HP Inc. Reports Fiscal 2018 Third Quarter Results
| | | HP INC. AND SUBSIDIARIES | | CONSOLIDATED CONDENSED BALANCE SHEETS | | (Unaudited) | | (In millions) | | | | |
As of | | |
July 31, 2018 | |
October 31, 2017 | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ | 6,195 | | | $ | 6,997 | | | Accounts receivable | 4,615 | | | 4,414 | | | Inventory | 6,091 | | | 5,786 | | | Other current assets | 4,875 | | | 5,121 | | | Total current assets | 21,776 | | | 22,318 | | | Property, plant and equipment | 2,112 | | | 1,878 | | | Goodwill | 5,930 | | | 5,622 | | | Other non-current assets | 4,436 | | | 3,095 | | | Total assets | $ | 34,254 | | | $ | 32,913 | | | | | | | | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | Current liabilities: | | | | | Notes payable and short-term borrowings | $ | 2,681 | | | $ | 1,072 | | | Accounts payable | 14,245 | | | 13,279 | | | Employee compensation and benefits | 1,008 | | | 894 | | | Taxes on earnings | 265 | | | 214 | | | Deferred revenue | 1,099 | | | 1,012 | | | Other accrued liabilities | 6,208 | | | 5,941 | | | Total current liabilities | 25,506 | | | 22,412 | | | Long-term debt | 4,503 | | | 6,747 | | | Other non-current liabilities | 6,012 | | | 7,162 | | | Stockholders' deficit | (1,767 | ) | | (3,408 | ) | | Total liabilities and stockholders' deficit | $ | 34,254 | | | $ | 32,913 | | | | | | | | | | |
| | | HP INC. AND SUBSIDIARIES | | CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | | (Unaudited) | | (In millions) | | | | |
Three months ended July 31 | | |
2018 | |
2017 | | Cash flows from operating activities: | | | | | Net earnings | $ | 880 | | | $ | 696 | | | Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | Depreciation and amortization | 132 | | | 90 | | | Stock-based compensation expense | 55 | | | 46 | | | Restructuring and other charges | 4 | | | 46 | | | Deferred taxes on earnings | 149 | | | 207 | | | Other, net | 36 | | | 48 | | | Changes in operating assets and liabilities, net of acquisition: | | | | | Accounts receivable | (15 | ) | | (504 | ) | | Inventory | (571 | ) | | (459 | ) | | Accounts payable | 1,187 | | | 1,712 | | | Taxes on earnings | (134 | ) | | (68 | ) | | Restructuring and other | (30 | ) | | (58 | ) | | Other assets and liabilities | (179 | ) | | 19 | | | Net cash provided by operating activities | 1,514 | | | 1,775 | | | Cash flows from investing activities: | | | | | Investment in property, plant and equipment | (117 | ) | | (61 | ) | | Purchases of available-for-sale securities and other investments | (16 | ) | | (1,035 | ) | | Maturities and sales of available-for-sale securities and other investments | 243 | | | — | | | Collateral posted for derivative instruments | (240 | ) | | (540 | ) | | Collateral returned for derivative instruments | 445 | | | 154 | | | Payment made in connection with business acquisition, net of cash acquired | (16 | ) | | — | | | Net cash provided by (used in) investing activities | 299 | | | (1,482 | ) | | Cash flows from financing activities: | | | | | Proceeds from short-term borrowings with original maturities less than 90 days, net | 740 | | | 972 | | | Proceeds from short-term borrowings with original maturities greater than 90 days | 412 | | | — | | | Payment of short-term borrowings with original maturities greater than 90 days | (97 | ) | | — | | | Payment of debt | (33 | ) | | (21 | ) | | Net proceeds related to stock-based award activities | 32 | | | 24 | | | Repurchase of common stock | (696 | ) | | (302 | ) | | Cash dividends paid | (223 | ) | | (222 | ) | | Net cash provided by financing activities | 135 | | | 451 | | | Increase in cash and cash equivalents | 1,948 | | | 744 | | | Cash and cash equivalents at beginning of period | 4,247 | | | 6,223 | | | Cash and cash equivalents at end of period | $ | 6,195 | | | $ | 6,967 | | | | | | | | | | |
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