HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
Three months ended
-------------------------------------
October 31, July 31, October 31,
2012 2012 2011
----------- ----------- -----------
Net revenue:(a)
Personal Systems $ 8,705 $ 8,620 $ 10,118
Printing 6,080 6,017 6,419
----------- ----------- -----------
Total Printing and Personal
Systems Group(b) 14,785 14,637 16,537
Services 8,711 8,754 9,227
Enterprise Servers, Storage and
Networking 5,119 5,143 5,601
Software 1,171 973 1,023
HP Financial Services 966 935 952
Corporate Investments 13 19 (131)
----------- ----------- -----------
Total segments 30,765 30,461 33,209
Eliminations of intersegment net
revenue and other (806) (792) (1,087)
----------- ----------- -----------
Total HP consolidated net revenue $ 29,959 $ 29,669 $ 32,122
=========== =========== ===========
Earnings before taxes:(a)
Personal Systems $ 309 $ 409 $ 578
Printing 1,067 949 793
----------- ----------- -----------
Total Printing and Personal Systems
Group(b) 1,376 1,358 1,371
Services 1,234 959 1,210
Enterprise Servers, Storage and
Networking 423 562 717
Software 318 175 284
HP Financial Services 104 97 98
Corporate Investments (83) (58) (908)
----------- ----------- -----------
Total segment earnings from
operations 3,372 3,093 2,772
Corporate and unallocated costs and
eliminations (120) (314) (196)
Unallocated costs related to stock-
based compensation expense (140) (150) (192)
Amortization of purchased intangible
assets (372) (476) (411)
Impairment of goodwill and purchased
intangible assets (8,847) (9,188) (885)
Restructuring charges (378) (1,795) (179)
Acquisition-related charges (3) (3) (114)
Interest and other, net (188) (224) (401)
----------- ----------- -----------
Total HP consolidated (loss)
earnings before taxes $ (6,676) $ (9,057) $ 394
=========== =========== ===========
(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.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(In millions)
Twelve months ended
October 31,
------------------------
2012 2011
----------- -----------
(Unaudited)
Net revenue:(a)
Personal Systems $ 35,650 $ 39,574
Printing 24,487 26,176
----------- -----------
Total Printing and Personal Systems Group(b) 60,137 65,750
Services 34,922 35,702
Enterprise Servers, Storage and Networking 20,491 22,064
Software 4,060 3,367
HP Financial Services 3,819 3,596
Corporate Investments 108 208
----------- -----------
Total Segments 123,537 130,687
Eliminations of intersegment net revenue and
other (3,180) (3,442)
----------- -----------
Total HP consolidated net revenue $ 120,357 $ 127,245
=========== ===========
Earnings before taxes:(a)
Personal Systems $ 1,706 $ 2,350
Printing 3,585 3,927
----------- -----------
Total Printing and Personal Systems Group(b) 5,291 6,277
Services 4,095 5,203
Enterprise Servers, Storage and Networking 2,132 2,997
Software 827 722
HP Financial Services 388 348
Corporate Investments (238) (1,619)
----------- -----------
Total segment earnings from operations 12,495 13,928
Corporate and unallocated costs and eliminations (790) (314)
Unallocated costs related to stock-based
compensation expense (632) (618)
Amortization of purchased intangible assets (1,784) (1,607)
Impairment of goodwill and purchased intangible
assets (18,035) (885)
Restructuring charges (2,266) (645)
Acquisition-related charges (45) (182)
Interest and other, net (876) (695)
----------- -----------
Total HP consolidated (loss) earnings before
taxes $ (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.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Growth rate
Three months ended (%)
------------------------------------- -------------
October 31, July 31, October 31,
2012 2012 2011 Q/Q Y/Y
----------- ----------- ----------- ----- -----
Net revenue:(a)
Printing and Personal
Systems Group(b)
Personal Systems
Notebooks $ 4,572 $ 4,416 $ 5,390 4% (15%)
Desktops 3,369 3,486 3,946 (3%) (15%)
Workstations 550 526 593 5% (7%)
Other 214 192 189 11% 13%
----------- ----------- -----------
Total Personal
Systems 8,705 8,620 10,118 1% (14%)
----------- ----------- -----------
Printing
Supplies 4,007 4,005 4,041 0% (1%)
Commercial Hardware 1,482 1,445 1,694 3% (13%)
Consumer Hardware 591 567 684 4% (14%)
----------- ----------- -----------
Total Printing 6,080 6,017 6,419 1% (5%)
----------- ----------- -----------
Total Printing
and Personal
Systems Group 14,785 14,637 16,537 1% (11%)
----------- ----------- -----------
Services
Infrastructure
Technology
Outsourcing 3,657 3,665 3,895 0% (6%)
Technology Services 2,629 2,634 2,728 0% (4%)
Application and
Business
Services(c) 2,425 2,455 2,604 (1%) (7%)
----------- ----------- -----------
Total Services 8,711 8,754 9,227 0% (6%)
----------- ----------- -----------
Enterprise Servers,
Storage and
Networking
Industry Standard
Servers 3,137 3,187 3,384 (2%) (7%)
Storage 946 924 1,088 2% (13%)
Business Critical
Systems 401 385 535 4% (25%)
Networking 635 647 594 (2%) 7%
----------- ----------- -----------
Total Enterprise
Servers, Storage
and Networking 5,119 5,143 5,601 0% (9%)
----------- ----------- -----------
Software 1,171 973 1,023 20% 14%
----------- ----------- -----------
HP Financial Services 966 935 952 3% 1%
----------- ----------- -----------
Corporate Investments 13 19 (131) (32%) (110%)
----------- ----------- -----------
Total segments 30,765 30,461 33,209 1% (7%)
----------- ----------- -----------
Elimination of
intersegment net
revenue and other (806) (792) (1,087) 2% (26%)
----------- ----------- -----------
Total HP
consolidated net
revenue $ 29,959 $ 29,669 $ 32,122 1% (7%)
=========== =========== ===========
(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.
(c) The former Application Services, Business Process Outsourcing and Other
Services business units were consolidated into a new Application and
Business Services business unit in fiscal 2012.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(In millions)
Twelve months ended
October 31,
------------------------
2012 2011
----------- -----------
(Unaudited)
Net revenue:(a)
Printing and Personal Systems Group(b)
Personal Systems
Notebooks $ 18,830 $ 21,319
Desktops 13,888 15,260
Workstations 2,148 2,216
Other 784 779
----------- -----------
Total Personal Systems 35,650 39,574
----------- -----------
Printing
Supplies 16,151 17,154
Commercial Hardware 5,895 6,183
Consumer Hardware 2,441 2,839
----------- -----------
Total Printing 24,487 26,176
----------- -----------
Total Printing and Personal Systems Group 60,137 65,750
----------- -----------
Services
Infrastructure Technology Outsourcing 14,692 15,224
Technology Services 10,463 10,542
Application and Business Services(c) 9,767 9,936
----------- -----------
Total Services 34,922 35,702
----------- -----------
Enterprise Servers, Storage and Networking
Industry Standard Servers 12,582 13,521
Storage 3,815 4,056
Business Critical Systems 1,612 2,095
Networking 2,482 2,392
----------- -----------
Total Enterprise Servers, Storage and
Networking 20,491 22,064
----------- -----------
Software 4,060 3,367
----------- -----------
HP Financial Services 3,819 3,596
----------- -----------
Corporate Investments 108 208
----------- -----------
Total segments 123,537 130,687
----------- -----------
Elimination of intersegment net revenue and other (3,180) (3,442)
----------- -----------
Total HP consolidated net revenue $ 120,357 $ 127,245
=========== ===========
(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.
(c) The former Application Services, Business Process Outsourcing and Other
Services business units were consolidated into a new Application and
Business Services business unit in fiscal 2012.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT NON-GAAP OPERATING MARGIN SUMMARY DATA
(Unaudited)
(In millions)
Three
months Change in Operating
ended Margin (pts)
----------- ----------------------
October 31,
2012 Q/Q Y/Y
----------- ---------- ----------
Non-GAAP operating margin:(a)
Personal Systems 3.5% (1.2 pts) (2.2 pts)
Printing 17.5% 1.7 pts 5.1 pts
Printing and Personal Systems
Group(b) 9.3% - 1.0 pts
Services 14.2% 3.2 pts 1.1 pts
Enterprise Servers, Storage and
Networking 8.3% (2.6 pts) (4.5 pts)
Software 27.2% 9.2 pts (0.6 pts)
HP Financial Services 10.8% 0.4 pts 0.5 pts
Corporate Investments (638.5%) (280.6 pts) 752.4 pts
Total segments 11.0% 0.9 pts 0.4 pts
Total HP consolidated non-GAAP
operating margin 10.4% 1.2 pts 0.7 pts
(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.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three months ended
-------------------------------------
October 31, July 31, October 31,
2012 2012 2011
----------- ----------- -----------
Numerator:
GAAP net (loss) earnings $ (6,854) $ (8,857) $ 239
=========== =========== ===========
Non-GAAP net earnings $ 2,281 $ 1,973 $ 2,350
=========== =========== ===========
Denominator:
Weighted-average shares used to
compute basic net (loss) earnings
per share and diluted net (loss) per
share 1,964 1,971 1,989
Dilutive effect of employee stock
plans 3 4 16
----------- ----------- -----------
Weighted-average shares used to
compute diluted net earnings per
share 1,967 1,975 2,005
=========== =========== ===========
GAAP net (loss) earnings per share:
Basic $ (3.49) $ (4.49) $ 0.12
Diluted(a) $ (3.49) $ (4.49) $ 0.12
Non-GAAP net earnings per share:
Basic $ 1.16 $ 1.00 $ 1.18
Diluted(b) $ 1.16 $ 1.00 $ 1.17
(a) GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock, but that effect is
excluded when calculating GAAP diluted net (loss) per share because it
would be anti-dilutive.
(b) Non-GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Twelve months ended
October 31,
------------------------
2012 2011
----------- -----------
Numerator:
GAAP net (loss) earnings $ (12,650) $ 7,074
=========== ===========
Non-GAAP net earnings $ 8,035 $ 10,379
=========== ===========
Denominator:
Weighted-average shares used to compute basic net
(loss) earnings per share and diluted net (loss)
per share 1,974 2,094
Dilutive effect of employee stock plans 10 34
----------- -----------
Weighted-average shares used to compute diluted
net earnings per share 1,984 2,128
=========== ===========
GAAP net (loss) earnings per share:
Basic $ (6.41) $ 3.38
Diluted(a) $ (6.41) $ 3.32
Non-GAAP net earnings per share:
Basic $ 4.07 $ 4.96
Diluted(b) $ 4.05 $ 4.88
(a) GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock, but that effect is
excluded when calculating GAAP diluted net (loss) per share because it
would be anti-dilutive.
(b) Non-GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock.
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HP Reports Fourth Quarter and Full Year 2012 Results
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