HP 2014 Annual Report Download - page 5
Download and view the complete annual report
Please find page 5 of the 2014 HP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.3
VHFXULW\$OWKRXJKZHGRQoWH[SHFWWRVHHDVSHFLƬFSURGXFWIRUWKHQH[WWKUHHWRƬYH\HDUVZHDUH
DOUHDG\IROGLQJVRPHRIWKHFRPSRQHQWWHFKQRORJLHVLQWRXSFRPLQJSURGXFWURDGPDSV7KH0DFKLQH
LVDSHUIHFWH[DPSOHRIWKHLQFUHGLEOHRQJRLQJLQQRYDWLRQDW+3WKDWZLOOKHOSGHƬQHWKHWHFKQRORJ\
ODQGVFDSHIRUPDQ\\HDUVWRFRPH
%XW+3LVDERXWPRUHWKDQLQQRYDWLRQ:HDUHDOVRSDUWQHUVWRPDQ\RIWKHZRUOGoVODUJHVWDQGPRVW
UHVSHFWHGFRPSDQLHVDQGLQVWLWXWLRQV+3(QWHUSULVH6HUYLFHVZRUNVZLWKFXVWRPHUVWRGULYHEHWWHU
RXWFRPHVIRUEXVLQHVVHVHPSOR\HHVDQGFLWL]HQVDURXQGWKHJOREH:HKHOSDLUOLQHVUXQVDIHO\SHQVLRQ
DQGKHDOWKFDUHV\VWHPVIXQFWLRQVPRRWKO\DQGVHFXUHWULOOLRQVRIGROODUVLQƬQDQFLDOWUDQVDFWLRQV
HYHU\GD\2XUGHGLFDWLRQWRWKHVXFFHVVRIRXUFXVWRPHUVKDVPRVWUHFHQWO\HDUQHGXVWKHKLJKHVW1HW
3URPRWHU6FRUHLQWKH,7VHUYLFHVLQGXVWU\LQFUHDVLQJRYHU:HDUHHQRUPRXVO\SURXGRIWKH
FRQWULEXWLRQ+3(QWHUSULVH6HUYLFHVPDNHVWRWKHIDEULFRISHRSOHoVOLYHV
The Year Ahead
'XULQJWKHSDVWWKUHH\HDUVZHKDYHGRQHDJRRGMRERIDGGUHVVLQJWKHIXQGDPHQWDOVtLPSURYLQJ
ƬQDQFLDOSHUIRUPDQFHLQFUHDVLQJEXVLQHVVHƫLFLHQF\IXHOLQJLQQRYDWLRQVWUHQJWKHQLQJRXUFXVWRPHU
DQGSDUWQHUUHODWLRQVKLSVDQGHQJDJLQJRXUHPSOR\HHV$VZHHQWHUWKHIRXUWK\HDURIRXUWXUQDURXQG
ZHDUHGHWHUPLQHGWRDFFHOHUDWHWKHSURJUHVVZHoYHPDGH
)LVFDOZLOOEHDGHƬQLQJ\HDUIRU+32XUFKDOOHQJHtDQGRXURSSRUWXQLW\tLVWRWDNHRXU
SHUIRUPDQFHWRWKHQH[WOHYHOZKLOHH[HFXWLQJWKHVHSDUDWLRQ:HDUHGHWHUPLQHGQRWWRVNLSDEHDW
LQƬVFDO:KLOHVHSDUDWLQJVXFKDODUJHJOREDOFRPSDQ\LVDFRPSOH[WDVNZHKDYHSXWLQSODFHD
FRPSUHKHQVLYHSODQWRHQVXUHRXUVXFFHVV
)RUDOORXUSURJUHVVZHVWLOOKDYHSOHQW\RIURRPIRULPSURYHPHQW,oYHDOZD\VVDLGWKDWWXUQDURXQGV
DUHQoWOLQHDU:KLOHZHDUHVHHLQJFOHDUSRFNHWVRIJURZWKRWKHUDUHDVVWLOOQHHGPRUHZRUN7KLV
PHDQVWKDWRXUDELOLW\WRH[HFXWHKDVQHYHUEHHQPRUHLPSRUWDQW7KHPRUHZHDFKLHYHLQƬVFDO
DVRQHFRPSDQ\WKHPRUHVXFFHVVIXO+HZOHWW3DFNDUG(QWHUSULVHDQG+3,QFZLOOEHZKHQWKH\
EHFRPHLQGHSHQGHQW
$IWHUPRUHWKDQWKUHH\HDUVDW+3,oPPRUHFRQƬGHQWWKDQHYHUWKDWZHoUHGRLQJWKHULJKWWKLQJVWR
LPSURYHWKHYDOXHZHGHOLYHUWRFXVWRPHUVDQGSDUWQHUVLQFUHDVHUHWXUQVIRUVWRFNKROGHUVDQGEHFRPH
WKHHPSOR\HURIFKRLFHLQWKHWHFKQRORJ\LQGXVWU\
:HDSSUHFLDWHWKHOR\DOW\RIRXUFXVWRPHUVSDUWQHUVVWRFNKROGHUVDQGHPSOR\HHV:HZLOOFRQWLQXH
WRGRHYHU\WKLQJZHFDQWRHDUQ\RXUWUXVWDQG\RXUFRQƬGHQFHDQGORRNIRUZDUGWRGHOLYHULQJRQRXU
FRPPLWPHQWVDQGH[SHFWDWLRQVLQƬVFDODQGEH\RQG
6LQFHUHO\
0HJ:KLWPDQ
5HYHQXHRQDFRQVWDQWFXUUHQF\EDVLVDVVXPHVQRFKDQJHLQWKHIRUHLJQH[FKDQJHUDWHIURPWKHSULRU\HDUSHULRG
2SHUDWLQJFRPSDQ\QHWFDVKLVDQRQ*$$3PHDVXUHWKDWLVGHƬQHGDVWRWDOFRPSDQ\QHWFDVKOHVV+3)LQDQFLDO6HUYLFHVp+3)6qQHWFDVK7RWDOFRPSDQ\QHW
FDVKFRQVLVWVRIWRWDOFRPSDQ\JURVVFDVKZKLFKLQFOXGHVFDVKDQGFDVKHTXLYDOHQWVVKRUWWHUPLQYHVWPHQWVDQGFHUWDLQOLTXLGORQJWHUPLQYHVWPHQWVOHVVWRWDO
FRPSDQ\JURVVGHEWZKLFKLQFOXGHVWKHHƫHFWVRIKHGJLQJ+3)6QHWFDVKFRQVLVWVRI+3)6FDVKOHVV+3)6GHEWZKLFKLQFOXGHVSULPDULO\LQWHUFRPSDQ\HTXLW\
WKDWLVWUHDWHGDVGHEWIRUVHJPHQWUHSRUWLQJSXUSRVHVLQWHUFRPSDQ\GHEWDQGERUURZLQJDQGIXQGLQJUHODWHGDFWLYLW\DVVRFLDWHGZLWK+3)6DQGLWVVXEVLGLDULHV
$VRI2FWREHUWRWDOFRPSDQ\JURVVFDVKZDVELOOLRQWRWDOFRPSDQ\JURVVGHEWZDVELOOLRQWRWDOFRPSDQ\QHWGHEWZDVELOOLRQ+3)6
FDVKZDVELOOLRQ+3)6GHEWZDVELOOLRQ+3)6QHWGHEWZDVELOOLRQDQGRSHUDWLQJFRPSDQ\QHWFDVKZDVELOOLRQ7KLVDGGLWLRQDOQRQ*$$3
LQIRUPDWLRQDVZHOODVWKHRWKHUQRQ*$$3LQIRUPDWLRQSURYLGHGKHUHLQLVQRWLQWHQGHGWREHFRQVLGHUHGLQLVRODWLRQRUDVDVXEVWLWXWHIRUWKHUHODWHG*$$3
ƬQDQFLDOLQIRUPDWLRQ
2SHUDWLQJFRPSDQ\QHWGHEWLVDQRQ*$$3PHDVXUHWKDWLVGHƬQHGDVWRWDOFRPSDQ\QHWGHEWOHVV+3)6QHWGHEW7RWDOFRPSDQ\QHWGHEWFRQVLVWVRIWRWDOGHEW
LQFOXGLQJWKHHƫHFWVRIKHGJLQJOHVVJURVVFDVKZKLFKLQFOXGHVFDVKDQGFDVKHTXLYDOHQWVVKRUWWHUPLQYHVWPHQWVDQGFHUWDLQOLTXLGORQJWHUPLQYHVWPHQWV
+3)6QHWGHEWFRQVLVWVRI+3)6GHEWZKLFKLQFOXGHVSULPDULO\LQWHUFRPSDQ\HTXLW\WKDWLVWUHDWHGDVGHEWIRUVHJPHQWUHSRUWLQJSXUSRVHVLQWHUFRPSDQ\GHEW
DQGERUURZLQJDQGIXQGLQJUHODWHGDFWLYLW\DVVRFLDWHGZLWK+3)6DQGLWVVXEVLGLDULHVOHVV+3)6FDVK$VRI-DQXDU\WRWDOFRPSDQ\JURVVGHEWZDV
ELOOLRQWRWDOFRPSDQ\JURVVFDVKZDVELOOLRQWRWDOFRPSDQ\QHWGHEWZDVELOOLRQ+3)6GHEWZDVELOOLRQ+3)6FDVKZDVELOOLRQWRWDO+3)6
QHWGHEWZDVELOOLRQDQGRSHUDWLQJFRPSDQ\QHWGHEWZDVELOOLRQ
1RQ*$$3GLOXWHGQHW(36DUHGHƬQHGWRH[FOXGHWKHHƫHFWVRIDQ\UHVWUXFWXULQJFKDUJHVFKDUJHVUHODWLQJWRWKHDPRUWL]DWLRQRILQWDQJLEOHDVVHWVDQG
DFTXLVLWLRQUHODWHGFKDUJHV)LVFDO*$$3GLOXWHGQHW(36ZDVZLWKLQWKHSUHYLRXVO\SURYLGHGRXWORRNRIWRSHUVKDUH)LVFDO
QRQ*$$3GLOXWHGQHW(36H[FOXGHVDIWHUWD[FRVWVRISHUGLOXWHGVKDUHUHODWHGWRUHVWUXFWXULQJFKDUJHVWKHDPRUWL]DWLRQRILQWDQJLEOHDVVHWVDQG
DFTXLVLWLRQUHODWHGFKDUJHV7KHSUHYLRXVO\SURYLGHGRXWORRNIRUƬVFDOQRQ*$$3GLOXWHGQHW(36ZDVWRSHUVKDUH
$3.9B
UHWXUQHGWR
VWRFNKROGHUV
LQWKHIRUP
RIGLYLGHQGV
DQGVKDUH
UHSXUFKDVHV