HP 2014 Annual Report Download - page 12

5DEC201423560915
• IT management software, application testing and delivery software, information management
solutions, big data analytics, security intelligence and risk management solutions.
HP was incorporated in 1947 under the laws of the state of California as the successor to a
partnership founded in 1939 by William R. Hewlett and David Packard. Effective in May 1998, we
changed our state of incorporation from California to Delaware.
October 2014 Announcement of HP Separation Transaction
On October 6, 2014, we announced plans to separate into two independent publicly-traded
companies: one comprising our enterprise technology infrastructure, software, services and financing
businesses, which will conduct business as Hewlett-Packard Enterprise and one that will comprise our
printing and personal systems businesses, which will conduct business as HP Inc. The separation is
subject to certain conditions, including, among others, obtaining final approval from HP’s Board of
Directors, receipt of a favorable opinion and/or rulings with respect to the tax-free nature of the
transaction for federal income tax purposes and the effectiveness of a Form 10 filing with the SEC. The
separation is expected to be completed by the end of fiscal 2015. Under the separation plan, HP
shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. The following chart
provides an overview of the planned separation and segment revenues of the respective businesses
based on HP’s fiscal 2014 results, excluding Corporate Investments and intercompany eliminations.
Hewlett-Packard Enterprise
Revenue Mix
(based on
fiscal 2014 results)
Financial Metrics
HP Inc.
Enterprise Group 48%
Financial Services
• Segment Revenue: $57.6B • Segment Revenue: $57.3B
6%
Software 7%
Enterprise Services 39%
Printing 40%
Personal Systems 60%
HP Products and Services; Segment Information
We offer one of the IT industry’s broadest portfolios of products and services that bring together
infrastructure, software, and services through innovation to enable our customers to create value and
solve business problems. As consumers and enterprises shift the way technology is created, delivered,
consumed and paid for, they are demanding a foundation that will support much greater agility, lower
cost, facilitate quicker time-to-market, and provide a higher degree of accessibility by end-users to that
technology. We design our solutions to provide that foundation, particularly in the areas of security,
cloud, mobility and big data, by leveraging the breadth of our offerings and the strengths and
capabilities of our individual business units.
Our operations are organized into seven business segments: Personal Systems; Printing; the
Enterprise Group (‘‘EG’’); Enterprise Services (‘‘ES’’); Software; HP Financial Services (‘‘HPFS’’); and
Corporate Investments. In each of the past three fiscal years, notebook personal computers (‘‘PCs’’),
printing supplies, infrastructure technology outsourcing services, desktop PCs and industry standard
servers each accounted for more than 10% of our consolidated net revenue.
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, we may provide financial
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