HP 2015 Annual Report Download - page 148

Table of Contents
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HP's largest acquisition in fiscal 2015 was the acquisition of Aruba, which was completed in May 2015. Aruba is a leading provider of next-generation
network access solutions for the mobile enterprise. HP reported the financial results of Aruba's business in the Networking business unit within the EG
segment. The acquisition date fair value of consideration of $2.8 billion consisted of cash paid for outstanding common stock, vested in-the-money stock
awards and the estimated fair value of earned unvested stock awards assumed by HP. In connection with this acquisition, HP recorded approximately
$1.8 billion of goodwill, $643 million of intangible assets and $153 million of IPR&D. HP is amortizing the intangible assets on a straight-line basis over an
estimated weighted-average life of six years.
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In fiscal 2014, HP completed two acquisitions with a combined purchase price of $55 million, of which $12 million was recorded as goodwill and $25
million was recorded as intangible assets related to these acquisitions.
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In fiscal 2015, HP completed five divestitures which resulted in $246 million of proceeds. These divestitures included HP's sale of its web-based photo
sharing and photo printing service, Snapfish. Snapfish was previously reported within the Consumer Hardware business unit within the Printing segment.
Additionally, HP completed the sales of its LiveVault and iManage businesses, which were previously reported within the Software segment. The gains
associated with these divestitures were included in Selling, general and administrative expenses in the Consolidated Statements of Earnings.
In May 2015, HP and Tsinghua Holdings jointly announced a partnership that will bring together the Chinese enterprise technology assets of Hewlett
Packard Enterprise and Tsinghua University to create a Chinese provider of technology infrastructure. Under the definitive agreement, Tsinghua Holdings'
subsidiary, Unisplendour Corporation, will purchase 51% of a new business called H3C, comprising Hewlett Packard Enterprise's current H3C Technologies
and China-based server, storage and technology services businesses, for approximately $2.3 billion. Hewlett Packard Enterprise China will maintain 100%
ownership of its existing China-based ES, Aruba, Software and Hewlett Packard Enterprise Helion Cloud businesses. Once the transaction closes, the new
H3C will be the exclusive provider for Hewlett Packard Enterprise's server, storage and networking portfolio, as well as Hewlett Packard Enterprise's exclusive
hardware support services provider in China, customized for that market. The transaction will be a part of Hewlett Packard Enterprise as a result of the
Separation and is expected to close during the first quarter of fiscal 2016, subject to regulatory approvals and other closing conditions.
In October 2015, HP signed a definitive agreement to sell the TippingPoint business to Trend Micro International for approximately $300 million.
TippingPoint is a provider of next-generation intrusion prevention systems and related network security solutions. The results of TippingPoint were recorded
within the Software segment. The transaction will be a part of Hewlett Packard Enterprise as a result of the Separation and is expected to close during the first
quarter of fiscal 2016, subject to regulatory approvals and other closing conditions.
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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