HP 2015 Annual Report Download - page 58

Table of Contents
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observable inputs, including interest rate curves, HP and counterparty credit risk, foreign currency exchange rates, and forward and spot prices.
For a further discussion on fair value measurements and derivative instruments, refer to Note 11 and Note 12, respectively, to the Consolidated Financial
Statements in Item 8, which are incorporated herein by reference.
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We are involved in various lawsuits, claims, investigations and proceedings including those consisting of IP, commercial, securities, employment,
employee benefits and environmental matters that arise in the ordinary course of business. We record a liability when we believe that it is both probable that
a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having
incurred a liability and the estimated amount of the liability. We review these matters at least quarterly and adjust these liabilities to reflect the impact of
negotiations, settlements, rulings, advice of legal counsel and other updated information and events, pertaining to a particular case. Based on our experience,
we believe that any damage amounts claimed in the specific litigation and contingencies matters further discussed in Note 16 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference, are not a meaningful indicator of HP's potential liability. Litigation is inherently
unpredictable. However, we believe we have valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations
could be materially affected in any particular period by the resolution of one or more of these contingencies. We believe we have recorded adequate
provisions for any such matters and, as of October 31, 2015, it was not reasonably possible that a material loss had been incurred in excess of the amounts
recognized in our financial statements.
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For a summary of recent accounting pronouncements applicable to our consolidated financial statements see Note 1 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference.
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Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue.
As a result, our net revenue growth has been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. In
order to provide a framework for assessing performance excluding the impact of foreign currency fluctuations, we present the year-over-year percentage
change in net revenue on a constant currency basis, which assumes no change in foreign currency exchange rates from the prior-year period and doesn't adjust
for any repricing or demand impacts from changes in foreign currency exchange rates. This information is provided so that net revenue can be viewed without
the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our net revenue results and trends. This
constant currency disclosure is provided in addition to, and not as a substitute for, the year-over-year percentage change in revenue on a GAAP basis. Other
companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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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.