HP 2014 Annual Report Download - page 150
Download and view the complete annual report
Please find page 150 of the 2014 HP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149 -
150 -
151 -
152 -
153 -
154 -
155 -
156 -
157 -
158 -
159 -
160 -
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
 |
 |
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 10: Fair Value (Continued)
have been paid to a third party had HP not owned the trade name. The discount rates used in the fair
value calculations for the Autonomy intangibles and the ‘‘Compaq’’ trade name were based on a
weighted average cost of capital adjusted for the relevant risk associated with those assets. The
unobservable inputs used in these valuations include projected revenue growth rates, operating margins,
royalty rates and the risk factor added to the discount rate. The discount rates ranged from 11% to
16%. Projected revenue growth rates ranged from (61)% to 13%. The (61)% rate reflected the
significant decline in expected future revenues for Compaq-branded products from fiscal 2013 to fiscal
2014 due to the change in branding strategy discussed in Note 9.
Note 11: Financial Instruments
Cash Equivalents and Available-for-Sale Investments
Cash equivalents and available-for-sale investments were as follows:
As of October 31, 2014 As of October 31, 2013
Gross Gross Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Fair
Cost Gain Loss Value Cost Gain Loss Value
In millions
Cash Equivalents:
Time deposits ........... $ 2,720 $— $ — $ 2,720 $2,207 $— $ — $2,207
Money market funds ...... 9,857 — — 9,857 6,819 — — 6,819
Mutual funds ........... 110 — — 110 13 — — 13
Total cash equivalents ....... 12,687 — — 12,687 9,039 — — 9,039
Available-for-Sale Investments:
Debt securities:
Time deposits ........... 145 — — 145 14 — — 14
Foreign bonds ........... 286 90 — 376 310 86 — 396
Other debt securities ...... 61 — (14) 47 64 — (15) 49
Total debt securities ........ 492 90 (14) 568 388 86 (15) 459
Equity securities:
Mutual funds ........... 134 — — 134 300 — — 300
Equity securities in public
companies ............ 8 7 — 15 5 6 — 11
Total equity securities ....... 142 7 — 149 305 6 — 311
Total available-for-sale
investments ............. 634 97 (14) 717 693 92 (15) 770
Total cash equivalents and
available-for-sale
investments ............. $13,321 $97 $(14) $13,404 $9,732 $92 $(15) $9,809
142