HP 2011 Annual Report Download - page 60

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
For more information on our amortization of purchased intangibles assets, see Note 7 to the
Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Impairment of goodwill and purchased intangible assets
As a result of the decision to wind down the webOS device business in the fourth quarter of fiscal
2011, HP recorded an impairment charge to goodwill and certain purchased intangible assets associated
with the Palm acquisition. For more information on our impairment charges, see Note 7 to the
Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
Restructuring Charges
Restructuring charges for fiscal 2011 were $645 million. These charges included $326 million of
severance and facility costs related to our fiscal 2008 restructuring plan, $266 million of severance and
facility costs related to our fiscal 2010 enterprise services restructuring plan and $33 million related to
the decision to wind down the webOS device business.
Restructuring charges for fiscal 2010 were $1.1 billion. These charges included $650 million of
severance and facility costs related to our fiscal 2010 enterprise services restructuring plan, $429 million
of severance and facility costs related to our fiscal 2008 restructuring plan, $46 million and $18 million
associated with the Palm and 3Com restructuring plans, respectively, and an increase of $1 million
related to adjustments to other restructuring plans.
Restructuring charges for fiscal 2009 were $640 million. These charges included $346 million of
severance and facility costs related to our fiscal 2008 restructuring plan, $297 million of severance costs
associated with our fiscal 2009 restructuring plan, and a reduction of $3 million related to adjustments
to other restructuring plans.
For more information on our restructuring charges, see Note 8 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference.
As part of our ongoing business operations, we incurred workforce rebalancing charges for
severance and related costs within certain business segments in fiscal 2011. Workforce rebalancing
activities are considered part of normal operations as we continue to optimize our cost structure.
Workforce rebalancing costs are included in our business segment results, and we expect to incur
additional workforce rebalancing costs in the future.
Acquisition-related Charges
In fiscal 2011, we recorded acquisition-related charges of $182 million primarily for consulting and
integration costs associated with the Autonomy acquisition, as well as retention bonuses for acquisitions
completed in fiscal 2010.
In fiscal 2010, we recorded acquisition-related charges of $293 million primarily for consulting and
integration costs, acquisition costs and retention bonuses associated with the EDS, 3Com, Palm, 3PAR
and ArcSight, Inc. acquisitions.
Interest and Other, Net
Interest and other, net expense increased by $190 million in fiscal 2011. The increase was driven by
$276 million of charges incurred in connection with the acquisition of Autonomy, which is primarily
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