HP takes $8bn writedown on services arm

Executive shakeup reflects issues with brand "goodwill"

Hewlett-Packard said Wednesday that it would take a $8 billion charge in its third fiscal quarter owing to weakness in its enterprise services division.

The writedown is technically for "the impairment of goodwill" associated with HP’s services. In the financial world, "goodwill" refers to intangible assets such as brand strength that are taken into account when determining a company’s total value.

"Recent trading values of HP’s stock, coupled with market conditions and business trends within the Services segment" necessitated the move, HP said in a statement.

 

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HP greatly increased its services business with the 2008 acquisition of EDS for $13.9 billion, a deal that has been viewed as overly expensive.

In the same announcement Wednesday, HP said that Mike Nefkens, senior vice president and general manager of Enterprise Services EMEA, will serve as acting head of the whole division. He will report to CEO Meg Whitman.

Enterprise Services chief John Vistenin is leaving HP "to pursue other interests," the company said. Vistenin was appointed services head during the tenure of former HP CEO Leo Apotheker, who had a short, rocky run at the company and was replaced with Whitman in September 2011.

Jean-Jacques Charhon, formerly senior vice president and chief financial officer of the services group, has been appointed chief operating officer for the division, HP announced. His role will center on "increasing customer satisfaction and improving service delivery efficiency".

HP also said that it would incur a higher than expected charge in the third quarter related to a staff reduction plan announced earlier this year, due in part to "a higher than anticipated acceptance rate under its early retirement programme." The company is anticipating a pre-tax charge of between $1.5 billion and $1.7 billion, up from the initial $1 billion estimate.

Also Wednesday, HP said third-quarter earnings are expected to come in at about $1 per share, an increase from its previous forecast of $0.94 to $0.97, if calculated under non-GAAP (generally accepted accounting principles) with those one-time charges set aside.

The company’s shares were up $0.46 on the news to $19.42 in late trading, indicating some approval from investors for HP’s moves and the adjusted third-quarter forecast, but the stock is still well down from past highs.

IDG News Service

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'string') { return '+1 000 000 0000'; // Default US placeholder } var mockPlaceholders = [ { countryCode: 'US', placeholder: '+1 000 000 0000', helpText: 'Include the US country code +1 before the phone number', }, { countryCode: 'GB', placeholder: '+44 0000 000000', helpText: 'Include the GB country code +44 before the phone number', }, { countryCode: 'CA', placeholder: '+1 000 000 0000', helpText: 'Include the CA country code +1 before the phone number', }, { countryCode: 'AU', placeholder: '+61 000 000 000', helpText: 'Include the AU country code +61 before the phone number', }, { countryCode: 'DE', placeholder: '+49 000 0000000', helpText: 'Fügen Sie vor der Telefonnummer die DE-Ländervorwahl +49 ein', }, { countryCode: 'FR', placeholder: '+33 0 00 00 00 00', helpText: 'Incluez le code pays FR +33 avant le numéro de téléphone', }, { countryCode: 'ES', placeholder: '+34 000 000 000', helpText: 'Incluya el código de país ES +34 antes del número de teléfono', }, { countryCode: 'NL', placeholder: '+31 0 00000000', helpText: 'Voeg de NL-landcode +31 toe vóór het telefoonnummer', }, { countryCode: 'BE', placeholder: '+32 000 00 00 00', helpText: 'Incluez le code pays BE +32 avant le numéro de téléphone', }, { countryCode: 'CH', placeholder: '+41 00 000 00 00', helpText: 'Fügen Sie vor der Telefonnummer die CH-Ländervorwahl +41 ein', }, { countryCode: 'AT', placeholder: '+43 000 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die AT-Ländervorwahl +43 ein', }, { countryCode: 'IE', placeholder: '+353 00 000 0000', helpText: 'Include the IE country code +353 before the phone number', }, { countryCode: 'IT', placeholder: '+39 000 000 0000', helpText: 'Includere il prefisso internazionale IT +39 prima del numero di telefono', }, { countryCode: 'NO', placeholder: '+47 000 00 000', helpText: 'Inkluder NO landskode +47 før telefonnummeret', }, { countryCode: 'SE', placeholder: '+46 00 000 00 00', helpText: 'Inkludera SE landskod +46 före telefonnumret', }, { countryCode: 'DK', placeholder: '+45 00 00 00 00', helpText: 'Inkluder DK landekode +45 før telefonnummeret', }, { countryCode: 'FI', placeholder: '+358 00 000 0000', helpText: 'Sisällytä FI-maakoodi +358 ennen puhelinnumeroa', }, { countryCode: 'EE', placeholder: '+372 0000 0000', helpText: 'Lisage EE riigikood +372 telefoninumbri ette', }, { countryCode: 'PL', placeholder: '+48 000 000 000', helpText: 'Podaj numer kierunkowy PL +48 przed numerem telefonu', }, { countryCode: 'SK', placeholder: '+421 000 000 000', helpText: 'Pred telefónne číslo uveďte kód krajiny SK +421', }, { countryCode: 'LV', placeholder: '+371 0000 0000', helpText: 'Iekļaujiet LV valsts kodu +371 pirms tālruņa numura', }, { countryCode: 'LT', placeholder: '+370 0000 0000', helpText: 'Įtraukite LT šalies kodą +370 prieš telefono numerį', }, { countryCode: 'GR', placeholder: '+30 000 000 0000', helpText: 'Συμπεριλάβετε τον κωδικό χώρας GR +30 πριν από τον αριθμό τηλεφώνου', }, { countryCode: 'PT', placeholder: '+351 000 000 000', helpText: 'Inclua o código de país PT +351 antes do número de telefone', }, { countryCode: 'HR', placeholder: '+385 00 000 0000', helpText: 'Uključite HR pozivni broj države +385 prije telefonskog broja', }, { countryCode: 'SI', placeholder: '+386 00 000 000', helpText: 'Vključite SI kodo države +386 pred telefonsko številko', }, { countryCode: 'IS', placeholder: '+354 000 0000', helpText: 'Láttu IS landsnúmer +354 fylgja á undan símanúmerinu', }, { countryCode: 'LU', placeholder: '+352 000 000 000', helpText: 'Incluez le code pays LU +352 avant le numéro de téléphone', }, { countryCode: 'MC', placeholder: '+377 00 00 00 00', helpText: 'Incluez le code pays MC +377 avant le numéro de téléphone', }, { countryCode: 'AD', placeholder: '+376 000 000', helpText: 'Incloeu el codi de país AD +376 abans del número de telèfon', }, { countryCode: 'JE', placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; const selectedPlaceholder = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedPlaceholder ? selectedPlaceholder.placeholder : mockPlaceholders[0].placeholder; } function updatePlaceholder(countryCode, fieldName) { if (!countryCode || !fieldName) { return; } const phoneInput = document.querySelector('#mce-' + fieldName); if (!phoneInput) { return; } const placeholder = getDefaultPlaceholder(countryCode); if (placeholder) { phoneInput.placeholder = placeholder; } } function updateCountryCodeInstruction(countryCode, fieldName) { updatePlaceholder(countryCode, fieldName); } function getDefaultHelpText(countryCode) { var mockPlaceholders = [ { countryCode: 'US', placeholder: '+1 000 000 0000', helpText: 'Include the US country code +1 before the phone number', }, { countryCode: 'GB', placeholder: '+44 0000 000000', helpText: 'Include the GB country code +44 before the phone number', }, { countryCode: 'CA', placeholder: '+1 000 000 0000', helpText: 'Include the CA country code +1 before the phone number', }, { countryCode: 'AU', placeholder: '+61 000 000 000', helpText: 'Include the AU country code +61 before the phone number', }, { countryCode: 'DE', placeholder: '+49 000 0000000', helpText: 'Fügen Sie vor der Telefonnummer die DE-Ländervorwahl +49 ein', }, { countryCode: 'FR', placeholder: '+33 0 00 00 00 00', helpText: 'Incluez le code pays FR +33 avant le numéro de téléphone', }, { countryCode: 'ES', placeholder: '+34 000 000 000', helpText: 'Incluya el código de país ES +34 antes del número de teléfono', }, { countryCode: 'NL', placeholder: '+31 0 00000000', helpText: 'Voeg de NL-landcode +31 toe vóór het telefoonnummer', }, { countryCode: 'BE', placeholder: '+32 000 00 00 00', helpText: 'Incluez le code pays BE +32 avant le numéro de téléphone', }, { countryCode: 'CH', placeholder: '+41 00 000 00 00', helpText: 'Fügen Sie vor der Telefonnummer die CH-Ländervorwahl +41 ein', }, { countryCode: 'AT', placeholder: '+43 000 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die AT-Ländervorwahl +43 ein', }, { countryCode: 'IE', placeholder: '+353 00 000 0000', helpText: 'Include the IE country code +353 before the phone number', }, { countryCode: 'IT', placeholder: '+39 000 000 0000', helpText: 'Includere il prefisso internazionale IT +39 prima del numero di telefono', }, { countryCode: 'NO', placeholder: '+47 000 00 000', helpText: 'Inkluder NO landskode +47 før telefonnummeret', }, { countryCode: 'SE', placeholder: '+46 00 000 00 00', helpText: 'Inkludera SE landskod +46 före telefonnumret', }, { countryCode: 'DK', placeholder: '+45 00 00 00 00', helpText: 'Inkluder DK landekode +45 før telefonnummeret', }, { countryCode: 'FI', placeholder: '+358 00 000 0000', helpText: 'Sisällytä FI-maakoodi +358 ennen puhelinnumeroa', }, { countryCode: 'EE', placeholder: '+372 0000 0000', helpText: 'Lisage EE riigikood +372 telefoninumbri ette', }, { countryCode: 'PL', placeholder: '+48 000 000 000', helpText: 'Podaj numer kierunkowy PL +48 przed numerem telefonu', }, { countryCode: 'SK', placeholder: '+421 000 000 000', helpText: 'Pred telefónne číslo uveďte kód krajiny SK +421', }, { countryCode: 'LV', placeholder: '+371 0000 0000', helpText: 'Iekļaujiet LV valsts kodu +371 pirms tālruņa numura', }, { countryCode: 'LT', placeholder: '+370 0000 0000', helpText: 'Įtraukite LT šalies kodą +370 prieš telefono numerį', }, { countryCode: 'GR', placeholder: '+30 000 000 0000', helpText: 'Συμπεριλάβετε τον κωδικό χώρας GR +30 πριν από τον αριθμό τηλεφώνου', }, { countryCode: 'PT', placeholder: '+351 000 000 000', helpText: 'Inclua o código de país PT +351 antes do número de telefone', }, { countryCode: 'HR', placeholder: '+385 00 000 0000', helpText: 'Uključite HR pozivni broj države +385 prije telefonskog broja', }, { countryCode: 'SI', placeholder: '+386 00 000 000', helpText: 'Vključite SI kodo države +386 pred telefonsko številko', }, { countryCode: 'IS', placeholder: '+354 000 0000', helpText: 'Láttu IS landsnúmer +354 fylgja á undan símanúmerinu', }, { countryCode: 'LU', placeholder: '+352 000 000 000', helpText: 'Incluez le code pays LU +352 avant le numéro de téléphone', }, { countryCode: 'MC', placeholder: '+377 00 00 00 00', helpText: 'Incluez le code pays MC +377 avant le numéro de téléphone', }, { countryCode: 'AD', placeholder: '+376 000 000', helpText: 'Incloeu el codi de país AD +376 abans del número de telèfon', }, { countryCode: 'JE', placeholder: '+44 0000 000000', helpText: 'Include the JE country code +44 before the phone number', }, { countryCode: 'IM', placeholder: '+44 0000 000000', helpText: 'Include the IM country code +44 before the phone number', }, { countryCode: 'GG', placeholder: '+44 0000 000000', helpText: 'Include the GG country code +44 before the phone number', }, { countryCode: 'AL', placeholder: '+355 00 000 0000', helpText: 'Përfshini kodin e vendit AL +355 para numrit të telefonit', }, { countryCode: 'SM', placeholder: '+378 0000 000000', helpText: 'Includere il prefisso internazionale SM +378 prima del numero di telefono', }, { countryCode: 'FO', placeholder: '+298 000000', helpText: 'Inkluder FO landekode +298 før telefonnummeret', }, { countryCode: 'MT', placeholder: '+356 0000 0000', helpText: 'Include the MT country code +356 before the phone number', }, { countryCode: 'LI', placeholder: '+423 000 0000', helpText: 'Fügen Sie vor der Telefonnummer die LI-Ländervorwahl +423 ein', }, { countryCode: 'GI', placeholder: '+350 000 00000', helpText: 'Include the GI country code +350 before the phone number', }, { countryCode: 'MD', placeholder: '+373 00 000 000', helpText: 'Includeți codul de țară MD +373 înaintea numărului de telefon', }, { countryCode: 'HU', placeholder: '+36 00 000 0000', helpText: 'A telefonszám előtt adja meg a HU országkódot +36', }, { countryCode: 'NZ', placeholder: '+64 00 000 0000', helpText: 'Include the NZ country code +64 before the phone number', }, { countryCode: 'ME', placeholder: '+382 00 000 000', helpText: 'Uključite ME pozivni broj države +382 prije telefonskog broja', }, ]; if (!countryCode || typeof countryCode !== 'string') { return mockPlaceholders[0].helpText; } const selectedHelpText = mockPlaceholders.find(function(item) { return item && item.countryCode === countryCode; }); return selectedHelpText ? selectedHelpText.helpText : mockPlaceholders[0].helpText; } function setDefaultHelpText(countryCode) { const helpTextSpan = document.querySelector('#help-text'); if (!helpTextSpan) { return; } } function updateHelpTextCountryCode(countryCode, fieldName) { if (!countryCode || !fieldName) { return; } setDefaultHelpText(countryCode); } function initializeSmsPhoneDropdown(fieldName) { if (!fieldName || typeof fieldName !== 'string') { return; } const dropdown = document.querySelector('#country-select-' + fieldName); const displayFlag = document.querySelector('#flag-display-' + fieldName); if (!dropdown || !displayFlag) { return; } const smsPhoneData = window.MC?.smsPhoneData; if (smsPhoneData && smsPhoneData.programs && Array.isArray(smsPhoneData.programs)) { dropdown.innerHTML = generateDropdownOptions(smsPhoneData.programs); } const defaultProgram = getDefaultCountryProgram(smsPhoneData?.defaultCountryCode, smsPhoneData?.programs); if (defaultProgram && defaultProgram.countryCode) { dropdown.value = defaultProgram.countryCode; const flagSpan = displayFlag?.querySelector('#flag-emoji-' + fieldName); if (flagSpan) { flagSpan.textContent = getCountryUnicodeFlag(defaultProgram.countryCode); flagSpan.setAttribute('aria-label', sanitizeHtml(defaultProgram.countryCode) + ' flag'); } updateSmsLegalText(defaultProgram.countryCode, fieldName); updatePlaceholder(defaultProgram.countryCode, fieldName); updateCountryCodeInstruction(defaultProgram.countryCode, fieldName); } var smsNotRequiredRemoveCountryCodeEnabled = true; var smsField = Object.values({"EMAIL":{"name":"EMAIL","label":"Email Address","helper_text":"","type":"email","required":true,"audience_field_name":"Email Address","merge_id":0,"help_text_enabled":false,"enabled":true,"order":0,"field_type":"merge"},"FNAME":{"name":"FNAME","label":"First Name","helper_text":"","type":"text","required":false,"audience_field_name":"First Name","enabled":false,"order":null,"field_type":"merge","merge_id":1},"MMERGE2":{"name":"MMERGE2","label":"Second Name","helper_text":"","type":"text","required":false,"audience_field_name":"Second 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: false; var shouldAppendCountryCode = smsNotRequiredRemoveCountryCodeEnabled ? isRequired : true; var phoneInput = document.querySelector('#mce-' + fieldName); if (phoneInput && defaultProgram.countryCallingCode && shouldAppendCountryCode) { phoneInput.value = defaultProgram.countryCallingCode; } displayFlag?.addEventListener('click', function(e) { dropdown.focus(); }); dropdown?.addEventListener('change', function() { const selectedCountry = this.value; if (!selectedCountry || typeof selectedCountry !== 'string') { return; } const flagSpan = displayFlag?.querySelector('#flag-emoji-' + fieldName); if (flagSpan) { flagSpan.textContent = getCountryUnicodeFlag(selectedCountry); flagSpan.setAttribute('aria-label', sanitizeHtml(selectedCountry) + ' flag'); } const selectedProgram = window.MC?.smsPhoneData?.programs.find(function(program) { return program && program.countryCode === selectedCountry; }); var smsNotRequiredRemoveCountryCodeEnabled = true; var smsField = Object.values({"EMAIL":{"name":"EMAIL","label":"Email Address","helper_text":"","type":"email","required":true,"audience_field_name":"Email Address","merge_id":0,"help_text_enabled":false,"enabled":true,"order":0,"field_type":"merge"},"FNAME":{"name":"FNAME","label":"First Name","helper_text":"","type":"text","required":false,"audience_field_name":"First Name","enabled":false,"order":null,"field_type":"merge","merge_id":1},"MMERGE2":{"name":"MMERGE2","label":"Second Name","helper_text":"","type":"text","required":false,"audience_field_name":"Second Name","enabled":false,"order":null,"field_type":"merge","merge_id":2},"MMERGE3":{"name":"MMERGE3","label":"Company Name","helper_text":"","type":"text","required":false,"audience_field_name":"Company Name","enabled":false,"order":null,"field_type":"merge","merge_id":3},"MMERGE4":{"name":"MMERGE4","label":"Job Title","helper_text":"","type":"text","required":false,"audience_field_name":"Job Title","enabled":false,"order":null,"field_type":"merge","merge_id":4},"SIGNUP":{"name":"SIGNUP","label":"Signup form location","helper_text":"","type":"text","required":false,"audience_field_name":"Signup form location","enabled":false,"order":null,"field_type":"merge","merge_id":5},"MMERGE6":{"name":"MMERGE6","label":"Image URL","helper_text":"","type":"imageurl","required":false,"audience_field_name":"Image URL","enabled":false,"order":null,"field_type":"merge","merge_id":6}}).find(function(f) { return f.name === fieldName && f.type === 'smsphone'; }); var isRequired = smsField ? smsField.required : false; var shouldAppendCountryCode = smsNotRequiredRemoveCountryCodeEnabled ? isRequired : true; var phoneInput = document.querySelector('#mce-' + fieldName); if (phoneInput && selectedProgram.countryCallingCode && shouldAppendCountryCode) { phoneInput.value = selectedProgram.countryCallingCode; } updateSmsLegalText(selectedCountry, fieldName); updatePlaceholder(selectedCountry, fieldName); updateCountryCodeInstruction(selectedCountry, fieldName); }); } document.addEventListener('DOMContentLoaded', function() { const smsPhoneFields = document.querySelectorAll('[id^="country-select-"]'); smsPhoneFields.forEach(function(dropdown) { const fieldName = dropdown?.id.replace('country-select-', ''); initializeSmsPhoneDropdown(fieldName); }); });

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