Hp goowill writedown software#

All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. However, trouble quickly brewed and in 2012, accounting anomalies were uncovered by HP, giving rise to a massive impairment write-down of the Autonomy HP unit. The writedown is technically for the impairment of goodwill associated with HPs services. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. But it’s the staggering 15.4 billion impairment charge, made up of a 7.1 billion goodwill impairment in US Refrigerated and Canada Retail unit and 8.3 billion related to Kraft and Oscar Mayer. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. That move marked the finale of the controversial $25 billion takeover deal HP made in 2002 - and a further diminishing of former CEO Carly Fiorina's costly legacy. HP also wrote down $1.2 billion that quarter on the Compaq brand, which it plans on phasing out. This summer, HP took a $8 billion writedown on its purchase of services business EDS, a deal which was valued at nearly $14 billion in 2008.

Hp goowill writedown software#

The WebOS software was a complete failure, culminating in the disastrous TouchPad tablet, which lasted exactly 49 days on the market before getting pulled off store shelves. Most do that in one fell swoop, as HP did this past quarter - knocking $8.8 billion off HP's profit and resulting in a quarterly loss.Įven though HP never had a single whopping write-down, like some of its technology peers, it collected a whole bunch of them recently: three in the past five quarters.Ī year ago, HP wrote off $885 million of its $1.2 billion Palm purchase, which it had made in 2010. Back in November 2012, when it released its fourth-quarter results, computer giant Hewlett-Packard (HP) announced that it. When those go south, accounting rules require companies to strip the asset off their balance sheet. When Goodwill Goes Bad Let's consider an example from the past decade.

'Goodwill' is the accounting term for certain intangible assets, like a company's reputation. Write-downs happen when the value of an acquisition sinks, thanks to underperforming sales or because the acquired company's brand deteriorates. It wrote off another $543 million in April 2012, as the company prepared to completely shut down the Nextel brand. Goodwill impairment charges dont hurt current year cash flows, but they demonstrate mistakes made in the past by management teams. Currently, he serves as a technical accounting advisor with HP. In 2008, Sprint Nextel ( S) wrote off $29.7 billion of the value of its $35 billion merger. Kelen Camehl is a CPA with over 14 years of progressive finance and accounting experience. Some telecoms didn't have a great end to the decade, either. Unlike Einstein, we conclude that the entanglement of physical capital and intangible capital through intra-action is not “spooky action at a distance” but a form of wealth creation (or wealth destruction) in companies.Related story: How Hewlett-Packard lost its way We maintain that intangible capital (goodwill) and physical capital are “entangled”, and this entanglement forms the company’s economic value. In this theory-building exercise we discuss quantum concepts such as entanglement, diffraction and intra-action to propose a physical and economic inseparability between goodwill and other company assets. In the financial world, 'goodwill' refers to intangible assets such as brand strength that are taken. The accusations were made to partly explain an 8 billion writedown yes, that’s a really big number including more than 5 billion of goodwill related to the acquisition.

After reviewing Barad’s concept of agential realism, we develop a quantum interpretation and present a new conceptual approach to accounting goodwill. The writedown is technically for 'the impairment of goodwill' associated with HP's services. I wrote something quick and dirty today at Forbes about HP’s allegations of willful misstatements by former executives of its acquisition Autonomy. This article extends this approach to the accounting field, to explore the economic nature of goodwill. Quantum mechanics is increasingly entering the social world as a means of helping to explain social phenomena. The idea of applying quantum physics concepts or methods to economic and/or social phenomena is not new.