Segment Information (Tables)

12 Months Ended

Oct. 31, 2012

Segment Information

Schedule of Revenue and Earnings (Loss) from Operations, by Segment

Selected operating results information for each business segment was as follows for the following fiscal years ended October 31:

	Printing and Personal Systems
	Personal Systems		Printing		Services		Enterprise Servers, Storage and Networking(1)		Software(2)		HP Financial Services		Corporate Investments(3)			Total
2012
Net revenue	$	34,699	$	24,266	$	34,365	$	19,379	$	3,757	$	3,784	$	107		$	120,357
Intersegment net revenue and other		951		221		557		1,112		303		35		1			3,180
Total segment net revenue	$	35,650	$	24,487	$	34,922	$	20,491	$	4,060	$	3,819	$	108		$	123,537
Earnings (loss) from operations	$	1,706	$	3,585	$	4,095	$	2,132	$	827	$	388	$	(238	)	$	12,495
2011
Net revenue	$	38,368	$	25,874	$	35,333	$	20,778	$	3,128	$	3,568	$	196		$	127,245
Intersegment net revenue and other		1,206		302		369		1,286		239		28		12			3,442
Total segment net revenue	$	39,574	$	26,176	$	35,702	$	22,064	$	3,367	$	3,596	$	208		$	130,687
Earnings (loss) from operations	$	2,350	$	3,927	$	5,203	$	2,997	$	722	$	348	$	(1,619	)	$	13,928
2010
Net revenue	$	40,003	$	25,941	$	35,169	$	19,068	$	2,602	$	3,037	$	214		$	126,033
Intersegment net revenue and other		738		235		107		1,178		210		10		—			2,479
Total segment net revenue	$	40,741	$	26,176	$	35,276	$	20,246	$	2,812	$	3,047	$	214		$	128,512
Earnings (loss) from operations	$	2,032	$	4,357	$	5,714	$	2,814	$	787	$	281	$	(358	)	$	15,627

⁽¹⁾

Includes the results of 3Com and 3PAR from the dates of acquisition in April 2010 and September 2010, respectively.

⁽²⁾

Includes the results of ArcSight and Autonomy from the dates of acquisition in October 2010 and October 2011, respectively.

⁽³⁾

Includes the results of Palm from the date of acquisition in July 2010 and the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011.

Schedule of Reconciliation of Revenues and Earnings before Taxes from Segments to Consolidated

The reconciliation of segment operating results information to HP consolidated totals was as follows for the following fiscal years ended October 31:

	2012			2011			2010
	In millions
Earnings before taxes:
Total segment earnings from operations	$	12,495		$	13,928		$	15,627
Corporate and unallocated costs and eliminations		(790	)		(314	)		(614	)
Unallocated costs related to certain stock-based compensation expense		(632	)		(618	)		(613	)
Amortization of purchased intangible assets		(1,784	)		(1,607	)		(1,484	)
Impairment of goodwill and purchased intangible assets		(18,035	)		(885	)		—
Acquisition-related charges		(45	)		(182	)		(293	)
Restructuring charges		(2,266	)		(645	)		(1,144	)
Interest and other, net		(876	)		(695	)		(505	)
Total HP consolidated (loss) earnings before taxes	$	(11,933	)	$	8,982		$	10,974

Schedule of Reconciliation of Assets from Segments to Consolidated

Total assets by segment and the reconciliation of segment assets to HP consolidated total assets were as follows at October 31:

	2012		2011		2010
	In millions
Personal Systems	$	12,752	$	15,781	$	16,548
Printing		11,169		11,939		12,514
Printing and Personal Systems Group		23,921		27,720		29,062
Services		31,234		40,614		41,989
Enterprise Servers, Storage and Networking		16,000		17,539		18,262
Software		12,264		21,028		9,979
HP Financial Services		12,924		13,543		12,123
Corporate Investments		248		517		1,619
Corporate and unallocated assets		12,177		8,556		11,469
Total HP consolidated assets	$	108,768	$	129,517	$	124,503

Schedule of net revenue by geographical areas

Net revenue, classified by the major geographic areas in which HP operates, was as follows for the following fiscal years ended October 31:

	2012		2011		2010
	In millions
Net revenue:
U.S.	$	42,140	$	44,111	$	44,542
Non-U.S.		78,217		83,134		81,491
Total HP consolidated net revenue	$	120,357	$	127,245	$	126,033

Schedule of net property, plant and equipment by geographical areas

Net property, plant and equipment, classified by major geographic areas in which HP operates, was as follows for the following fiscal years ended October 31:

	2012		2011		2010
	In millions
Net property, plant and equipment:
U.S.	$	5,894	$	6,126	$	6,479
U.K.		1,195		1,195		1,085
Other countries		4,865		4,971		4,199
Total HP consolidated net property, plant and equipment	$	11,954	$	12,292	$	11,763

Schedule of Revenue by Segment and Business Unit

The following table provides net revenue by segment and business unit for the following fiscal years ended October 31:

	2012			2011			2010
	In millions
Net revenue:
Notebooks	$	18,830		$	21,319		$	22,602
Desktops		13,888			15,260			15,519
Workstations		2,148			2,216			1,786
Other		784			779			834
Personal Systems		35,650			39,574			40,741
Supplies		16,151			17,154			17,249
Commercial Hardware		5,895			6,183			5,981
Consumer Hardware		2,441			2,839			2,946
Printing		24,487			26,176			26,176
Printing and Personal Systems Group		60,137			65,750			66,917
Infrastructure Technology Outsourcing		14,692			15,224			14,974
Technology Services		10,463			10,542			10,270
Application and Business Services		9,767			9,936			10,032
Services		34,922			35,702			35,276
Industry Standard Servers		12,582			13,521			12,574
Storage(1)		3,815			4,056			3,785
Business Critical Systems		1,612			2,095			2,292
Networking(2)		2,482			2,392			1,595
Enterprise Servers, Storage and Networking		20,491			22,064			20,246
Software(3)		4,060			3,367			2,812
HP Financial Services		3,819			3,596			3,047
Corporate Investments(4)		108			208			214
Total segments		123,537			130,687			128,512
Eliminations of inter-segment net revenue and other		(3,180	)		(3,442	)		(2,479	)
Total HP consolidated net revenue	$	120,357		$	127,245		$	126,033

⁽¹⁾

Includes the results of 3PAR from the date of acquisition in September 2010.

⁽²⁾

The networking business was added to ESSN in fiscal 2011. Also includes the results of 3Com from the date of acquisition in April 2010.

⁽³⁾

Includes the results of ArcSight and Autonomy from the dates of acquisition in October 2010 and October 2011, respectively.

⁽⁴⁾

Includes the results of Palm from the date of acquisition in July 2010 and the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011.

	Three-month periods ended in fiscal 2012
	January 31			April 30			July 31			October 31
Net revenue	$	30,036		$	30,693		$	29,669		$	29,959
Cost of sales(1)		23,313			23,541			22,820			22,711
Research and development		786			850			854			909
Selling, general and administrative		3,367			3,540			3,366			3,227
Amortization of purchased intangible assets		466			470			476			372
Impairment of goodwill and purchased intangible assets		—			—			9,188			8,847
Restructuring charges		40			53			1,795			378
Acquisition-related charges		22			17			3			3
Total costs and expenses		27,994			28,471			38,502			36,447
Earnings (loss) from operations		2,042			2,222			(8,833	)		(6,488	)
Interest and other, net		(221	)		(243	)		(224	)		(188	)
Earnings (loss) before taxes		1,821			1,979			(9,057	)		(6,676	)
(Provision) benefit for taxes		(353	)		(386	)		200			(178	)
Net earnings (loss)	$	1,468		$	1,593		$	(8,857	)	$	(6,854	)
Net earnings (loss) per share:(2)
Basic	$	0.74		$	0.80		$	(4.49	)	$	(3.49	)
Diluted	$	0.73		$	0.80		$	(4.49	)	$	(3.49	)
Cash dividends paid per share	$	0.12		$	0.12		$	0.13		$	0.13
Range of per share stock prices on the New York Stock Exchange
Low	$	25.02		$	22.85		$	17.73		$	13.80
High	$	28.88		$	30.00		$	25.40		$	20.26

	Three-month periods ended in fiscal 2011
	January 31			April 30			July 31			October 31
Net revenue	$	32,302		$	31,632		$	31,189		$	32,122
Cost of sales(1)(3)		24,381			23,832			23,901			25,304
Research and development		798			815			812			829
Selling, general and administrative(3)		3,117			3,425			3,430			3,605
Amortization of purchased intangible assets		425			413			358			411
Impairment of goodwill and purchased intangible assets		—			—			—			885
Restructuring charges		158			158			150			179
Acquisition-related charges		29			21			18			114
Total costs and expenses		28,908			28,664			28,669			31,327
Earnings from operations		3,394			2,968			2,520			795
Interest and other, net		(97	)		(76	)		(121	)		(401	)
Earnings before taxes		3,297			2,892			2,399			394
Provision for taxes		(692	)		(588	)		(473	)		(155	)
Net earnings	$	2,605		$	2,304		$	1,926		$	239
Net earnings per share:(2)
Basic	$	1.19		$	1.07		$	0.94		$	0.12
Diluted	$	1.17		$	1.05		$	0.93		$	0.12
Cash dividends paid per share	$	0.08		$	0.08		$	0.12		$	0.12
Range of per share stock prices on the New York Stock Exchange
Low	$	40.77		$	37.60		$	33.95		$	21.50
High	$	47.83		$	49.39		$	41.74		$	35.50

⁽¹⁾

Cost of products, cost of services and financing interest.

⁽²⁾

EPS for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of the EPS for each of the four quarters may not equal the EPS for the fiscal year.

⁽³⁾

In connection with organizational realignments implemented in the first quarter of fiscal 2012, certain costs previously reported as cost of sales have been reclassified as selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.