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HPQ · HP

38 filings

10-K

HPQ 10-K Annual Reports

HP - 38 annual reports

Filing record · 2016–202610-K1310-Q338-K140

2025
HP Annual Report, Year Ended Oct 31, 2025
HP Inc. reported fiscal 2025 (year ended October 31, 2025) total net revenue of $55.30 billion, up 3.2% from $53.56 billion in fiscal 2024. Growth came mainly from Personal Systems, where net revenue rose 6.5% to $38.53 billion on a 4.3% increase in unit volume tied to the Windows PC operating system refresh. Printing net revenue fell 3.7% to $16.70 billion. Profitability weakened: gross margin declined 1.5 percentage points to 20.6% of net revenue, earnings from operations fell to $3.17 billion from $3.82 billion, and net earnings were $2.53 billion, or $2.65 per diluted share, versus $2.81 a year earlier. The company attributed the margin decline mainly to higher commodity and tariff costs, which pricing and other actions did not fully offset. Cash generation and capital returns remained substantial. Net cash provided by operating activities was $3.70 billion, and HP returned $1.9 billion to shareholders through $1.1 billion of dividends and $0.8 billion of share repurchases. Approximately $8.4 billion remained under repurchase authorizations at year end. Total debt was $9.67 billion, with $3.69 billion of cash and cash equivalents. The company disclosed that its previously reported material weakness in internal controls was remediated as of October 31, 2025. Looking forward, the Board approved a Fiscal 2026 Plan on November 25, 2025, aimed at customer satisfaction, product innovation and productivity through AI adoption. The plan is expected to run through fiscal 2028 and includes a reduction of approximately 4,000 to 6,000 employees and pre-tax charges of approximately $650 million. The filing also flags ongoing risks from tariffs, memory and storage cost inflation, supply constraints, and declining demand for printing products.
Dec 10, 2025
2024
HP Annual Report, Year Ended Oct 31, 2024
HP Inc. (HPQ) reported fiscal year 2024 (ended October 31, 2024) net revenue of $53.56 billion, down slightly from $53.72 billion in fiscal 2023, while net earnings fell to $2.78 billion from $3.26 billion. Gross margin improved to 22.1% of net revenue from 21.4%, driven mainly by lower supply chain costs and Future Ready transformation savings, but operating expenses rose, with SG&A up to $5.66 billion from $5.36 billion, largely on litigation costs and go-to-market initiatives. Earnings from operations were $3.82 billion, versus $3.46 billion a year earlier. Personal Systems revenue grew to $36.20 billion, while Printing revenue declined to $17.34 billion, with printer unit volume down 7.2%. The filing discloses a material weakness in internal control over financial reporting, tied to IT general controls over user access, change management and job schedule monitoring. Management concluded that disclosure controls were not effective as of October 31, 2024, and Ernst & Young issued an adverse opinion on internal control. The auditor did not identify any resulting material misstatement of the financial statements. Cash flow from operations was $3.75 billion, and the company returned $3.2 billion to shareholders through $2.1 billion of repurchases and $1.1 billion of dividends. Total debt stood at $9.67 billion, with short-term debt rising to $1.41 billion as Global Notes due June 2025 were reclassified to current liabilities. Stockholders' deficit widened to $1.32 billion. Investors should weigh the declining printing franchise, the unremediated control weakness, and the company's continued reliance on buybacks and dividends against modest margin gains and growth in Personal Systems.
Dec 13, 2024
2023
HP Annual Report, Year Ended Oct 31, 2023
HP Inc. reported fiscal 2023 (year ended October 31, 2023) net revenue of $53.72 billion, down 14.6% from $62.91 billion in fiscal 2022 (down 11.7% on a constant currency basis). The decline was driven by demand softness and foreign currency impacts in Personal Systems and Printing, along with lower Personal Systems average selling prices. Net earnings were $3.26 billion, or $3.26 diluted earnings per share, compared with $3.13 billion in fiscal 2022. Earnings from operations fell to $3.46 billion from $4.56 billion. Gross margin rose 1.9 percentage points to 21.4%, mainly from a mix shift toward Printing and lower commodity and logistics costs in Personal Systems. Management said inventory ended the year at normalized levels, and it expects stabilization in Personal Systems and Printing during fiscal 2024. Net cash provided by operating activities was $3.57 billion, versus $4.46 billion in fiscal 2022. Total debt was $9.48 billion at year-end, down from $11.01 billion, and cash and cash equivalents were $3.11 billion. HP returned $1.1 billion to shareholders through $1.0 billion of dividends and $0.1 billion of share repurchases, and had approximately $2.0 billion remaining under its repurchase authorizations. The Future Ready Plan (the "Fiscal 2023 Plan"), which runs through fiscal 2025, targets a reduction of 4,000 to 6,000 employees and pre-tax charges of about $1.0 billion. Management reported that it exceeded its fiscal 2023 gross annual run-rate structural cost savings target. The company disclosed an unremediated material weakness in internal control over financial reporting, related to information technology general controls (user access and change management) over software solutions that affect net revenue. Ernst & Young issued an adverse opinion on internal control as of October 31, 2023, and management concluded that disclosure controls were not effective. The filing states that this weakness did not result in any errors or a material misstatement. Pending litigation includes Nokia patent claims, Philips and Caltech patent suits, and a U.K. damages proceeding against former Autonomy management in which HP seeks more than $5 billion. HP is unable to estimate a loss for the Nokia matters.
Dec 18, 2023
2022-A
HP Annual Report (Amendment), Year Ended Oct 31, 2022
HP Inc. filed this amended annual report to revise its fiscal 2022 Form 10-K (fiscal year ended October 31, 2022). The amendment revises prior-period financial statements to correct an accounting error in a Personal Systems revenue contract and other immaterial errors, and it reports that the company did not maintain effective internal control over financial reporting as of October 31, 2022. Management identified two material weaknesses in revenue controls: recognition of revenue for a Personal Systems customer's transactions involving third-party financing, and undue reliance on a payment application for certain EMEA sales incentive programs, which relate to variable consideration of approximately 4% of total consolidated revenues. Ernst & Young LLP issued an adverse opinion on internal control over financial reporting. The filing states that the revenue error affected a contract comprising less than 1% of total consolidated revenues for the impacted periods, and that the errors did not result in a material misstatement of previously filed financials. After revision, fiscal 2022 net revenue was $62.91 billion, compared with $63.46 billion in fiscal 2021, and net earnings were $3.13 billion, compared with $6.54 billion in fiscal 2021. Net earnings as originally reported for fiscal 2022 were $3.20 billion, so the revision reduced them by $71 million. Diluted earnings per share were $2.98, versus $3.05 as originally reported. Cash provided by operating activities was $4.46 billion, and the company repurchased $4.30 billion of common stock and paid $1.04 billion in dividends. The stockholders' deficit was $3.03 billion at year end. Management states that remediation is in progress, including designing preventive and detective controls and enhancing review of a SOC-1 report and related complementary user entity controls. The material weaknesses will not be considered remediated until the enhanced controls operate for a sufficient period and testing concludes they are effective.
Sep 11, 2023
2022
HP Annual Report, Year Ended Oct 31, 2022
HP Inc. (HPQ) reported fiscal 2022 (year ended October 31, 2022) net revenue of $62.98 billion, down from $63.49 billion in fiscal 2021, and net earnings of $3.20 billion, or $3.05 per diluted share, versus $6.50 billion in fiscal 2021. The decline was driven by unit declines in Personal Systems and Printing, partially offset by higher average selling prices. Earnings from operations fell to $4.68 billion from $5.30 billion. The prior-year figure included a one-time $2.3 billion gain from Oracle litigation proceeds recorded in Interest and other, net. The filing states that consumer demand declined beginning in the third quarter of fiscal 2022, particularly for Consumer PCs, and that HP expects declines in both the Personal Systems and Printing markets in fiscal 2023. HP completed the acquisition of Plantronics, Inc. (Poly) on August 29, 2022, in an all-cash transaction at $40 per share, implying a total enterprise value of $3.3 billion. Total debt rose to $11.0 billion from $7.5 billion as of October 31, 2021, reflecting $4.0 billion of unsecured senior notes issued during the year. Cash and cash equivalents were $3.1 billion. HP returned $5.3 billion to shareholders through $4.3 billion of share repurchases and $1.0 billion of cash dividends, and approximately $2.1 billion remained under its repurchase authorizations at year-end. In November 2022, HP announced the Fiscal 2023 Plan, a three-year program through fiscal 2025 covering digital transformation, portfolio optimization and operational efficiency. The company expects to reduce global headcount by approximately 4,000 to 6,000 employees and to incur pre-tax charges of approximately $1.0 billion. Russia contributed approximately $1.0 billion of net revenue in fiscal 2021, and HP recorded a $23 million charge in fiscal 2022 to wind down its Russian operations.
Dec 6, 2022
2021
HP Annual Report, Year Ended Oct 31, 2021
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2021 net revenue of $63.49 billion, up from $56.64 billion in fiscal 2020, with net earnings of $6.50 billion, or $5.33 per diluted share, compared with $2.84 billion in the prior year. Earnings from operations were $5.30 billion, and results were helped by a one-time gain of approximately $2.3 billion recorded in Interest and other, net from the Oracle litigation proceeds, which Oracle paid in October 2021 to satisfy a judgment of about $4.65 billion, shared equally with Hewlett Packard Enterprise. Net revenue growth was led by Personal Systems, where Notebooks grew strongly on work-from-home and remote-learning demand, and by Printing, where Supplies and Consumer and Commercial printing increased. The filing also cites ongoing component shortages, supply chain constraints, and COVID-19 disruptions that management expects to continue into fiscal 2022. Capital returns were significant. HP returned $7.2 billion to shareholders in fiscal 2021, including $6.3 billion of share repurchases and $0.9 billion of cash dividends, and it intends to repurchase at least $4.0 billion of shares in fiscal 2022. Approximately $6.4 billion remained under repurchase authorizations at year end. Cash and cash equivalents were $4.3 billion and total debt was $7.5 billion, up from $6.2 billion, reflecting $2.0 billion of senior notes issued in June 2021. Stockholders' deficit improved to $(1.65) billion from $(2.23) billion, and operating cash flow rose to $6.41 billion from $4.32 billion. The filing also discloses material legal matters, including ongoing patent litigation with Philips and Caltech, securities class actions, the Forsyth age-discrimination class action, and India customs duty proceedings in which the DRI sought roughly $370 million plus penalties and interest. Management states that it believes it has adequate provisions for these matters, and that a material loss beyond amounts recognized was not reasonably possible as of October 31, 2021.
Dec 9, 2021
2020
HP Annual Report, Year Ended Oct 31, 2020
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2020 net revenue of $56.64 billion, down from $58.76 billion in fiscal 2019, a decrease of 3.6% as stated in the filing. Net earnings were $2.84 billion, or $2.00 per diluted share, compared with $3.15 billion and $2.07 in fiscal 2019. Gross margin declined to 18.4% from 19.0%, driven by unfavorable segment mix and lower Printing hardware margins, partly offset by Personal Systems gains. The filing attributes the revenue decline primarily to weak demand in Desktops, Supplies and Commercial Printing Hardware as offices remained closed during COVID-19, partly offset by strong Notebook demand. Printing revenue fell 12.1% to $17.64 billion, while Personal Systems revenue rose 0.8% to $39.00 billion, with Notebooks up 12.4%. Segment performance diverged. Personal Systems earnings from operations rose to $2.31 billion (5.9% of net revenue) from $1.90 billion, while Printing earnings from operations fell to $2.50 billion (14.1%) from $3.20 billion. Restructuring and other charges rose to $462 million from $275 million, reflecting the Fiscal 2020 Plan, which the company expects to complete by the end of fiscal 2022. Operating cash flow was $4.32 billion, versus $4.65 billion in fiscal 2019, and the company issued $3.0 billion of senior notes in June 2020 while repurchasing $3.1 billion of stock. The filing states that the company's share repurchase authorization was increased to $15.0 billion in February 2020, with approximately $12.7 billion remaining as of October 31, 2020, and that HP expects repurchases of at least $1.0 billion per quarter. Total debt was $6.2 billion at year-end. The filing also discloses legal matters, including the Oracle damages judgment of approximately $3.0 billion that HP has not recorded, and an Italian authority's final decision imposing fines totaling €10 million, which HP intends to appeal.
Dec 10, 2020
2019-A
HP Annual Report (Amendment), Year Ended Oct 31, 2019
This Form 10-K/A (Amendment No. 1) for HP Inc.'s fiscal year ended October 31, 2019 provides Part III information: executive officer and director details, executive compensation, security ownership, related-person transactions, and principal accountant fees. It is largely a governance and compensation disclosure rather than a financial performance update. It reports that Enrique J. Lores was appointed President and CEO effective November 1, 2019, succeeding Dion J. Weisler, who remains a Senior Executive Advisor until the 2020 Annual Meeting. Weisler's fiscal 2019 total compensation was $19,317,972 and the CEO pay ratio was 258:1, based on a median employee compensation of $75,013. For fiscal 2019, the HR and Compensation Committee reported corporate revenue of $58.8 billion against a $60.0 billion target, net earnings of $3.8 billion against a $3.7 billion target, and free cash flow of 6.78% of revenue against a 6.33% target. Named executive officers' annual incentives averaged 117.2% of target, and the say-on-pay proposal at the 2019 annual meeting received support from over 93% of votes cast. The filing also describes changes to the long-term incentive program starting with fiscal 2020 grants, which move performance shares to a single three-year performance period with EPS measured and a relative TSR modifier. On ownership and fees, the filing lists Dodge & Cox at 10.1%, The Vanguard Group at 8.9%, and BlackRock at 6.9% of common stock outstanding, and reports 4,555,175 shares held by all current executive officers and directors as a group. Ernst & Young LLP fees were $21.2 million for fiscal 2019 compared with $23.4 million for fiscal 2018, with audit fees of $15.9 million in each year.
Feb 27, 2020
2019
HP Annual Report, Year Ended Oct 31, 2019
HP Inc. (HPQ) reported fiscal 2019 (year ended October 31, 2019) net revenue of $58.76 billion, up slightly from $58.47 billion in fiscal 2018. Earnings from operations were $3.88 billion, compared with $3.83 billion a year earlier, and net earnings fell to $3.15 billion from $5.33 billion, a decline driven largely by a $1.35 billion charge in interest and other, net, which the filing attributes primarily to tax indemnifications related to the termination of the tax matters agreement with Hewlett Packard Enterprise. Diluted EPS was $2.07 versus $3.26. Personal Systems earnings from operations rose to $1.90 billion from $1.40 billion on higher notebook and desktop revenue, while Printing earnings from operations declined to $3.20 billion from $3.31 billion as Supplies revenue fell 4.8%. The company remained focused on cost reduction, announcing the Fiscal 2020 Plan in September 2019 to reduce global headcount by approximately 7,000 to 9,000 employees and incur pre-tax charges of approximately $1.0 billion. Cash flow from operations was $4.65 billion, and the company returned capital to shareholders through $2.41 billion in share repurchases and $970 million in dividends paid. Total debt was $5.1 billion against cash and cash equivalents of $4.5 billion at year end. The company had approximately $6.5 billion remaining under repurchase authorizations as of October 31, 2019. The filing also highlights ongoing risks, including competitive pricing pressure, declining supplies demand, tariffs, and litigation. Notable matters include the Oracle damages judgment of approximately $3.0 billion (on appeal, with no amount recorded), copyright levy proceedings in Europe, and patent litigation brought by Neodron and Slingshot Printing. Stockholders' deficit was $1.19 billion at year end.
Dec 12, 2019
2018
HP Annual Report, Year Ended Oct 31, 2018
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2018 net revenue of $58.47 billion, up from $52.06 billion in fiscal 2017, with net earnings of $5.33 billion ($3.26 diluted EPS) versus $2.53 billion ($1.48) a year earlier. The result was driven by a $2.8 billion net income tax benefit from discrete items, including the provisional effects of the Tax Cuts and Jobs Act of 2017, and by revenue growth in Personal Systems ($37.66 billion) and Printing ($20.81 billion). Gross margin declined to 18.2% from 18.4%, and earnings from continuing operations rose to $4.06 billion from $3.52 billion. Interest and other, net expense increased to $1.05 billion, reflecting the reversal of tax indemnification receivables from Hewlett Packard Enterprise and a $126 million loss on debt extinguishment. Cash flow from operations was $4.53 billion, compared with $3.68 billion in fiscal 2017. HP repurchased $2.56 billion of common stock and paid $899 million in dividends, and total debt fell to $5.99 billion from $7.82 billion after a roughly $1.85 billion tender offer for senior notes. The company had about $3.9 billion remaining under its share repurchase authorization at October 31, 2018. Stockholders' deficit narrowed to $639 million from $3.41 billion. The filing also flags material ongoing matters, including the Oracle damages judgment (approximately $3.0 billion awarded to HP, with the appeal pending and no amount recorded), copyright levy proceedings in Europe, an Indian customs dispute, and Autonomy-related litigation. The TCJA provisional amounts remain subject to change, and the company expects to pay the approximately $3.3 billion deemed repatriation tax over eight years.
Dec 13, 2018
2017-A
HP Annual Report (Amendment), Year Ended Oct 31, 2017
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2017 net revenue of $52.06 billion, up from $48.24 billion in fiscal 2016, with the filing stating total net revenue increased 7.9% (8.7% on a constant currency basis). Net earnings were $2.53 billion, or $1.48 per diluted share, compared with $2.50 billion and $1.43 per diluted share in fiscal 2016. Gross margin declined to 18.4% from 18.7%, mainly due to higher commodity costs in Personal Systems, unfavorable foreign currency impacts and a higher mix of Personal Systems revenue. Earnings from continuing operations were $3.52 billion, and restructuring and other charges rose to $362 million from $205 million, largely tied to the October 2016 restructuring plan. By segment, Personal Systems net revenue rose 11.3% to $33.37 billion with segment earnings from operations of $1.21 billion, while Printing net revenue rose 3.0% to $18.80 billion with earnings from operations of $3.16 billion. Supplies revenue grew to $12.42 billion. Cash flow from operations was $3.68 billion, and total debt rose to $7.82 billion. The company repurchased $1.41 billion of stock in fiscal 2017 and paid $894 million in dividends, with about $2.5 billion remaining under its $3.0 billion repurchase authorization. Management highlights ongoing risks including commodity cost increases, competitive pricing pressure, macroeconomic weakness, and a $1.1 billion cash payment to Samsung for its printer business completed on November 1, 2017.
Dec 15, 2017
2017
HP Annual Report, Year Ended Oct 31, 2017
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2017 net revenue of $52.06 billion, up from $48.24 billion in fiscal 2016, with net earnings of $2.53 billion, compared with $2.50 billion a year earlier. Earnings from continuing operations were $3.52 billion, and diluted EPS was $1.48. Growth was led by Personal Systems, where net revenue rose 11.3% to $33.37 billion, and Printing, where net revenue rose 3.0% to $18.80 billion. Gross margin declined to 18.4% from 18.7%, mainly due to higher commodity costs in Personal Systems and unfavorable foreign currency impacts. Restructuring and other charges rose to $362 million, and Selling, general and administrative expense increased 14% to $4.38 billion. Balance sheet and cash flow: cash and cash equivalents were $7.0 billion and total debt was $7.8 billion at October 31, 2017. Net cash provided by operating activities was $3.68 billion. HP returned cash through $1.41 billion of share repurchases and $894 million of dividends paid, and it had about $2.5 billion remaining under its $3.0 billion repurchase authorization. Stockholders' deficit was $3.41 billion. Approximately 63% of net revenue came from outside the United States. Subsequent events and risks: on November 1, 2017, HP made a $1.1 billion cash payment to Samsung Electronics in connection with the acquisition of its printer business. The filing also discusses ongoing legal matters, including the Oracle judgment (approximately $3.0 billion awarded to HP, under appeal) and the Autonomy-related litigation. Key business risks cited include intense competition, commodity cost pressures, reliance on single-source suppliers such as Canon, Intel and AMD, and foreign currency exposure.
Dec 14, 2017
2016
HP Annual Report, Year Ended Oct 31, 2016
HP Inc. (formerly Hewlett-Packard Company) reported fiscal 2016 net revenue of $48.24 billion, down from $51.46 billion in fiscal 2015, as the company operated as a standalone entity following the November 1, 2015 separation of Hewlett Packard Enterprise. Net earnings were $2.50 billion, or $1.43 diluted EPS, compared with $4.55 billion in fiscal 2015. Earnings from continuing operations before interest and taxes were $3.55 billion, and the decline in net revenue was attributed to unfavorable currency impacts, weak market demand, competitive pricing pressures and the change in the Supplies sales model. Personal Systems net revenue fell 4.9% to $29.99 billion, while Printing net revenue fell 14.0% to $18.26 billion, with Supplies down 15.1%. The balance sheet reflects the separation: total assets fell to $29.01 billion from $106.88 billion, and total stockholders' deficit was $3.89 billion. Cash and cash equivalents were $6.29 billion and total debt was $6.84 billion. Operating cash flow was $3.23 billion, and the company returned cash through a $10.38 billion net transfer to Hewlett Packard Enterprise, $1.16 billion in share repurchases and $858 million in dividends. The board authorized an additional $3.0 billion of repurchases in October 2016, leaving about $3.8 billion remaining, and approved a Fiscal 2017 restructuring plan with estimated pre-tax charges of $350 million to $500 million. Key items for investors include a pending $1.05 billion acquisition of Samsung Electronics' printer business, a jury verdict of approximately $3.0 billion in HP's favor against Oracle Corporation (judgment entered, with Oracle stating it will appeal and no amount recorded), and uncertain tax positions of $10.9 billion in total unrecognized tax benefits. Approximately 63% of fiscal 2016 net revenue came from outside the United States.
Dec 15, 2016
2015
HP Annual Report, Year Ended Oct 31, 2015
HP Inc. (formerly Hewlett-Packard Company) filed this Form 10-K for fiscal 2015 (year ended October 31, 2015) following the November 1, 2015 separation of Hewlett Packard Enterprise, which took its enterprise technology infrastructure, software, services and financing businesses. Going forward, HP Inc. reports three segments: Personal Systems, Printing and Corporate Investments. Fiscal 2015 consolidated net revenue was $103.36 billion, down 7.3% from $111.45 billion, with earnings from operations of $5.47 billion versus $7.19 billion and net earnings of $4.55 billion ($2.48 diluted EPS) versus $5.01 billion. The company recorded $1.26 billion of separation costs, $1.02 billion of restructuring charges and a $1.8 billion tax benefit from releasing U.S. valuation allowances tied to the Enterprise Services business, which lifted the effective tax rate to 3.8%. The balance sheet and cash flow picture shifted noticeably. Cash and cash equivalents rose to $17.43 billion, while total debt increased to $24.67 billion, driven by the Separation and the Aruba acquisition. Operating cash flow fell to $6.49 billion from $12.33 billion, and the company repurchased $2.9 billion of stock and paid $1.25 billion in dividends. Management cites continued soft PC demand, competitive printing pricing and revenue runoff in Enterprise Services as key headwinds, and a new 2015 restructuring plan targets up to about 33,300 employee exits through 2018. For investors, the filing is primarily a transition document: the historical figures include Hewlett Packard Enterprise, which is now reported as discontinued operations beginning in fiscal 2016, so future results will look materially different. The company also disclosed $3.7 billion of uncertain tax liabilities, ongoing copyright levy proceedings in Europe, and several major legal matters including Autonomy-related litigation and an Indian customs dispute seeking about $370 million.
Dec 16, 2015
2014
HP Annual Report, Year Ended Oct 31, 2014
Hewlett-Packard Company reported net revenue of $111.45 billion for fiscal 2014 (ended October 31, 2014), down 0.8% from $112.30 billion in fiscal 2013, with earnings from operations of $7.19 billion and net earnings of $5.01 billion, or $2.62 per diluted share. Net revenue declined mainly due to key account runoff in Enterprise Services and lower Printing supplies volume, partly offset by growth in Personal Systems commercial PCs. Gross margin rose 0.8 percentage points, helped by service delivery efficiencies in Enterprise Services and improved Printing cost structure, while restructuring charges increased to $1.62 billion as the 2012 Plan's target grew from 34,000 to 55,000 positions. The company generated $12.3 billion in operating cash flow, invested $3.0 billion in property, plant and equipment net of sales proceeds, repurchased $2.7 billion of common stock and paid $1.2 billion in dividends. Cash and cash equivalents rose to $15.1 billion, while total debt fell to $19.5 billion from $22.6 billion. Segment results were mixed: Personal Systems and Printing improved operating margins, while Enterprise Group and Enterprise Services revenue and profit declined. The filing's most significant item for investors is the October 6, 2014 announcement that HP will separate into two publicly traded companies: Hewlett-Packard Enterprise, comprising enterprise technology, software, services and financing, and HP Inc., comprising printing and personal systems. The separation is targeted for completion by the end of fiscal 2015 and is subject to Board approval, regulatory conditions and tax opinions or rulings. The filing also notes credit ratings under negative outlook from some agencies after the announcement, and ongoing investigations and litigation, including Autonomy-related matters and copyright levies in Europe.
Dec 18, 2014
2013
HP Annual Report, Year Ended Oct 31, 2013
Hewlett-Packard Company reported fiscal 2013 (year ended October 31, 2013) net revenue of $112.3 billion, down 6.7% from $120.4 billion in fiscal 2012, with net revenue declining 5.5% on a constant currency basis. Earnings from operations were $7.13 billion, compared with a loss of $11.06 billion in fiscal 2012, which included $18.0 billion of goodwill and intangible asset impairment charges. Net earnings were $5.11 billion, or $2.62 per diluted share, versus a net loss of $12.65 billion in fiscal 2012. Management attributed the revenue decline to a contraction in the PC market, weak public sector and enterprise IT demand in Europe, competitive pricing pressure, and unfavorable currency effects in Printing. Approximately 64% of net revenue came from outside the United States. Cash flow remained strong, with net cash provided by operating activities of $11.6 billion. The company repaid $5.7 billion of debt, paid $1.1 billion in dividends, repurchased $1.5 billion of common stock, and invested $3.2 billion in capital assets. Total debt fell to $22.6 billion from $28.4 billion, and the debt-equity ratio improved to 0.82x. Credit ratings remain under pressure: Moody's downgraded HP's long-term rating to Baa1 in November 2012 and keeps a negative outlook, and the company says prior downgrades raised borrowing costs and reduced commercial paper market capacity. The filing also describes ongoing risks, including a restructuring plan from May 2012 that HP now expects to involve approximately 34,000 position eliminations and about $4.1 billion in aggregate charges. It also reports multiple government investigations under the FCPA, including Russia and Poland matters, an India customs dispute of roughly $370 million in claimed duties and penalties, an ongoing South Carolina contract dispute seeking about $275 million, and Autonomy-related investigations and securities litigation.
Dec 30, 2013
2012
HP Annual Report, Year Ended Oct 31, 2012
Hewlett-Packard Company reported a net loss of $12.65 billion for fiscal 2012 (ended October 31, 2012) on net revenue of $120.36 billion, down from $127.25 billion in fiscal 2011. The loss was driven by an $18.04 billion impairment of goodwill and purchased intangible assets, including an $8.8 billion charge tied to the Autonomy reporting unit within the Software segment, an $8.0 billion goodwill charge for the enterprise services reporting unit within Services, and a $1.2 billion charge on the "Compaq" trade name. Restructuring charges rose to $2.27 billion, reflecting a company-wide plan announced in May 2012 that is expected to eliminate about 29,000 positions through fiscal 2014. Earnings from operations were a loss of $11.06 billion, compared with earnings of $9.68 billion in fiscal 2011. Revenue declined in most segments, with Personal Systems down 9.9% and Printing down 6.5%, while Software grew 20.6% on acquired businesses. Liquidity remained substantial, with cash and cash equivalents of $11.3 billion and cash provided by operations of $10.6 billion in fiscal 2012. Total debt was $28.4 billion, and the company repurchased $1.6 billion of stock and paid $1.0 billion in dividends during the year. Credit ratings were downgraded by all three agencies during fiscal 2011 and 2012, and Moody's maintains a negative outlook. The filing also discloses ongoing securities class actions, investigations related to Autonomy and to Russia-related Foreign Corrupt Practices Act matters, and an Indian customs dispute with potential additional deposits of up to $367 million.
Dec 27, 2012
2011
HP Annual Report, Year Ended Oct 31, 2011
Hewlett-Packard Company reported fiscal 2011 (year ended October 31, 2011) net revenue of $127.2 billion, up 1.0% from $126.0 billion in fiscal 2010, with earnings from operations of $9.68 billion (7.6% of revenue) versus $11.48 billion a year earlier, and net earnings of $7.07 billion, or $3.32 per diluted share, compared with $8.76 billion and $3.69 in fiscal 2010. The decline in profitability reflected an $885 million impairment of goodwill and purchased intangibles tied to the decision to wind down the webOS device business, $645 million of restructuring charges, $182 million of acquisition-related charges, and $1.6 billion of amortization of purchased intangibles. Gross margin fell to 23.4% from 23.9%, and operating expenses rose, including selling, general and administrative expenses of $13.47 billion. Growth was led by the Enterprise Servers, Storage and Networking segment, whose revenue rose to $22.24 billion, and HP Software, which grew to $3.22 billion largely through acquisitions including Autonomy, acquired for about $11 billion. The Personal Systems Group declined 2.9% to $39.57 billion, and Corporate Investments posted a segment loss from operations of $1.62 billion. Cash flow from operations was $12.64 billion, while HP spent $10.5 billion on acquisitions and $10.1 billion repurchasing stock, reducing cash and cash equivalents to $8.04 billion. Total debt rose to $30.6 billion from $22.3 billion, and debt-to-equity increased to 0.79x from 0.55x. Investors should note the credit rating downgrades: Standard & Poor's cut HP's long-term rating to BBB+ on November 30, 2011, and Fitch cut its rating to A on December 2, 2011, with Moody's review for possible downgrade ongoing. The filing states these actions increased borrowing costs and reduced commercial paper market capacity. The filing also describes ongoing investigations related to the Foreign Corrupt Practices Act, a substantial India customs duty dispute of about $370 million, and multiple securities and derivative lawsuits.
Dec 14, 2011
2010
HP Annual Report, Year Ended Oct 31, 2010
Hewlett-Packard Company's annual report for fiscal 2010 (year ended October 31, 2010) shows net revenue of $126.03 billion, up 10.0% from $114.55 billion in fiscal 2009, with net earnings of $8.76 billion, up from $7.66 billion, and diluted EPS of $3.69 versus $3.14. Earnings from operations rose to $11.48 billion (9.1% of net revenue) from $10.14 billion. The growth was led by Personal Systems Group, which posted revenue of $40.74 billion, up 15.4%, and Enterprise Storage and Servers, up 21.4% to $18.65 billion. Services revenue was broadly flat at $34.94 billion, up 0.7%, while Services operating margin improved to 16.1%. Cash and cash equivalents fell to $10.93 billion from $13.28 billion, as HP spent $11.04 billion repurchasing common stock and $8.10 billion on net business acquisitions, including 3Com, Palm, 3PAR and ArcSight. Operating cash flow was $11.92 billion. Total debt rose to $22.3 billion from $15.8 billion, and short-term debt was $7.05 billion. Restructuring charges increased to $1.14 billion, driven by a $650 million enterprise services plan. The filing also discloses ongoing investigations by the U.S. Department of Justice and the SEC into the Russia GPO transaction and potential Foreign Corrupt Practices Act violations, as well as customs proceedings in India and copyright levy litigation in Europe. Approximately 65% of net revenue came from outside the United States.
Dec 15, 2010
2009-A
HP Annual Report (Amendment), Year Ended Oct 31, 2009
This Form 10-K/A (Amendment No. 1) from Hewlett-Packard Company, now HP Inc., amends the company's Annual Report for the fiscal year ended October 31, 2009, which was filed with the SEC on December 17, 2009. The amendment's sole purpose is to furnish Schedule II, "Valuation and Qualifying Accounts," in interactive data (XBRL) format. The schedule had been inadvertently omitted from the interactive data submission made with the original Form 10-K. The amendment is signed by Catherine A. Lesjak, Executive Vice President and Chief Financial Officer, and is dated February 5, 2010. The filing states that no other changes have been made to the original Form 10-K. It speaks as of the original filing date and does not reflect later events or modify or update any disclosures in the original report. Its only financial data points are the aggregate market value of common stock held by non-affiliates, $85,982,273,000 based on the April 30, 2009 last sale price, and 2,364,168,918 shares outstanding as of November 30, 2009. The company checked the boxes for large accelerated filer and well-known seasoned issuer. The Schedule II figures themselves are carried in the XBRL exhibits listed in the Exhibit Index (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB and 101.PRE), which are furnished with the filing and are not deemed "filed" for purposes of Section 18 of the Exchange Act. Investors seeking the substance of the company's financial results should refer to the original Form 10-K filed December 17, 2009.
Feb 5, 2010
2009
HP Annual Report, Year Ended Oct 31, 2009
Hewlett-Packard Company reported fiscal 2009 (year ended October 31, 2009) net revenue of $114.55 billion, down 3.2% from $118.36 billion in fiscal 2008, with earnings from operations of $10.14 billion (8.8% of net revenue) and net earnings of $7.66 billion, or $3.14 per diluted share, versus $8.33 billion and $3.25 per diluted share a year earlier. The filing attributes the revenue decline to a global slowdown in IT and consumer spending, with the Services segment growing 65.4% due primarily to the August 2008 acquisition of Electronic Data Systems Corporation (EDS). Enterprise Storage and Servers revenue fell 20.8% and Personal Systems Group revenue fell 16.5%, while Imaging and Printing Group revenue declined 18.9%. Restructuring charges rose to $640 million, and net earnings were reduced by $1.73 billion of after-tax charges including amortization of purchased intangibles. Cash flow remained strong, with net cash provided by operating activities of $13.38 billion and cash and cash equivalents of $13.28 billion at year end. Management used cash primarily for $5.14 billion of share repurchases, $3.70 billion of capital expenditures and $766 million of dividends, and total debt declined to $15.8 billion from $17.9 billion. Long-term debt rose to $13.98 billion as short-term borrowings were refinanced. The filing also discloses a pending agreement, announced in November 2009, to acquire 3Com Corporation at $7.90 per share, an enterprise value of about $2.7 billion, expected to close in the second fiscal quarter of 2010, and a new $8.0 billion share repurchase authorization approved on November 19, 2009. The filing highlights several risks, including aggressive price competition in personal computers and printing, a 64% share of net revenue from outside the United States, exposure to foreign currency movements, and a $6.9 billion increase in the deferred tax valuation allowance during fiscal 2009. Ongoing litigation includes copyright levy proceedings in Europe, inkjet printer class actions and a False Claims Act complaint filed by the U.S. Department of Justice. Shareholders received $0.32 per share in dividends for the year.
Dec 17, 2009
2008
HP Annual Report, Year Ended Oct 31, 2008
Hewlett-Packard Company (HP) reported fiscal 2008 (year ended October 31, 2008) net revenue of $118.4 billion, up from $104.3 billion in fiscal 2007, with earnings from operations of $10.5 billion (8.8% of net revenue) and net earnings of $8.3 billion, or $3.25 per diluted share. The growth was driven by the August 26, 2008 acquisition of Electronic Data Systems Corporation (EDS), which was purchased for a total preliminary estimated price of approximately $13.0 billion and is included in the HP Services segment. Net revenue growth was 13.5% as reported (8% on a constant currency basis per the filing), with PSG (Personal Systems Group) and HP Services the largest contributors. Gross margin was 24.0%, down slightly from 24.4% in fiscal 2007, and the filing attributes the HPS margin decline primarily to the EDS acquisition. Balance sheet and cash flow changed materially. Total assets rose to $113.3 billion from $88.7 billion, goodwill increased to $32.3 billion, and outstanding debt grew to $17.9 billion from $8.2 billion, with short-term borrowings of $10.2 billion. Net cash provided by operating activities was $14.6 billion, while $11.2 billion was paid for business acquisitions and $9.6 billion was used to repurchase common stock. Cash and cash equivalents declined to $10.2 billion. HP had approximately $9.1 billion of remaining share repurchase authorization at October 31, 2008. The filing also discloses a restructuring plan tied to the EDS acquisition, targeting the elimination of approximately 24,700 positions over four years, with HP recording $1.8 billion in restructuring liabilities in the fourth quarter ($1.5 billion booked to goodwill and $0.3 billion as a charge). Key risks disclosed include competitive pricing pressure in PCs and printing, integration of EDS, international exposure (approximately 69% of net revenue from outside the United States), and a jury verdict of $184 million in the Cornell University patent case, which the court had not yet entered as final judgment.
Dec 18, 2008
2007
HP Annual Report, Year Ended Oct 31, 2007
Hewlett-Packard Company's annual report for fiscal 2007 (year ended October 31, 2007) shows net revenue of $104.29 billion, up from $91.66 billion in fiscal 2006, with earnings from operations of $8.72 billion and net earnings of $7.26 billion, or $2.68 per diluted share. The filing states that net revenue increased approximately 14% from the prior year (10% on a constant currency basis), and that the increase was led by the Personal Systems Group, where notebook revenue rose sharply and unit volume increased 28%. Approximately 67% of net revenue came from outside the United States. Net cash from operating activities was $9.62 billion, down from $11.35 billion, while the company repurchased $10.9 billion of common stock and spent $6.8 billion on acquisitions, including Mercury Interactive and Opsware. Cash and cash equivalents fell to $11.29 billion from $16.40 billion. The filing also describes ongoing cost reduction efforts, including consolidating 85 data centers into six and consolidating several hundred real estate locations, along with restructuring charges of $387 million in fiscal 2007. In February 2007 the company modified its U.S. defined benefit pension plan, which produced a one-time curtailment gain of $542 million. Management reported that its internal control over financial reporting was effective as of October 31, 2007, and Ernst & Young issued an unqualified opinion. The board authorized an additional $8.0 billion for share repurchases on November 19, 2007, and the quarterly dividend rate is $0.08 per share. The filing lists several notable risks, including intense competition in PCs and printing, dependence on third-party suppliers such as Intel, government contracting and copyright levy litigation in Europe, and the leak investigation matters, which led to a $14.5 million settlement with the California Attorney General and a cease-and-desist order from the SEC.
Dec 18, 2007
2006
HP Annual Report, Year Ended Oct 31, 2006
Hewlett-Packard Company reported net revenue of $91.66 billion for fiscal 2006 (ended October 31, 2006), up from $86.70 billion in fiscal 2005, and net earnings of $6.20 billion, or $2.18 per diluted share, compared with $2.40 billion, or $0.82 per diluted share, the prior year. Earnings from operations rose to $6.56 billion from $3.47 billion, with the filing noting that fiscal 2005 included $1.68 billion of restructuring charges. Net earnings in fiscal 2006 benefited from $599 million of net income tax benefit tied to items unique to the year, including $565 million of favorable adjustments from the settlement of IRS examinations for fiscal years 1993 to 1998. Cash flow was strong, with net cash provided by operating activities of $11.35 billion, and cash and cash equivalents ended the year at $16.40 billion. HP used cash for $6.06 billion of common stock repurchases, $1.72 billion of prepayments under a prepaid variable share purchase program, $0.89 billion of dividends, and $2.54 billion of capital investment in property, plant and equipment. The company had about $5.6 billion of remaining share repurchase authorization at October 31, 2006. Total debt was flat at $5.2 billion. The filing highlights ongoing risks, including aggressive price competition in PCs and printing, pressure on printer supplies margins from refill and cloned cartridges, and multiple regulatory inquiries and stockholder lawsuits tied to the leak investigation. HP also disclosed pending acquisitions of Mercury Interactive, completed in November 2006 for approximately $4.8 billion, along with Knightsbridge Solutions and Bitfone. Chief Financial Officer Robert P. Wayman is retiring effective December 31, 2006, and Catherine A. Lesjak has been elected to succeed him.
Dec 22, 2006
2005
HP Annual Report, Year Ended Oct 31, 2005
Hewlett-Packard Company's Form 10-K for the fiscal year ended October 31, 2005 reports net revenue of $86.70 billion, up from $79.91 billion in fiscal 2004, with earnings from operations of $3.47 billion (4.0% of net revenue) versus $4.23 billion a year earlier. Net earnings were $2.40 billion, or $0.82 per diluted share, compared with $3.50 billion ($1.15 per diluted share) in fiscal 2004. The decline was driven largely by a $1.68 billion restructuring charge tied to a plan approved in the fourth quarter to terminate or retire about 15,300 employees through the first quarter of fiscal 2007, and by a $792 million tax charge from repatriating $14.5 billion of foreign earnings under the American Jobs Creation Act. Effective tax rate rose to 32.3% from 16.7%. The Imaging and Printing Group remained the most profitable segment, with $3.41 billion in earnings from operations on $25.16 billion of revenue (13.6% margin), though its margin fell from 15.9% as gross margin declined on supplies mix and hardware pricing. Enterprise Storage and Servers and HP Services both improved or held steady at the operating level in different ways: ESS earnings rose to $810 million from $161 million, while HP Services earnings fell to $1.15 billion from $1.28 billion. Software remained loss-making at $(59) million, though it improved from $(156) million. Cash flow strengthened, with net cash provided by operating activities of $8.03 billion versus $5.09 billion. HP repurchased $3.5 billion of stock and repaid $1.8 billion of debt, and cash and equivalents ended at $13.91 billion. Management noted that currency movements are expected to have an adverse impact on fiscal 2006 results reported in U.S. dollars, and that restructuring and workforce actions are expected to generate gross savings of $900 million to $1.0 billion in fiscal 2006 and about $2.0 billion annually from fiscal 2007.
Dec 21, 2005
2004
HP Annual Report, Year Ended Oct 31, 2004
Hewlett-Packard Company's annual report on Form 10-K for the fiscal year ended October 31, 2004 reports net revenue of $79.9 billion, up from $73.1 billion in fiscal 2003, and net earnings of $3.5 billion, or $1.15 per diluted share, compared with $2.5 billion in fiscal 2003. Earnings from operations rose to $4.2 billion (5.3% of net revenue) from $2.9 billion. Growth was led by the Personal Systems Group, with net revenue of $24.6 billion, and the Imaging and Printing Group, with net revenue of $24.2 billion and earnings from operations of $3.8 billion. Gross margin declined to 24.5% of net revenue from 26.3%, reflecting competitive pricing pressure in several segments. Cash and cash equivalents fell to $12.7 billion from $14.2 billion, primarily because of $3.3 billion in share repurchases and $1.1 billion in acquisitions. Operating cash flow was $5.1 billion, down from $6.1 billion, as the cash conversion cycle lengthened to 30 days. The filing highlights several items that could affect future results. Management is evaluating whether to repatriate between zero and $14.5 billion of foreign earnings under the American Jobs Creation Act of 2004. If it chooses the maximum, it estimates additional federal tax expense of $850 million to $925 million in fiscal 2005. The company also expects to incur about $200 million in workforce reduction expenses in the first half of fiscal 2005. The filing lists numerous pending patent, consumer class action, and copyright levy lawsuits, and it notes that the Department of Justice is investigating false claims relating to floppy disk controller allegations. The company agreed to reimburse the Government of Canada CDN$146 million (approximately US$105 million), and it recorded a $70 million charge in fiscal 2004 for that settlement. The board authorized $5.0 billion in share repurchases during fiscal 2004, and about $2.9 billion remained available as of October 31, 2004. The company paid a quarterly dividend of $0.08 per share. Management expects SFAS 123R, which requires expensing stock options, to have a material impact on results beginning in fiscal 2005.
Jan 14, 2005
2003
HP Annual Report, Year Ended Oct 31, 2003
Hewlett-Packard Company's annual report on Form 10-K for the fiscal year ended October 31, 2003 shows a return to profitability following fiscal 2002. Net revenue rose to $73.06 billion from $56.59 billion, driven primarily by the acquisition of Compaq (completed May 2002) and market share gains across most segments. Net earnings were $2.54 billion, compared with a net loss of $903 million in fiscal 2002. Earnings from operations were $2.90 billion, versus a loss of $1.01 billion a year earlier. The filing notes that restructuring charges fell to $800 million from $1.78 billion, and that gross margin as a percentage of net revenue improved to 26.3% from 26.1%. Cash generation was strong. Net cash provided by operating activities was $6.06 billion, and cash and cash equivalents increased by $3.0 billion to $14.19 billion at year-end. The company paid dividends of $977 million, repurchased $751 million of common stock, and invested $1.6 billion in net capital expenditures. Total assets were $74.71 billion, long-term debt was $6.49 billion, and total stockholders' equity was $37.75 billion. Research and development spending was $3.7 billion. The filing also highlights ongoing risks. HP discloses a range of pending litigation, including consumer class actions over inkjet cartridges, patent suits with Cornell, EMC and Intergraph, a federal investigation tied to floppy disk controller allegations, and EU levy proceedings. Management states that HP believes it has valid defenses and adequate provisions, but that the outcome of any contingency could materially affect cash flows or results in a given period.
Jan 20, 2004
2002
HP Annual Report, Year Ended Oct 31, 2002
Hewlett-Packard Company's Form 10-K for the fiscal year ended October 31, 2002 reports net revenue of $56.6 billion, up from $45.2 billion in fiscal 2001, driven primarily by the May 3, 2002 acquisition of Compaq Computer Corporation. The company reported a loss from operations of $1.01 billion and a net loss of $903 million, compared with earnings from operations of $1.44 billion and net earnings of $408 million in fiscal 2001. The loss reflects $1.78 billion of restructuring charges, $793 million of in-process research and development charges, and $701 million of acquisition-related charges, largely tied to the Compaq integration. Management stated that Compaq cost savings for the second half of fiscal 2002 were approximately $650 million, against a target of approximately $500 million, and that aggregate annual cost synergies of $3 billion are expected to be fully realized in fiscal 2004. The balance sheet expanded substantially, with total assets of $70.7 billion at year-end versus $32.6 billion a year earlier, including goodwill of $15.1 billion and purchased intangible assets of $4.9 billion. Cash and cash equivalents rose to $11.2 billion, and operating cash flow was $5.4 billion. Long-term debt increased to $6.0 billion from $3.7 billion, and the company paid $0.32 per share in dividends. The filing also describes a broad set of pending litigation, including the Cooper patent case, consumer class actions over inkjet cartridges, and a $200 billion-plus apartheid-related suit, along with SEC and U.S. Attorney inquiries tied to the Compaq vote. The company's five segments are Imaging and Printing Group, Personal Systems Group, Enterprise Systems Group, HP Services, and HP Financial Services. Imaging and Printing earnings from operations were $3.25 billion on $20.3 billion of revenue. Personal Systems and Enterprise Systems both reported operating losses in fiscal 2002, at $401 million and $968 million respectively, while HP Services earned $1.02 billion. Management expects approximately $1.4 billion of future cash expenditures for restructuring, and a pension contribution of approximately $800 million in fiscal 2003.
Jan 21, 2003
2001-A
HP Annual Report (Amendment), Year Ended Oct 31, 2001
Hewlett-Packard Company reported fiscal 2001 (year ended October 31, 2001) net revenue of $45.2 billion, down 7% from $48.9 billion in fiscal 2000, with U.S. revenue down 13% to $18.8 billion and international revenue down 3% to $26.4 billion. Earnings from operations fell to $1.44 billion from $4.03 billion, and net earnings dropped to $408 million, or $0.21 per diluted share, after the $272 million cumulative effect of adopting SAB 101 and a $56 million extraordinary gain. Gross margin declined to 26.0% from 28.3%. Earnings from continuing operations before taxes fell 85% to $702 million, reflecting $384 million of restructuring charges, $455 million of net investment losses, a $400 million litigation settlement with Pitney Bowes, and $53 million of net losses on divestitures. Segment results were mixed. Imaging and Printing Systems remained the largest segment at $19.4 billion in net revenue, though its earnings from operations declined to $1.99 billion. Computing Systems revenue fell 14% to $17.8 billion and posted an operating loss of $450 million, while IT Services grew 6% to $7.6 billion. The company cut about 7,500 positions under its restructuring program, which it expects to save about $500 million annually. Cash flow from operations was $2.6 billion, and cash and short-term investments totaled $4.3 billion at year-end. The filing also highlights pending transactions that dominate the outlook. HP signed a definitive agreement in September 2001 to acquire Compaq Computer Corporation in a stock deal estimated at $24 billion, with completion expected in the first half of calendar 2002, subject to shareowner and regulatory approvals. Members of the Hewlett family and related foundations have announced opposition to the merger, and a $675 million termination fee may apply in certain circumstances. HP also agreed to acquire the remaining shares of Indigo N.V. for an estimated $720 million plus contingent value rights.
Jan 30, 2002
2001
HP Annual Report, Year Ended Oct 31, 2001
Hewlett-Packard Company reported fiscal 2001 (year ended October 31, 2001) net revenue of $45.2 billion, down 7% from $48.9 billion in fiscal 2000, as the global economic downturn reduced volumes across most product categories. Earnings from operations fell to $1.44 billion from $4.03 billion, and net earnings were $408 million, or $0.21 per diluted share, after a $272 million cumulative-effect charge from the adoption of SAB 101, a $400 million litigation settlement with Pitney Bowes, $384 million in restructuring charges, and $455 million in net investment losses. Gross margin declined to 26.0% from 28.3%. Earnings from continuing operations before extraordinary item and cumulative effect were $624 million, or $0.32 per diluted share. Cash flow from operations was $2.56 billion, and cash and short-term investments totaled $4.3 billion at year-end. The company's three segments were Imaging and Printing Systems ($19.4 billion revenue, $1.99 billion earnings from operations), Computing Systems ($17.8 billion revenue, a $450 million operating loss), and IT Services ($7.6 billion revenue, $342 million earnings from operations, up 6% in revenue). Research and development spending was $2.7 billion, or 5.9% of net revenue. Headcount was about 86,200 at October 31, 2001, and the company planned to cut about 7,500 employees under its fiscal 2001 restructuring program. The filing is dominated by the pending merger with Compaq Computer Corporation, announced September 2001 at an estimated purchase price of $24 billion, with a $675 million termination fee payable in certain circumstances. Several Hewlett family trusts and foundations announced opposition to the share issuance, and the filing notes that the company expects the transaction to close in the first half of calendar 2002 if shareowner and regulatory approvals are received. The pending $720 million acquisition of Indigo N.V. is also described.
Jan 29, 2002
2000
HP Annual Report, Year Ended Oct 31, 2000
Hewlett-Packard Company's annual report for fiscal year ended October 31, 2000 shows net revenue of $48,782 million, up 15% from $42,370 million in 1999. Earnings from operations were $3,889 million, and net earnings from continuing operations rose 15% to $3.6 billion ($3,561 million), or $1.73 per diluted share. Total net earnings were $3,697 million after $136 million from discontinued operations, which reflect Agilent Technologies, spun off June 2, 2000. Gross results were supported by strong home and notebook PC, printing supplies, and UNIX server sales, while the filing notes weakness in business desktop PCs and business printers, lower average selling prices, and unfavorable currency effects. The balance sheet shows cash and cash equivalents of $3,415 million and short-term investments of $592 million, compared with $5,411 million and $179 million a year earlier. Long-term debt increased to $3,402 million from $1,764 million, reflecting the issuance of $1.5 billion of 7.15% Global Notes due 2005. Stockholders' equity declined to $14,209 million from $18,295 million, largely due to $5,570 million of share repurchases and the $4.2 billion retained earnings reduction from the Agilent spin-off. Operating cash flow was $3,460 million. The filing also flags risks management highlighted: HP expects slower revenue growth in the first half of fiscal 2001 and first-quarter EPS below previous estimates due to weakening economic conditions and reduced IT spending, primarily in the U.S. The company also changed its independent auditor for the fiscal 2000 audit from PricewaterhouseCoopers to Ernst & Young, following the termination of a possible acquisition of PwC's consulting practice.
Jan 25, 2001
1999
HP Annual Report, Year Ended Oct 31, 1999
Hewlett-Packard Company's annual report for the fiscal year ended October 31, 1999 shows net revenue of $42.37 billion, up from $39.42 billion in 1998, and earnings from operations of $3.69 billion versus $3.40 billion. Net earnings from continuing operations rose to $3.10 billion from $2.68 billion, and diluted EPS from continuing operations was $2.97 versus $2.52. Net earnings including discontinued operations were $3.49 billion, or $3.34 per diluted share. The filing states that HP's financial position remained strong, with cash and short-term investments of $5.6 billion at year-end, long-term debt of $1.76 billion, and total assets of $35.30 billion. The most significant structural development is the planned spin-off of Agilent Technologies, which comprises HP's test and measurement, semiconductor products, healthcare solutions and chemical analysis businesses. Agilent was reflected as a discontinued operation, and HP sold roughly 16 percent of its stock in an initial public offering on November 23, 1999, with HP retaining the remaining shares for planned distribution to stockholders by July 31, 2000. HP's three continuing segments are Imaging and Printing Systems (net revenue of $18.90 billion, earnings from operations of $2.31 billion), Computing Systems ($18.44 billion and $856 million), and IT Services ($5.92 billion and $636 million). The filing also notes that Computing Systems' operating margin improved to 4.6 percent from 2.9 percent, while IT Services' margin fell to 10.8 percent from 15.0 percent. Management reported that Year 2000 issues had caused no significant disruption through the first week of 2000, and that the company repurchased 31 million shares for $2.6 billion during 1999.
Jan 27, 2000
1998
HP Annual Report, Year Ended Oct 31, 1998
Hewlett-Packard Company's fiscal 1998 Form 10-K (year ended October 31, 1998) shows net revenue of $47.06 billion, up from $42.90 billion in 1997, with earnings from operations of $3.84 billion versus $4.34 billion and net earnings of $2.95 billion versus $3.12 billion. The filing states that net earnings declined 6 percent, compared with a 21 percent increase in 1997, and that full-year operating and net-profit margins were lower than in 1997. Management attributes the slowdown to continued pricing pressure in personal computers and printers and to economic weakness in Asia, which cut revenue growth from 16 percent in the first half of 1998 to 4 percent in the second half. The company also recorded $260 million of charges in cost of products sold and services, primarily for voluntary employee severance programs and fixed-asset writedowns tied to outsourcing of certain production operations. Balance sheet and cash flow were strong. Operating activities generated $5.44 billion in cash, which funded $2.42 billion of common stock repurchases and $1.3 billion of debt reductions, and cash and short-term investments totaled $4.1 billion at year end. Total assets were $33.67 billion and long-term debt fell to $2.06 billion from $3.16 billion. Management expects full-year 1999 net revenue growth similar to 1998, with slower growth in the first half of 1999 reflecting the Asian economic weakness. The filing also covers the Year 2000 program, with implementation of internal IT applications about 40 percent complete as of November 30, 1998 and a target compliance date of July 31, 1999, and it reports research and development spending of $3.4 billion, or 7.1 percent of net revenue. The company had approximately 124,600 employees at October 31, 1998.
Jan 15, 1999
1996-A
HP Annual Report (Amendment), Year Ended Oct 31, 1996
This Form 10-K/A (Amendment No. 1) from Hewlett-Packard Company, now HP Inc., is an amendment to the annual report for the fiscal year ended October 31, 1996. The filing was made March 12, 1997. The cover page reports an aggregate market value of Common Stock held by non-affiliates of $45,069,882,066 as of February 28, 1997, and 1,019,230,327 shares of $1 par value Common Stock outstanding on that date. The amendment adds a paragraph to Part II, Item 5 (Market for Registrant's Common Equity). It discloses that on September 19, 1996, the company sold and issued 241,485 shares of its common stock without using an underwriter. The shares were exchanged for all of the common stock, preferred stock and vested options of Trellis Software & Controls, Inc., a Michigan corporation, in connection with the company's acquisition of Trellis on the same date. The shares had a value of approximately $11,652,000 on the date of sale. The company relied on the exemption from registration under Section 3(a)(10) of the Securities Act of 1933. Following a hearing on September 9, 1996, the California Department of Corporations issued a permit on the same date qualifying the company to offer, sell and issue the shares.
Mar 12, 1997
1996
HP Annual Report, Year Ended Oct 31, 1996
Hewlett-Packard Company, together with its consolidated subsidiaries, designs, manufactures and services equipment and systems for measurement, computation and communications. In fiscal 1996 (ended October 31, 1996), net revenue rose to $38.42 billion from $31.52 billion in 1995, and total orders reached $38.89 billion, up from $32.69 billion. Net earnings were $2.59 billion, compared with $2.43 billion in 1995, and earnings from operations were $3.73 billion. The filing notes that the first half of the year was stronger than the second, with reseller inventory adjustments and the exit from disk-mechanism manufacturing weighing on growth and margins. Cost of products sold and services rose to 66.4% of net revenue from 63.5% in 1995, and the company attributed this to intense price competition, product mix shifts and roughly $135 million of pretax charges tied to the disk-mechanism exit. The balance sheet remained strong, with cash and cash equivalents of $2.89 billion and short-term investments of $442 million at year-end, against total assets of $27.70 billion and shareholders' equity of $13.44 billion. Long-term debt increased to $2.58 billion from $663 million, largely to support the lease portfolio and interest-bearing assets. Operating activities generated $3.46 billion in cash, and capital expenditures were $2.2 billion. The company repurchased $1.09 billion of stock in fiscal 1996 and, in November 1996, the Board authorized an additional $1 billion in repurchases. The filing reports no material pending legal proceedings beyond routine matters and states that environmental costs are not material.
Jan 29, 1997
1995
HP Annual Report, Year Ended Oct 31, 1995
Hewlett-Packard Company's 10-K for fiscal year ended October 31, 1995 reports strong growth: net revenue rose 26 percent to $31.5 billion ($31,519 million), total orders increased 28 percent to $32.5 billion, and net earnings reached $2.4 billion ($2,433 million), up 52 percent from 1994. Earnings from operations were $3,568 million, and net earnings per share were $4.63 after the 2-for-1 stock split effective March 24, 1995. The company cited strong demand for its printers, UNIX-based multiuser systems, HP Vectra PCs and electronic test and measurement products. Net earnings reached 7.7 percent of net revenue, the highest since 1988, and return on average shareholders' equity was 22.3 percent. The filing also highlights rising working-capital needs. Receivables grew 34 percent against 26 percent revenue growth, and inventories rose 41 percent, so cash from operating activities fell to $1.6 billion ($1,613 million) from $2.2 billion in 1994. Capital expenditures were $1.6 billion, net borrowings were $857 million, and total assets grew to $24.4 billion. Research and development spending increased 14 percent to $2.3 billion, or 7.3 percent of net revenue. The company repurchased 10.4 million shares for $686 million in 1995, and on November 17, 1995 its board authorized an additional $1 billion in repurchases. The filing identifies risks including reliance on resellers, some of which are thinly capitalized, constrained supply of certain components, price competition that pressures gross margins, and exposure to earthquakes near key facilities. Management stated that legal proceedings were routine and that environmental costs were not material.
Jan 29, 1996
1994
HP Annual Report, Year Ended Oct 31, 1994
Hewlett-Packard Company, together with its consolidated subsidiaries, reported fiscal 1994 (year ended October 31, 1994) net revenue of $24.99 billion, up from $20.32 billion in fiscal 1993, and net earnings of $1.60 billion, or $6.14 per share, compared with $1.18 billion, or $4.65 per share, in 1993. Earnings from operations rose to $2.55 billion from $1.88 billion. Total orders were $25.35 billion, and the filing states that net revenue growth was 23 percent, with net earnings up 36 percent. Equipment revenue was $19.31 billion and services revenue was $5.68 billion. The company reported that cost of equipment sold and services rose to 62.0 percent of net revenue from 59.7 percent, while selling, general and administrative expense fell to 19.7 percent of net revenue from 22.4 percent. The balance sheet at October 31, 1994 showed total assets of $19.57 billion, cash and cash equivalents of $1.36 billion, and short-term investments of $1.12 billion, against total shareholders' equity of $9.93 billion and long-term debt of $547 million. Operating activities generated $2.2 billion in cash, and capital expenditures were $1.3 billion. Management described the financial position as strong, with $3.1 billion in unused credit lines and authorized but unissued commercial paper. The company repurchased about 4.0 million shares in 1994 for approximately $325 million and had $255 million remaining under its repurchase authorization. The filing describes the company as engaged in the design, manufacture and service of electronic equipment and systems for measurement, computation and communications. Research and development spending was $2.0 billion, or 8.1 percent of net revenue, and the company stated that pending legal proceedings were limited to routine litigation. The company had approximately 98,400 employees at October 31, 1994, and the filing describes it as the second-largest U.S.-based manufacturer of general-purpose computers.
Jan 27, 1995
1993
HP Annual Report, Year Ended Oct 31, 1993
Hewlett-Packard Company's fiscal 1993 Form 10-K (fiscal year ended October 31, 1993) reports net revenue of $20.3 billion, up from $16.4 billion in 1992, and net earnings of $1.18 billion, or $4.65 per share, versus $549 million, or $2.18 per share, in 1992. The filing states that 1993 orders rose 24 percent to $20.8 billion, with U.S. orders up 25 percent and international orders up 23 percent. Equipment revenue grew 26 percent and service revenue grew 18 percent. Earnings from operations were $1.88 billion, and the 1992 results included a one-time $332 million after-tax charge for a change in accounting for retiree medical benefits and special charges of about $137 million before taxes. The company reported cash and short-term investments of $1.6 billion at October 31, 1993, and total assets of $16.7 billion. Operating cash flow was $1.1 billion, down from $1.3 billion in 1992, which the filing attributes mainly to a substantial increase in inventory. Capital expenditures were $1.4 billion, and notes payable and short-term borrowings rose to $2.2 billion. Cost of equipment sold and services was 59.7 percent of net revenue, compared with 55.8 percent in 1992, and the filing says pricing pressure and product mix put upward pressure on cost of sales. Research and development spending reached $1.8 billion, or 8.7 percent of net revenue. The filing states that the company had about 96,200 employees at October 31, 1993, and it describes itself as the second-largest U.S.-based manufacturer of general-purpose computers, personal peripherals and calculators. Most of the financial information is incorporated by reference from the 1993 Annual Report to Shareholders, which is included in this filing as Exhibit 13. The company reports no pending legal proceedings beyond routine litigation, and environmental expenditures are described as not material.
Jan 28, 1994