HP 2013 Annual Report Download - page 165

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 17: Litigation and Contingencies (Continued)
sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and
timing of costs to comply with environmental laws are difficult to predict.
HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental
agencies under the Comprehensive Environmental Response, Compensation and Liability Act
(‘‘CERCLA’’), known as ‘‘Superfund,’’ or state laws similar to CERCLA, and may become a party to, or
otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs.
HP is also conducting environmental investigations or remediations at several current or former
operating sites pursuant to administrative orders or consent agreements with state environmental
agencies.
Note 18: 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; imaging and printing-related products and services; multi-vendor customer
services, including infrastructure technology and business process outsourcing, application development
and support services, and consulting and integration services; enterprise information technology (‘‘IT’’)
infrastructure, including enterprise server and storage technology, networking products and solutions,
and technology support and maintenance; and 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, Printing, the Enterprise Group, Enterprise Services, Software, HP
Financial Services 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.
The Personal Systems segment and the Printing segment are structured beneath a broader Printing
and Personal Systems Group (‘‘PPS’’). While PPS is not a reportable segment, HP sometimes provides
financial data aggregating the Personal Systems and the Printing segments within it in order to provide
a supplementary view of its business.
HP has implemented certain organizational realignments. As a result of these realignments, HP
re-evaluated its reportable segment structure and, effective in the first quarter of fiscal 2013, created
two new reportable segments, the EG segment and the ES segment, and eliminated two other
reportable segments, the ESSN segment and the Services segment. The EG segment consists of the
business units within the former ESSN segment and most of the services offerings of the TS business
unit, which was previously a part of the former Services segment. The ES segment consists of the ABS
and ITO business units from the former Services segment, along with the end-user workplace support
services business that was previously a part of the TS business unit.
Also as a result of these realignments, the financial results of the Personal Systems commercial
products support business, which were previously reported as part of the TS business unit, are now
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