HP 2015 Annual Report Download - page 36

Table of Contents
new information in the course of our tax return preparation process. In particular, if circumstances change such that we are unable to indefinitely reinvest our
foreign earnings outside the United States, future income tax expense and payments may differ significantly from historical amounts and could materially
adversely affect our results of operations. The carrying value of deferred tax assets, which are predominantly in the United States, is dependent on our ability
to generate future taxable income in the United States. In addition, there are proposals for tax legislation that have been introduced or that are being
considered that could have a significant adverse effect on our tax rate, the carrying value of deferred tax assets, or our deferred tax liabilities. Any of these
changes could affect our financial performance.
In order to be successful, we must attract, retain, train, motivate, develop and transition key employees, and failure to do so could seriously harm us.
In order to be successful, we must attract, retain, train, motivate, develop and transition qualified executives and other key employees, including those in
managerial, technical, development, sales, marketing and IT support positions. Identifying, developing internally or hiring externally, training and retaining
qualified executives, engineers, skilled solutions providers in the IT support business and qualified sales representatives are critical to our future, and
competition for experienced employees in the IT industry can be intense. In order to attract and retain executives and other key employees in a competitive
marketplace, we must provide a competitive compensation package, including cash- and equity-based compensation. Our equity-based incentive awards may
contain conditions relating to our stock price performance and our long-term financial performance that make the future value of those awards uncertain. If
the anticipated value of such equity-based incentive awards does not materialize, if our equity-based compensation otherwise ceases to be viewed as a
valuable benefit, if our total compensation package is not viewed as being competitive, or if we do not obtain the stockholder approval needed to continue
granting equity-based incentive awards in the amounts we believe are necessary, our ability to attract, retain and motivate executives and key employees
could be weakened. Our failure to successfully hire executives and key employees or the loss of any executives and key employees could have a significant
impact on our operations. Further, changes in our management team may be disruptive to our business, and any failure to successfully transition and
assimilate key new hires or promoted employees could adversely affect our business and results of operations.
System security risks, data protection breaches, cyberattacks and systems integration issues could disrupt our internal operations or services provided to
customers, and any such disruption could reduce our revenue, increase our expenses, damage our reputation and adversely affect our stock price.
Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential
information or that of third parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and
deploy viruses, worms, and other malicious software programs that attack our products or otherwise exploit any security vulnerabilities of our products. In
addition, sophisticated hardware and operating system software and applications that we produce or procure from third-parties may contain defects in design
or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the system. The costs to us to eliminate or
alleviate cyber or other security problems, including bugs, viruses, worms, malicious software programs and other security vulnerabilities, could be
significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing
or potential customers that may impede our sales, manufacturing, distribution or other critical functions.
We manage and store various proprietary information and sensitive or confidential data relating to our business and our customers. Breaches of our
security measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data
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Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.