92,385 | 97,418 | ||||||
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Research and development
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3,399 | 3,254 | ||||||
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Selling, general and administrative
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13,500 | 13,577 | ||||||
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Amortization of purchased intangible assets
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1,784 | 1,607 | ||||||
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Impairment of goodwill and purchased intangible assets
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18,035 | 885 | ||||||
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Restructuring charges
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2,266 | 645 | ||||||
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Acquisition-related charges
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45 | 182 | ||||||
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Total costs and expenses
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131,414 | 117,568 | ||||||
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(Loss) earnings from operations
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(11,057 | ) | 9,677 | |||||
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Interest and other, net
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(876 | ) | (695 | ) | ||||
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(Loss) earnings before taxes
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(11,933 | ) | 8,982 | |||||
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Provision for taxes
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717 | 1,908 | ||||||
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Net (loss) earnings
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$ | (12,650 | ) | $ | 7,074 | |||
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Net (loss) earnings per share:
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Basic
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$ | (6.41 | ) | $ | 3.38 | |||
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Diluted
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$ | (6.41 | ) | $ | 3.32 | |||
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Cash dividends declared per share
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$ | 0.50 | $ | 0.40 | ||||
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Weighted-average shares used to compute net (loss) earnings per share:
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Basic
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1,974 | 2,094 | ||||||
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Diluted
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1,974 | 2,128 | ||||||
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(a)
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In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.
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Page 2 of 5
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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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October 31,
2012
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October 31,
2011
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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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$ | 11,301 | $ | 8,043 | ||||
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Accounts receivable
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16,407 | 18,224 | ||||||
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Financing receivables
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3,252 | 3,162 | ||||||
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Inventory
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6,317 | 7,490 | ||||||
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Other current assets
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13,360 | 14,102 | ||||||
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Total current assets
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50,637 | 51,021 | ||||||
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Property, plant and equipment
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11,954 | 12,292 | ||||||
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Long-term financing receivables and other assets
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10,593 | 10,755 | ||||||
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Goodwill and purchased intangible assets
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35,584 | 55,449 | ||||||
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Total assets
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$ | 108,768 | $ | 129,517 | ||||
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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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$ | 6,647 | $ | 8,083 | ||||
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Accounts payable
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13,350 | 14,750 | ||||||
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Employee compensation and benefits
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4,058 | 3,999 | ||||||
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Taxes on earnings
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846 | 1,048 | ||||||
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Deferred revenue
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7,494 | 7,449 | ||||||
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Other accrued liabilities
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14,271 | 15,113 | ||||||
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Total current liabilities
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46,666 | 50,442 | ||||||
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Long-term debt
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21,789 | 22,551 | ||||||
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Other liabilities
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17,480 | 17,520 | ||||||
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Stockholders' equity:
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HP stockholders' equity
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22,436 | 38,625 | ||||||
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Non-controlling interests
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397 | 379 | ||||||
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Total stockholders' equity
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22,833 | 39,004 | ||||||
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Total liabilities and stockholders' equity
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$ | 108,768 | $ | 129,517 | ||||
Page 3 of 5
| HEWLETT-PACKARD COMPANY AND SUBSIDIARIES | |||||||||||||
| SEGMENT INFORMATION | |||||||||||||
| (Unaudited) | |||||||||||||
| (In millions) | |||||||||||||
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Three months ended
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October 31,
2012
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July 31,
2012
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October 31,
2011
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Net revenue:(a)
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Personal Systems
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$ | 8,705 | $ | 8,620 | $ | 10,118 | |||||||
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Printing
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6,080 | 6,017 | 6,419 | ||||||||||
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Total Printing and Personal Systems Group(b)
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14,785 | 14,637 | 16,537 | ||||||||||
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Services
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8,711 | 8,754 | 9,227 | ||||||||||
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Enterprise Servers, Storage and Networking
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5,119 | 5,143 | 5,601 | ||||||||||
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Software
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1,171 | 973 | 1,023 | ||||||||||
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HP Financial Services
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966 | 935 | 952 | ||||||||||
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Corporate Investments
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13 | 19 | (131 | ) | |||||||||
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Total segments
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30,765 | 30,461 | 33,209 | ||||||||||
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Eliminations of intersegment net revenue and other
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(806 | ) | (792 | ) | (1,087 | ) | |||||||
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Total HP consolidated net revenue
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$ | 29,959 | $ | 29,669 | $ | 32,122 | |||||||
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Earnings before taxes:(a)
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Personal Systems
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$ | 309 | $ | 409 | $ | 578 | |||||||
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Printing
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1,067 | 949 | 793 | ||||||||||
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Total Printing and Personal Systems Group(b)
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1,376 | 1,358 | 1,371 | ||||||||||
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Services
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1,234 | 959 | 1,210 | ||||||||||
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Enterprise Servers, Storage and Networking
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423 | 562 | 717 | ||||||||||
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Software
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318 | 175 | 284 | ||||||||||
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HP Financial Services
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104 | 97 | 98 | ||||||||||
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Corporate Investments
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(83 | ) | (58 | ) | (908 | ) | |||||||
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Total segment earnings from operations
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3,372 | 3,093 | 2,772 | ||||||||||
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Corporate and unallocated costs and eliminations
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(120 | ) | (314 | ) | (196 | ) | |||||||
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Unallocated costs related to stock-based compensation expense
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(140 | ) | (150 | ) | (192 | ) | |||||||
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Amortization of purchased intangible assets
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(372 | ) | (476 | ) | (411 | ) | |||||||
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Impairment of goodwill and purchased intangible assets
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(8,847 | ) | (9,188 | ) | (885 | ) | |||||||
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Restructuring charges
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(378 | ) | (1,795 | ) | (179 | ) | |||||||
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Acquisition-related charges
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(3 | ) | (3 | ) | (114 | ) | |||||||
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Interest and other, net
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(188 | ) | (224 | ) | (401 | ) | |||||||
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| Total HP consolidated (loss) earnings before taxes | $ | (6,676 | ) | $ | (9,057 | ) | $ | 394 | |||||
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(a)
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Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Printing, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to Printing, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems and HP Financial Services segments.
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(b)
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As part of a realignment of the structure of HP’s business in fiscal 2012, the Personal Systems segment and the Printing segment have been structured beneath a newly formed Printing and Personal Systems Group. While the Printing and Personal Systems Group 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.
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Page 4 of 5
| HEWLETT-PACKARD COMPANY AND SUBSIDIARIES | |||||||||
| SEGMENT INFORMATION | |||||||||
| (In millions) | |||||||||
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Twelve months ended
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October 31,
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2012
|
2011
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| (Unaudited) | |||||||||
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Net revenue:(a)
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Personal Systems
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$ | 35,650 | $ | 39,574 | |||||
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Printing
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24,487 | 26,176 | |||||||
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Total Printing and Personal Systems Group(b)
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60,137 | 65,750 | |||||||
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Services
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34,922 | 35,702 | |||||||
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Enterprise Servers, Storage and Networking
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20,491 | 22,064 | |||||||
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Software
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4,060 | 3,367 | |||||||
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HP Financial Services
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3,819 | 3,596 | |||||||
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Corporate Investments
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108 | 208 | |||||||
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Total Segments
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123,537 | 130,687 | |||||||
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Eliminations of intersegment net revenue and other
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(3,180 | ) | (3,442 | ) | |||||
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Total HP consolidated net revenue
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$ | 120,357 | $ | 127,245 | |||||
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Earnings before taxes:(a)
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Personal Systems
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$ | 1,706 | $ | 2,350 | |||||
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Printing
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3,585 | 3,927 | |||||||
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Total Printing and Personal Systems Group(b)
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5,291 | 6,277 | |||||||
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Services
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4,095 | 5,203 | |||||||
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Enterprise Servers, Storage and Networking
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2,132 | 2,997 | |||||||
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Software
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827 | 722 | |||||||
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HP Financial Services
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388 | 348 | |||||||
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Corporate Investments
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(238 | ) | (1,619 | ) | |||||
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Total segment earnings from operations
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12,495 | 13,928 | |||||||
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Corporate and unallocated costs and eliminations
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(790 | ) | (314 | ) | |||||
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Unallocated costs related to stock-based compensation expense
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(632 | ) | (618 | ) | |||||
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Amortization of purchased intangible assets
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(1,784 | ) | (1,607 | ) | |||||
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Impairment of goodwill and purchased intangible assets
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(18,035 | ) | (885 | ) | |||||
|
Restructuring charges
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(2,266 | ) | (645 | ) | |||||
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Acquisition-related charges
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(45 | ) | (182 | ) | |||||
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Interest and other, net
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(876 | ) | (695 | ) | |||||
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Total HP consolidated (loss) earnings before taxes
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$ | (11,933 | ) | $ | 8,982 | ||||
|
(a)
|
Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Printing, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to Printing, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems and HP Financial Services segments.
|
||||||||
|
(b)
|
As part of a realignment of the structure of HP’s business in fiscal 2012, the Personal Systems segment and the Printing segment have been structured beneath a newly formed Printing and Personal Systems Group. While the Printing and Personal Systems Group 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.
|
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Page 5 of 5