------------ ------------ ------------
Total segment earnings from
operations 2,529 3,372 2,897
Corporate and unallocated costs
and eliminations (109) (120) (153)
Unallocated costs related to
stock-based compensation
expense (184) (140) (174)
Amortization of purchased
intangible assets (350) (372) (466)
Impairment of goodwill and
purchased intangible assets - (8,847) -
Restructuring charges (130) (378) (40)
Acquisition-related charges (4) (3) (22)
Interest and other, net (179) (188) (221)
------------ ------------ ------------
Total HP consolidated
earnings (loss) before
taxes $ 1,573 $ (6,676) $ 1,821
============ ============ ============
(a) HP has implemented certain organizational realignments. As a result of
these realignments, HP has re-evaluated its segment financial reporting
structure and, effective in the first quarter of fiscal 2013, created two
new financial reporting segments, the Enterprise Group segment and the
Enterprise Services segment, and eliminated two other financial reporting
segments, the Enterprise Servers, Storage and Networking ("ESSN") segment
and the Services segment. The Enterprise Group segment consists of the
business units within the former ESSN segment and most of the services
offerings of the Technology Services ("TS") business unit, which was
previously a part of the former Services segment. The Enterprise Services
segment consists of the Applications and Business Services ("ABS") and
Infrastructure Technology Outsourcing ("ITO") business units from the
former Services segment, along with the end-user workplace support
services business that was previously a part of the TS business unit.
Taking into account these changes, HP has the following seven financial
reporting segments: Personal Systems, Printing, the Enterprise Group,
Enterprise Services, Software, HP Financial Services and Corporate
Investments.
Also as a result of these realignments, the financial results of the
Personal Systems commercial products support business, which were
previously reported as part of the TS business unit, will now be reported
as part of the Other business unit within the Personal Systems segment,
and the financial results of the portion of the business intelligence
services business that had continued to be reported as part of the
Corporate Investments segment following the implementation of prior
realignment actions will now be reported as part of the ABS business unit.
In addition, the end-user workplace support services business, which, as
noted above, was previously a part of the TS business unit and will now
become a part of the Enterprise Services segment, will be reported as part
of the ITO business unit within that segment.
To provide improved visibility and comparability, HP has reflected these
changes to its reporting structure in prior financial reporting periods on
an as-if basis, which has resulted in the transfer of revenue and
operating profit among the Personal Systems, the Enterprise Group,
Enterprise Services and Corporate Investments segments. These changes had
no impact on the previously reported financial results for the Printing,
Software or HP Financial Services segments. In addition, none of these
changes impacted HP's previously reported consolidated net revenue,
earnings from operations, net earnings or net earnings per share.
(b) The Personal Systems segment and the Printing segment are structured
beneath a broader Printing and Personal Systems Group ("PPS").
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