HPQ
#So the Samsung integration expenses run the gamut, from transaction costs, legal costs, and then very specifically, around integration.
And whenever you put this together, it's always a little bit difficult to know exactly what the timing is going to be.
In total, we still expect the Samsung integration costs are going to be in the $150 million to $200 million range, and that we will take those on a GAAP-only basis, and basically call them out each quarter.
So I don't think there's anything particularly special about the fact that the timing has changed a bit.
Just a better assessment of when the costs are going to be incurred.
So <UNK>, what is typical for us, in terms of normal seasonality for personal systems is probably closer to 6%, not your 10%.
But we do expect to be worse than that, as a result of the strength that we saw in Q1.
And as you know, we don't guide revenue, and certainly don't guide revenue at the segment level.
But we have the right cost structure.
We are innovating, and bringing to market great value propositions for our customers.
And so, we will continue to fight a good fight with our competition, and we'll see how we work out ---+ how it works out in Q2.
Sure.
<UNK>, I'm very pleased with how it's working out.
We basically believe that by getting to closer to global pricing consistency, that there would be a number of benefits.
One was going to be just much more linear supplies performance.
As I said, we'd have linear sales out, that then therefore we would have more linear sales in, and we're absolutely seeing that.
And as I said, that's what gives us some confidence we will get some permanent linearity benefit this year.
But it is also great from a partner perspective because, of course, they're carrying lower channel inventory, and therefore that's their working capital.
Our channel inventory levels are healthy.
They are below the top end of the newly lowered and narrowed ranges.
So we're feeling good about that as well.
And then, we're also seeing in the quarter, improvement in terms of discounting.
And as I mentioned, we're taking that in lower discounts, and basically reinvesting them back into marketing to drive print relevancy and usage.
And it's very important that we do that, because we do not want to be selling supplies on promo.
We want to drive the value, to help our customers understand the value of using HP branded ink and toner, and marketing is going to be important to that.
And again, looking through the eyes of a customer, it increases customer satisfaction when there's not enormous price volatility in the market, but encourages gray imports, and all of the issues associated with that, and the frustrations associated with that.
So we've seen the gray marketing activity significantly reduced.
We're seeing much more stable prices in the market, which is a benefit for the customers, channel partners, and our business performance.
So <UNK>, I guess, it's all in the eye of the beholder.
I love 16%.
I love 16% when we put units out, positive NVP units out there, and we grow units 6%.
And if that was the opportunity that existed throughout the rest of the year, I'd be okay with it.
And I would hope that you'd be okay with it, because it's going to drive great supplies connect over the long-term.
Now I think that we probably will get higher in the range, but honestly, if there are opportunities to place more NVP positive units, we should do that all day long.
I mean, we've got currency impacts, you've got productivity savings, there's lots of things that are going on in the margins, but the biggest driver for us, to be at the lower end of the range, it's going to be placing positive NVP units.
We're confident in stabilizing supplies by the end of 2017.
In constant currency.
Thanks.
Sure.
Let's talk first about the restructuring.
In Q1, we had roughly 350 employees leave under the plan.
And as you said for the year, our target is 1,500 to 2,500.
And again, we gave that range, because we were assessing different outsourcing opportunities, and there's still a bit of a range based on that.
I would say, we're on track from a restructuring perspective.
Restructuring is just a part of the overall $1 billion in productivity savings that we're targeting for the year.
And that is, it is, it comes over the course of the year, and is a little bit back-end loaded.
But we're feeling confident that we will be delivering on those productivity savings as well.
So first, 8% to 10% is really a long-term kind of operating margin view.
And it ---+ we've always said, that we'd be at the lower end of that range, if there were good opportunities to place positive NVP units.
So there's kind of a theme here, it really makes a difference because of the upfront investment that you need to make on units.
Certainly, to get in that range, we also need to get supplies in more ---+ in a growth mode.
And in addition to that, it would be the full execution of our strategy, not only in the core, but as well as the growth.
There's A3, think about that $[55] billion market, where we have less than 4% market share today, continuing our ramp of graphics and commercial mobility.
And we've only just begun on 3D printing, where we placed those first units, and revenue [rec'd] them, which is even more exciting.
And the fact that our customers are telling us, that the printers are performing as per our promise on speed, quality, and cost is really important.
And that strategy is anchored in time horizons.
The core is the here and now, growth is the next two to three years, and future is sort of 3 to 10 year time frame.
And that's how we think about this business.
I thank you all for taking the time out of your busy schedules to tune in today.
I think this quarter can best be characterized as relentless execution and innovation that delivered really strong results.
It's a consecutive quarter of growth.
So this is the second quarter in a row of growth and solid performance.
Innovation is at the heart of driving the meaningful share gains that we had.
We're the pillar of stability right now in the industry, whether it's on the security dimension or innovation dimension, regardless of the market conditions.
We have increased confidence in our ability to deliver on the commitments that we laid out at the Security Analyst Meeting.
And I remain convinced, as does the rest of our entire organization, that our most innovative days lie ahead of us.
Thanks very much.
Thanks a lot.
