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Hewlett-Packard. April 1, 1013 Heidi Bennett and Mitchell Dimmerling. Provision for Income Taxes. Provision for Income Taxes. (Benefit from) taxes on earnings was as follows for the following fiscal year ended October 31:. Reconciliation of the statutory rate to the provision rate.

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Hewlett-Packard

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Hewlett packard

Hewlett-Packard

April 1, 1013

Heidi Bennett and Mitchell Dimmerling


Provision for income taxes

Provision for Income Taxes


Provision for income taxes1

Provision for Income Taxes

  • (Benefit from) taxes on earnings was as follows for the following fiscal year ended October 31:


Reconciliation of the statutory rate to the provision rate

Reconciliation of the statutory rate to the provision rate

$11,933

x 6.0%

$715.98


Hewlett packard

  • Lower rates in other jurisdictions, net – Other jurisdictions have more favorable tax rates than the U.S. so HP plans to reinvest some of its earnings on these jurisdictions. Therefore, U.S. taxes are not applied to these reinvested earnings.

  • Valuation allowance – because of HP’s large financial loss in the current year, the allowance was increased to help offset the tax rate.

  • Nondeductible goodwill – Impairment test stated goodwill and purchased intangible assets $18,035m

    • This is a permanent difference.

    • Created a loss before income tax expense for HP.


Deferred tax assets

Deferred Tax Assets


Deferred tax liabilities

Deferred Tax Liabilities


Significant components of dta and dtl were as follows

Significant components of DTA and DTL were as follows:


Hewlett packard

  • Employee and retiree benefits – tax codes require corporations to pay taxes on amounts as they are paid into the funds. Not as they are disbursed.

  • Deferred Revenue – somewhat like subscription revenue, but for HP it is more than likely revenue from contracts.

    • Taxes must be paid upon receipt of money, not over a period of time.


Are there any questions

Are there any Questions?


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