HP 2015 Annual Report Download - page 179

Table of Contents
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Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information
regarding the financial performance of Autonomy and HP's enterprise services business and by failing to restrict participants from investing in
HP stock. On August 16, 2013, HP filed a motion to dismiss the lawsuit. On March 31, 2014, the court granted HP's motion to dismiss this
action with leave to amend. On July 16, 2014, the plaintiffs filed a second amended complaint containing substantially similar allegations and
seeking substantially similar relief as the first amended complaint. On June 15, 2015, the court granted HP's motion to dismiss the second
amended complaint in its entirety and denied plaintiffs leave to file another amended complaint. On July 2, 2015, plaintiffs have appealed the
court's order to the United States Court of Appeals for the Ninth Circuit.
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HP's operations and products are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including
laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of
contaminated sites, the content of HP's products and the recycling, treatment and disposal of those products. In particular, HP faces increasing complexity in
its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products,
their safe use, and the energy consumption associated with those products, including requirements relating to climate change. HP is also subject to legislation
in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified
collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). HP could incur
substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable
under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal
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.
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In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has
guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP
would be obligated to perform over the term of the guarantee in the event a specified
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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