HP 2015 Annual Report Download - page 13

Table of Contents
commitments with vendors to improve the priority, price and availability of supplies. See "Risk Factors—We depend on third-party suppliers, and our
financial results could suffer if we fail to manage our suppliers effectively," in Item 1A, which is incorporated herein by reference.
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Our products and services are available worldwide. We believe this geographic diversity allows us to meet demand on a worldwide basis for both
consumer and enterprise customers, draws on business and technical expertise from a worldwide workforce, provides stability to our operations, provides
revenue streams that may offset geographic economic trends and offers us an opportunity to access new markets for maturing products. In addition, we
believe that future growth is dependent in part on our ability to develop products and sales models that target developing countries. In this regard, we believe
that our broad geographic presence gives us a solid base on which to build such future growth.
A summary of our domestic and international net revenue and net property, plant and equipment is set forth in Note 2 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference. Approximately 64% of our overall net revenue in fiscal 2015 came from outside the United
States ("U.S.").
For a discussion of risks attendant to HP's international operations, see "Risk Factors—Due to the international nature of our business, political or
economic changes or other factors could harm our business and financial performance," in Item 1A, "Quantitative and Qualitative Disclosure about Market
Risk," in Item 7A and Note 11 to the Consolidated Financial Statements in Item 8, which are incorporated herein by reference.
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Innovation is a key element of our culture. Our development efforts are focused on designing and developing products, services and solutions that
anticipate customers' changing needs and desires, and emerging technological trends. Our efforts also are focused on identifying the areas where we believe
we can make a unique contribution and the areas where partnering with other leading technology companies will leverage our cost structure and maximize
our customers' experiences.
HP Labs, together with the various research and development groups within our business segments, are responsible for our research and development
efforts. HP Labs is part of our Corporate Investments segment.
Expenditures for research and development were $3.5 billion in fiscal 2015, $3.4 billion in fiscal 2014 and $3.1 billion in fiscal 2013. We anticipate that
we will continue to have significant research and development expenditures in the future to support the design and development of innovative, high-quality
products and services to maintain and enhance our competitive position.
For a discussion of risks attendant to our research and development activities, see "Risk Factors—If we cannot successfully execute our go-to-market
strategy and continue to develop, manufacture and market innovative products and services, our business and financial performance may suffer," in Item 1A,
which is incorporated herein by reference.
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Our general policy has been to seek patent protection for those inventions likely to be incorporated into our products and services or where obtaining
such proprietary rights will improve our competitive position. At October 31, 2015, our worldwide patent portfolio included over 33,000 patents, which
represents a slight decrease over the number of patents in our portfolio at the end of fiscal 2014. As a result of the Separation, approximately 15,000 patents
were transferred to Hewlett Packard Enterprise beginning November 1, 2015.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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