Attached files
| file | filename |
|---|---|
| 8-K - Q114 FORM 8-K - HP INC | q1form8-k_22014.htm |
| EX-99.3 - Q114 EXHIBIT 99.3 - HP INC | q1ex99-3_22014.htm |
| EX-99.1 - Q114 EXHIBIT 99.1 - HP INC | q1ex99-1_22014.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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Jan 31,
2014
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Oct 31,
2013
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Jan 31,
2013
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Net revenue
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$ | 28,154 | $ | 29,131 | $ | 28,359 | ||||||
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Costs and expenses:
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Cost of sales
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21,736 | 22,437 | 22,029 | |||||||||
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Research and development
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811 | 729 | 794 | |||||||||
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Selling, general and administrative
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3,210 | 3,351 | 3,300 | |||||||||
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Amortization of intangible assets
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283 | 317 | 350 | |||||||||
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Restructuring charges
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114 | 371 | 130 | |||||||||
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Acquisition-related charges
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3 | 3 | 4 | |||||||||
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Total costs and expenses
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26,157 | 27,208 | 26,607 | |||||||||
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Earnings from operations
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1,997 | 1,923 | 1,752 | |||||||||
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Interest and other, net
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(163 | ) | (103 | ) | (179 | ) | ||||||
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Earnings before taxes
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1,834 | 1,820 | 1,573 | |||||||||
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Provision for taxes
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(409 | ) | (406 | ) | (341 | ) | ||||||
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Net earnings
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$ | 1,425 | $ | 1,414 | $ | 1,232 | ||||||
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Net earnings per share:
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Basic
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$ | 0.75 | $ | 0.74 | $ | 0.63 | ||||||
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Diluted
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$ | 0.74 | $ | 0.73 | $ | 0.63 | ||||||
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Cash dividends declared per share
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$ | 0.29 | $ | - | $ | 0.26 | ||||||
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Weighted-average shares used to compute net earnings per share:
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Basic
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1,907 | 1,918 | 1,953 | |||||||||
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Diluted
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1,935 | 1,940 | 1,956 | |||||||||
Page 1 of 3
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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,
2014
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October 31,
2013
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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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$ | 16,165 | $ | 12,163 | ||||
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Accounts receivable
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13,492 | 15,876 | ||||||
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Financing receivables
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3,054 | 3,144 | ||||||
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Inventory
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6,004 | 6,046 | ||||||
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Other current assets
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11,969 | 13,135 | ||||||
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Total current assets
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50,684 | 50,364 | ||||||
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Property, plant and equipment
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11,259 | 11,463 | ||||||
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Long-term financing receivables and other assets
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9,131 | 9,556 | ||||||
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Goodwill and intangible assets
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33,951 | 34,293 | ||||||
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Total assets
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$ | 105,025 | $ | 105,676 | ||||
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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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$ | 6,621 | $ | 5,979 | ||||
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Accounts payable
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12,640 | 14,019 | ||||||
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Employee compensation and benefits
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3,171 | 4,436 | ||||||
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Taxes on earnings
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1,224 | 1,203 | ||||||
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Deferred revenue
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6,754 | 6,477 | ||||||
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Other accrued liabilities
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13,201 | 13,407 | ||||||
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Total current liabilities
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43,611 | 45,521 | ||||||
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Long-term debt
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17,971 | 16,608 | ||||||
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Other liabilities
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15,294 | 15,891 | ||||||
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Stockholders' equity:
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HP stockholders' equity
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27,754 | 27,269 | ||||||
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Non-controlling interests
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395 | 387 | ||||||
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Total stockholders' equity
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28,149 | 27,656 | ||||||
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Total liabilities and stockholders' equity
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$ | 105,025 | $ | 105,676 | ||||
Page 2 of 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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January 31,
2014
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October 31,
2013
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January 31,
2013
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Net revenue:(a)
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Personal Systems
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$ | 8,530 | $ | 8,604 | $ | 8,232 | ||||||
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Printing
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5,815 | 6,047 | 5,946 | |||||||||
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Total Printing and Personal Systems Group
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14,345 | 14,651 | 14,178 | |||||||||
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Enterprise Group
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6,993 | 7,575 | 6,948 | |||||||||
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Enterprise Services
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5,595 | 5,918 | 6,038 | |||||||||
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Software
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916 | 1,093 | 951 | |||||||||
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HP Financial Services
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870 | 912 | 957 | |||||||||
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Corporate Investments
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288 | 5 | 4 | |||||||||
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Total segments
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29,007 | 30,154 | 29,076 | |||||||||
| Elimination of intersegment net revenue and other |
(853
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) | (1,023 | ) | (717 | ) | ||||||
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Total HP consolidated net revenue
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$ | 28,154 | $ | 29,131 | $ | 28,359 | ||||||
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Earnings before taxes:(a)
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Personal Systems
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$ | 279 | $ | 265 | $ | 233 | ||||||
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Printing
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979 | 1,081 | 967 | |||||||||
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Total Printing and Personal Systems Group
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1,258 | 1,346 | 1,200 | |||||||||
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Enterprise Group
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1,006 | 1,092 | 1,070 | |||||||||
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Enterprise Services
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57 | 255 | 76 | |||||||||
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Software
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145 | 330 | 155 | |||||||||
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HP Financial Services
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101 | 102 | 101 | |||||||||
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Corporate Investments
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121 | (86 | ) | (73 | ) | |||||||
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Total segment earnings from operations
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2,688 | 3,039 | 2,529 | |||||||||
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Corporate and unallocated costs and eliminations
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(121 | ) | (323 | ) | (109 | ) | ||||||
| Unallocated costs related to stock-based compensation expense |
(170
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) | (102 | ) | (184 | ) | ||||||
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Amortization of intangible assets
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(283 | ) | (317 | ) | (350 | ) | ||||||
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Restructuring charges
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(114 | ) | (371 | ) | (130 | ) | ||||||
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Acquisition-related charges
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(3 | ) | (3 | ) | (4 | ) | ||||||
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Interest and other, net
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(163 | ) | (103 | ) | (179 | ) | ||||||
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Total HP consolidated earnings before taxes
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$ | 1,834 | $ | 1,820 | $ | 1,573 | ||||||
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(a)
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Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud-related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations.
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HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes also resulted in the transfer of operating profit among the Personal Systems, Printing, the Enterprise Group, Software and Corporate Investments segments. These changes had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
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Page 3 of 3