read below to answer question
QUESTION:
6. How much cash does HP have on hand at October 31, 2014? Isthis amount the same as,
greater than, or smaller than the amount they had the yearbefore (i.e., on October 31, 2013)?
What are HPâs major sources and uses of cash in 2014?
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Statements of Earnings
For the fiscal years ended October 31
2014-2013 -2012
In millions, except per share amounts
Net revenue:
Products ........................................... $ 73,726 $72,398 $ 77,887
Services ............................................ 37,32739,453 42,008
Financing income . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 401 447 462
Total net revenue ................................... 111,454112,298 120,357
Costs and expenses:
Cost of products ..................................... 56,46955,632 59,468
Cost of services ...................................... 28,09330,436 32,600
Financing interest . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 277 312 317
Research and development .............................. 3,4473,135 3,399
Selling, general and administrative ........................13,353 13,267 13,500
Amortization of intangible assets .........................1,000 1,373 1,784
Impairment of goodwill and intangible assets ................. ââ 18,035
Restructuring charges .................................. 1,619990 2,266
Acquisition-related charges . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 11 22 45
Total operating expenses .............................. 104,269105,167 131,414
Earnings (loss) from operations ............................7,185 7,131 (11,057)
Interest and other, net ...................................(628) (621) (876)
Earnings (loss) before taxes ...............................6,557 6,510 (11,933)
Provision for taxes ......................................(1,544) (1,397) (717)
Net earnings (loss) ..................................... $5,013 $ 5,113 $(12,650)
Net earnings (loss) per share:
Basic .............................................. $ 2.66 $2.64 $ (6.41)
Diluted ............................................ $ 2.62 $2.62 $ (6.41)
Weighted-average shares used to compute net earnings (loss)per
share:
Basic .............................................. 1,882 1,9341,974
Diluted ............................................ 1,912 1,9501,974
The accompanying notes are an integral part of theseConsolidated Financial Statements.
84
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
As of October 31
2014 2013
In millions, except
par value
ASSETS
Current assets:
Cash and cash equivalents....................................... $ 15,133 $ 12,163
Accounts receivable ...........................................13,832 15,876
Financing receivables ..........................................2,946 3,144
Inventory ...................................................6,415 6,046
Other current assets ...........................................11,819 13,135
Total current assets ..........................................50,145 50,364
Property, plant and equipment..................................... 11,340 11,463
Long-term financing receivables and other assets........................ 8,454 9,556
Goodwill .....................................................31,139 31,124
Intangible assets............................................... 2,128 3,169
Total assets ...................................................$103,206 $105,676
LIABILITIES AND STOCKHOLDERSâ EQUITY
Current liabilities:
Notes payable and short-termborrowings............................ $ 3,486 $ 5,979
Accounts payable .............................................15,903 14,019
Employee compensation and benefits.............................. 4,209 4,436
Taxes on earnings .............................................1,017 1,203
Deferred revenue .............................................6,143 6,477
Accrued restructuring . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 898 901
Other accrued liabilities........................................ 12,079 12,506
Total current liabilities........................................ 43,735 45,521
Long-term debt ................................................16,039 16,608
Other liabilities................................................ 16,305 15,891
Commitments and contingencies
Stockholdersâ equity:
HP stockholdersâ equity
Preferred stock, $0.01 par value (300 shares authorized; noneissued) ....... â â
Common stock, $0.01 par value (9,600 shares authorized; 1,839and 1,908
shares issued and outstanding at October 31, 2014 and October31, 2013,
respectively) . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 18 19
Additional paid-in capital....................................... 3,430 5,465
Retained earnings.............................................29,164 25,563
Accumulated other comprehensive loss............................. (5,881) (3,778)
Total HP stockholdersâ equity ..................................26,731 27,269
Non-controlling interests . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 396 387
Total stockholdersâ equity......................................... 27,127 27,656
Total liabilities and stockholdersâ equity............................... $103,206 $105,676
The accompanying notes are an integral part of theseConsolidated Financial Statements.
86
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the fiscal years ended October 31
2014 2013 2012
In millions
Cash flows from operating activities:
Net earnings (loss) ........................................ $5,013 $ 5,113 $(12,650)
Adjustments to reconcile net earnings (loss) to net cashprovided by operating
activities:
Depreciation and amortization .............................4,334 4,611 5,095
Impairment of goodwill and intangible assets.................... â â 18,035
Stock-based compensation expense . . . . . . . . . . . . . . . .. . . . . . . . . . 560 500 635
Provision for doubtful accounts . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 55 61 142
Provision for inventory . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 211 275 277
Restructuring charges ................................... 1,619990 2,266
Deferred taxes on earnings . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . (34) (410) (711)
Excess tax benefit from stock-based compensation . . . . . . . .. . . . . . . . (58) (2) (12)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 81 443 265
Changes in operating assets and liabilities (net ofacquisitions):
Accounts receivable ................................... 2,017530 1,687
Financing receivables . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 420 484 (418)
Inventory ......................................... (580) (4)890
Accounts payable .................................... 1,912 541(1,414)
Taxes on earnings . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 310 417 (320)
Restructuring ....................................... (1,506)(904) (840)
Other assets and liabilities ..............................(2,021) (1,037) (2,356)
Net cash provided by operating activities ...................12,333 11,608 10,571
Cash flows from investing activities:
Investment in property, plant and equipment....................... (3,853) (3,199) (3,706)
Proceeds from sale of property, plant and equipment . . . . . .. . . . . . . . . . . 843 653 617
Purchases of available-for-sale securities and other investments........... (1,086) (1,243) (972)
Maturities and sales of available-for-sale securities and otherinvestments .... 1,347 1,153 662
Payments made in connection with business acquisitions, net ofcash acquired . (49) (167) (141)
Proceeds from business divestiture, net . . . . . . . . . . . .. . . . . . . . . . . . . . . 6 â 87
Net cash used in investing activities .......................(2,792) (2,803) (3,453)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90days, net . . . . . . . 148 (154) (2,775)
Issuance of debt ......................................... 2,875279 5,154
Payment of debt .........................................(6,037) (5,721) (4,333)
Issuance of common stock under employee stock plans . . . . . .. . . . . . . . . . 297 288 716
Repurchase of common stock .................................(2,728) (1,532) (1,619)
Excess tax benefit from stock-based compensation . . . . . . . .. . . . . . . . . . . 58 2 12
Cash dividends paid .......................................(1,184) (1,105) (1,015)
Net cash used in financing activities .......................(6,571) (7,943) (3,860)
Increase in cash and cash equivalents............................. 2,970 862 3,258
Cash and cash equivalents at beginning of period..................... 12,163 11,301 8,043
Cash and cash equivalents at end of period......................... $15,133 $12,163 $ 11,301
Supplemental cash flow disclosures:
Income taxes paid (net of refunds) ............................$ 1,267 $ 1,391 $ 1,750
Interest expense paid . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 678 837 856
Supplemental schedule of non-cash investing and financingactivities:
Purchase of assets under capital leases . . . . . . . . . . . .. . . . . . . . . . . . . $ 113 $ 3 $ 12
The accompanying notes are an integral part of theseConsolidated Financial Statements.
