HP 2015 Annual Report Download - page 29

Table of Contents
Any failure by us to identify, manage and complete acquisitions, divestitures and other significant transactions successfully could harm our financial
results, business and prospects.
As part of our business strategy, we may acquire companies or businesses, divest businesses or assets, enter into strategic alliances and joint ventures and
make investments to further our business (collectively, "business combination and investment transactions"). Risks associated with business combination and
investment transactions include the following, any of which could adversely affect our revenue, gross margin, profitability and financial results:
•Managing business combination and investment transactions requires varying levels of management resources, which may divert our attention
from other business operations.
•We may not fully realize all of the anticipated benefits of any particular business combination and investment transaction, and the timeframe
for realizing the benefits of a particular business combination and investment transaction may depend partially upon the actions of employees,
advisors, suppliers, other third-parties or market trends.
•Certain prior business combination and investment transactions entered into by Hewlett-Packard Company resulted, and in the future any such
transactions by us may result, in significant costs and expenses, including those related to severance pay, early retirement costs, employee
benefit costs, goodwill and asset impairment charges, charges from the elimination of duplicative facilities and contracts, asset impairment
charges, inventory adjustments, assumed litigation and other liabilities, legal, accounting and financial advisory fees, and required payments
to executive officers and key employees under retention plans.
•Any increased or unexpected costs, unanticipated delays or failure to meet contractual obligations could make business combination and
investment transactions less profitable or unprofitable.
•Our ability to conduct due diligence with respect to business combination and investment transactions, and our ability to evaluate the results
of such due diligence, is dependent upon the veracity and completeness of statements and disclosures made or actions taken by third-parties or
their representatives.
•The pricing and other terms of our contracts for business combination and investment transactions require us to make estimates and
assumptions at the time we enter into these contracts, and, during the course of our due diligence, we may not identify all of the factors
necessary to estimate accurately our costs, timing and other matters or we may incur costs if a business combination is not consummated.
•In order to complete a business combination and investment transaction, we may issue common stock, potentially creating dilution for our
existing stockholders.
•We may borrow to finance business combination and investment transactions, and the amount and terms of any potential future acquisition-
related or other borrowings, as well as other factors, could affect our liquidity and financial condition.
•Our effective tax rate on an ongoing basis is uncertain, and business combination and investment transactions could adversely impact our
effective tax rate.
•An announced business combination and investment transaction may not close on the expected timeframe or at all, which may cause our
financial results to differ from expectations in a given quarter.
•Business combination and investment transactions may lead to litigation, which could impact our financial condition and results of
operations.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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