Income Statement

Difficulty level: Basic

The income statement presents information on the financial results of a company's business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Hewlett-Packard Co., Consolidated Income Statement

USD $ in millions

 
12 months ended Oct 31, 2014 Oct 31, 2013 Oct 31, 2012 Oct 31, 2011 Oct 31, 2010 Oct 31, 2009
Products 73,726  72,398  77,887  84,757  84,799  74,051 
Services 37,327  39,453  42,008  42,039  40,816  40,124 
Financing income 401  447  462  449  418  377 
Net revenue 111,454  112,298  120,357  127,245  126,033  114,552 
Cost of products (56,469) (55,632) (59,468) (65,167) (65,064) (56,503)
Cost of services (28,093) (30,436) (32,600) (32,056) (30,723) (30,695)
Financing interest (277) (312) (317) (306) (302) (326)
Cost of sales (84,839) (86,380) (92,385) (97,529) (96,089) (87,524)
Gross profit 26,615  25,918  27,972  29,716  29,944  27,028 
Research and development (3,447) (3,135) (3,399) (3,254) (2,959) (2,819)
Selling, general and administrative (13,353) (13,267) (13,500) (13,466) (12,585) (11,613)
Amortization of intangible assets (1,000) (1,373) (1,784) (1,607) (1,484) (1,578)
Impairment of goodwill and intangible assets (18,035) (885)
Restructuring charges (1,619) (990) (2,266) (645) (1,144) (640)
Acquisition-related charges (11) (22) (45) (182) (293) (242)
Earnings (loss) from operations 7,185  7,131  (11,057) 9,677  11,479  10,136 
Interest expense (344) (426) (548) (245) (115) (271)
Other income (expense), net (284) (195) (328) (450) (390) (450)
Interest and other, net (628) (621) (876) (695) (505) (721)
Earnings (loss) before taxes 6,557  6,510  (11,933) 8,982  10,974  9,415 
Provision for taxes (1,544) (1,397) (717) (1,908) (2,213) (1,755)
Net earnings (loss) 5,013  5,113  (12,650) 7,074  8,761  7,660 
Source: Hewlett-Packard Co., Annual Reports
Item Description The company
Net revenue Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Hewlett-Packard Co.'s net revenue declined from 2012 to 2013 and from 2013 to 2014.
Earnings (loss) from operations The net result for the period of deducting operating expenses from operating revenues. Hewlett-Packard Co.'s earnings (loss) from operations increased from 2012 to 2013 and from 2013 to 2014.
Earnings (loss) before taxes Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. Hewlett-Packard Co.'s earnings (loss) before taxes increased from 2012 to 2013 and from 2013 to 2014.
Net earnings (loss) The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Hewlett-Packard Co.'s net earnings (loss) increased from 2012 to 2013 but then slightly declined from 2013 to 2014.

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