HPQ » Topics » Warranty

This excerpt taken from the HPQ 10-Q filed Mar 11, 2010.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities for the three months ended January 31, 2010 were as follows:

 
  In millions  

Product warranty liability at October 31, 2009

  $ 2,409  

Accruals for warranties issued

    758  

Adjustments related to pre-existing warranties (including changes in estimates)

    (23 )

Settlements made (in cash or in kind)

    (676 )
       

Product warranty liability at January 31, 2010

  $ 2,468  
       
This excerpt taken from the HPQ 10-K filed Dec 17, 2009.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in

122


Table of Contents


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 12: Guarantees (Continued)

correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31:

 
  2009   2008  
 
  In millions
 

Product warranty liability at beginning of year

  $ 2,614   $ 2,376  

Accruals for warranties issued

    2,701     3,351  

Adjustments related to pre-existing warranties (including changes in estimates)

    (223 )   (107 )

Settlements made (in cash or in kind)

    (2,683 )   (3,006 )
           

Product warranty liability at end of year

  $ 2,409   $ 2,614  
           


Note 13: Borrowings

This excerpt taken from the HPQ 10-Q filed Jun 5, 2009.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities for the six months ended April 30, 2009 were as follows:

 
  In millions  

Product warranty liability at October 31, 2008

  $ 2,614  

Accruals for warranties issued

    1,293  

Adjustments related to pre-existing warranties (including changes in estimates)

    (161 )

Settlements made (in cash or in kind)

    (1,355 )
       

Product warranty liability at April 30, 2009

  $ 2,391  
       

31



HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

This excerpt taken from the HPQ 10-Q filed Mar 10, 2009.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities for the three months ended January 31, 2009 were as follows:

 
  In millions  

Product warranty liability at October 31, 2008

  $ 2,614  

Accruals for warranties issued

    672  

Adjustments related to pre-existing warranties (including changes in estimates)

    (102 )

Settlements made (in cash or in kind)

    (663 )
       

Product warranty liability at January 31, 2009

  $ 2,521  
       
These excerpts taken from the HPQ 10-K filed Dec 18, 2008.

Warranty

        HP provides for 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

121


Table of Contents


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 11: Guarantees (Continued)

evaluating the quality of its component suppliers; however, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31:

 
  2008   2007  
 
  In millions
 

Product warranty liability at beginning of year

  $ 2,376   $ 2,248  

Accruals for warranties issued

    3,351     2,712  

Adjustments related to pre-existing warranties (including changes in estimates)

    (107 )   (108 )

Settlements made (in cash or in kind)

    (3,006 )   (2,476 )
           

Product warranty liability at end of year

  $ 2,614   $ 2,376  
           


Note 12: Borrowings

Warranty





        HP provides for 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



121










HREF="#bg72001a_main_toc">Table of Contents





HEWLETT-PACKARD COMPANY AND SUBSIDIARIES



Notes to Consolidated Financial Statements (Continued)



Note 11: Guarantees (Continued)



evaluating
the quality of its component suppliers; however, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting
a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other
post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required.



        The
changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31:
































































































 
 2008  2007  
 
 In millions
 

Product warranty liability at beginning of year

 $2,376 $2,248 

Accruals for warranties issued

  3,351  2,712 

Adjustments related to pre-existing warranties (including changes in estimates)

  (107) (108)

Settlements made (in cash or in kind)

  (3,006) (2,476)
      

Product warranty liability at end of year

 $2,614 $2,376 
      




NAME="fs72001_note_12__borrowings">


Note 12: Borrowings





This excerpt taken from the HPQ 10-Q filed Sep 5, 2008.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or

18


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 9: Guarantees (Continued)

service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liability for the nine months ended July 31, 2008 were as follows:

 
  In millions  

Product warranty liability at October 31, 2007

  $ 2,376  

Accruals for warranties issued

    2,497  

Adjustments related to pre-existing warranties (including changes in estimates)

    (74 )

Settlements made (in cash or in kind)

    (2,247 )
       

Product warranty liability at July 31, 2008

  $ 2,552  
       
This excerpt taken from the HPQ 10-Q filed Jun 6, 2008.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liability for the six months ended April 30, 2008 were as follows:

 
  In millions
 
Product warranty liability at October 31, 2007   $ 2,376  
Accruals for warranties issued     1,706  
Adjustments related to pre-existing warranties (including changes in estimates)     (26 )
Settlements made (in cash or in kind)     (1,501 )
   
 
Product warranty liability at April 30, 2008   $ 2,555  
   
 
This excerpt taken from the HPQ 10-Q filed Mar 10, 2008.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liability for the three months ended January 31, 2008 was as follows:

 
  In millions
 
Product warranty liability at October 31, 2007   $ 2,376  
Accruals for warranties issued     846  
Adjustments related to pre-existing warranties (including changes in estimates)     (19 )
Settlements made (in cash or in kind)     (722 )
   
 
Product warranty liability at January 31, 2008   $ 2,481  
   
 
This excerpt taken from the HPQ 10-K filed Dec 18, 2007.

Warranty

        HP provides for 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

111


evaluating the quality of its component suppliers; however, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31:

 
  2007
  2006
 
 
  In millions

 
Product warranty liability at beginning of year   $ 2,248   $ 2,172  
Accruals for warranties issued     2,712     2,467  
Adjustments related to pre-existing warranties (including changes in estimates)     (108 )   (45 )
Settlements made (in cash or in kind)     (2,476 )   (2,346 )
   
 
 
Product warranty liability at end of year   $ 2,376   $ 2,248  
   
 
 


Note 12: Borrowings

This excerpt taken from the HPQ 10-Q filed Sep 7, 2007.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

19


        The changes in HP's aggregate product warranty liability were as follows:

 
  In millions
 
Product warranty liability at October 31, 2006   $ 2,248  
Accruals for warranties issued     1,944  
Adjustments related to pre-existing warranties (including changes in estimates)     (91 )
Settlements made (in cash or in kind)     (1,833 )
   
 
Product warranty liability at July 31, 2007   $ 2,268  
   
 
This excerpt taken from the HPQ 10-Q filed Jun 8, 2007.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

18


        The changes in HP's aggregate product warranty liability were as follows:

 
  In millions
 
Product warranty liability at October 31, 2006   $ 2,248  
Accruals for warranties issued     1,256  
Adjustments related to pre-existing warranties (including changes in estimates)     (67 )
Settlements made (in cash or in kind)     (1,208 )
   
 
Product warranty liability at April 30, 2007   $ 2,229  
   
 
This excerpt taken from the HPQ 10-Q filed Mar 9, 2007.

Warranty

HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

17




HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Note 9: Guarantees (Continued)

The changes in HP’s aggregate product warranty liability were as follows:

 

 

In millions

 

Product warranty liability at October 31, 2006

 

 

$

2,248

 

 

Accruals for warranties issued

 

 

636

 

 

Adjustments related to pre-existing warranties (including changes in estimates)

 

 

(33

)

 

Settlements made (in cash or in kind)

 

 

(604

)

 

Product warranty liability at January 31, 2007

 

 

$

2,247

 

 

 

This excerpt taken from the HPQ 10-K filed Dec 22, 2006.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31:

 
  2006
  2005
 
 
  In millions

 
Product warranty liability at beginning of year   $ 2,172   $ 2,040  
Accruals for warranties issued     2,467     2,502  
Adjustments related to pre-existing warranties (including changes in estimates)     (45 )   (17 )
Settlements made (in cash or in kind)     (2,346 )   (2,353 )
   
 
 
Product warranty liability at end of year   $ 2,248   $ 2,172  
   
 
 

107


This excerpt taken from the HPQ 10-Q filed Sep 11, 2006.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

21


        The changes in HP's aggregate product warranty liability are as follows:

 
  In millions
 
Product warranty liability at October 31, 2005   $ 2,172  
Accruals for warranties issued     1,837  
Adjustments related to pre-existing warranties (including changes in estimates)     (5 )
Settlements made (in cash or in kind)     (1,771 )
   
 
Product warranty liability at July 31, 2006   $ 2,233  
   
 
This excerpt taken from the HPQ 10-Q filed Jun 8, 2006.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

18


        The changes in HP's aggregate product warranty liability are as follows:

 
  In millions
 
Product warranty liability at October 31, 2005   $ 2,172  
Accruals for warranties issued     1,279  
Adjustments related to pre-existing warranties (including changes in estimates)     3  
Settlements made (in cash or in kind)     (1,197 )
   
 
Product warranty liability at April 30, 2006   $ 2,257  
   
 
This excerpt taken from the HPQ 10-Q filed Mar 10, 2006.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

18


        The changes in HP's aggregate product warranty liability are as follows:

 
  In millions
 
Product warranty liability at October 31, 2005   $ 2,172  
Accruals for warranties issued     634  
Adjustments related to pre-existing warranties (including changes in estimates)     14  
Settlements made (in cash or in kind)     (598 )
   
 
Product warranty liability at January 31, 2006   $ 2,222  
   
 
This excerpt taken from the HPQ 10-K filed Dec 21, 2005.

Warranty

        HP provides for 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, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline

99


experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required.

        Information regarding the changes in HP's aggregate product warranty liabilities is as follows for the following fiscal years ended October 31:

 
  2005
  2004
 
 
  In millions

 
Product warranty liability at beginning of year   $ 2,040   $ 1,987  
Accruals for warranties issued     2,502     2,504  
Adjustments related to pre-existing warranties (including changes in estimates)     (17 )   (86 )
Settlements made (in cash or in kind)     (2,353 )   (2,365 )
   
 
 
Product warranty liability at end of year   $ 2,172   $ 2,040  
   
 
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki