HP Reports Second Quarter 2012 Results

More information on HP's quarterly earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at www.hp.com/investor/home.

HP's Q2 FY12 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2012q2webcast.

About HP
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world's largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.

Use of non-GAAP financial information
To supplement HP's consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP net revenue, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share, gross cash and free cash flow. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP management compensates for those limitations, and the substantive reasons why HP management believes that these non-GAAP measures provide useful information to investors is included under "Use of Non-GAAP Financial Measures" after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted earnings per share, cash and cash equivalents or cash flow from operations prepared in accordance with GAAP.

Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, earnings per share, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any projections of the amount, timing or impact of cost savings, restructuring charges, early retirement programs, workforce reductions or impairment charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP's businesses; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs and retirement programs; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2011 and HP's other filings with the Securities and Exchange Commission, including HP's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2012. As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be meaningful, these amounts could differ materially from actual reported amounts in HP's Form 10-Q for the fiscal quarter ended April 30, 2012. In particular, determining HP's actual tax balances and provisions as of April 30, 2012 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP's Form 10-Q. HP assumes no obligation and does not intend to update these forward-looking statements.

                                                                            
                                                                            
                  HEWLETT-PACKARD COMPANY AND SUBSIDIARIES                  
               CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS                
                                (Unaudited)                                 
                   (In millions except per share amounts)                   
                                                                            
                                                Three months ended          
                                      ------------------------------------- 
                                       April 30,   January 31,   April 30,  
                                          2012         2012         2011    
                                                        -----------    -----------    -----------  
                                                                                                                                                        
Net  revenue                                                      $        30,693    $        30,036    $        31,632  
                                                                                                                                                        
Costs  and  Expenses:(a)                                                                                                            
    Cost  of  sales                                                        23,541              23,313              23,832  
    Research  and  development                                        850                    786                    815  
    Selling,  general  and  administrative              3,540                3,367                3,425  
    Amortization  of  purchased                                                                                                  
      intangible  assets                                                    470                    466                    413  
    Restructuring  charges                                                53                      40                    158  
    Acquisition-related  charges                                    17                      22                      21  
                                                                            -----------    -----------    -----------  
        Total  costs  and  expenses                              28,471              27,994              28,664  
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Earnings  from  operations                                        2,222                2,042                2,968  
                                                                                                                                                        
Interest  and  other,  net                                            (243)                (221)                  (76)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Earnings  before  taxes                                              1,979                1,821                2,892  
                                                                                                                                                        
Provision  for  taxes                                                      386                    353                    588  
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Net  earnings                                                    $          1,593    $          1,468    $          2,304  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                              $            0.80    $            0.74    $            1.07  
    Diluted                                                          $            0.80    $            0.73    $            1.05  
                                                                                                                                                        
Cash  dividends  declared  per  share          $                  -    $            0.24    $                  -  
                                                                                                                                                        
Weighted-average  shares  used  to                                                                                          
  compute  net  earnings  per  share:                                                                                        
    Basic                                                                          1,979                1,981                2,150  
    Diluted                                                                      1,987                1,998                2,184  
                                                                                                                                                        
(a)  In  connection  with  organizational  realignments  implemented  in  the  first  
        quarter  of  fiscal  year  2012,  certain  costs  previously  reported  as  Cost    
        of  Sales  have  been  reclassified  as  Selling,  General  and  Administrative    
        expenses  to  better  align  those  costs  with  the  functional  areas  that          
        benefit  from  those  expenditures.                                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                              CONSOLIDATED  CONDENSED  STATEMENTS  OF  EARNINGS                                
                                                                (Unaudited)                                                                  
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                              Six  months  ended          
                                                                                                      ------------------------  
                                                                                                                      April  30,                
                                                                                                      ------------------------  
                                                                                                              2012                  2011        
                                                                                                      -----------    -----------  
                                                                                                                                                        
                                                                                                                                                        
Net  revenue                                                                                $        60,729    $        63,934  
                                                                                                                                                        
Costs  and  expenses:(a)                                                                                                            
    Cost  of  sales                                                                                  46,854              48,213  
    Research  and  development                                                              1,636                1,613  
    Selling,  general  and  administrative                                        6,907                6,542  
    Amortization  of  purchased  intangible  assets                            936                    838  
    Restructuring  charges                                                                          93                    316  
    Acquisition-related  charges                                                              39                      50  
                                                                                                      -----------    -----------  
        Total  costs  and  expenses                                                        56,465              57,572  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Earnings  from  operations                                                                  4,264                6,362  
                                                                                                                                                        
Interest  and  other,  net                                                                      (464)                (173)
                                                                                                      -----------    -----------  
                                                                                                                                                        
Earnings  before  taxes                                                                        3,800                6,189  
                                                                                                                                                        
Provision  for  taxes                                                                                739                1,280  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Net  earnings                                                                              $          3,061    $          4,909  
                                                                                                      ===========    ===========  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                                                        $            1.55    $            2.27  
    Diluted                                                                                    $            1.53    $            2.23  
                                                                                                                                                        
Cash  dividends  declared  per  share                                    $            0.24    $            0.16  
                                                                                                                                                        
Weighted-average  shares  used  to  compute  net                                                                  
  earnings  per  share:                                                                                                                
    Basic                                                                                                    1,980                2,166  
    Diluted                                                                                                1,995                2,203  
                                                                                                                                                        
(a)  In  connection  with  organizational  realignments  implemented  in  the  first  
        quarter  of  fiscal  year  2012,  certain  costs  previously  reported  as  Cost    
        of  Sales  have  been  reclassified  as  Selling,  General  and  Administrative    
        expenses  to  better  align  those  costs  with  the  functional  areas  that          
        benefit  from  those  expenditures.                                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                ADJUSTMENTS  TO  GAAP  NET  EARNINGS,  EARNINGS  FROM  OPERATIONS,                  
                                    OPERATING  MARGIN  AND  EARNINGS  PER  SHARE                                      
                                                                (Unaudited)                                                                  
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                          Three                            Three                            Three                        
                                          months                          months                          months                      
                                          ended        Diluted      ended        Diluted      ended        Diluted  
                                          April      earnings    January    earnings      April      earnings  
                                            30,              per            31,              per            30,              per      
                                            2012          share          2012          share          2011          share    
                                        -------    --------    -------    --------    -------    --------  
                                                                                                                                                        
GAAP  net  earnings      $  1,593    $      0.80    $  1,468    $      0.73    $  2,304    $      1.05  
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      purchased                                                                                                                                
      intangible                                                                                                                              
      assets                              470            0.23            466            0.24            413            0.19  
    Restructuring                                                                                                                          
      charges                              53            0.03              40            0.02            158            0.07  
    Acquisition-                                                                                                                            
      related  charges              17            0.01              22            0.01              21            0.01  
    Wind  down  of  the                                                                                                                    
      webOS  device                                                                                                                          
      business(a)                    (36)        (0.02)              -                  -                -                  -  
    Adjustments  for                                                                                                                      
      taxes                              (148)        (0.07)        (164)        (0.08)        (179)        (0.08)
                                        -------    --------    -------    --------    -------    --------  
Non-GAAP  net                                                                                                                                
  earnings                      $  1,949    $      0.98    $  1,832    $      0.92    $  2,717    $      1.24  
                                        =======    ========    =======    ========    =======    ========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  operations                  $  2,222                        $  2,042                        $  2,968                      
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      purchased                                                                                                                                
      intangible                                                                                                                              
      assets                              470                                466                                413                      
    Restructuring                                                                                                                          
      charges                              53                                  40                                158                      
    Acquisition-                                                                                                                            
      related  charges              17                                  22                                  21                      
    Wind  down  of  the                                                                                                                    
      webOS  device                                                                                                                          
      business(a)                    (36)                                  -                                    -                      
                                        -------                        -------                        -------                      
Non-GAAP  earnings                                                                                                                      
  from  operations        $  2,726                        $  2,570                        $  3,560                      
                                        =======                        =======                        =======                      
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin                                      7%                                  7%                                  9%                    
Non-GAAP                                                                                                                                        
  adjustments                            2%                                  2%                                  2%                    
                                        -------                        -------                        -------                      
                                                                                                                                                        
Non-GAAP  operating                                                                                                                    
  margin                                      9%                                  9%                                11%                    
                                        =======                        =======                        =======                      
                                                                                                                                                        
(a)  Primarily  includes  adjustments  to  expenses  for  supplier-related                  
        obligations  related  to  winding  down  the  webOS  device  business.                    
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                ADJUSTMENTS  TO  GAAP  NET  EARNINGS,  EARNINGS  FROM  OPERATIONS,                  
                                    OPERATING  MARGIN  AND  EARNINGS  PER  SHARE                                      
                                                                (Unaudited)                                                                  
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                          Six  months                            Six  months                          
                                                              ended              Diluted          ended              Diluted    
                                                          April  30,        earnings      April  30,        earnings    
                                                                2012            per  share          2011            per  share  
                                                          ----------    ----------    ----------    ----------  
                                                                                                                                                        
GAAP  net  earnings                        $        3,061    $          1.53    $        4,909    $          2.23  
                                                                                                                                                        
Non-GAAP  adjustments:                                                                                                              
    Amortization  of  purchased                                                                                                  
      intangible  assets                                936                0.47                  838                0.39  
    Restructuring  charges                            93                0.05                  316                0.14  
    Acquisition-related                                                                                                              
      charges                                                      39                0.02                    50                0.02  
    Wind  down  of  the  webOS                                                                                                        
      device  business(a)                              (36)            (0.02)                    -                      -  
    Adjustments  for  taxes                        (312)            (0.15)              (366)            (0.17)
                                                          ----------    ----------    ----------    ----------  
Non-GAAP  net  earnings                $        3,781    $          1.90    $        5,747    $          2.61  
                                                          ==========    ==========    ==========    ==========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  operations                                    $        4,264                            $        6,362                          
                                                                                                                                                        
Non-GAAP  adjustments:                                                                                                              
    Amortization  of  purchased                                                                                                  
      intangible  assets                                936                                          838                          
    Restructuring  charges                            93                                          316                          
    Acquisition-related                                                                                                              
      charges                                                      39                                            50                          
    Wind  down  of  the  webOS                                                                                                        
      device  business(a)                              (36)                                            -                          
                                                          ----------                            ----------                          
Non-GAAP  earnings  from                                                                                                            
  operations                                    $        5,296                            $        7,566                          
                                                          ==========                            ==========                          
                                                                                                                                                        
GAAP  operating  margin                                  7%                                          10%                        
Non-GAAP  adjustments                                    2%                                            2%                        
                                                          ----------                            ----------                          
                                                                                                                                                        
Non-GAAP  operating  margin                          9%                                          12%                        
                                                          ==========                            ==========                          
                                                                                                                                                        
(a)  Primarily  includes  adjustments  to  expenses  for  supplier-related                  
        obligations  related  to  winding  down  the  webOS  device  business.                    
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                      CONSOLIDATED  CONDENSED  BALANCE  SHEETS                                        
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                        April  30,      October  31,  
                                                                                                              2012                  2011        
                                                                                                      -----------    -----------  
                                                                                                      (unaudited)                            
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                                $          8,311    $          8,043  
    Accounts  receivable                                                                      16,609              18,224  
    Financing  receivables                                                                    3,139                3,162  
    Inventory                                                                                            7,306                7,490  
    Other  current  assets                                                                    14,324              14,102  
                                                                                                      -----------    -----------  
        Total  current  assets                                                                49,689              51,021  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Property,  plant  and  equipment                                                      12,236              12,292  
                                                                                                                                                        
Long-term  financing  receivables  and  other  assets                11,018              10,755  
                                                                                                                                                        
Goodwill  and  purchased  intangible  assets                                54,746              55,449  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Total  assets                                                                              $      127,689    $      129,517  
                                                                                                      ===========    ===========  
                                                                                                                                                        
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                    $          4,252    $          8,083  
    Accounts  payable                                                                            12,900              14,750  
    Employee  compensation  and  benefits                                          3,609                3,999  
    Taxes  on  earnings                                                                                871                1,048  
    Deferred  revenue                                                                              7,582                7,449  
    Other  accrued  liabilities                                                          13,585              15,113  
                                                                                                      -----------    -----------  
        Total  current  liabilities                                                      42,799              50,442  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Long-term  debt                                                                                    25,825              22,551  
                                                                                                                                                        
Other  liabilities                                                                              17,368              17,520  
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    HP  stockholders'  equity                                                              41,288              38,625  
    Non-controlling  interests                                                                409                    379  
                                                                                                      -----------    -----------  
        Total  stockholders'  equity                                                    41,697              39,004  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Total  liabilities  and  stockholders'  equity                  $      127,689    $      129,517  
                                                                                                      ===========    ===========  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Three  months      Six  months    
                                                                                                          ended                  ended        
                                                                                                      April  30,          April  30,    
                                                                                                          2012                    2012          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:                                                                              
    Net  earnings                                                                      $            1,593    $            3,061  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                              1,285                  2,588  
        Stock-based  compensation  expense                                            169                      344  
        Provision  for  bad  debt  and  inventory                                      95                      147  
        Restructuring  charges                                                                    53                        93  
        Deferred  taxes  on  earnings                                                        (45)                  (155)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                    (1)                    (12)
        Other,  net                                                                                        196                      240  
                                                                                                                                                        
        Changes  in  operating  assets  and  liabilities:                                                        
            Accounts  and  financing  receivables                                  (832)                1,479  
            Inventory                                                                                      (91)                      89  
            Accounts  payable                                                                        525                (1,851)
            Taxes  on  earnings                                                                      (42)                    (54)
            Restructuring                                                                            (100)                  (274)
            Other  assets  and  liabilities                                              (332)              (2,029)
                                                                                                  ------------    ------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                          2,473                  3,666  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
        Investment  in  property,  plant  and  equipment                (1,080)              (1,963)
        Proceeds  from  sale  of  property,  plant  and                                                              
          equipment                                                                                        128                      224  
        Purchases  of  available-for-sale  securities                                                            
          and  other  investments                                                              (565)                  (565)
        Maturities  and  sales  of  available-for-sale                                                            
          securities  and  other  investments                                          250                      346  
        Payments  made  in  connection  with  business                                                              
          acquisitions,  net  of  cash  acquired                                          -                    (141)
        Proceeds  from  business  divestiture,  net                                  -                        81  
                                                                                                  ------------    ------------  
            Net  cash  used  in  investing  activities                        (1,267)              (2,018)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
        Repayment  of  commercial  paper  and  notes                                                                  
          payable,  net                                                                                (185)              (2,792)
        Issuance  of  debt                                                                        2,017                  5,052  
        Payment  of  debt                                                                        (2,561)              (2,661)
        Issuance  of  common  stock  under  employee                                                                  
          stock  plans                                                                                    321                      634  
        Repurchase  of  common  stock                                                      (350)              (1,130)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                      1                        12  
        Cash  dividends  paid                                                                    (251)                  (495)
                                                                                                  ------------    ------------  
            Net  cash  used  in  financing  activities                        (1,008)              (1,380)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Increase  in  cash  and  cash  equivalents                                          198                      268  
Cash  and  cash  equivalents  at  beginning  of  period                8,113                  8,043  
                                                                                                  ------------    ------------  
Cash  and  cash  equivalents  at  end  of  period              $            8,311    $            8,311  
                                                                                                  ============    ============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                Three  months  ended                    
                                                                            -------------------------------------  
                                                                              April  30,      January  31,      April  30,    
                                                                                    2012                  2012                  2011        
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems  Group                            $          9,452    $          8,873    $          9,415  
    Services                                                                    8,831                8,626                8,916  
    Imaging  and  Printing  Group                                6,132                6,258                6,843  
    Enterprise  Servers,  Storage  and                                                                                      
      Networking                                                              5,211                5,018                5,516  
    Software                                                                        970                    946                    797  
    HP  Financial  Services                                              968                    950                    885  
    Corporate  Investments                                                18                      58                      42  
                                                                            -----------    -----------    -----------  
        Total  segments                                                  31,582              30,729              32,414  
    Eliminations  of  intersegment  net                                                                                    
      revenue  and  other                                                  (889)                (693)                (782)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  net  revenue  $        30,693    $        30,036    $        31,632  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems  Group                            $              524    $              464    $              533  
    Services                                                                        997                    905                1,372  
    Imaging  and  Printing  Group                                    808                    761                1,136  
    Enterprise  Servers,  Storage  and                                                                                      
      Networking                                                                  585                    562                    760  
    Software                                                                        172                    162                    158  
    HP  Financial  Services                                                96                      91                      83  
    Corporate  Investments                                              (49)                  (48)                (199)
                                                                            -----------    -----------    -----------  
        Total  segment  earnings  from                                                                                          
          operations                                                          3,133                2,897                3,843  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and                                                                              
      eliminations                                                            (203)                (153)                (153)
    Unallocated  costs  related  to  stock-                                                                              
      based  compensation  expense                                (168)                (174)                (130)
    Amortization  of  purchased                                                                                                  
      intangible  assets                                                  (470)                (466)                (413)
    Restructuring  charges                                              (53)                  (40)                (158)
    Acquisition-related  charges                                  (17)                  (22)                  (21)
    Interest  and  other,  net                                        (243)                (221)                  (76)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  earnings                                                                                    
          before  taxes                                          $          1,979    $          1,821    $          2,892  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
(a)  Certain  fiscal  2012  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2011,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  and  operating  profit  among  the  Services,  Imaging
        and  Printing  Group,  Enterprise  Servers,  Storage  and  Networking,  Software
        and  Corporate  Investments  financial  reporting  segments.                                  
        Reclassifications  between  segments  included  the  transfer  of  the  Indigo    
        Scitex  support  and  the  LaserJet  and  enterprise  solutions  trade  support    
        businesses  from  Services  to  the  Imaging  and  Printing  Group,  the  transfer
        of  the  business  intelligence  services  business  from  Corporate                      
        Investments  to  Services,  the  transfer  of  the  information  management          
        services  business  from  Software  to  Services,  and  the  transfer  of  the        
        TippingPoint  business  from  Enterprise  Servers,  Storage  and  Networking  to
        Software.  There  was  no  impact  on  the  previously  reported  financial            
        results  for  the  Personal  Systems  Group  and  HP  Financial  Services                
        segments.                                                                                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                              Six  months  ended          
                                                                                                                      April  30,                
                                                                                                      ------------------------  
                                                                                                              2012                  2011        
                                                                                                      -----------    -----------  
                                                                                                                                                        
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems  Group                                                      $        18,325    $        19,864  
    Services                                                                                            17,457              17,445  
    Imaging  and  Printing  Group                                                        12,390              13,574  
    Enterprise  Servers,  Storage  and  Networking                        10,229              11,115  
    Software                                                                                              1,916                1,522  
    HP  Financial  Services                                                                    1,918                1,712  
    Corporate  Investments                                                                          76                    104  
                                                                                                      -----------    -----------  
        Total  Segments                                                                            62,311              65,336  
    Eliminations  of  intersegment  net  revenue  and                                                            
      other                                                                                                (1,582)            (1,402)
                                                                                                      -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  net  revenue                            $        60,729    $        63,934  
                                                                                                      ===========    ===========  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems  Group                                                      $              988    $          1,205  
    Services                                                                                              1,902                2,753  
    Imaging  and  Printing  Group                                                          1,569                2,255  
    Enterprise  Servers,  Storage  and  Networking                          1,147                1,590  
    Software                                                                                                  334                    278  
    HP  Financial  Services                                                                        187                    162  
    Corporate  Investments                                                                        (97)                (377)
                                                                                                      -----------    -----------  
        Total  segment  earnings  from  operations                              6,030                7,866  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and  eliminations                (356)                    (4)
    Unallocated  costs  related  to  stock-based                                                                    
      compensation  expense                                                                      (342)                (296)
    Amortization  of  purchased  intangible  assets                          (936)                (838)
    Restructuring  charges                                                                        (93)                (316)
    Acquisition-related  charges                                                            (39)                  (50)
    Interest  and  other,  net                                                                  (464)                (173)
                                                                                                      -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  earnings  before  taxes        $          3,800    $          6,189  
                                                                                                      ===========    ===========  
                                                                                                                                                        
(a)  Certain  fiscal  2012  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2011,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  and  operating  profit  among  the  Services,  Imaging
        and  Printing  Group,  Enterprise  Servers,  Storage  and  Networking,  Software
        and  Corporate  Investments  financial  reporting  segments.                                  
        Reclassifications  between  segments  included  the  transfer  of  the  Indigo    
        Scitex  support  and  the  LaserJet  and  enterprise  solutions  trade  support    
        businesses  from  Services  to  the  Imaging  and  Printing  Group,  the  transfer
        of  the  business  intelligence  services  business  from  Corporate                      
        Investments  to  Services,  the  transfer  of  the  information  management          
        services  business  from  Software  to  Services,  and  the  transfer  of  the        
        TippingPoint  business  from  Enterprise  Servers,  Storage  and  Networking  to
        Software.  There  was  no  impact  on  the  previously  reported  financial            
        results  for  the  Personal  Systems  Group  and  HP  Financial  Services                
        segments.                                                                                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                  HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                      
                                        SEGMENT  /  BUSINESS  UNIT  INFORMATION                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                              Growth  rate    
                                                                    Three  months  ended                              (%)            
                                                -------------------------------------    -----------    
                                                  April  30,      January  31,      April  30,                                
                                                        2012                  2012                  2011            Q/Q        Y/Y    
                                                -----------    -----------    -----------    ----      ----    
                                                                                                                                                        
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                                                                                                    
      Group                                                                                                                                        
        Notebooks                      $          4,900    $          4,942    $          5,039        (1%)      (3%)
        Desktops                                    3,827                3,206                3,641        19%          5%  
        Workstations                                537                    535                    541          0%        (1%)
        Other                                              188                    190                    194        (1%)      (3%)
                                                -----------    -----------    -----------                              
            Total  Personal                                                                                                                
              Systems  Group                    9,452                8,873                9,415          7%          0%  
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Services                                                                                                                                    
        Infrastructure                                                                                                                    
          Technology                                                                                                                          
          Outsourcing                            3,669                3,701                3,786        (1%)      (3%)
        Technology  Services              2,638                2,562                2,629          3%          0%  
        Application  and                                                                                                                  
          Business                                                                                                                              
          Services(b)                            2,524                2,363                2,501          7%          1%  
                                                -----------    -----------    -----------                              
            Total  Services                    8,831                8,626                8,916          2%        (1%)
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Imaging  and  Printing                                                                                                            
      Group                                                                                                                                        
        Supplies                                    4,060                4,079                4,612          0%      (12%)
        Commercial  Hardware              1,479                1,489                1,536        (1%)      (4%)
        Consumer  Hardware                      593                    690                    695      (14%)    (15%)
                                                -----------    -----------    -----------                              
            Total  Imaging  and                                                                                                          
              Printing  Group                  6,132                6,258                6,843        (2%)    (10%)
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Enterprise  Servers,                                                                                                              
      Storage  and                                                                                                                            
      Networking                                                                                                                              
        Industry  Standard                                                                                                              
          Servers                                    3,186                3,072                3,387          4%        (6%)
        Storage                                          990                    955                    980          4%          1%  
        Business  Critical                                                                                                              
          Systems                                        421                    405                    546          4%      (23%)
        Networking                                    614                    586                    603          5%          2%  
                                                -----------    -----------    -----------                              
            Total  Enterprise                                                                                                            
              Servers,  Storage                                                                                                          
              and  Networking                  5,211                5,018                5,516          4%        (6%)
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Software                                            970                    946                    797          3%        22%  
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    HP  Financial  Services                  968                    950                    885          2%          9%  
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Corporate  Investments                    18                      58                      42      (69%)    (57%)
                                                -----------    -----------    -----------                              
        Total  segments                      31,582              30,729              32,414          3%        (3%)
                                                -----------    -----------    -----------                              
                                                                                                                                                        
    Elimination  of                                                                                                                        
      intersegment  net                                                                                                                  
      revenue  and  other                      (889)                (693)                (782)      28%        14%  
                                                -----------    -----------    -----------                              
                                                                                                                                                        
        Total  HP                                                                                                                                
          consolidated  net                                                                                                              
          revenue                        $        30,693    $        30,036    $        31,632          2%        (3%)
                                                ===========    ===========    ===========                              
                                                                                                                                                        
(a)  Certain  fiscal  2012  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2011,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  among  the  Services,  Imaging  and  Printing  Group,  
        Enterprise  Servers,  Storage  and  Networking,  Software  and  Corporate            
        Investments  financial  reporting  segments.  Reclassifications  between          
        segments  included  the  transfer  of  Indigo  Scitex  support  and  the  LaserJet
        and  enterprise  solutions  trade  support  businesses  from  Services  to  the    
        Imaging  and  Printing  Group,  the  transfer  of  the  business  intelligence      
        services  business  from  Corporate  Investments  to  Services,  the  transfer    
        of  the  information  management  services  business  from  Software  to                
        Services,  and  the  transfer  of  the  TippingPoint  business  from  Enterprise  
        Servers,  Storage  and  Networking  to  Software.  In  addition,  revenue  was      
        transferred  among  the  business  units  within  the  Services  segment.  There  
        was  no  impact  on  the  previously  reported  financial  results  for  the            
        Personal  Systems  Group  and  HP  Financial  Services  segments.                            
                                                                                                                                                        
(b)  The  former  Application  Services,  Business  Process  Outsourcing  and  Other  
        Services  business  units  were  consolidated  into  a  new  Application  and        
        Business  Services  business  unit  in  fiscal  2012.                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        SEGMENT  /  BUSINESS  UNIT  INFORMATION                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                              Six  months  ended          
                                                                                                                      April  30,                
                                                                                                      ------------------------  
                                                                                                              2012                  2011        
                                                                                                      -----------    -----------  
                                                                                                                                                        
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems  Group                                                                                                        
        Notebooks                                                                            $          9,842    $        10,847  
        Desktops                                                                                          7,033                7,537  
        Workstations                                                                                  1,072                1,076  
        Other                                                                                                    378                    404  
                                                                                                      -----------    -----------  
            Total  Personal  Systems  Group                                            18,325              19,864  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Services                                                                                                                                    
        Infrastructure  Technology  Outsourcing                                7,370                7,430  
        Technology  Services                                                                    5,200                5,143  
        Application  and  Business  Services(b)                                  4,887                4,872  
                                                                                                      -----------    -----------  
            Total  Services                                                                        17,457              17,445  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Imaging  and  Printing  Group                                                                                                
        Supplies                                                                                          8,139                8,970  
        Commercial  Hardware                                                                    2,968                3,101  
        Consumer  Hardware                                                                        1,283                1,503  
                                                                                                      -----------    -----------  
            Total  Imaging  and  Printing  Group                                    12,390              13,574  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Enterprise  Servers,  Storage  and  Networking                                                                
        Industry  Standard  Servers                                                        6,258                6,835  
        Storage                                                                                            1,945                1,992  
        Business  Critical  Systems                                                            826                1,101  
        Networking                                                                                      1,200                1,187  
                                                                                                      -----------    -----------  
            Total  Enterprise  Servers,  Storage  and                                                                  
              Networking                                                                              10,229              11,115  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Software                                                                                              1,916                1,522  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    HP  Financial  Services                                                                    1,918                1,712  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Corporate  Investments                                                                          76                    104  
                                                                                                      -----------    -----------  
        Total  segments                                                                            62,311              65,336  
                                                                                                      -----------    -----------  
                                                                                                                                                        
    Elimination  of  intersegment  net  revenue  and                                                              
      other                                                                                                (1,582)            (1,402)
                                                                                                      -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  net  revenue                            $        60,729    $        63,934  
                                                                                                      ===========    ===========  
                                                                                                                                                        
(a)  Certain  fiscal  2012  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2011,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  among  the  Services,  Imaging  and  Printing  Group,  
        Enterprise  Servers,  Storage  and  Networking,  Software  and  Corporate            
        Investments  financial  reporting  segments.  Reclassifications  between          
        segments  included  the  transfer  of  Indigo  Scitex  support  and  the  LaserJet
        and  enterprise  solutions  trade  support  businesses  from  Services  to  the    
        Imaging  and  Printing  Group,  the  transfer  of  the  business  intelligence      
        services  business  from  Corporate  Investments  to  Services,  the  transfer    
        of  the  information  management  services  business  from  Software  to                
        Services,  and  the  transfer  of  the  TippingPoint  business  from  Enterprise  
        Servers,  Storage  and  Networking  to  Software.  In  addition,  revenue  was      
        transferred  among  the  business  units  within  the  Services  segment.  There  
        was  no  impact  on  the  previously  reported  financial  results  for  the            
        Personal  Systems  Group  and  HP  Financial  Services  segments.                            
                                                                                                                                                        
(b)  The  former  Application  Services,  Business  Process  Outsourcing  and  Other  
        Services  business  units  were  consolidated  into  a  new  Application  and        
        Business  Services  business  unit  in  fiscal  2012.                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                              SEGMENT  NON-GAAP  OPERATING  MARGIN  SUMMARY  DATA                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                            Three  months          Change  in  Operating    
                                                                                    ended                      Margin  (pts)            
                                                                            ------------      ----------------------  
                                                                              April  30,                                                        
                                                                                    2012                      Q/Q                  Y/Y        
                                                                            ------------      ----------    ----------  
                                                                                                                                                        
Non-GAAP  operating  margin:(a)                                                                                              
    Personal  Systems  Group                                              5.5%          0.3  pts        (0.2  pts)
    Services                                                                        11.3%          0.8  pts        (4.1  pts)
    Imaging  and  Printing  Group                                    13.2%          1.0  pts        (3.4  pts)
    Enterprise  Servers,  Storage  and                                                                                      
      Networking                                                                  11.2%          0.0  pts        (2.6  pts)
    Software                                                                        17.7%          0.6  pts        (2.1  pts)
    HP  Financial  Services                                                9.9%          0.3  pts          0.5  pts  
    Corporate  Investments                                          (472.2%)  (389.4  pts)        1.6  pts  
        Total  segments                                                          9.8%          0.4  pts        (2.1  pts)
                                                                                                                                                        
        Total  HP  consolidated  non-GAAP                                                                                    
          operating  margin                                                    8.9%          0.3  pts        (2.4  pts)
                                                                                                                                                        
(a)  Certain  fiscal  2012  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2011,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  and  operating  profit  among  the  Services,  Imaging
        and  Printing  Group,  Enterprise  Servers,  Storage  and  Networking,  Software
        and  Corporate  Investments  financial  reporting  segments.                                  
        Reclassifications  between  segments  included  the  transfer  of  Indigo            
        Scitex  support  and  the  LaserJet  and  enterprise  solutions  trade  support    
        businesses  from  Services  to  the  Imaging  and  Printing  Group,  the  transfer
        of  the  business  intelligence  services  business  from  Corporate                      
        Investments  to  Services,  the  transfer  of  the  information  management          
        services  business  from  Software  to  Services,  and  the  transfer  of  the        
        TippingPoint  business  from  Enterprise  Servers,  Storage  and  Networking  to
        Software.  There  was  no  impact  on  the  previously  reported  financial            
        results  for  the  Personal  Systems  Group  and  HP  Financial  Services                
        segments.                                                                                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        CALCULATION  OF  NET  EARNINGS  PER  SHARE                                      
                                                                  (Unaudited)                                                                
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                  Three  months  ended                  
                                                                              -------------------------------------
                                                                                April  30,      January  31,      April  30,  
                                                                                      2012                  2012                  2011      
                                                                              -----------    -----------    -----------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                        $          1,593    $          1,468    $          2,304
                                                                              ===========    ===========    ===========
                                                                                                                                                        
    Non-GAAP  net  earnings                                $          1,949    $          1,832    $          2,717
                                                                              ===========    ===========    ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to                                                                                      
      compute  basic  EPS                                                  1,979                1,981                2,150
    Dilutive  effect  of  employee  stock                                                                                  
      plans                                                                                  8                      17                      34
                                                                              -----------    -----------    -----------
        Weighted-average  shares  used  to                                                                                  
          compute  diluted  EPS                                          1,987                1,998                2,184
                                                                              ===========    ===========    ===========
                                                                                                                                                        
GAAP  net  earnings  per  share:                                                                                                
    Basic(a)                                                          $            0.80    $            0.74    $            1.07
    Diluted(c)                                                      $            0.80    $            0.73    $            1.05
                                                                                                                                                        
Non-GAAP  net  earnings  per  share:                                                                                        
    Basic(b)                                                          $            0.98    $            0.92    $            1.26
    Diluted(c)                                                      $            0.98    $            0.92    $            1.24
                                                                                                                                                        
(a)  GAAP  basic  earnings  per  share  were  calculated  based  on  GAAP  net  earnings
        and  the  weighted-average  number  of  shares  outstanding  during  the                
        reporting  period.                                                                                                              
                                                                                                                                                        
(b)  Non-GAAP  basic  earnings  per  share  were  calculated  based  on  non-GAAP  net  
        earnings  and  the  weighted-average  number  of  shares  outstanding  during      
        the  reporting  period.                                                                                                      
                                                                                                                                                        
(c)  Diluted  net  earnings  per  share  included  any  dilutive  effect  of                    
        outstanding  stock  options,  performance-based  restricted  units,                    
        restricted  stock  units  and  restricted  stock.                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        CALCULATION  OF  NET  EARNINGS  PER  SHARE                                      
                                                                  (Unaudited)                                                                
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                                Six  months  ended        
                                                                                                                        April  30,              
                                                                                                        ------------------------
                                                                                                                2012                  2011      
                                                                                                        -----------    -----------
                                                                                                                                                        
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                                                  $          3,061    $          4,909
                                                                                                        ===========    ===========
                                                                                                                                                        
    Non-GAAP  net  earnings                                                          $          3,781    $          5,747
                                                                                                        ===========    ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to  compute  basic  EPS              1,980                2,166
    Dilutive  effect  of  employee  stock  plans                                        15                      37
                                                                                                        -----------    -----------
        Weighted-average  shares  used  to  compute  diluted                                                  
          EPS                                                                                                    1,995                2,203
                                                                                                        ===========    ===========
                                                                                                                                                        
GAAP  net  earnings  per  share:                                                                                                
    Basic(a)                                                                                    $            1.55    $            2.27
    Diluted(c)                                                                                $            1.53    $            2.23
                                                                                                                                                        
Non-GAAP  net  earnings  per  share:                                                                                        
    Basic(b)                                                                                    $            1.91    $            2.65
    Diluted(c)                                                                                $            1.90    $            2.61
                                                                                                                                                        
(a)  GAAP  basic  earnings  per  share  were  calculated  based  on  GAAP  net  earnings
        and  the  weighted-average  number  of  shares  outstanding  during  the                
        reporting  period.                                                                                                              
                                                                                                                                                        
(b)  Non-GAAP  basic  earnings  per  share  were  calculated  based  on  non-GAAP  net  
        earnings  and  the  weighted-average  number  of  shares  outstanding  during      
        the  reporting  period.                                                                                                      
                                                                                                                                                        
(c)  Diluted  net  earnings  per  share  included  any  dilutive  effect  of                    
        outstanding  stock  options,  performance-based  restricted  units,                    
        restricted  stock  units  and  restricted  stock.                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
 

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