HP Inc. Reports Fiscal 2019 First Quarter Results
| | | HP INC. AND SUBSIDIARIES | | CONSOLIDATED CONDENSED BALANCE SHEETS | | (Unaudited) | | (In millions) | | | | |
As of | | |
January 31, 2019 | |
October 31, 2018 | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ | 3,367 | | | $ | 5,166 | | | Accounts receivable, net | 5,113 | | | 5,113 | | | Inventory | 5,649 | | | 6,062 | | | Other current assets | 4,807 | | | 5,046 | | | Total current assets | 18,936 | | | 21,387 | | | Property, plant and equipment, net | 2,312 | | | 2,198 | | | Goodwill | 6,343 | | | 5,968 | | | Other non-current assets | 4,899 | | | 5,069 | | | Total assets | $ | 32,490 | | | $ | 34,622 | | | | | | | | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | Current liabilities: | | | | | Notes payable and short-term borrowings | $ | 297 | | | $ | 1,463 | | | Accounts payable | 14,572 | | | 14,816 | | | Employee compensation and benefits | 665 | | | 1,136 | | | Taxes on earnings | 268 | | | 340 | | | Other accrued liabilities | 8,397 | | | 7,376 | | | Total current liabilities | 24,199 | | | 25,131 | | | Long-term debt | 4,706 | | | 4,524 | | | Other non-current liabilities | 5,422 | | | 5,606 | | | Stockholders' deficit | (1,837 | ) | | (639 | ) | | Total liabilities and stockholders' deficit | $ | 32,490 | | | $ | 34,622 | | | |
| | | HP INC. AND SUBSIDIARIES | | CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | | (Unaudited) | | (In millions) | | | | |
Three months ended January 31, | | |
2019 | |
2018 | | Cash flows from operating activities: | | | | | Net earnings | $ | 803 | | | $ | 1,938 | | | Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | Depreciation and amortization | 168 | | | 129 | | | Stock-based compensation expense | 107 | | | 85 | | | Restructuring and other charges | 55 | | | 31 | | | Deferred taxes on earnings | 103 | | | (3,713 | ) | | Other, net | (5 | ) | | 13 | | | Changes in operating assets and liabilities, net of acquisitions: | | | | | Accounts receivable | 211 | | | 272 | | | Inventory | 191 | | | 364 | | | Accounts payable | (184 | ) | | (478 | ) | | Taxes on earnings | 11 | | | 2,463 | | | Restructuring and other | (46 | ) | | (133 | ) | | Other assets and liabilities | (552 | ) | | 25 | | | Net cash provided by operating activities | 862 | | | 996 | | | Cash flows from investing activities: | | | | | Investment in property, plant and equipment | (189 | ) | | (129 | ) | | Proceeds from sale of property, plant and equipment | — | | | 110 | | | Purchases of available-for-sale securities and other investments | (69 | ) | | (268 | ) | | Maturities and sales of available-for-sale securities and other investments | 344 | | | 139 | | | Collateral posted for derivative instruments | (30 | ) | | (608 | ) | | Collateral returned for derivative instruments | 30 | | | 53 | | | Payment made in connection with business acquisitions, net of cash acquired | (404 | ) | | (1,020 | ) | | Net cash used in investing activities | (318 | ) | | (1,723 | ) | | Cash flows from financing activities: | | | | | Payments of short-term borrowings with original maturities less than 90 days, net | (855 | ) | | (106 | ) | | Proceeds from short-term borrowings with original maturities greater than 90 days | — | | | 200 | | | Proceeds from debt, net of issuance costs | 40 | | | — | | | Payment of short-term borrowings with original maturities greater than 90 days | — | | | (118 | ) | | Payment of debt | (476 | ) | | (41 | ) | | Net payments related to stock-based award activities | (83 | ) | | (38 | ) | | Repurchase of common stock | (720 | ) | | (462 | ) | | Cash dividends paid | (249 | ) | | (230 | ) | | Net cash used in financing activities | (2,343 | ) | | (795 | ) | | Decrease in cash and cash equivalents | (1,799 | ) | | (1,522 | ) | | Cash and cash equivalents at beginning of period | 5,166 | | | 6,997 | | | Cash and cash equivalents at end of period | $ | 3,367 | | | $ | 5,475 | | | |
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