HP Reports Second Quarter 2013 Results

Declaration of Dividend
HP also today announced that the HP board of directors has declared a regular cash dividend of 14.52 cents per share on the company's common stock, which, as previously announced, reflects a 10% increase in amount compared to the previous quarterly dividend amount. The dividend, the third in HP's fiscal year 2013, is payable on July 3, 2013, to stockholders of record as of the close of business on June 12, 2013.

Second Quarter Fiscal 2013 Segment Results

 

  • Personal Systems revenue was down 20% year over year with a 3.2% operating margin. Commercial revenue decreased 14%, and Consumer revenue declined 29%. Total units were down 21% with Desktops units down 18% and Notebooks units down 24%.
  • Printing revenue declined 1% year over year with a strong operating margin of 15.8%. Total hardware units were down 11% year over year. Commercial hardware units were down 5% year over year, and Consumer hardware units were down 13% year over year.
  • Enterprise Group revenue declined 10% year over year with a 15.9% operating margin. Networking revenue was up 1%, Industry Standard Servers revenue was down 12%, Business Critical Systems revenue was down 37%, Storage revenue was down 13% and Technology Services revenue was down 3% year over year.
  • Enterprise Services revenue declined 8% year over year with a 2.6% operating margin. Application and Business Services revenue was down 10% year over year, and IT Outsourcing revenue declined 6% year over year.
  • Software revenue was down 3% year over year with a 19.1% operating margin. Support revenue was up 12% while license revenue was down 23% and services revenue was down 5% year over year.
  • HP Financial Services revenue was down 9% year over year with a 3% decrease in net portfolio assets and a 24% decrease in financing volume. The business delivered an operating margin of 11.0%.

More information on HP's 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 FY13 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2013Q2webcast.

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 operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share, gross cash, free cash flow, net debt and operating company net debt. 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 or elsewhere in the materials accompanying this news release. 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 operating profit, operating margin, net earnings, diluted earnings per share, cash and cash equivalents, cash flow from operations or total company debt 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 or other financial items; any projections of the amount, timing or impact of cost savings or restructuring 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 need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; 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 hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; 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, 2012 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, 2013. 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, 2013. In particular, determining HP's actual tax balances and provisions as of April 30, 2013 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,  
                                                                                      2013                  2013                2012        
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
Net  revenue                                                          $      27,582    $        28,359    $      30,693  
                                                                                                                                                        
Costs  and  expenses:                                                                                                                  
    Cost  of  sales                                                          21,055              22,029            23,541  
    Research  and  development                                          815                    794                  850  
    Selling,  general  and  administrative                3,342                3,300              3,540  
    Amortization  of  purchased  intangible                                                                            
      assets                                                                            350                    350                  470  
    Restructuring  charges                                                408                    130                    53  
    Acquisition-related  charges                                      11                        4                    17  
                                                                                ----------    -----------    ----------  
        Total  costs  and  expenses                                25,981              26,607            28,471  
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
Earnings  from  operations                                          1,601                1,752              2,222  
                                                                                                                                                        
Interest  and  other,  net                                              (193)                (179)              (243)
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
Earnings  before  taxes                                                1,408                1,573              1,979  
                                                                                                                                                        
Provision  for  taxes                                                      (331)                (341)              (386)
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
Net  earnings                                                        $        1,077    $          1,232    $        1,593  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                                  $          0.56    $            0.63    $          0.80  
    Diluted                                                              $          0.55    $            0.63    $          0.80  
                                                                                                                                                        
Cash  dividends  declared  per  share              $                -    $            0.26    $                -  
                                                                                                                                                        
                                                                                                                                                        
Weighted-average  shares  used  to  compute                                                                          
  net  earnings  per  share:                                                                                                        
    Basic                                                                            1,935                1,953              1,979  
    Diluted                                                                        1,947                1,956              1,987  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                              CONSOLIDATED  CONDENSED  STATEMENTS  OF  EARNINGS                                
                                                                (Unaudited)                                                                  
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                            Six  months  ended            
                                                                                                                    April  30,                  
                                                                                                  --------------------------  
                                                                                                          2013                    2012          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Net  revenue                                                                            $          55,941    $          60,729  
                                                                                                                                                        
Costs  and  expenses:                                                                                                                  
    Cost  of  sales                                                                                43,084                46,854  
    Research  and  development                                                            1,609                  1,636  
    Selling,  general  and  administrative                                      6,642                  6,907  
    Amortization  of  purchased  intangible  assets                          700                      936  
    Restructuring  charges                                                                      538                        93  
    Acquisition-related  charges                                                            15                        39  
                                                                                                  ------------    ------------  
        Total  costs  and  expenses                                                      52,588                56,465  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Earnings  from  operations                                                                3,353                  4,264  
                                                                                                                                                        
Interest  and  other,  net                                                                    (372)                  (464)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Earnings  before  taxes                                                                      2,981                  3,800  
                                                                                                                                                        
Provision  for  taxes                                                                            (672)                  (739)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Net  earnings                                                                          $            2,309    $            3,061  
                                                                                                  ============    ============  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                                                    $              1.19    $              1.55  
    Diluted                                                                                $              1.18    $              1.53  
                                                                                                                                                        
Cash  dividends  declared  per  share                                $              0.26    $              0.24  
                                                                                                                                                        
                                                                                                                                                        
Weighted-average  shares  used  to  compute  net                                                                  
  earnings  per  share:                                                                                                                
    Basic                                                                                                  1,944                  1,980  
    Diluted                                                                                              1,952                  1,995  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    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        Diluted      months        Diluted      months        Diluted  
                                    ended        earnings      ended        earnings      ended        earnings  
                                    April              per        January            per          April              per      
                                  30,  2013        share      31,  2013        share      30,  2012        share    
                                  --------    --------    --------    --------    --------    --------  
                                                                                                                                                        
GAAP  net                                                                                                                                        
  earnings                $    1,077    $      0.55    $    1,232    $      0.63    $    1,593    $      0.80  
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization                                                                                                                            
      of  purchased                                                                                                                          
      intangible                                                                                                                              
      assets                          350            0.17              350            0.18              470            0.23  
    Restructuring                                                                                                                          
      charges                        408            0.21              130            0.07                53            0.03  
    Acquisition-                                                                                                                            
      related                                                                                                                                    
      charges                          11            0.01                  4                  -                17            0.01  
    Wind  down  of                                                                                                                            
      the  webOS                                                                                                                                
      device                                                                                                                                      
      business(a)                    -                  -                  -                  -              (36)        (0.02)
    Adjustments                                                                                                                              
      for  taxes                  (148)        (0.07)          (111)        (0.06)          (148)        (0.07)
                                  --------    --------    --------    --------    --------    --------  
Non-GAAP  net                                                                                                                                
  earnings                $    1,698    $      0.87    $    1,605    $      0.82    $    1,949    $      0.98  
                                  ========    ========    ========    ========    ========    ========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings                                                                                                                              
  from  operations  $    1,601                        $    1,752                        $    2,222                      
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization                                                                                                                            
      of  purchased                                                                                                                          
      intangible                                                                                                                              
      assets                          350                                  350                                  470                      
    Restructuring                                                                                                                          
      charges                        408                                  130                                    53                      
    Acquisition-                                                                                                                            
      related                                                                                                                                    
      charges                          11                                      4                                    17                      
    Wind  down  of                                                                                                                            
      the  webOS                                                                                                                                
      device                                                                                                                                      
      business(a)                    -                                      -                                  (36)                    
                                  --------                        --------                        --------                      
Non-GAAP                                                                                                                                        
  earnings  from                                                                                                                            
  operations            $    2,370                        $    2,236                        $    2,726                      
                                  ========                        ========                        ========                      
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin                                  6%                                    6%                                    7%                    
Non-GAAP                                                                                                                                        
  adjustments                        3%                                    2%                                    2%                    
                                  --------                        --------                        --------                      
Non-GAAP                                                                                                                                        
  operating                                                                                                                                    
  margin                                  9%                                    8%                                    9%                    
                                  ========                        ========                        ========                      
                                                                                                                                                        
(a)  For  the  period  ended  April  30,  2012,  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                                      Six                              
                                                                      months                                months                          
                                                                      ended          Diluted          ended          Diluted    
                                                                  April  30,      earnings    April  30,      earnings  
                                                                        2013        per  share          2012        per  share  
                                                                  ---------    ---------    ---------    ---------  
                                                                                                                                                        
GAAP  net  earnings                                $      2,309    $        1.18    $      3,061    $        1.53  
                                                                                                                                                        
Non-GAAP  adjustments:                                                                                                              
    Amortization  of  purchased                                                                                                  
      intangible  assets                                      700              0.35                936              0.47  
    Restructuring  charges                                538              0.28                  93              0.05  
    Acquisition-related  charges                      15              0.01                  39              0.02  
    Wind  down  of  the  webOS  device                                                                                          
      business(a)                                                      -                    -                (36)          (0.02)
    Adjustments  for  taxes                              (259)          (0.13)            (312)          (0.15)
                                                                  ---------    ---------    ---------    ---------  
Non-GAAP  net  earnings                        $      3,303    $        1.69    $      3,781    $        1.90  
                                                                  =========    =========    =========    =========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from  operations        $      3,353                          $      4,264                        
                                                                                                                                                        
Non-GAAP  adjustments:                                                                                                              
    Amortization  of  purchased                                                                                                  
      intangible  assets                                      700                                      936                        
    Restructuring  charges                                538                                        93                        
    Acquisition-related  charges                      15                                        39                        
    Wind  down  of  the  webOS  device                                                                                          
      business(a)                                                      -                                      (36)                      
                                                                  ---------                          ---------                        
Non-GAAP  earnings  from                                                                                                            
  operations                                            $      4,606                          $      5,296                        
                                                                  =========                          =========                        
                                                                                                                                                        
GAAP  operating  margin                                        6%                                        7%                      
Non-GAAP  adjustments                                          2%                                        2%                      
                                                                  ---------                          ---------                        
Non-GAAP  operating  margin                                8%                                        9%                      
                                                                  =========                          =========                        
                                                                                                                                                        
(a)  For  the  period  ended  April  30,  2012,  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,  
                                                                                                            2013                    2012        
                                                                                                  -------------  -------------
                                                                                                    (Unaudited)                              
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                            $            13,240  $            11,301
    Accounts  receivable                                                                      14,606                16,407
    Financing  receivables                                                                    3,212                  3,252
    Inventory                                                                                            5,999                  6,317
    Other  current  assets                                                                    12,514                13,360
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  current  assets                                                                49,571                50,637
                                                                                                  -------------  -------------
                                                                                                                                                        
Property,  plant  and  equipment                                                      11,476                11,954
                                                                                                                                                        
Long-term  financing  receivables  and  other  assets                10,205                10,593
                                                                                                                                                        
Goodwill  and  purchased  intangible  assets                                35,002                35,584
                                                                                                  -------------  -------------
                                                                                                                                                        
Total  assets                                                                          $          106,254  $          108,768
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                $              6,928  $              6,647
    Accounts  payable                                                                            12,313                13,350
    Employee  compensation  and  benefits                                          3,836                  4,058
    Taxes  on  earnings                                                                            1,015                      846
    Deferred  revenue                                                                              6,757                  7,494
    Other  accrued  liabilities                                                          13,809                14,271
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  current  liabilities                                                      44,658                46,666
                                                                                                  -------------  -------------
                                                                                                                                                        
Long-term  debt                                                                                    19,863                21,789
                                                                                                                                                        
Other  liabilities                                                                              17,801                17,480
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    HP  stockholders'  equity                                                              23,533                22,436
    Non-controlling  interests                                                                399                      397
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  stockholders'  equity                                                    23,932                22,833
                                                                                                  -------------  -------------
                                                                                                                                                        
Total  liabilities  and  stockholders'  equity              $          106,254  $          108,768
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Three  months      Six  months    
                                                                                                          ended                  ended        
                                                                                                      April  30,          April  30,    
                                                                                                          2013                    2013          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:                                                                              
    Net  earnings                                                                      $            1,077    $            2,309  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                              1,170                  2,333  
        Impairment  of  goodwill  and  purchased                                                                        
          intangible  assets                                                                                                            
        Stock-based  compensation  expense                                            107                      291  
        Provision  for  bad  debt  and  inventory                                      93                      217  
        Restructuring  charges                                                                  408                      538  
        Deferred  taxes  on  earnings                                                        (28)                    472  
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                      -                          -  
        Other,  net                                                                                          59                      226  
                                                                                                                                                        
        Changes  in  operating  assets  and  liabilities:                                                        
            Accounts  and  financing  receivables                                    (98)                2,148  
            Inventory                                                                                      289                      140  
            Accounts  payable                                                                        640                (1,050)
            Taxes  on  earnings                                                                        (3)                  (426)
            Restructuring                                                                            (165)                  (402)
            Other  assets  and  liabilities                                                    7                    (678)
                                                                                                  ------------    ------------  
                Net  cash  provided  by  operating                                                                            
                  activities                                                                          3,556                  6,118  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
        Investment  in  property,  plant  and  equipment                    (767)              (1,400)
        Proceeds  from  sale  of  property,  plant  and                                                              
          equipment                                                                                        147                      274  
        Purchases  of  available-for-sale  securities                                                            
          and  other  investments                                                              (198)                  (497)
        Maturities  and  sales  of  available-for-sale                                                            
          securities  and  other  investments                                          431                      592  
        Payments  made  in  connection  with  business                                                              
          acquisitions,  net  of  cash  acquired                                    (167)                  (167)
                                                                                                  ------------    ------------  
                Net  cash  used  in  investing  activities                        (554)              (1,198)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
        Repayment  of  commercial  paper  and  notes                                                                  
          payable,  net                                                                                  (28)                  (133)
        Issuance  of  debt                                                                            154                      199  
        Payment  of  debt                                                                        (1,554)              (1,668)
        Issuance  of  common  stock  under  employee                                                                  
          stock  plans                                                                                    157                      212  
        Repurchase  of  common  stock                                                      (797)              (1,050)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                      -                          -  
        Cash  dividends  paid                                                                    (283)                  (541)
                                                                                                  ------------    ------------  
                Net  cash  used  in  financing  activities                    (2,351)              (2,981)
                                                                                                  ------------    ------------  
                                                                                                                                                        
Increase  in  cash  and  cash  equivalents                                          651                  1,939  
Cash  and  cash  equivalents  at  beginning  of  period              12,589                11,301  
                                                                                                  ------------    ------------  
Cash  and  cash  equivalents  at  end  of  period              $          13,240    $          13,240  
                                                                                                  ============    ============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                  Three  months  ended                  
                                                                                -----------------------------------  
                                                                                  April  30,    January  31,      April  30,  
                                                                                      2013                  2013                2012        
                                                                                ----------    -----------    ----------  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                            $        7,584    $          8,204    $        9,470  
    Printing                                                                      6,081                5,926              6,132  
                                                                                ----------    -----------    ----------  
        Total  Printing  and  Personal  Systems                                                                          
          Group(b)                                                              13,665              14,130            15,602  
    Enterprise  Group                                                      6,819                6,984              7,546  
    Enterprise  Services                                                5,999                5,919              6,489  
    Software                                                                          941                    926                  970  
    HP  Financial  Services                                                881                    957                  968  
    Corporate  Investments                                                  10                        4                      7  
                                                                                ----------    -----------    ----------  
            Total  segments                                                28,315              28,920            31,582  
    Elimination  of  intersegment  net                                                                                      
      revenue  and  other                                                    (733)                (561)              (889)
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
            Total  HP  consolidated  net  revenue  $      27,582    $        28,359    $      30,693  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems                                            $            239    $              223    $            516  
    Printing                                                                          958                    953                  808  
                                                                                ----------    -----------    ----------  
        Total  Printing  and  Personal  Systems                                                                          
          Group(b)                                                                1,197                1,176              1,324  
    Enterprise  Group                                                      1,082                1,084              1,352  
    Enterprise  Services                                                    156                      76                  237  
    Software                                                                          180                    157                  172  
    HP  Financial  Services                                                  97                    101                    96  
    Corporate  Investments                                                (56)                  (65)                (48)
                                                                                ----------    -----------    ----------  
            Total  segment  earnings  from                                                                                      
              operations                                                        2,656                2,529              3,133  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and                                                                              
      eliminations                                                              (179)                (109)              (203)
    Unallocated  costs  related  to  stock-                                                                              
      based  compensation  expense                                  (107)                (184)              (168)
    Amortization  of  purchased  intangible                                                                            
      assets                                                                          (350)                (350)              (470)
    Restructuring  charges                                              (408)                (130)                (53)
    Acquisition-related  charges                                    (11)                    (4)                (17)
    Interest  and  other,  net                                          (193)                (179)              (243)
                                                                                ----------    -----------    ----------  
                                                                                                                                                        
            Total  HP  consolidated  earnings                                                                                
              before  taxes                                          $        1,408    $          1,573    $        1,979  
                                                                                ==========    ===========    ==========  
                                                                                                                                                        
(a)  HP  has  implemented  certain  organizational  realignments  in  the  first          
        quarter  of  fiscal  2013.  As  a  result  of  these  realignments,  HP  has  re-      
        evaluated  its  segment  financial  reporting  structure  and,  effective  in      
        the  first  quarter  of  fiscal  2013,  created  two  new  financial  reporting      
        segments,  the  Enterprise  Group  segment  and  the  Enterprise  Services            
        segment,  and  eliminated  two  other  financial  reporting  segments,  the          
        Enterprise  Servers,  Storage  and  Networking  ("ESSN")  segment  and  the          
        Services  segment.  The  Enterprise  Group  segment  consists  of  the  business  
        units  within  the  former  ESSN  segment  and  most  of  the  services  offerings  
        of  the  Technology  Services  ("TS")  business  unit,  which  was  previously  a  
        part  of  the  former  Services  segment.  The  Enterprise  Services  segment        
        consists  of  the  Applications  and  Business  Services  ("ABS")  and                    
        Infrastructure  Technology  Outsourcing  ("ITO")  business  units  from  the      
        former  Services  segment,  along  with  the  end-user  workplace  support            
        services  business  that  was  previously  a  part  of  the  TS  business  unit.      
        Taking  into  account  these  changes,  HP  has  the  following  seven  financial  
        reporting  segments:  Personal  Systems,  Printing,  the  Enterprise  Group,      
        Enterprise  Services,  Software,  HP  Financial  Services  and  Corporate            
        Investments.                                                                                                                        
                                                                                                                                                        
        Also  as  a  result  of  these  realignments,  the  financial  results  of  the        
        Personal  Systems  commercial  products  support  business,  which  were              
        previously  reported  as  part  of  the  TS  business  unit,  will  now  be                
        reported  as  part  of  the  Other  business  unit  within  the  Personal  Systems  
        segment,  and  the  financial  results  of  the  portion  of  the  business              
        intelligence  services  business  that  had  continued  to  be  reported  as  part
        of  the  Corporate  Investments  segment  following  the  implementation  of        
        prior  realignment  actions  will  now  be  reported  as  part  of  the  ABS              
        business  unit.  In  addition,  the  end-user  workplace  support  services          
        business,  which,  as  noted  above,  was  previously  a  part  of  the  TS                
        business  unit  and  will  now  become  a  part  of  the  Enterprise  Services          
        segment,  will  be  reported  as  part  of  the  ITO  business  unit  within  that    
        segment.                                                                                                                                
                                                                                                                                                        
        To  provide  improved  visibility  and  comparability,  HP  has  reflected  these
        changes  to  its  reporting  structure  in  prior  financial  reporting  periods  
        on  an  as-if  basis,  which  has  resulted  in  the  transfer  of  revenue  and        
        operating  profit  among  the  Personal  Systems,  the  Enterprise  Group,            
        Enterprise  Services  and  Corporate  Investments  segments.  These  changes      
        had  no  impact  on  the  previously  reported  financial  results  for  the            
        Printing,  Software  or  HP  Financial  Services  segments.  In  addition,  none  
        of  these  changes  impacted  HP's  previously  reported  consolidated  net          
        revenue,  earnings  from  operations,  net  earnings  or  net  earnings  per          
        share.                                                                                                                                    
                                                                                                                                                        
(b)  The  Personal  Systems  segment  and  the  Printing  segment  are  structured        
        beneath  a  broader  Printing  and  Personal  Systems  Group  ("PPS").  While  PPS
        is  not  a  financial  reporting  segment,  HP  provides  financial  data                
        aggregating  the  segments  within  it  in  order  to  provide  a  supplementary    
        view  of  its  business.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                            Six  months  ended            
                                                                                                                    April  30,                  
                                                                                                  --------------------------  
                                                                                                          2013                    2012          
                                                                                                  ------------    ------------  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                                              $          15,788    $          18,362  
    Printing                                                                                          12,007                12,390  
                                                                                                  ------------    ------------  
        Total  Printing  and  Personal  Systems  Group(b)              27,795                30,752  
    Enterprise  Group                                                                          13,803                14,828  
    Enterprise  Services                                                                    11,918                12,860  
    Software                                                                                            1,867                  1,916  
    HP  Financial  Services                                                                  1,838                  1,918  
    Corporate  Investments                                                                        14                        37  
                                                                                                  ------------    ------------  
            Total  Segments                                                                      57,235                62,311  
    Elimination  of  intersegment  net  revenue  and                                                              
      other                                                                                              (1,294)              (1,582)
                                                                                                  ------------    ------------  
                                                                                                                                                        
            Total  HP  consolidated  net  revenue                    $          55,941    $          60,729  
                                                                                                  ============    ============  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems                                                              $                462    $                975  
    Printing                                                                                            1,911                  1,569  
                                                                                                  ------------    ------------  
        Total  Printing  and  Personal  Systems  Group(b)                2,373                  2,544  
    Enterprise  Group                                                                            2,166                  2,681  
    Enterprise  Services                                                                          232                      382  
    Software                                                                                                337                      334  
    HP  Financial  Services                                                                      198                      187  
    Corporate  Investments                                                                    (121)                    (98)
                                                                                                  ------------    ------------  
            Total  segment  earnings  from  operations                        5,185                  6,030  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and                                                                              
      eliminations                                                                                    (288)                  (356)
    Unallocated  costs  related  to  stock-based                                                                    
      compensation  expense                                                                    (291)                  (342)
    Amortization  of  purchased  intangible  assets                        (700)                  (936)
    Restructuring  charges                                                                    (538)                    (93)
    Acquisition-related  charges                                                          (15)                    (39)
    Interest  and  other,  net                                                                (372)                  (464)
                                                                                                  ------------    ------------  
                                                                                                                                                        
            Total  HP  consolidated  earnings  before                                                                  
              taxes                                                                          $            2,981    $            3,800  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  HP  has  implemented  certain  organizational  realignments  in  the  first          
        quarter  of  fiscal  2013.  As  a  result  of  these  realignments,  HP  has  re-      
        evaluated  its  segment  financial  reporting  structure  and,  effective  in      
        the  first  quarter  of  fiscal  2013,  created  two  new  financial  reporting      
        segments,  the  Enterprise  Group  segment  and  the  Enterprise  Services            
        segment,  and  eliminated  two  other  financial  reporting  segments,  the          
        Enterprise  Servers,  Storage  and  Networking  ("ESSN")  segment  and  the          
        Services  segment.  The  Enterprise  Group  segment  consists  of  the  business  
        units  within  the  former  ESSN  segment  and  most  of  the  services  offerings  
        of  the  Technology  Services  ("TS")  business  unit,  which  was  previously  a  
        part  of  the  former  Services  segment.  The  Enterprise  Services  segment        
        consists  of  the  Applications  and  Business  Services  ("ABS")  and                    
        Infrastructure  Technology  Outsourcing  ("ITO")  business  units  from  the      
        former  Services  segment,  along  with  the  end-user  workplace  support            
        services  business  that  was  previously  a  part  of  the  TS  business  unit.      
        Taking  into  account  these  changes,  HP  has  the  following  seven  financial  
        reporting  segments:  Personal  Systems,  Printing,  the  Enterprise  Group,      
        Enterprise  Services,  Software,  HP  Financial  Services  and  Corporate            
        Investments.                                                                                                                        
                                                                                                                                                        
        Also  as  a  result  of  these  realignments,  the  financial  results  of  the        
        Personal  Systems  commercial  products  support  business,  which  were              
        previously  reported  as  part  of  the  TS  business  unit,  will  now  be                
        reported  as  part  of  the  Other  business  unit  within  the  Personal  Systems  
        segment,  and  the  financial  results  of  the  portion  of  the  business              
        intelligence  services  business  that  had  continued  to  be  reported  as  part
        of  the  Corporate  Investments  segment  following  the  implementation  of        
        prior  realignment  actions  will  now  be  reported  as  part  of  the  ABS              
        business  unit.  In  addition,  the  end-user  workplace  support  services          
        business,  which,  as  noted  above,  was  previously  a  part  of  the  TS                
        business  unit  and  will  now  become  a  part  of  the  Enterprise  Services          
        segment,  will  be  reported  as  part  of  the  ITO  business  unit  within  that    
        segment.                                                                                                                                
                                                                                                                                                        
        To  provide  improved  visibility  and  comparability,  HP  has  reflected  these
        changes  to  its  reporting  structure  in  prior  financial  reporting  periods  
        on  an  as-if  basis,  which  has  resulted  in  the  transfer  of  revenue  and        
        operating  profit  among  the  Personal  Systems,  the  Enterprise  Group,            
        Enterprise  Services  and  Corporate  Investments  segments.  These  changes      
        had  no  impact  on  the  previously  reported  financial  results  for  the            
        Printing,  Software  or  HP  Financial  Services  segments.  In  addition,  none  
        of  these  changes  impacted  HP's  previously  reported  consolidated  net          
        revenue,  earnings  from  operations,  net  earnings  or  net  earnings  per          
        share.                                                                                                                                    
                                                                                                                                                        
                                                                                                                                                        
(b)  The  Personal  Systems  segment  and  the  Printing  segment  are  structured        
        beneath  a  broader  Printing  and  Personal  Systems  Group  ("PPS").  While  PPS
        is  not  a  financial  reporting  segment,  HP  provides  financial  data                
        aggregating  the  segments  within  it  in  order  to  provide  a  supplementary    
        view  of  its  business.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        SEGMENT  /  BUSINESS  UNIT  INFORMATION                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                                Growth  rate  
                                                                          Three  months  ended                          (%)          
                                                            -------------------------------    ------------  
                                                            April  30,      January      April  30,                              
                                                                  2013          31,  2013          2012          Q/Q        Y/Y    
                                                            ---------    ---------    ---------    -----    -----  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
  Printing  and  Personal                                                                                                            
    Systems  Group(b)                                                                                                                    
    Personal  Systems                                                                                                                    
          Notebooks                                $      3,718    $      4,128    $      4,900      (10%)    (24%)
          Desktops                                          3,103            3,321            3,827        (7%)    (19%)
          Workstations                                      521                535                537        (3%)      (3%)
          Other                                                    242                220                206        10%        17%  
                                                            ---------    ---------    ---------                              
            Total  Personal  Systems            7,584            8,204            9,470        (8%)    (20%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
    Printing                                                                                                                                    
          Supplies                                          4,122            3,893            4,060          6%          2%  
          Commercial  Hardware                    1,398            1,354            1,479          3%        (5%)
          Consumer  Hardware                            561                679                593      (17%)      (5%)
                                                            ---------    ---------    ---------                              
            Total  Printing                            6,081            5,926            6,132          3%        (1%)
                                                            ---------    ---------    ---------                              
              Total  Printing  and                                                                                                      
                Personal  Systems                                                                                                        
                Group                                        13,665          14,130          15,602        (3%)    (12%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
    Enterprise  Group                                                                                                                    
        Industry  Standard  Servers          2,806            2,994            3,186        (6%)    (12%)
        Technology  Services                      2,272            2,243            2,335          1%        (3%)
        Storage                                                  857                833                990          3%      (13%)
        Networking                                            618                608                614          2%          1%  
        Business  Critical  Systems              266                306                421      (13%)    (37%)
                                                            ---------    ---------    ---------                              
            Total  Enterprise  Group            6,819            6,984            7,546        (2%)    (10%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
  Enterprise  Services                                                                                                                
    Infrastructure  Technology                                                                                                  
      Outsourcing                                        3,721            3,736            3,954          0%        (6%)
    Application  and  Business                                                                                                    
      Services                                              2,278            2,183            2,535          4%      (10%)
                                                            ---------    ---------    ---------                              
            Total  Enterprise                                                                                                            
              Services                                      5,999            5,919            6,489          1%        (8%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
  Software                                                      941                926                970          2%        (3%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
  HP  Financial  Services                            881                957                968        (8%)      (9%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
  Corporate  Investments                              10                    4                    7      150%        43%  
                                                            ---------    ---------    ---------                              
            Total  Segments                          28,315          28,920          31,582        (2%)    (10%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
  Elimination  of  intersegment                                                                                                
    net  revenue  and  other                        (733)            (561)            (889)      31%      (18%)
                                                            ---------    ---------    ---------                              
                                                                                                                                                        
    Total  HP  consolidated  net                                                                                                  
      revenue                                        $    27,582    $    28,359    $    30,693        (3%)    (10%)
                                                            =========    =========    =========                              
                                                                                                                                                        
(a)  HP  has  implemented  certain  organizational  realignments  in  the  first          
        quarter  of  fiscal  2013.  As  a  result  of  these  realignments,  HP  has  re-      
        evaluated  its  segment  financial  reporting  structure  and,  effective  in      
        the  first  quarter  of  fiscal  2013,  created  two  new  financial  reporting      
        segments,  the  Enterprise  Group  segment  and  the  Enterprise  Services            
        segment,  and  eliminated  two  other  financial  reporting  segments,  the          
        Enterprise  Servers,  Storage  and  Networking  ("ESSN")  segment  and  the          
        Services  segment.  The  Enterprise  Group  segment  consists  of  the  business  
        units  within  the  former  ESSN  segment  and  most  of  the  services  offerings  
        of  the  Technology  Services  ("TS")  business  unit,  which  was  previously  a  
        part  of  the  former  Services  segment.  The  Enterprise  Services  segment        
        consists  of  the  Applications  and  Business  Services  ("ABS")  and                    
        Infrastructure  Technology  Outsourcing  ("ITO")  business  units  from  the      
        former  Services  segment,  along  with  the  end-user  workplace  support            
        services  business  that  was  previously  a  part  of  the  TS  business  unit.      
        Taking  into  account  these  changes,  HP  has  the  following  seven  financial  
        reporting  segments:  Personal  Systems,  Printing,  the  Enterprise  Group,      
        Enterprise  Services,  Software,  HP  Financial  Services  and  Corporate            
        Investments.                                                                                                                        
                                                                                                                                                        
        Also  as  a  result  of  these  realignments,  the  financial  results  of  the        
        Personal  Systems  commercial  products  support  business,  which  were              
        previously  reported  as  part  of  the  TS  business  unit,  will  now  be                
        reported  as  part  of  the  Other  business  unit  within  the  Personal  Systems  
        segment,  and  the  financial  results  of  the  portion  of  the  business              
        intelligence  services  business  that  had  continued  to  be  reported  as  part
        of  the  Corporate  Investments  segment  following  the  implementation  of        
        prior  realignment  actions  will  now  be  reported  as  part  of  the  ABS              
        business  unit.  In  addition,  the  end-user  workplace  support  services          
        business,  which,  as  noted  above,  was  previously  a  part  of  the  TS                
        business  unit  and  will  now  become  a  part  of  the  Enterprise  Services          
        segment,  will  be  reported  as  part  of  the  ITO  business  unit  within  that    
        segment.                                                                                                                                
                                                                                                                                                        
        To  provide  improved  visibility  and  comparability,  HP  has  reflected  these
        changes  to  its  reporting  structure  in  prior  financial  reporting  periods  
        on  an  as-if  basis,  which  has  resulted  in  the  transfer  of  revenue  and        
        operating  profit  among  the  Personal  Systems,  the  Enterprise  Group,            
        Enterprise  Services  and  Corporate  Investments  segments.  These  changes      
        had  no  impact  on  the  previously  reported  financial  results  for  the            
        Printing,  Software  or  HP  Financial  Services  segments.  In  addition,  none  
        of  these  changes  impacted  HP's  previously  reported  consolidated  net          
        revenue,  earnings  from  operations,  net  earnings  or  net  earnings  per          
        share.                                                                                                                                    
                                                                                                                                                        
(b)  The  Personal  Systems  segment  and  the  Printing  segment  are  structured        
        beneath  a  broader  Printing  and  Personal  Systems  Group  ("PPS").  While  PPS
        is  not  a  financial  reporting  segment,  HP  provides  financial  data                
        aggregating  the  segments  within  it  in  order  to  provide  a  supplementary    
        view  of  its  business.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        SEGMENT  /  BUSINESS  UNIT  INFORMATION                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                            Six  months  ended            
                                                                                                                    April  30,                  
                                                                                                  --------------------------  
                                                                                                                                                        
                                                                                                          2013                    2012          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
  Printing  and  Personal  Systems  Group(b)                                                                          
    Personal  Systems                                                                                                                    
        Notebooks                                                                        $            7,846    $            9,842  
        Desktops                                                                                        6,424                  7,033  
        Workstations                                                                                1,056                  1,072  
        Other                                                                                                  462                      415  
                                                                                                  ------------    ------------  
          Total  Personal  Systems                                                        15,788                18,362  
                                                                                                  ------------    ------------  
                                                                                                                                                        
    Printing                                                                                                                                    
        Supplies                                                                                        8,015                  8,139  
        Commercial  Hardware                                                                  2,752                  2,968  
        Consumer  Hardware                                                                      1,240                  1,283  
                                                                                                  ------------    ------------  
          Total  Printing                                                                        12,007                12,390  
                                                                                                  ------------    ------------  
            Total  Printing  and  Personal  Systems  Group                27,795                30,752  
                                                                                                  ------------    ------------  
                                                                                                                                                        
    Enterprise  Group                                                                                                                    
        Industry  Standard  Servers                                                      5,800                  6,258  
        Technology  Services                                                                  4,515                  4,599  
        Storage                                                                                          1,690                  1,945  
        Networking                                                                                    1,226                  1,200  
        Business  Critical  Systems                                                          572                      826  
                                                                                                  ------------    ------------  
          Total  Enterprise  Group                                                        13,803                14,828  
                                                                                                  ------------    ------------  
                                                                                                                                                        
    Enterprise  Services                                                                                                              
      Infrastructure  Technology  Outsourcing                                7,457                  7,934  
      Application  and  Business  Services                                        4,461                  4,926  
                                                                                                  ------------    ------------  
          Total  Enterprise  Services                                                  11,918                12,860  
                                                                                                  ------------    ------------  
                                                                                                                                                        
  Software                                                                                              1,867                  1,916  
                                                                                                  ------------    ------------  
                                                                                                                                                        
  HP  Financial  Services                                                                    1,838                  1,918  
                                                                                                  ------------    ------------  
                                                                                                                                                        
  Corporate  Investments                                                                          14                        37  
                                                                                                  ------------    ------------  
          Total  segments                                                                        57,235                62,311  
                                                                                                  ------------    ------------  
                                                                                                                                                        
  Elimination  of  intersegment  net  revenue  and                                                                
    other                                                                                                (1,294)              (1,582)
                                                                                                  ------------    ------------  
                                                                                                                                                        
    Total  HP  consolidated  net  revenue                            $          55,941    $          60,729  
                                                                                                  ============    ============  
                                                                                                                                                        
(a)  HP  has  implemented  certain  organizational  realignments  in  the  first          
        quarter  of  fiscal  2013.  As  a  result  of  these  realignments,  HP  has  re-      
        evaluated  its  segment  financial  reporting  structure  and,  effective  in      
        the  first  quarter  of  fiscal  2013,  created  two  new  financial  reporting      
        segments,  the  Enterprise  Group  segment  and  the  Enterprise  Services            
        segment,  and  eliminated  two  other  financial  reporting  segments,  the          
        Enterprise  Servers,  Storage  and  Networking  ("ESSN")  segment  and  the          
        Services  segment.  The  Enterprise  Group  segment  consists  of  the  business  
        units  within  the  former  ESSN  segment  and  most  of  the  services  offerings  
        of  the  Technology  Services  ("TS")  business  unit,  which  was  previously  a  
        part  of  the  former  Services  segment.  The  Enterprise  Services  segment        
        consists  of  the  Applications  and  Business  Services  ("ABS")  and                    
        Infrastructure  Technology  Outsourcing  ("ITO")  business  units  from  the      
        former  Services  segment,  along  with  the  end-user  workplace  support            
        services  business  that  was  previously  a  part  of  the  TS  business  unit.      
        Taking  into  account  these  changes,  HP  has  the  following  seven  financial  
        reporting  segments:  Personal  Systems,  Printing,  the  Enterprise  Group,      
        Enterprise  Services,  Software,  HP  Financial  Services  and  Corporate            
        Investments.                                                                                                                        
                                                                                                                                                        
        Also  as  a  result  of  these  realignments,  the  financial  results  of  the        
        Personal  Systems  commercial  products  support  business,  which  were              
        previously  reported  as  part  of  the  TS  business  unit,  will  now  be                
        reported  as  part  of  the  Other  business  unit  within  the  Personal  Systems  
        segment,  and  the  financial  results  of  the  portion  of  the  business              
        intelligence  services  business  that  had  continued  to  be  reported  as  part
        of  the  Corporate  Investments  segment  following  the  implementation  of        
        prior  realignment  actions  will  now  be  reported  as  part  of  the  ABS              
        business  unit.  In  addition,  the  end-user  workplace  support  services          
        business,  which,  as  noted  above,  was  previously  a  part  of  the  TS                
        business  unit  and  will  now  become  a  part  of  the  Enterprise  Services          
        segment,  will  be  reported  as  part  of  the  ITO  business  unit  within  that    
        segment.                                                                                                                                
                                                                                                                                                        
        To  provide  improved  visibility  and  comparability,  HP  has  reflected  these
        changes  to  its  reporting  structure  in  prior  financial  reporting  periods  
        on  an  as-if  basis,  which  has  resulted  in  the  transfer  of  revenue  and        
        operating  profit  among  the  Personal  Systems,  the  Enterprise  Group,            
        Enterprise  Services  and  Corporate  Investments  segments.  These  changes      
        had  no  impact  on  the  previously  reported  financial  results  for  the            
        Printing,  Software  or  HP  Financial  Services  segments.  In  addition,  none  
        of  these  changes  impacted  HP's  previously  reported  consolidated  net          
        revenue,  earnings  from  operations,  net  earnings  or  net  earnings  per          
        share.                                                                                                                                    
                                                                                                                                                        
(b)  The  Personal  Systems  segment  and  the  Printing  segment  are  structured        
        beneath  a  broader  Printing  and  Personal  Systems  Group  ("PPS").  While  PPS
        is  not  a  financial  reporting  segment,  HP  provides  financial  data                
        aggregating  the  segments  within  it  in  order  to  provide  a  supplementary    
        view  of  its  business.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                              SEGMENT  NON-GAAP  OPERATING  MARGIN  SUMMARY  DATA                              
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                      Three                                                        
                                                                                      months            Change  in  Operating    
                                                                                      ended                    Margin  (pts)            
                                                                                  ---------      ----------------------  
                                                                                  April  30,                                                    
                                                                                        2013                  Q/Q                  Y/Y        
                                                                                  ---------      ----------    ----------  
                                                                                                                                                        
Non-GAAP  operating  margin:(a)                                                                                              
    Personal  Systems                                                          3.2%          0.5  pts        (2.2  pts)
    Printing                                                                        15.8%        (0.3  pts)        2.6  pts  
        Printing  and  Personal  Systems                                                                                      
          Group(b)                                                                    8.8%          0.5  pts          0.3  pts  
                                                                                                                                                        
    Enterprise  Group                                                        15.9%          0.4  pts        (2.0  pts)
    Enterprise  Services                                                    2.6%          1.3  pts        (1.1  pts)
    Software                                                                        19.1%          2.1  pts          1.4  pts  
    HP  Financial  Services                                              11.0%          0.4  pts          1.1  pts  
    Corporate  Investments                                          (560.0%)                  NM                    NM  
        Total  segments                                                          9.4%          0.7  pts        (0.4  pts)
                                                                                                                                                        
        Total  HP  consolidated  non-GAAP                                                                                    
          operating  margin                                                    8.6%          0.7  pts        (0.3  pts)
                                                                                                                                                        
(a)  HP  has  implemented  certain  organizational  realignments  in  the  first          
        quarter  of  fiscal  2013.  As  a  result  of  these  realignments,  HP  has  re-      
        evaluated  its  segment  financial  reporting  structure  and,  effective  in      
        the  first  quarter  of  fiscal  2013,  created  two  new  financial  reporting      
        segments,  the  Enterprise  Group  segment  and  the  Enterprise  Services            
        segment,  and  eliminated  two  other  financial  reporting  segments,  the          
        Enterprise  Servers,  Storage  and  Networking  ("ESSN")  segment  and  the          
        Services  segment.  The  Enterprise  Group  segment  consists  of  the  business  
        units  within  the  former  ESSN  segment  and  most  of  the  services  offerings  
        of  the  Technology  Services  ("TS")  business  unit,  which  was  previously  a  
        part  of  the  former  Services  segment.  The  Enterprise  Services  segment        
        consists  of  the  Applications  and  Business  Services  ("ABS")  and                    
        Infrastructure  Technology  Outsourcing  ("ITO")  business  units  from  the      
        former  Services  segment,  along  with  the  end-user  workplace  support            
        services  business  that  was  previously  a  part  of  the  TS  business  unit.      
        Taking  into  account  these  changes,  HP  has  the  following  seven  financial  
        reporting  segments:  Personal  Systems,  Printing,  the  Enterprise  Group,      
        Enterprise  Services,  Software,  HP  Financial  Services  and  Corporate            
        Investments.                                                                                                                        
                                                                                                                                                        
        Also  as  a  result  of  these  realignments,  the  financial  results  of  the        
        Personal  Systems  commercial  products  support  business,  which  were              
        previously  reported  as  part  of  the  TS  business  unit,  will  now  be                
        reported  as  part  of  the  Other  business  unit  within  the  Personal  Systems  
        segment,  and  the  financial  results  of  the  portion  of  the  business              
        intelligence  services  business  that  had  continued  to  be  reported  as  part
        of  the  Corporate  Investments  segment  following  the  implementation  of        
        prior  realignment  actions  will  now  be  reported  as  part  of  the  ABS              
        business  unit.  In  addition,  the  end-user  workplace  support  services          
        business,  which,  as  noted  above,  was  previously  a  part  of  the  TS                
        business  unit  and  will  now  become  a  part  of  the  Enterprise  Services          
        segment,  will  be  reported  as  part  of  the  ITO  business  unit  within  that    
        segment.                                                                                                                                
                                                                                                                                                        
        To  provide  improved  visibility  and  comparability,  HP  has  reflected  these
        changes  to  its  reporting  structure  in  prior  financial  reporting  periods  
        on  an  as-if  basis,  which  has  resulted  in  the  transfer  of  revenue  and        
        operating  profit  among  the  Personal  Systems,  the  Enterprise  Group,            
        Enterprise  Services  and  Corporate  Investments  segments.  These  changes      
        had  no  impact  on  the  previously  reported  financial  results  for  the            
        Printing,  Software  or  HP  Financial  Services  segments.  In  addition,  none  
        of  these  changes  impacted  HP's  previously  reported  consolidated  net          
        revenue,  earnings  from  operations,  net  earnings  or  net  earnings  per          
        share.                                                                                                                                    
                                                                                                                                                        
(b)  The  Personal  Systems  segment  and  the  Printing  segment  are  structured        
        beneath  a  broader  Printing  and  Personal  Systems  Group  ("PPS").  While  PPS
        is  not  a  financial  reporting  segment,  HP  provides  financial  data                
        aggregating  the  segments  within  it  in  order  to  provide  a  supplementary    
        view  of  its  business.                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    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,  
                                                                                          2013                2013                2012      
                                                                                  -----------  -----------  -----------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                            $          1,077  $          1,232  $          1,593
                                                                                  ===========  ===========  ===========
    Non-GAAP  net  earnings                                    $          1,698  $          1,605  $          1,949
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to                                                                                      
      compute  basic  net  earnings  per  share                1,935              1,953              1,979
    Dilutive  effect  of  employee  stock                                                                                  
      plans                                                                                    12                      3                      8
                                                                                  -----------  -----------  -----------
        Weighted-average  shares  used  to                                                                                  
          compute  diluted  net  earnings  per                                                                              
          share                                                                          1,947              1,956              1,987
                                                                                  ===========  ===========  ===========
                                                                                                                                                        
GAAP  net  earnings  per  share:                                                                                                
    Basic(a)                                                              $            0.56  $            0.63  $            0.80
    Diluted(c)                                                          $            0.55  $            0.63  $            0.80
                                                                                                                                                        
Non-GAAP  net  earnings  per  share:                                                                                        
    Basic(b)                                                              $            0.88  $            0.82  $            0.98
    Diluted(c)                                                          $            0.87  $            0.82  $            0.98
                                                                                                                                                        
(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  includes  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,                  
                                                                                                  ---------------------------
                                                                                                                                                        
                                                                                                            2013                    2012        
                                                                                                  -------------  -------------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                                            $              2,309  $              3,061
                                                                                                  =============  =============
    Non-GAAP  net  earnings                                                    $              3,303  $              3,781
                                                                                                  =============  =============
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  shares  used  to  compute  basic                                                          
      net  earnings  per  share  and                                                        1,944                  1,980
    Dilutive  effect  of  employee  stock  plans                                        8                        15
                                                                                                  -------------  -------------
        Weighted-average  shares  used  to  compute                                                                  
          diluted  net  earnings  per  share                                            1,952                  1,995
                                                                                                  =============  =============
                                                                                                                                                        
GAAP  net  earnings  per  share:                                                                                                
    Basic(a)                                                                              $                1.19  $                1.55
    Diluted(c)                                                                          $                1.18  $                1.53
                                                                                                                                                        
Non-GAAP  net  earnings  per  share:                                                                                        
    Basic(b)                                                                              $                1.70  $                1.91
    Diluted(c)                                                                          $                1.69  $                1.90
                                                                                                                                                        
(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  includes  any  dilutive  effect  of                    
        outstanding  stock  options,  performance-based  restricted  units,                    
        restricted  stock  units  and  restricted  stock.                                                        
 

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