2021 Q2 Form 10-Q Financial Statement

#000004721721000031 Filed on June 04, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2020 Q2
Revenue $15.88B $12.47B
YoY Change 27.33% -11.16%
Cost Of Revenue $12.44B $9.976B
YoY Change 24.67% -11.77%
Gross Profit $3.440B $2.493B
YoY Change 37.99% -8.65%
Gross Profit Margin 21.67% 19.99%
Selling, General & Admin $1.483B $1.216B
YoY Change 21.96% -9.19%
% of Gross Profit 43.11% 48.78%
Research & Development $514.0M $338.0M
YoY Change 52.07% -4.25%
% of Gross Profit 14.94% 13.56%
Depreciation & Amortization $186.0M $198.0M
YoY Change -6.06% 9.39%
% of Gross Profit 5.41% 7.94%
Operating Expenses $1.997B $1.554B
YoY Change 28.51% -8.16%
Operating Profit $1.362B $826.0M
YoY Change 64.89% -10.99%
Interest Expense -$64.00M -$39.00M
YoY Change 64.1% -47.3%
% of Operating Profit -4.7% -4.72%
Other Income/Expense, Net -$26.00M $0.00
YoY Change -100.0%
Pretax Income $1.336B $826.0M
YoY Change 61.74% -6.46%
Income Tax $108.0M $62.00M
% Of Pretax Income 8.08% 7.51%
Net Earnings $1.228B $764.0M
YoY Change 60.73% -2.3%
Net Earnings / Revenue 7.73% 6.13%
Basic Earnings Per Share $1.00 $0.53
Diluted Earnings Per Share $0.98 $0.53
COMMON SHARES
Basic Shares Outstanding 1.234B shares 1.435B shares
Diluted Shares Outstanding 1.247B shares 1.440B shares

Balance Sheet

Concept 2021 Q2 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.436B $4.054B
YoY Change -15.24% 13.46%
Cash & Equivalents $3.424B $4.054B
Short-Term Investments $12.00M
Other Short-Term Assets $4.175B $4.106B
YoY Change 1.68% 4.72%
Inventory $7.502B $6.354B
Prepaid Expenses
Receivables $4.990B $5.146B
Other Receivables $2.874B $2.933B
Total Short-Term Assets $20.09B $19.66B
YoY Change 2.19% 7.52%
LONG-TERM ASSETS
Property, Plant & Equipment $2.538B $2.714B
YoY Change -6.48% 12.52%
Goodwill $6.524B $6.370B
YoY Change 2.42% 0.33%
Intangibles
YoY Change
Long-Term Investments $52.00M
YoY Change 6.12%
Other Assets $5.396B $5.029B
YoY Change 7.3% 2.63%
Total Long-Term Assets $14.46B $14.11B
YoY Change 2.44% 3.31%
TOTAL ASSETS
Total Short-Term Assets $20.09B $19.66B
Total Long-Term Assets $14.46B $14.11B
Total Assets $34.55B $33.77B
YoY Change 2.3% 5.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.23B $14.20B
YoY Change 7.28% 2.57%
Accrued Expenses $10.06B $8.007B
YoY Change 25.63% 5.0%
Deferred Revenue $1.265B $1.208B
YoY Change 4.72% 6.15%
Short-Term Debt $0.00 $670.0M
YoY Change -100.0% 1663.16%
Long-Term Debt Due $1.191B $881.0M
YoY Change 35.19% 249.6%
Total Short-Term Liabilities $28.03B $25.28B
YoY Change 10.89% 8.93%
LONG-TERM LIABILITIES
Long-Term Debt $4.917B $3.941B
YoY Change 24.77% -17.01%
Other Long-Term Liabilities $4.963B $5.299B
YoY Change -6.34% -3.32%
Total Long-Term Liabilities $9.880B $9.240B
YoY Change 6.93% 68.58%
TOTAL LIABILITIES
Total Short-Term Liabilities $28.03B $25.28B
Total Long-Term Liabilities $9.880B $9.240B
Total Liabilities $37.91B $34.52B
YoY Change 9.83% 20.33%
SHAREHOLDERS EQUITY
Retained Earnings -$3.070B -$633.0M
YoY Change 384.99% -52.23%
Common Stock $1.018B $926.0M
YoY Change 9.94% 28.08%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$3.360B -$743.0M
YoY Change
Total Liabilities & Shareholders Equity $34.55B $33.77B
YoY Change 2.3% 5.72%

Cashflow Statement

Concept 2021 Q2 2020 Q2
OPERATING ACTIVITIES
Net Income $1.228B $764.0M
YoY Change 60.73% -2.3%
Depreciation, Depletion And Amortization $186.0M $198.0M
YoY Change -6.06% 9.39%
Cash From Operating Activities $1.446B -$510.0M
YoY Change -383.53% -159.23%
INVESTING ACTIVITIES
Capital Expenditures -$121.0M -$149.0M
YoY Change -18.79% 30.7%
Acquisitions
YoY Change
Other Investing Activities -$191.0M $267.0M
YoY Change -171.54% -34.88%
Cash From Investing Activities -$312.0M $118.0M
YoY Change -364.41% -60.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.600B $100.0M
YoY Change 1500.0% -85.71%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.870B 241.0M
YoY Change -875.93% -124.9%
NET CHANGE
Cash From Operating Activities 1.446B -510.0M
Cash From Investing Activities -312.0M 118.0M
Cash From Financing Activities -1.870B 241.0M
Net Change In Cash -736.0M -151.0M
YoY Change 387.42% -179.89%
FREE CASH FLOW
Cash From Operating Activities $1.446B -$510.0M
Capital Expenditures -$121.0M -$149.0M
Free Cash Flow $1.567B -$361.0M
YoY Change -534.07% -137.03%

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us-gaap Depreciation Depletion And Amortization
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hpq Collateral Postedfor Derivatives
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hpq Collateral Postedfor Derivatives
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hpq Net Payments Proceeds Related To Stock Based Award Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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us-gaap Net Income Loss
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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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us-gaap Common Stock Dividends Per Share Cash Paid
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us-gaap Common Stock Dividends Per Share Cash Paid
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us-gaap Dividends Common Stock Cash
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us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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us-gaap Use Of Estimates
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<div style="margin-bottom:3pt;margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP’s Consolidated Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of April 30, 2021, the extent to which the COVID-19 pandemic will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic, our estimates may materially change in future periods.</span></div>
us-gaap Number Of Reportable Segments
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us-gaap Revenues
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us-gaap Revenues
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Restructuring Charges
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us-gaap Restructuring Charges
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us-gaap Restructuring Reserve Accrual Adjustment1
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us-gaap Other Restructuring Costs
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us-gaap Other Restructuring Costs
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Income Tax Reconciliation Tax Settlements
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us-gaap Income Tax Reconciliation Tax Settlements
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CY2021Q2 us-gaap Unrecognized Tax Benefits
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us-gaap Unrecognized Tax Benefits Period Increase Decrease
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hpq Income Tax Examination Likelihood Of No Resolution Period
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us-gaap Provision For Doubtful Accounts
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hpq Cash Receipts
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CY2020Q4 hpq Receivables Sold But Not Collected From Third Party
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CY2021Q2 hpq Trade Receivables Sold
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CY2020Q2 hpq Trade Receivables Sold
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hpq Trade Receivables Sold
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hpq Trade Receivables Sold
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CY2021Q2 hpq Cash Receipts
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hpq Cash Receipts
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hpq Fx And Other
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hpq Fx And Other
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CY2020Q2 hpq Receivables Sold But Not Collected From Third Party
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CY2021Q2 hpq Receivables Sold But Not Collected From Third Party
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CY2020Q2 hpq Receivables Sold But Not Collected From Third Party
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CY2021Q2 us-gaap Inventory Finished Goods Net Of Reserves
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CY2021Q2 us-gaap Inventory Work In Process And Raw Materials Net Of Reserves
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CY2020Q4 hpq Cash Equivalentsand Available For Sale Securities Amortized Cost Basis
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CY2021Q2 us-gaap Derivative Liabilities
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CY2020Q4 us-gaap Derivative Asset Fair Value Gross Liability
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CY2020Q4 us-gaap Derivative Assets
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CY2020Q4 us-gaap Derivative Asset Not Offset Policy Election Deduction
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CY2020Q4 us-gaap Derivative Asset Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeAssetFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
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CY2020Q4 us-gaap Derivative Fair Value Of Derivative Liability
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CY2020Q4 us-gaap Derivative Liability Fair Value Gross Asset
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CY2020Q4 us-gaap Derivative Liabilities
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CY2020Q4 us-gaap Derivative Liability Not Offset Policy Election Deduction
DerivativeLiabilityNotOffsetPolicyElectionDeduction
156000000 USD
CY2020Q4 us-gaap Derivative Collateral Right To Reclaim Cash
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130000000 USD
CY2020Q4 us-gaap Derivative Liability Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeLiabilityFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
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CY2021Q2 hpq Numberof Creditof Facility Programs
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us-gaap Stock Repurchased And Retired During Period Shares
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us-gaap Payments For Repurchase Of Common Stock
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CY2020Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2020Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
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CY2020Q2 us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2021Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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us-gaap Guarantees Indemnifications And Warranties Policies
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<div style="margin-bottom:3pt;margin-top:3pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Guarantees</span></div><div style="margin-bottom:3pt;margin-top:3pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote.</span></div><div style="margin-top:3pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Cross-Indemnifications with Hewlett Packard Enterprise</span></div><div style="margin-top:3pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Under the separation and distribution agreement, HP agreed to indemnify Hewlett Packard Enterprise, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to HP as part of the Separation. Hewlett Packard Enterprise similarly agreed to indemnify HP, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to Hewlett Packard Enterprise as part of the Separation. HP expects Hewlett Packard Enterprise to fully perform under the terms of the separation and distribution agreement.</span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For information on cross-indemnifications with Hewlett Packard Enterprise for litigation matters, see Note 12, “Litigation and Contingencies.”</span></div><div style="margin-top:3pt;text-align:justify;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Indemnifications</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">  </span></div><div style="margin-top:3pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third-party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the vendors’ and customers’ use of HP’s software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial.</span></div><div style="margin-top:3pt;text-indent:20.25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">HP records tax indemnification receivables from various third parties for certain tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by those same third parties under existing legal agreements. HP records a tax indemnification payable to various third parties under these agreements when management believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. The actual amount that the third parties pay or may be obligated to pay HP could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years.</span></div><div style="margin-bottom:3pt;margin-top:3pt;text-align:justify;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Warranties</span></div><div style="margin-bottom:3pt;margin-top:3pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation.</span></div>
CY2020Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
993000000 USD
us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
509000000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
22000000 USD
us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
506000000 USD
CY2021Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
1018000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance Sheet Amount
UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount
6500000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Due In Remainder Of Fiscal Year
UnrecordedUnconditionalPurchaseObligationDueInRemainderOfFiscalYear
1100000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On First Anniversary
UnrecordedUnconditionalPurchaseObligationBalanceOnFirstAnniversary
2048000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Second Anniversary
UnrecordedUnconditionalPurchaseObligationBalanceOnSecondAnniversary
1980000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Third Anniversary
UnrecordedUnconditionalPurchaseObligationBalanceOnThirdAnniversary
1313000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance On Fourth Anniversary
UnrecordedUnconditionalPurchaseObligationBalanceOnFourthAnniversary
54000000 USD
CY2021Q2 hpq Unrecorded Unconditional Purchase Obligation To Be Paid After Year Four
UnrecordedUnconditionalPurchaseObligationToBePaidAfterYearFour
7000000 USD
CY2021Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance Sheet Amount
UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount
6502000000 USD

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