HP 2015 Annual Report Download - page 96

Table of Contents
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On November 1, 2015 (the "Distribution Date"), Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise Company ("Hewlett
Packard Enterprise"), Hewlett-Packard Company's former enterprise technology infrastructure, software, services and financing businesses (the "Separation").
In connection with the Separation, Hewlett-Packard Company changed its name to HP Inc. ("HP").
On November 1, 2015, each of HP stockholders of record as of the close of business on October 21, 2015 (the "Record Date") received one share of
Hewlett Packard Enterprise common stock for every one share of HP's common stock held as of the Record Date. Hewlett Packard Enterprise is now an
independent public company trading on the New York Stock Exchange ("NYSE") under the symbol "HPE". After the Separation, HP does not beneficially
own any shares of Hewlett Packard Enterprise common stock and beginning November 1, 2015, HP no longer consolidates Hewlett Packard Enterprise within
its financial results or reflect the financial results of Hewlett Packard Enterprise within its continuing results of operations.
In connection with the Separation, HP and Hewlett Packard Enterprise have entered into a separation and distribution agreement as well as various other
agreements that provide a framework for the relationships between the parties going forward, including among others a tax matters agreement, an employee
matters agreement, a transition service agreement, a real estate matters agreement, a master commercial agreement and an information technology service
agreement. These agreements provide for the allocation between HP and Hewlett Packard Enterprise of assets, employees, liabilities and obligations
(including its investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation
and govern certain relationship between HP and Hewlett Packard Enterprise after the Separation. For more information on the impacts of these agreements,
see Note 3 "Restructuring", Note 4 "Retirement and Post-Retirement Benefit Plans", Note 5 "Stock-Based Compensation", Note 6 "Taxes on Earnings",
Note 13 "Borrowings", Note 16 "Litigation and Contingencies" and Note 17 "Guarantees, Indemnifications and Warranties".
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The accompanying consolidated financial statements of HP and its wholly-owned subsidiaries are prepared in conformity with United States ("U.S.")
generally accepted accounting principles ("GAAP"). HP has eliminated all intercompany accounts and transactions. The historical results of operations,
financial position, and cash flows of Hewlett Packard Enterprise are included in the consolidated financial statements of HP for each of the fiscal years
included in this report and will be reported as discontinued operations beginning in the first quarter of fiscal 2016.
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The Consolidated Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is
the primary beneficiary. HP accounts for investments in companies over which HP has the ability to exercise significant influence but does not hold a
controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated
Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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