HP 2012 Annual Report Download - page 168

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 19: Segment Information
Description of Segments
HP is a leading global provider of products, technologies, software, solutions and services to
individual consumers, small- and medium-sized businesses (‘‘SMBs’’), and large enterprises, including
customers in the government, health and education sectors. HP’s offerings span personal computing
and other access devices; multi-vendor customer services, including infrastructure technology and
business process outsourcing, technology support and maintenance, application development and
support services and consulting and integration services; imaging and printing-related products and
services; and enterprise information technology (‘‘IT’’) infrastructure, including enterprise storage and
server technology, networking products and solutions, IT management software, information
management solutions and security intelligence/risk management solutions.
HP’s operations are organized into seven reportable business segments for financial reporting
purposes: Personal Systems (formerly known as the Personal Systems Group or ‘‘PSG’’), Printing
(formerly known as the Imaging and Printing Group or ‘‘IPG’’), Services, ESSN, Software, HP
Financial Services (‘‘HPFS’’) and Corporate Investments. HP’s organizational structure is based on a
number of factors that management uses to evaluate, view and run its business operations, which
include, but are not limited to, customer base, homogeneity of products and technology. The reportable
business segments are based on this organizational structure and information reviewed by HP’s
management to evaluate the business segment results.
As part of a realignment of the structure of HP’s business in fiscal 2012, HP has structured the
Personal Systems segment and the Printing segment beneath a newly formed Printing and Personal
Systems Group (‘‘PPS’’). While PPS is not a financial reporting segment, HP sometimes provides
financial data aggregating the segments within it in order to provide a supplementary view of its
business.
Effective November 1, 2012, HP created the Enterprise Group segment consisting of the business
units within its ESSN segment and the TS business unit, which is a part of its existing Services segment.
The remaining business units in HP’s Services segment, ITO and ABS, will combine to comprise a new
Enterprise Services segment.
A description of the types of products and services provided by each business segment follows.
Printing and Personal Systems Group’s mission is to leverage the respective strengths of the Personal
Systems business and the Printing business in creating a single, unified business that is
customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the business
segments within PPS is described in detail below.
•Personal Systems provides commercial PCs, consumer PCs, workstations, calculators and other
related accessories, software and services for the commercial and consumer markets.
Commercial PCs are optimized for commercial uses, including enterprise and SMB customers,
and for connectivity and manageability in networked environments. Commercial PCs include the
HP ProBook and HP EliteBook lines of notebooks and the Compaq Pro, Compaq Elite, HP Pro
and HP Elite lines of business desktops, as well as the All-in-One Touchsmart and Omni PCs,
HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs. Consumer
PCs include the HP Pavilion, HP Elite, Envy and Compaq Presario series of multi-media
consumer notebooks, desktops and mini notebooks, including the TouchSmart line of touch-
enabled all-in-one notebooks and desktops. HP’s workstations are designed for users demanding
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