EX-99.2 3 q1ex99-2_0210.htm Q110 EXHIBIT 99.2 q1ex99-2_0210.htm
EXHIBIT 99.2


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
                   
                   
   
Three months ended
   
January 31,
2010
 
October 31,
2009
   
January 31,
2009
                   
Net revenue
  $ 31,177     $ 30,777     $ 28,807  
                         
Costs and expenses(a):
                       
          Cost of sales
    24,062       23,475       22,073  
          Research and development
    681       704       732  
          Selling, general and administrative
    2,932       2,966       2,893  
          Amortization of purchased intangible assets
    330       400       412  
          In-process research and development charges
    -       1       6  
          Restructuring charges
    131       38       146  
          Acquisition-related charges
    38       60       48  
              Total costs and expenses
    28,174       27,644       26,310  
                         
Earnings from operations
    3,003       3,133       2,497  
                         
Interest and other, net
    (87 )     (132 )     (232 )
                         
Earnings before taxes
    2,916       3,001       2,265  
                         
Provision for taxes(b)
    593       589       409  
                         
Net earnings
  $ 2,323     $ 2,412     $ 1,856  
                         
Net earnings per share:
                       
          Basic
  $ 0.99     $ 1.02     $ 0.77  
          Diluted
  $ 0.96     $ 0.99     $ 0.75  
                         
                         
Cash dividends declared per share
  $ 0.16     $ -     $ 0.16  
                         
Weighted-average shares used to compute net earnings per share:
         
          Basic
    2,358       2,366       2,410  
          Diluted
    2,427       2,433       2,464  
                         
(a)  Stock-based compensation expense was as follows:
 
          Cost of sales
  $ 47     $ 37     $ 52  
          Research and development
    14       10       17  
          Selling, general and administrative
    119       86       85  
          Acquisition-related charges
    1       1       6  
              Total costs and expenses
  $ 181     $ 134     $ 160  
                         
(b)  Tax benefit from stock-based compensation
  $ (58 )   $ (41 )   $ (48 )
                         

 
 

 


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
             
   
January 31,
2010
   
October 31,
2009
 
   
(unaudited)
       
             
ASSETS
           
             
Current assets:
           
     Cash and cash equivalents
  $ 13,547     $ 13,279  
     Short-term investments
    60       55  
     Accounts receivable
    14,503       16,537  
     Financing receivables
    2,765       2,675  
     Inventory
    6,630       6,128  
     Other current assets
    14,192       13,865  
                 
         Total current assets
    51,697       52,539  
                 
Property, plant and equipment
    11,164       11,262  
                 
Long-term financing receivables and other assets
    11,423       11,289  
                 
Goodwill and purchased intangible assets
    39,334       39,709  
                 
Total assets
  $ 113,618     $ 114,799  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
Current liabilities:
               
     Notes payable and short-term borrowings
  $ 1,862     $ 1,850  
     Accounts payable
    13,557       14,809  
     Employee compensation and benefits
    3,038       4,071  
     Taxes on earnings
    1,014       910  
     Deferred revenue
    6,412       6,182  
     Other accrued liabilities
    14,909       15,181  
                 
         Total current liabilities
    40,792       43,003  
                 
Long-term debt
    14,009       13,980  
Other liabilities
    16,853       17,052 (a)
                 
Stockholders' equity
               
     HP Stockholders' equity
    41,701       40,517  
     Noncontrolling interests
    263       247 (a)
         Total stockholders' equity
    41,964       40,764  
                 
Total liabilities and stockholders' equity
  $ 113,618     $ 114,799  
                 
(a)   Reflects the adoption of the accounting standard related to noncontrolling interests in consolidated financial statements.
 

 
 

 


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
                   
                   
   
Three months ended
   
January 31,
2010
   
October 31,
2009
   
January 31,
2009 (a)
                   
Net revenue:
                 
                   
       Services
  $ 8,651     $ 8,926     $ 8,747  
       Enterprise Storage and Servers
    4,391       4,218       3,949  
       HP Software
    878       967       878  
HP Enterprise Business
    13,920       14,111       13,574  
Personal Systems Group
    10,584       9,862       8,792  
Imaging and Printing Group
    6,206       6,454       5,981  
HP Financial Services
    719       726       636  
Corporate Investments
    236       191       196  
       Total Segments
    31,665       31,344       29,179  
Eliminations of intersegment net revenue and other
    (488 )     (567 )     (372 )
                         
Total HP Consolidated
  $ 31,177     $ 30,777     $ 28,807  
                         
Earnings from operations:
                       
                         
       Services
  $ 1,364     $ 1,444     $ 1,124  
       Enterprise Storage and Servers
    552       481       406  
       HP Software
    167       234       140  
HP Enterprise Business
    2,083       2,159       1,670  
Personal Systems Group
    530       460       436  
Imaging and Printing Group
    1,054       1,171       1,105  
HP Financial Services
    67       66       41  
Corporate Investments
    19       (8 )     (19 )
       Total Segments
    3,753       3,848       3,233  
                         
Corporate and unallocated costs and eliminations
    (88 )     (100 )     24  
Unallocated costs related to stock-based compensation expense
    (163 )     (116 )     (148 )
Amortization of purchased intangible assets
    (330 )     (400 )     (412 )
In-process research and development charges
    -       (1 )     (6 )
Restructuring charges
    (131 )     (38 )     (146 )
Acquisition-related charges
    (38 )     (60 )     (48 )
Interest and other, net
    (87 )     (132 )     (232 )
 
                       
Total HP Consolidated Earnings Before Taxes
  $ 2,916     $ 3,001     $ 2,265  
                         
                         
 (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.