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HP Reports Fourth Quarter and Full Year 2012 Results

PALO ALTO, CA--(Marketwire - Nov 20, 2012) - HP ( NYSE : HPQ

  • Full year fiscal 2012 non-GAAP diluted earnings per share of $4.05, within the previously provided outlook of $4.05 to $4.07 
  • Full year fiscal 2012 GAAP loss per share of $6.41
  • Full year fiscal 2012 net revenue of $120.4 billion, down 5% from the prior-year period and down 4% when adjusted for the effects of currency
  • Fourth quarter non-GAAP diluted earnings per share of $1.16, down 1% from the prior-year period
  • Fourth quarter GAAP loss per share of $3.49
  • Fourth quarter net revenue of $30.0 billion, down 7% from the prior-year period and down 4% when adjusted for the effects of currency
  • Cash flow from operations of $4.1 billion, up 69% from the prior-year period
  • Returned $384 million in cash to shareholders in the form of dividends and share repurchases
  • Fourth quarter and full year fiscal 2012 results include a non-cash goodwill and intangible asset impairment charge of $8.8 billion relating to the Autonomy business within the Software segment
 
HP fourth quarter and full year 2012 financial performance
 
    Q4FY12   Q4FY11   Y/Y   FY12   FY11   Y/Y
GAAP net revenue ($B)   $30.0   $32.1   (7%)   $120.4   $127.2   (5%)
GAAP operating margin   (21.7%)   2.5%   (24.2 pts.)   (9.2%)   7.6%   (16.8 pts.)
GAAP net (loss) earnings ($B)   ($6.9)   $0.2       ($12.7)   $7.1    
GAAP (loss) diluted EPS   ($3.49)   $0.12       ($6.41)   $3.32    
Non-GAAP operating margin   10.4%   9.7%   0.7 pts.   9.3%   10.8%   (1.5 pts.)
Non-GAAP net earnings ($B)   $2.3   $2.4   (3%)   $8.0   $10.4   (23%)
Non-GAAP diluted EPS   $1.16   $1.17   (1%)   $4.05   $4.88   (17%)
                         
Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.

HP today announced financial results for its fourth fiscal quarter and full fiscal year ended Oct. 31, 2012.

For the full year fiscal 2012, net revenue of $120.4 billion was down 5% from the prior-year period and down 4% when adjusted for the effects of currency.

Full-year GAAP loss per share was $6.41, down from diluted earnings per share (EPS) of $3.32 in the prior-year period. Full-year non-GAAP diluted EPS was $4.05, down 17% from the prior-year period. Full year non-GAAP earnings information excludes after tax costs of $20.7 billion, or $10.46 per diluted share, related to the impairment of goodwill and purchased intangible assets, restructuring charges, amortization of purchased intangible assets, charges relating to the wind down of non-strategic businesses and acquisition-related charges.

For the fourth quarter, net revenue of $30.0 billion was down 7% year over year and down 4% when adjusted for the effects of currency. 

Fourth quarter GAAP loss per share was $3.49, down from diluted EPS of $0.12 in the prior-year period. Fourth quarter non-GAAP diluted EPS was $1.16, down 1% from the prior-year period. Fourth quarter non-GAAP earnings information excludes after-tax costs of $9.1 billion, or $4.65 per diluted share, related to the impairment of goodwill and purchased intangible assets, restructuring charges, amortization of purchased intangible assets and acquisition-related charges.

"As we discussed during our Securities Analyst Meeting last month, fiscal 2012 was the first year in a multiyear journey to turn HP around," said Meg Whitman, HP president and chief executive officer. "We're starting to see progress in key areas, such as new product releases and customer wins. We're particularly pleased that in Q4, we were able to improve our balance sheet, generating $4.1 billion in operating cash flow, and we returned $384 million to shareholders in the form of share repurchases and dividends."

Fourth Fiscal Quarter 2012 Business Group Results

  • Personal Systems revenue was down 14% year over year with a 3.5% operating margin. Commercial revenue decreased 13%, and Consumer revenue declined 16%. Total units were down 12% with both Desktops and Notebooks units down 12%.

  • Printing revenue declined 5% year over year with a 17.5% operating margin. Total hardware units were down 20% year over year. Commercial hardware units were down 15% year over year, and Consumer hardware units were down 22% year over year.

  • Services revenue declined 6% year over year with a 14.2% operating margin. Technology Services revenue was down 4% year over year, Application and Business Services revenue was down 7% year over year, and IT Outsourcing revenue declined 6% year over year.

  • Enterprise Servers, Storage and Networking (ESSN) revenue declined 9% year over year with an 8.3% operating margin. Networking revenue was up 7%, Industry Standard Servers revenue was down 7%, Business Critical Systems revenue was down 25%, and Storage revenue was down 13% year over year.

  • Software revenue grew 14% year over year with a 27.2% operating margin, including the results of Autonomy. Software revenue was driven by 9% license growth, 9% support growth, and 48% growth in services.

  • HP Financial Services revenue grew 1% year over year as a 3% increase in net portfolio assets was offset by an 11% decrease in financing volume. The business delivered a 10.8% operating margin.

Asset Management
HP generated $4.1 billion in cash flow from operations in the fourth quarter. Inventory ended the quarter at $6.3 billion, with days of inventory down 2 days year over year to 25 days. Accounts receivable of $16.4 billion was down 2 days year over year to 49 days. Accounts payable ended the quarter at $13.4 billion, up 1 day from the prior-year period to 53 days. HP's dividend payment of $0.132 per share in the fourth quarter resulted in cash usage of $260 million. HP also utilized $124 million of cash during the quarter to repurchase approximately 7.6 million shares of common stock in the open market. HP exited the quarter with $11.8 billion in gross cash.

HP recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year. The majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation plc that occurred prior to HP's acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term. The balance of the impairment charge is linked to the recent trading value of HP stock. There will be no cash impact associated with the impairment charge.

Outlook
For the first quarter of fiscal 2013, HP estimates non-GAAP diluted EPS to be in the range of $0.68 to $0.71 and GAAP diluted EPS to be in the range of $0.34 to $0.37.

First quarter fiscal 2013 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.34 per share, related primarily to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

For the full year fiscal 2013, HP estimates a non-GAAP diluted EPS to be in the range of $3.40 to $3.60 and GAAP diluted EPS to be in the range of $2.10 to $2.30, in line with HP's previously communicated outlook.

Full year fiscal 2013 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $1.30 per share, related primarily to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges.

More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at www.hp.com/investor/home.

HP's Q4 FY12 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2012Q4webcast.

About HP
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world's largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.

Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP net revenue, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share, gross cash and free cash flow. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under "Use of Non-GAAP Financial Measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted earnings per share, cash and cash equivalents or cash flow from operations prepared in accordance with GAAP.

Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, earnings per share, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP's businesses; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs and retirement programs; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2011 and HP's other filings with the Securities and Exchange Commission, including HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2012. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP's Form 10-K for the fiscal year ended October 31, 2012. In particular, determining HP's actual tax balances and provisions as of October 31, 2012 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP's Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

   
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES  
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS  
(Unaudited)  
(In millions except per share amounts)  
                 
                 
  Three months ended  
  October 31,
2012
    July 31,
2012
    October 31,
2011
 
                       
Net revenue $ 29,959     $ 29,669     $ 32,122  
                       
Costs and expenses:(a)                      
  Cost of sales   22,711       22,820       25,304  
  Research and development   909       854       829  
  Selling, general and administrative   3,227       3,366       3,605  
  Amortization of purchased intangible assets   372       476       411  
  Impairment of goodwill and purchased intangible assets   8,847       9,188       885  
  Restructuring charges   378       1,795       179  
  Acquisition-related charges   3       3       114  
    Total costs and expenses   36,447       38,502       31,327  
                       
(Loss) earnings from operations   (6,488 )     (8,833 )     795  
                       
Interest and other, net   (188 )     (224 )     (401 )
                       
(Loss) earnings before taxes   (6,676 )     (9,057 )     394  
                       
Provision (benefit) for taxes   178       (200 )     155  
                       
Net (loss) earnings $ (6,854 )   $ (8,857 )   $ 239  
                       
Net (loss) earnings per share:                      
  Basic $ (3.49 )   $ (4.49 )   $ 0.12  
  Diluted $ (3.49 )   $ (4.49 )   $ 0.12  
                       
Cash dividends declared per share $ -     $ 0.26     $ -  
                       
Weighted-average shares used to compute net (loss) earnings per share:                      
  Basic   1,964       1,971       1,989  
  Diluted   1,964       1,971       2,005  
     
(a)   In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.
     
     
     
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES  
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS  
(In millions except per share amounts)  
           
           
  Twelve months ended  
  October 31,  
  2012     2011  
  (Unaudited)        
               
Net revenue $ 120,357     $ 127,245  
               
Costs and expenses:(a)              
  Cost of sales   92,385       97,418  
  Research and development   3,399       3,254  
  Selling, general and administrative   13,500       13,577  
  Amortization of purchased intangible assets   1,784       1,607  
  Impairment of goodwill and purchased intangible assets   18,035       885  
  Restructuring charges   2,266       645  
  Acquisition-related charges   45       182  
    Total costs and expenses   131,414       117,568  
               
(Loss) earnings from operations   (11,057 )     9,677  
               
Interest and other, net   (876 )     (695 )
               
(Loss) earnings before taxes   (11,933 )     8,982  
               
Provision for taxes   717       1,908  
               
Net (loss) earnings $ (12,650 )   $ 7,074  
               
Net (loss) earnings per share:              
  Basic $ (6.41 )   $ 3.38  
  Diluted $ (6.41 )   $ 3.32  
               
Cash dividends declared per share $ 0.50     $ 0.40  
               
Weighted-average shares used to compute net (loss) earnings per share:              
  Basic   1,974       2,094  
  Diluted   1,974       2,128  
     
(a)   In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.
     
     
     
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET REVENUE, NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
                       
                       
  Three months ended
October 31,
2012
  Diluted earnings
per share
  Three months ended
July 31,
2012
  Diluted earnings
per share
  Three months ended
October 31,
2011
  Diluted earnings
per share
                                   
GAAP net revenue $ 29,959         $ 29,669         $ 32,122      
                                   
Non-GAAP adjustments:                                  
  WebOS device contra revenue, net(a)   -           -           142      
Non-GAAP net revenue $ 29,959         $ 29,669         $ 32,264      
                                   
                                   
GAAP net (loss) earnings $ (6,854)   $ (3.49)   $ (8,857)   $ (4.49)   $ 239   $ 0.12
                                   
Non-GAAP adjustments:                                  
  Amortization of purchased intangible assets   372     0.19     476     0.25     411     0.20
  Impairment of goodwill and purchased intangible assets(b)   8,847     4.51     9,188     4.66     885     0.44
  Restructuring charges   378     0.19     1,795     0.91     179     0.09
  Acquisition-related charges in earnings from operations   3     -     3     -     114     0.06
  Wind down of the webOs device business(c)   -     -     -     -     755     0.38
  Wind down of non-strategic businesses(d)   -     -     108     0.05     -     -
  Acquisition-related charges in interest and other, net(e)   -     -     -     -     276     0.14
  Adjustments for taxes(f)   (465)     (0.24)     (740)     (0.38)     (509)     (0.26)
Non-GAAP net earnings $ 2,281   $ 1.16   $ 1,973   $ 1.00   $ 2,350   $ 1.17
                                   
                                   
GAAP (loss) earnings from operations $ (6,488)         $ (8,833)         $ 795      
                                   
Non-GAAP adjustments:                                  
  Amortization of purchased intangible assets   372           476           411      
  Impairment of goodwill and purchased intangible assets(b)   8,847           9,188           885      
  Restructuring charges   378           1,795           179      
  Acquisition-related charges in earnings from operations   3           3           114      
  Wind down of the webOs device business(c)   -           -           755      
  Wind down of non-strategic businesses(d)   -           108           -      
Non-GAAP earnings from operations $ 3,112         $ 2,737         $ 3,139      
                                   
GAAP operating margin   (22%)           (30%)           2%      
Non-GAAP adjustments   32%           39%           8%      
Non-GAAP operating margin   10%           9%           10%      
     
(a)   Includes contra revenue primarily associated with sales incentive programs to wind down the webOS device business, net of webOS device revenue.
     
(b)   For the period ended October 31, 2012, represents a goodwill and intangible asset impairment charge of $8.8 billion associated with the Autonomy reporting unit within the Software segment. For the period ended July 31, 2012, represents a goodwill impairment charge of $8.0 billion associated with the Services segment and an intangible asset impairment charge of $1.2 billion associated with the "Compaq" trade name within the Personal Systems segment (formerly known as the Personal Systems Group segment). For the period ended October 31, 2011, includes impairment charges to goodwill and purchased intangible assets associated with the acquisition of Palm, Inc. on July 1, 2010 recorded as result of the decision announced on August 18, 2011 to wind down the webOS device business.
     
(c)   Includes primarily expenses and adjustments for supplier-related obligations and contra revenue associated with sales incentive programs related to winding down the webOS device business.
     
(d)   Represents primarily contract-related charges, including inventory write-downs, related to winding down certain retail publishing business activities within the Printing segment (formerly known as the Imaging and Printing Group Segment).
     
(e)   Includes primarily the cost of the British pound options bought to limit foreign exchange rate risk in connection with the Autonomy acquisition.
     
(f)   For the periods ended October 31, 2012 and July 31, 2012, adjustments for taxes is net of valuation allowances of $0.5 billion and $0.8 billion provided for certain deferred tax assets, respectively.
     
     
     
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET REVENUE, NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
                 
                 
    Twelve months ended
October 31,
2012
  Diluted
earnings
per share
  Twelve months ended
October 31,
2011
  Diluted
earnings
per share
                         
GAAP net revenue   $ 120,357         $ 127,245      
                         
Non-GAAP adjustments:                        
  WebOS device contra revenue, net(a)     -           142      
Non-GAAP net revenue   $ 120,357         $ 127,387      
                         
                         
GAAP net (loss) earnings   $ (12,650)   $ (6.41)   $ 7,074   $ 3.32
                         
Non-GAAP adjustments:                        
  Amortization of purchased intangible assets     1,784     0.90     1,607     0.75
  Impairment of goodwill and purchased intangible assets(b)     18,035     9.14     885     0.42
  Restructuring charges     2,266     1.15     645     0.30
  Acquisition-related charges in earnings from operations     45     0.02     182     0.09
  Wind down of the webOs device business(c)     (36)     (0.02)     755     0.35
  Wind down of non-strategic businesses(d)     108     0.05     -     -
  Acquisition-related charges in interest and other, net(e)     -     -     276     0.13
  Adjustments for taxes(f)     (1,517)     (0.78)     (1,045)     (0.48)
Non-GAAP net earnings   $ 8,035   $ 4.05   $ 10,379   $ 4.88
                         
                         
GAAP (loss) earnings from operations   $ (11,057)         $ 9,677      
                         
Non-GAAP adjustments:                        
  Amortization of purchased intangible assets     1,784           1,607      
  Impairment of goodwill and purchased intangible assets(b)     18,035           885      
  Restructuring charges     2,266           645      
  Acquisition-related charges in earnings from operations     45           182      
  Wind down of the webOs device business(c)     (36)           755      
  Wind down of non-strategic businesses(d)     108           -      
Non-GAAP earnings from operations   $ 11,145         $ 13,751      
                         
GAAP operating margin     (9%)           8%      
Non-GAAP adjustments     18%           3%      
Non-GAAP operating margin     9%           11%      
     
(a)   Includes contra revenue primarily associated with sales incentive programs to wind down the webOS device business, net of the webOS device revenue.
     
(b)   For the period ended October 31, 2012, represents a goodwill and intangible asset impairment charge of $8.8 billion associated with the Autonomy reporting unit within the Software segment, a goodwill impairment charge of $8.0 billion associated with the Services segment and an intangible asset impairment charge of $1.2 billion associated with the "Compaq" trade name within the Personal Systems segment. For the period ended October 31, 2011, includes impairment charges to goodwill and purchased intangible assets associated with the acquisition of Palm, Inc. on July 1, 2010 recorded as result of the decision announced on August 18, 2011 to wind down the webOS device business.
     
(c)   Includes primarily expenses and adjustments for supplier-related obligations and contra revenue associated with sales incentive programs related to winding down the webOS device business.
     
(d)   Represents primarily contract-related charges, including inventory write-downs, related to winding down certain retail publishing business activities within the Printing segment.
     
(e)   Includes primarily the cost of the British pound options bought to limit foreign exchange rate risk in connection with the Autonomy acquisition.
     
(f)   For the period ended October 31, 2012, adjustments for taxes is net of valuation allowances of $1.3 billion provided for certain deferred tax assets.
     
     
     
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
       
       
  October 31,
2012
  October 31,
2011
  (Unaudited)    
ASSETS          
           
Current assets:          
  Cash and cash equivalents $ 11,301   $ 8,043
  Accounts receivable   16,407     18,224
  Financing receivables   3,252     3,162
  Inventory   6,317     7,490
  Other current assets   13,360     14,102
           
    Total current assets   50,637     51,021
           
Property, plant and equipment   11,954     12,292
           
Long-term financing receivables and other assets   10,593     10,755
           
Goodwill and purchased intangible assets   35,584     55,449
           
Total assets $ 108,768   $ 129,517
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Current liabilities:          
  Notes payable and short-term borrowings $ 6,647   $ 8,083
  Accounts payable   13,350     14,750
  Employee compensation and benefits   4,058     3,999
  Taxes on earnings   846     1,048
  Deferred revenue   7,494     7,449
  Other accrued liabilities   14,271     15,113
           
    Total current liabilities   46,666     50,442
           
Long-term debt   21,789     22,551
           
Other liabilities   17,480     17,520
           
Stockholders' equity:          
  HP stockholders' equity   22,436     38,625
  Non-controlling interests   397     379
           
    Total stockholders' equity   22,833     39,004
           
Total liabilities and stockholders' equity $ 108,768   $ 129,517
           
           
           
...
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES  
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS  
(Unaudited)  
(In millions)  
             
   
    Three months ended
October 31,
2012
    Twelve months ended
October 31,
2012
 
Cash flows from operating activities:                
  Net loss   $ (6,854 )   $ (12,650 )
  Adjustments to reconcile net earnings to net cash provided by operating activities:                
    Depreciation and amortization     1,201       5,095  
    Impairment of goodwill and purchased intangible assets     8,847       18,035  
    Stock-based compensation expense     141       635  
    Provision for bad debt and inventory     165       419  
    Restructuring charges     378       2,266  
    Deferred taxes on earnings     (21 )     (711 )
    Excess tax benefit from stock-based compensation     -       (12 )
    Other, net     (65 )     265  
                 
    Changes in operating assets and liabilities:                
      Accounts and financing receivables     (1,166 )     1,269  
      Inventory     892       890  
      Accounts payable     782       (1,414 )
      Taxes on earnings     (280 )     (320 )
      Restructuring     (368 )     (840 )
      Other assets and liabilities     407       (2,356 )
        Net cash provided by operating activities     4,059       10,571  
                 
Cash flows from investing activities:                
    Investment in property, plant and equipment     (873 )     (3,706 )
    Proceeds from sale of property, plant and equipment     296       617  
    Purchases of available-for-sale securities and other investments     (179 )     (972 )
    Maturities and sales of available-for-sale securities and other investments     146       662  
    Payments made in connection with business acquisitions, net of cash acquired     -       (141 )
    Proceeds from business divestiture, net     -       87  
        Net cash used in investing activities     (610 )     (3,453 )
                 
Cash flows from financing activities:                
    Repayment of commercial paper and notes payable, net     (222 )     (2,775 )
    Issuance of debt     54       5,154  
    Payment of debt     (1,111 )     (4,333 )
    Issuance of common stock under employee stock plans     6       716  
    Repurchase of common stock     (124 )     (1,619 )
    Excess tax benefit from stock-based compensation     -       12  
    Cash dividends paid     (260 )     (1,015 )
        Net cash used in financing activities     (1,657 )     (3,860 )
                 
Increase in cash and cash equivalents     1,792       3,258  
Cash and cash equivalents at beginning of period     9,509