HP 2015 Annual Report Download - page 30

Table of Contents
•If we fail to identify and successfully complete and integrate business combination and investment transactions that further our strategic
objectives, we may be required to expend resources to develop products, services and technology internally, which may put us at a
competitive disadvantage.
We have incurred and will incur additional depreciation and amortization expense over the useful lives of certain assets acquired in connection with
business combination and investment transactions, and, to the extent that the value of goodwill or intangible assets acquired in connection with a business
combination and investment transaction becomes impaired, we may be required to incur additional material charges relating to the impairment of those
assets. If there are future decreases in our stock price or significant changes in the business climate or results of operations of our reporting units, we may incur
additional charges, which may include goodwill impairment or intangible asset charges.
As part of our business strategy, we regularly evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives.
When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely
manner, which could delay the achievement of our strategic objectives. We may also dispose of a business at a price or on terms that are less desirable than we
had anticipated. In addition, we may experience greater dis-synergies than expected, and the impact of the divestiture on our revenue growth may be larger
than projected. After reaching an agreement with a buyer or seller for the acquisition or disposition of a business, we are subject to satisfaction of pre-closing
conditions as well as to necessary regulatory and governmental approvals on acceptable terms, which, if not satisfied or obtained, may prevent us from
completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity
ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions
outside of our control could affect our future financial results.
Integrating acquisitions may be difficult and time-consuming. Any failure by us to integrate acquired companies, products or services into our overall
business in a timely manner could harm our financial results, business and prospects.
In order to pursue our strategy successfully, we must identify candidates for and successfully complete business combination and investment
transactions, some of which may be large or complex, and manage post-closing issues such as the integration of acquired businesses, products, services or
employees. Integration issues are often time-consuming and expensive and, without proper planning and implementation, could significantly disrupt our
business and the acquired business. The challenges involved in integration include:
•successfully combining product and service offerings and entering or expanding into markets in which we are not experienced or are
developing expertise;
•convincing customers and distributors that the transaction will not diminish client service standards or business focus;
•persuading customers and distributors not to defer purchasing decisions or switch to other suppliers (which could result in our incurring
additional obligations in order to address customer uncertainty), minimizing sales force attrition and expanding and coordinating sales,
marketing and distribution efforts;
•consolidating and rationalizing corporate IT infrastructure, which may include multiple legacy systems from various acquisitions and
integrating software code and business processes;
•minimizing the diversion of management attention from ongoing business concerns;
28
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.