HP 2011 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2011 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.

Page out of 182

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
settlements, rulings, advice of legal counsel, and updated information. Litigation is inherently
unpredictable and is subject to significant uncertainties, some of which are beyond our control. Should
any of these estimates and assumptions change or prove to have been incorrect, it could have a
material impact on our results of operations, financial position and cash flows. See Note 18 to the
Consolidated Financial Statements in Item 8 for a further discussion of litigation and contingencies.
ACCOUNTING PRONOUNCEMENTS
In June 2011, the Financial Accounting Standards Board (‘‘FASB’’) issued amendments to the
FASB Accounting Standards Codification relating to the presentation of comprehensive income in our
financial statements. The amendments require the presentation of total comprehensive income, the
components of net income, and the components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate but consecutive statements. We will
adopt these amendments in the fourth quarter of fiscal 2012.
CONSTANT CURRENCY PRESENTATION
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 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 how each of our business segments performed
excluding the impact of foreign currency fluctuations, we present the year-over-year percentage change
in revenue performance on a constant currency basis, which assumes no change in the exchange rate
from the prior-year period. This constant currency disclosure is provided in addition to, and not as a
substitute for, the year-over-year percentage change in revenue on an as-reported basis.
RESULTS OF OPERATIONS
The following discussion compares the historical results of operations on a GAAP basis for the
fiscal years ended October 31, 2011, 2010, and 2009. Unless otherwise noted, all comparative
performance data included below reflect year-over-year comparisons.
47