HP 2006 Annual Report Download - page 140

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 18: Segment Information (Continued)
products include plasma and LCD flat-panel televisions, the HP Digital Entertainment Center,
HD DVD and RW drives, and DVD writers.
•Imaging and Printing Group provides consumer and commercial printer hardware, printing
supplies, printing media and scanning devices. IPG is also focused on imaging solutions in the
commercial markets, from managed print services solutions to addressing new growth
opportunities in commercial printing in areas such as industrial applications, outdoor signage,
and the graphic arts business. Inkjet systems include desktop single function and inkjet all-in-one
printers, including photo, productivity and business inkjet printers and scanners. Digital imaging
products and services include photo specialty printers, photo kiosks, digital cameras, accessories
and online photo services through Snapfish in North America. LaserJet systems include
monochrome and color laser printers, printer-based MFDs and Total Print Management
Solutions for enterprise customers. Graphics and Imaging products include large format
(DesignJet) printers, Indigo and Scitex digital presses, digital publishing solutions and graphics
printing solutions. Printer supplies include LaserJet toner and inkjet printer cartridges and other
related printing media such as HP-branded Vivera and ColorSphere ink and HP Premium and
Premium Plus photo papers.
•HP Financial Services supports and enhances HP’s global product and services solutions,
providing a broad range of value-added financial life cycle management services. HPFS enables
HP’s worldwide customers to acquire complete IT solutions, including hardware, software and
services. HPFS offers leasing, financing, utility programs, and asset recovery services, as well as
financial asset management services, for large global and enterprise customers. HPFS also
provides an array of specialized financial services to SMBs and educational and governmental
entities. HPFS offers innovative, customized and flexible alternatives to balance unique customer
cash flow, technology obsolescence and capacity needs.
•Corporate Investments is managed by the Office of Strategy and Technology and includes HP
Labs and certain business incubation projects. Revenue in this segment is attributable to the sale
of certain network infrastructure products, including Ethernet switch products that enhance
computing and enterprise solutions under the brand ‘‘ProCurve Networking’’, as well as the
licensing of specific HP technology to third parties.
Segment Data
HP derives the results of the business segments directly from its internal management reporting
system. The accounting policies HP uses to derive business segment results are substantially the same
as those the consolidated company uses. Management measures the performance of each business
segment based on several metrics, including earnings from operations. Management uses these results,
in part, to evaluate the performance of, and to assign resources to, each of the business segments. HP
does not allocate to its business segments certain operating expenses, which it manages separately at
the corporate level. These unallocated costs include primarily amortization of purchased intangible
assets, stock-based compensation expense related to HP-granted employee stock options and the
employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&D, as
well as certain corporate governance costs.
HP does not allocate to its business segments restructuring charges and any associated adjustments
related to restructuring actions. Workforce rebalancing charges, which include involuntary workforce
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