11-K 1 form11-k_2011.htm 2011 FORM 11-K form11-k_2011.htm
 


 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 11-K
 

 
(Mark One)
   
 
x  ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the fiscal year ended December 31, 2011
   
 
OR
   
 
 TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the transition period from ____________ to ____________
   
   
 
Commission File Number: 1-4423
   
   
 A.                  Full title of the plan and address of the plan, if different from that of the issuer named below:
   
   
 
HEWLETT-PACKARD COMPANY 401(k) PLAN
   
   
 B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
   
   
 
HEWLETT-PACKARD COMPANY
3000 HANOVER STREET
PALO ALTO, CALIFORNIA 94304
 
 


 

 
 

 

Hewlett-Packard Company 401(k) Plan
Financial Statements and Supplemental Schedule
 
December 31, 2011 and 2010 and
For the Year Ended December 31, 2011
 
 
Contents
 
       
  1  
       
 
Audited Financial Statements:
   
       
  2  
  3  
  4  
       
 
Supplemental Schedule:
   
       
  25  
       
  Signature 86  
       
  Exhibit Index:    
       
  Exhibit 23.1 – Consent of Independent Registered Public Accounting Firm 87  
 

 
 
 

 


 
Report of Independent Registered Public Accounting Firm
 
 
Plan Administrator
Hewlett-Packard Company 401(k) Plan
 
We have audited the accompanying statements of net assets available for benefits of Hewlett-Packard Company 401(k) Plan as of December 31, 2011 and 2010, and the related statement of changes in net assets available for benefits for the year ended December 31, 2011. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2011 and 2010, and the changes in its net assets available for benefits for the year ended December 31, 2011, in conformity with U.S. generally accepted accounting principles.
 
Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2011, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Such information is the responsibility of the Plan’s management. The information has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
 
/s/ Ernst & Young LLP      
 
 
June 27, 2012
San Jose, California

 
1

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Statements of Net Assets Available for Benefits
             
             
   
December 31
   
2011
 
2010
Assets
           
Cash
  $ 363,201     $ 95,996,407  
Investments, at fair value
    13,717,114,451       12,394,759,301  
Receivables:
               
Notes receivable from participants
    224,531,689       216,675,830  
Company contribution
    41,048,166       40,192,858  
Amount due from brokers for securities sold
    181,590,682       29,530,187,605  
Forward foreign currency contracts
    2,735,043       4,349,106  
Interest, dividends, and other
    27,404,636       6,319,563  
Total receivables
    477,310,216       29,797,724,962  
Total assets
    14,194,787,868       42,288,480,670  
 
               
Liabilities
               
Amount due to brokers for securities purchased
    193,332,110       27,596,895,765  
Forward foreign currency contracts payable
    2,870,555       4,309,996  
Administrative expenses and other payables
    9,629,617       4,184,902  
Total liabilities
    205,832,282       27,605,390,663  
 
               
Net assets reflecting investments, at fair value
    13,988,955,586       14,683,090,007  
 
               
Adjustment from fair value to contract value for fully              
benefit-responsive investment contracts
        1,786,962  
 
               
Net assets available for benefits
  $ 13,988,955,586     $ 14,684,876,969  
                 
See accompanying notes.
               
 
 
2

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Statement of Changes in Net Assets Available for Benefits
 
Year Ended December 31, 2011
       
       
Additions
     
Investment income (loss):
     
Interest and dividends
  $ 305,777,499  
Net realized and unrealized depreciation in fair value of investments
    (863,930,442 )
 
    (558,152,943 )
Contributions:
       
Participants
    660,296,987  
Company
    256,556,923  
Rollover
    119,319,410  
Total contributions
    1,036,173,320  
Interest income on notes receivable from participants
    10,427,098  
Other
    1,351,612  
Total additions
    489,799,087  
 
       
Deductions
       
Benefits paid directly to participants
    1,150,396,243  
Investment management fees
    26,428,211  
Administrative expenses and fees
    8,896,016  
Total deductions
    1,185,720,470  
 
       
Net decrease
    (695,921,383 )
 
       
Net assets available for benefits:
       
Beginning of year
    14,684,876,969  
End of year
  $ 13,988,955,586  
 
       
See accompanying notes.
       

 
3

 
 

Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements
 
December 31, 2011
 
 
1.   Description of the Plan
 
The following brief description of the Hewlett-Packard Company 401(k) Plan (the Plan) provides only general information. Participants should refer to the plan document for a more complete description of the Plan’s provisions.
 
General
 
The Plan is a defined contribution plan covering employees of Hewlett-Packard Company (the Company or HP) and designated domestic subsidiaries who are on the U.S. payroll and who are employed as regular full-time or regular part-time or limited-term employees. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
 
Effective December 31, 2010, the Plan offered new investment options designed to help streamline participants’ investment choices and provide new diversification opportunities.  Assets of the Plan are invested in a five-tier investment structure. Tier 1 includes one ready-made portfolio (the Conservative Portfolio), and ten Birth Date Funds. The Birth Date Funds’ investment strategy is designed to apply over a participant’s entire investment horizon, including the years after retirement, and is designed to become more conservative as participants grow older. Tier 2 includes six actively managed institutional funds from the main asset classes – stocks, bonds, and short-term investments. Tier 3 includes four index funds that try to mirror a specific market index by investing in the same list of equities and bonds. Tier 4 includes six funds from specialty asset classes, such as real-return income, commodities, and real estate. The Company common stock is also included in Tier 4. Tier 5 is a self-directed Mutual Fund Brokerage Window that offers more than 8,500 brand-name mutual funds through Fidelity. All investments are participant-directed.
 
In November 2010, HP approved the merger of the EDS 401(k) Plan into the Plan effective December 31, 2010. A brief blackout period started on December 30, 2010, and ended on January 3, 2011. At the date of the merger, the EDS 401(k) Plan transferred net assets to the Plan amounting to $3,858,652,097. Included in the Company contribution receivable on the statement of net assets available for benefits as of December 31, 2010, was $13,332,342 of employer contributions related to the previous EDS 401(k) Plan participants (none as of December 31, 2011, as the EDS 401(k) Plan merged with and into the Plan as of December 31, 2010). During the blackout period, the Plan and EDS 401(k) Plan investments were automatically mapped or moved to the new fund options in the Plan that most closely align with the asset allocation and risk-and-return potential of the existing Plan and EDS 401(k) Plan investment elections.
 
4

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 

1.   Description of the Plan (continued)
 
The blackout period was necessary to implement the changes, such as moving assets and establishing the new investment options described above. The financial statement captions “amount due from brokers for securities sold” and “amount due to brokers for securities purchased” as of December 31, 2010, reflect the transactions related to these changes in the investment options.
 
The Plan includes a non-leveraged employee stock ownership plan feature (the ESOP) within the meaning of Internal Revenue Code (the Code) Section 4975(e)(7).  The ESOP is maintained as part of the Plan and is designed to invest primarily in the Company’s common stock.  The purpose of the ESOP is to permit participants the option of having dividends on the Company’s common stock re-invested in the Plan or paid directly to them in cash. Participants in the Plan who were formerly participants in the Compaq Computer Corporation 401(k) Investment Plan, but who did not become employees of the Company subsequent to the acquisition of Compaq Computer Corporation in May 2002, and participants who were formerly participants in the EDS 401(k) Plan but who did not become employees of the Company subsequent to the acquisition of EDS in August 2008 are not eligible to participate in the ESOP.
 
Effective January 1, 2010, new guidelines were imposed on participants’ ability to invest in the Company common stock, with a goal of limiting investments in Company common stock to a maximum of 20% of a participant’s portfolio. Under the new guidelines, if a participant’s account currently has more than 20% invested in the Company common stock fund, the participant will not be forced to reduce his or her holdings; however, the investment election for ongoing contributions and loan repayments will be limited to a maximum of 20% in the Company common stock fund, and any percentage above the 20% limit for ongoing contributions will automatically be directed to the appropriate Birth Date Fund based on the year the participant was born. In addition, the new guidelines provide that future requested exchanges into the Company common stock fund will be blocked if the requested change will cause the participant to exceed the 20% limit or if the participant is already at or above the 20% limit of the Company common stock fund to the participant’s overall portfolio balance. Finally, the new guidelines provide that if the participant chooses to rebalance his or her portfolio, the respective holdings in the Company common stock fund will be limited to a maximum of 20% regardless of the current investments in the Company common stock fund.
 
Contributions
 
As soon as administratively feasible, normally about 15 days after the employment start date, employees are automatically enrolled in the Plan at a 3% contribution rate in the appropriate Birth Date Fund based on the year employees were born.
 
 
5

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
  
 
1.   Description of the Plan (continued)
 
Participants may annually contribute, on a pretax basis, up to 50% of their eligible compensation, as defined by the Plan. Contributions are subject to annual deductibility limits specified under the Code. The annual limitation was $16,500 for 2011. Contributions can be made as whole or fractional percentages of pay. Employees can choose pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of the two. The Plan also accepts rollover contributions from a Roth deferral account to the Plan as described in Code section 402A(e)(1) and only to the extent the rollover is permitted under the rules of section 402(c) of the Code. After-tax Roth 401(k) contributions shall be treated as deferred contributions for all purposes under the Plan, including Company matching contributions.
 
Participants who are age 50 or older by the end of the plan year can contribute an additional $5,500 above the annual limitation. Catch-up contributions can be pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of the two. These catch-up contributions are not eligible for the Company match. Participants may also make rollover contributions of amounts representing distributions from other qualified defined benefit or defined contribution plans.
 
Effective February 1, 2011, the Company matching contribution was a fixed contribution funded at 100%, up to 4% of eligible earnings, contributed each pay period. Prior to February 1, 2011, the Company matching contributions were discretionary funded at the same rates.
 
Employees of Autonomy Corporation plc (Autonomy), who began participating in the Plan in November 2011 following the Company’s October 3, 2011, acquisition of a controlling interest in Autonomy, are eligible for matching contributions of 50% of the first 6% of eligible pay contributed each pay period.
 
Employees of Palm, Inc. (Palm), who began participating in the Plan in August 2010 following the Company’s July 1, 2010, acquisition of Palm, are eligible for matching contributions of 50% of the first 6% of eligible pay contributed each pay period.
 
Vesting
 
Participants are fully vested at all times with regard to their contributions and earnings thereon.
 
 
6

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
  
 
1.   Description of the Plan (continued)
 
Effective January 1, 2006, all new employees are subject to a three-year cliff vesting schedule with regard to Company matching contributions. As a result, participants with no prior HP service who enter the Plan on or after January 1, 2006, do not vest in Company matching contributions until the earlier of earning three years of credited service, attaining age 65, death before termination of employment, or becoming eligible for disability benefits under the Company’s long-term disability benefits program, at which time they will become 100% vested in their Company matching contributions and earnings thereon.  Participants are also fully vested in their Company matching contributions if they terminate employment in connection with a sale or divestiture by the Company of the business unit in which the participant had been employed.
 
Participants who are employees of Autonomy are subject to a four-year graded vesting schedule, with their Company matching contributions becoming 25% vested after one full year of service, 50% vested after two full years of service, 75% vested after three full years of service, and 100% vested after four or more years of service, taking into consideration years of service with Autonomy.
 
Participants who are employees of Palm are subject to a three-year graded vesting schedule, with their Company matching contributions becoming 33% vested after one full year of service, 66% vested after two full years of service, and 100% vested after three or more years of service.
 
Effective for matching contributions made as of July 31, 2011, in order to receive a matching contribution, the employee must be employed on the last day of the fiscal quarter or have terminated employment as a result of the employee’s death, termination under a Company approved severance program, or in connection with a sale or divestiture by the Company of the business unit in which the participant had been employed.
 
Participant Accounts
 
Each participant’s account is credited with the participant’s contributions and allocations of (i) Company contributions and (ii) Plan earnings and losses. Allocations are determined in accordance with the provisions of the plan document. The benefit to which a participant is entitled is the benefit that can be provided from the vested portion of the participant’s account.
 
Notes Receivable From Participants
 
The Plan offers two types of loans, namely general-purpose loans and primary residence loans. The repayment period for a general-purpose loan may not exceed 5 years, and the repayment period for a primary residence loan may not exceed 15 years.
 
 
7

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.   Description of the Plan (continued)
 
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balances. Loans are secured by the participant’s account and bear interest at a rate equal to the prevailing prime rate plus 1%. Principal and interest are paid ratably through payroll deductions.
 
Forfeitures
 
Upon termination of employment, participants forfeit their nonvested balances. Forfeited balances of terminated participants’ nonvested accounts are used to reduce future Company matching contributions, restore previously forfeited balances, or pay eligible Plan expenses.
 
Unallocated forfeiture balances as of December 31, 2011 and 2010, were approximately $1,100,000 and $2,300,000, respectively, and forfeitures used to reduce Company matching contributions for 2011 were approximately $11,300,000. Additionally, the unallocated EDS 401(k) Plan forfeiture balance as of December 31, 2010, was approximately $2,900,000 and was applied to the Company match made in 2011.
 
Payment of Benefits
 
On termination of service, death, or retirement, participants may elect to receive a lump-sum amount equal to the value of their accounts. Lump-sum payments may be made in cash or shares of stock for distribution from the Company common stock fund. Hardship distributions and in-service withdrawals are permitted if certain criteria are met. Participants may also, at any time, withdraw all or part of their rollover accounts.
 
Administrative and Investment Management Expenses
 
Certain fees and expenses of the Plan for legal and other administrative services are paid directly by the Company on behalf of the Plan. Effective January 1, 2011, each participant was charged a fixed fee of $8.50 per fiscal quarter for recordkeeping expense. Certain administrative and investment management fees related to certain investment options are paid directly to the Plan’s investment managers and are reported separately on the statement of changes in net assets available for benefits.
 
 
8

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.   Description of the Plan (continued)
 
Plan Termination
 
Although it has not expressed any intent to do so, the Company has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.
 
2.   Summary of Significant Accounting Policies
 
Basis of Accounting
 
The accompanying financial statements have been prepared on the accrual basis of accounting.
 
Use of Estimates
 
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes and supplemental schedule. Actual results could differ from those estimates.
 
Recent Accounting Pronouncements
 
In January 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2010-06, Improving Disclosures about Fair Value Measurements (ASU 2010-06). ASU 2010-06 amended ASC 820, Fair Value Measurement and Disclosures (ASC 820), to clarify certain existing fair value disclosures and require certain additional disclosures. The guidance in ASU 2010-06 clarified that disclosures should be presented separately for each “class” of assets and liabilities measured at fair value and provided guidance on how to determine the appropriate classes of assets and liabilities to be presented.  ASU 2010-06 also clarified the requirement for entities to disclose information about both the valuation techniques and inputs used in estimating Level 2 and Level 3 fair value measurements. In addition, ASU 2010-06 introduced new requirements to disclose the amounts (on a gross basis) and reasons for any significant transfers between Levels 1, 2, and 3 of the fair value hierarchy and present information regarding the purchases, sales, issuances, and settlements of Level 3 assets and liabilities on a gross basis.
 
 
9

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
2.   Summary of Significant Accounting Policies (continued)
 
The requirement to present changes in Level 3 measurements on a gross basis became effective for reporting periods beginning after December 15, 2010. The remaining guidance in ASU 2010-06 became effective for reporting periods beginning after December 15, 2009. Since ASU 2010-06 only affects fair value measurement disclosures, adoption of ASU 2010-06 did not affect the Plan’s net assets available for benefits or its changes in net assets available for benefits.
 
In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRS. ASU 2011-04 amended ASC 820 to converge the fair value measurement guidance in U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). Some of the amendments clarify the application of existing fair value measurement requirements, while other amendments change a particular principle in ASC 820. In addition, ASU 2011-04 requires additional fair value disclosures. The amendments are to be applied prospectively and are effective for annual periods beginning after December 15, 2011. Plan management is currently evaluating the effect that the provisions of ASU 2011-04 will have on the Plan’s financial statements.
 
Reclassifications
 
Certain prior year classification disclosures have been reclassified to be consistent with the current year's presentation.
 
Derivative Contracts
 
In the normal course of business, the Plan enters into derivative contracts (derivatives) for trading purposes. Derivatives are either exchange-traded or over-the-counter (OTC) contracts. Exchange-traded derivatives are standard contracts traded on a regulated exchange. OTC contracts are private contracts negotiated with counterparties. The Plan has entered into derivatives that include foreign currency exchange contracts, option contracts, futures, and swaps agreements.
 
Derivatives are recorded at fair value. The Plan values derivatives at independent values when available; otherwise, fair values are based on pricing models that incorporate the time value of money, volatility, credit spreads, liquidity, and the current market and contractual prices of the underlying financial instruments.
 
 
10

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
2.   Summary of Significant Accounting Policies (continued)

Investment Valuation and Income Recognition
 
The Plan’s investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). See Note 4 for further discussion of fair value measurements.
 
Investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of net assets available for benefits of the Plan attributable to fully benefit-responsive contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan currently invests in fully benefit-responsive guaranteed investment contracts (traditional GIC). The statements of net assets available for benefits present the fair value of the investment contract, as well as an adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The fair value of the GICs was calculated by discounting the related cash flows based on current yields of similar instruments with comparable durations. The contract value of the fully benefit-responsive investment contract represents contributions plus earnings, less participant withdrawals and administrative expenses. As of December 31, 2011, the issuer of the traditional GIC has indicated that contract value approximates fair value.
 
Assets and liabilities measured at fair value are categorized into the following fair value hierarchy:
 
Level 1 – Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market that the Plan has the ability to access at the measurement date.
 
Level 2 – Fair value is based on quoted prices in markets that are not active, quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Pricing models are utilized to estimate fair value for certain financial assets and liabilities categorized in Level 2.
 
 
11

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
2.   Summary of Significant Accounting Policies (continued)
 
Level 3 – Fair value is based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the investment and are based on the best available information, some of which may be internally developed.
 
The level in the fair value hierarchy with which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.
 
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the ex-dividend date. Net appreciation/depreciation in the fair value of investments includes the Plan’s gains and losses on investments bought and sold, as well as held during the year.
 
3.   Investments
 
The fair values of individual investments that represent 5% or more of the fair value of the Plan’s net assets are as follows:
 
   
December 31
 
   
2011
   
2010
 
             
HP Common Stock
  $ 561,318,720 *   $ 926,242,647  
Vanguard PRIMECAP ADM Fund
    734,724,342       820,106,528  
BTC RUSSELL 1000 Index Fund
    1,293,779,452       **  
 
*Less than 5% of the fair value of the Plan’s net assets as of December 31, 2011.
 
**The Plan did not hold this investment as of December 31, 2010.
 
 
12

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
3.  Investments (continued)
 
For the year ended December 31, 2011, the Plan’s investments (including investments purchased, sold, as well as held during the year) appreciated (depreciated) in fair value as follows:
 
Registered investment companies
  $ (183,070,172 )
Common stock
    (218,654,860 )
Common collective trust funds
    (138,648,685 )
Company common stock
    (333,997,550 )
Corporate debt
    10,440,825  
Total net realized and unrealized depreciation in fair value of investments
  $ (863,930,442 )

4.   Fair Value Measurements
 
The following is a description of the valuation methodologies used for assets measured at fair value.
 
Common collective trusts and privately held mutual funds: Valued at the net asset value (NAV) established by the funds’ sponsor on the last business day of the plan year, based on the fair value of the assets underlying the funds. There are no redemption restrictions on the Plan’s investments in common collective trusts and privately held mutual funds.
 
Publicly traded mutual funds and common stocks: Valued at the closing price reported on the active market on which the individual securities are traded.
 
Corporate debt, U.S. government securities and foreign obligations: Valued using quoted market prices that are traded in less active markets or quoted market price for similar investments.
 
Money market funds: Valued at the NAV of units held by the Plan at year-end.
 
Short-term investments: Valued at cost plus accrued interest, which approximates fair value.
 
Traditional GIC: Valued using the present value of the contracts’ future cash flows discounted by comparable duration Wall Street Journal GIC index rates.
 
 
13

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
4.   Fair Value Measurements (continued)
 
Derivative instruments: Listed derivatives, such as futures and exchange-traded options, are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy to the extent that these instruments are actively traded and valuation adjustments are not applied. If valuation adjustments are applied to listed derivatives, they are categorized in Level 2. OTC derivative contracts are privately negotiated contracts with counterparties, including forwards, credit default swaps, and total return swaps. Depending on the product and the terms of the transaction, the fair value for the OTC derivative products can be modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not require significant judgments and the pricing inputs are observed from actively quoted markets. Such contracts are categorized in Level 2.
 
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
 
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets and liabilities as of December 31, 2011 and 2010:
 
   
Fair Value Measurements as of December 31, 2011
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets
                       
Mutual funds:
                       
Index funds
  $ 4,037,335     $     $     $ 4,037,335  
Growth funds
    1,561,225,969       43,087,359             1,604,313,328  
Fixed income funds
    694,565,554       315,525,501             1,010,091,055  
Value funds
    90,115,794                   90,115,794  
Other funds
    73,652,259                   73,652,259  
Total mutual funds
    2,423,596,911       358,612,860             2,782,209,771  
                                 
Self-directed brokerage accounts:
                               
Mutual funds:
                               
Index funds
    14,131,187                   14,131,187  
Growth funds
    52,936,202                   52,936,202  
Fixed income funds
    111,096,467                   111,096,467  
Value funds
    31,617,985                   31,617,985  
Industry specific funds
    19,622,355                   19,622,355  
Other funds
    47,332,821                   47,332,821  
Total self-directed brokerage account
    276,737,017                   276,737,017  
 
 
14

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
4.   Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2011
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Common collective trusts:
                       
Index funds
  $     $ 2,573,846,644     $     $ 2,573,846,644  
Growth funds
          443,295,485             443,295,485  
Other funds
          74,121,551             74,121,551  
Total common collective trusts
          3,091,263,680             3,091,263,680  
                                 
HP common stock
    561,318,720                   561,318,720  
                                 
Money market funds
          2,832,925             2,832,925  
                                 
Short-term investments
          540,119,388             540,119,388  
                                 
Common and preferred stocks:
                               
Automobiles and components
    70,078,762                   70,078,762  
Banks, insurance, and other financial institutions
    503,978,935                   503,978,935  
Consumer and capital goods
    1,105,414,978                   1,105,414,978  
Health care and pharmaceuticals
    493,487,118                   493,487,118  
Telecommunications and media
    275,480,193                   275,480,193  
Technology, hardware, and software
    691,509,800                   691,509,800  
Energy, transportation, and other utilities
    577,148,726                   577,148,726  
Hospitality and real estate
    387,641,789                   387,641,789  
Total common and preferred stocks
    4,104,740,301                   4,104,740,301  
                                 
Corporate debt:
                               
Banks, insurance, and other financial institutions
          439,499,649             439,499,649  
Consumer and capital goods
          66,580,081             66,580,081  
Health care, pharmaceuticals, and biotechnology
          43,358,762             43,358,762  
Technology, hardware, and equipment
          22,701,563             22,701,563  
Telecommunications and media
          95,668,985             95,668,985  
Energy, transportation, and other utilities
          76,252,822             76,252,822  
Real estate
          9,300,387             9,300,387  
    Total corporate debt
          753,362,249             753,362,249  
                                 
Foreign obligations
          41,707,043             41,707,043  
 
 
15

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
4.   Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2011
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
U.U.S. government securities:
                       
Federal
  $     $ 1,473,360,372     $     $ 1,473,360,372  
State
          28,708,484             28,708,484  
Municipal
          48,765,264             48,765,264  
    Total U.S. government securities
          1,550,834,120             1,550,834,120  
                                 
    Guaranteed investment contracts
          11,989,237             11,989,237  
Total investments
    7,366,392,949       6,350,721,502             13,717,114,451  
                                 
Derivative assets
    830,696       3,008,067             3,838,763  
Amount due from brokers for securities sold
    181,590,682                   181,590,682  
Total assets measured at fair value
  $ 7,548,814,327     $ 6,353,729,569     $     $ 13,902,543,896  
                                 
Liabilities
                               
Derivative liabilities
  $ 96,226     $ 2,870,555     $     $ 2,966,781  
Amount due to brokers for securities purchased
    193,332,110                   193,332,110  
Total liabilities measured at fair value
  $ 193,428,336     $ 2,870,555     $     $ 196,298,891  

 
   
Fair Value Measurements as of December 31, 2010
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets
                       
Mutual funds:
                       
Index funds
  $ 806,641,582     $     $     $ 806,641,582  
Growth funds
    2,199,417,974       36,487,759             2,235,905,733  
Fixed income funds
    653,102,787       390,568,664             1,043,671,451  
Value funds
    99,872,623                   99,872,623  
Other funds
    25,000,000                   25,000,000  
Total mutual funds
    3,784,034,966       427,056,423             4,211,091,389  
                                 
Common collective trusts:
                               
Benefit responsive
          109,898,140             109,898,140  
Growth funds
          291,331,604             291,331,604  
Fixed income funds
          747,873,726             747,873,726  
Other funds
          25,000,000             25,000,000  
Total common collective trusts
          1,174,103,470             1,174,103,470  
                                 
HP common stock
    926,242,647                   926,242,647  
                                 
Money market funds
          409,204,895             409,204,895  
                                 
Short-term investments
          95,202,013             95,202,013  
 
 
16

 
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
4.   Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2010
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Common and preferred stocks:
                       
Automobiles and components
  $ 52,692,030     $     $     $ 52,692,030  
Banks, insurance, and other financial institutions
    1,118,421,099                   1,118,421,099  
Consumer and capital goods
    1,268,013,574                   1,268,013,574  
Health care and pharmaceuticals
    505,015,477                   505,015,477  
Telecommunications and media
    221,717,033                   221,717,033  
Technology, hardware, and software
    831,193,141                   831,193,141  
Energy, transportation, and other utilities
    648,391,939                   648,391,939  
Hospitality and real estate
    366,020,304                   366,020,304  
Other
    2,480,935                   2,480,935  
Total common and preferred stocks
    5,013,945,532                   5,013,945,532  
                                 
Corporate debt:
                               
Banks, insurance, and other financial institutions
          98,166,806             98,166,806  
Consumer and capital goods
          22,859,762             22,859,762  
Health care, pharmaceuticals, and biotechnology
          13,128,645             13,128,645  
Technology, hardware, and equipment
          10,454,278             10,454,278  
Telecommunications and media
          32,727,305             32,727,305  
Energy, transportation, and other utilities
          18,307,452             18,307,452  
Real estate
          2,668,102             2,668,102  
Other
          4,157,969             4,157,969  
    Total corporate debt
          202,470,319             202,470,319  
                                 
Foreign obligations
          1,591,455             1,591,455  
                                 
    U.S. government securities:
                               
Federal
          331,108,147             331,108,147  
State
          15,168,992             15,168,992  
Municipal
          3,362,833             3,362,833  
    Total U.S. government securities
          349,639,972             349,639,972  
                                 
    Guaranteed investment contracts
          11,267,609             11,267,609  
Total investments
    9,724,223,145       2,670,536,156             12,394,759,301  
                                 
Derivative assets
    28,949       4,394,519             4,423,468  
Amount due from brokers for securities sold
    29,530,187,605                   29,530,187,605  
Total assets measured at fair value
  $ 39,254,439,699     $ 2,674,930,675     $     $ 41,929,370,374  
 
 
17

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 

4.   Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2010
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Liabilities
                       
Derivative liabilities
  $ 33,869     $ 4,310,164     $     $ 4,344,033  
Amount due to brokers for securities purchased
    27,596,895,765                   27,596,895,765  
Total liabilities measured at fair value
  $ 27,596,929,634     $ 4,310,164     $     $ 27,601,239,798  
 
Certain amounts have been reclassified in the December 31, 2010 disclosures to be consistent with the December 31, 2011 disclosures.
 
5. Guaranteed Investment Contracts
 
Prior to December 31, 2010, the Plan offered a Stable Value Fund, which invested in GICs, to provide participants with a stable, fixed-rate return and protection of principal from market changes. As of December 31, 2011 and 2010, the Plan held one traditional GIC. All other investments that comprised the Stable Value Fund prior to December 31, 2010, were liquidated in preparation for the new investment option lineup described above. There are no reserves against contract value for credit risk of the contract issuer or otherwise. The crediting interest rates are based on a formula agreed upon with the issuer. The interest rate paid by the issuer or contract rate may be fixed over the life of the contract or adjusted periodically, but cannot fall below 0%.
 
Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include amendments to the plan document, changes to the Plan’s prohibition of competing investment options, complete or partial termination of the Plan, the failure of the Plan or its trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA, the redemption of all or a portion of the Plan’s interest in the investment at the direction of the Company, or delivery of any communication to participants designed to influence participants not to invest in the Stable Value Fund prior to December 31, 2010. The Company does not believe that the occurrence of any such events, which would limit the Plan’s ability to transact at contract value with participants, is probable.
 
GICs generally do not permit issuers to terminate the contract prior to the scheduled maturity date.

 
18

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
5.   Guaranteed Investment Contracts (continued)
 
Average yields earned on the Stable Value Fund for the year ended December 31, 2010, were as follows:
 
Based on actual earnings
1.27%
Based on interest rate credited to participants
1.32%
 
6.   Derivatives
 
As the Plan holds investments denominated in foreign currencies, forward foreign currency contracts are generally utilized to hedge a portion of the currency exposure that results in those investments denominated in foreign currencies. The forward foreign currency contracts are not designated as hedging instruments.
 
Forward foreign currency contracts are generally marked-to-market at the prevailing forward exchange rate of the underlying currencies, and the difference between contract value and market value is recorded as unrealized appreciation (depreciation) in fair value of investments. When the forward foreign currency contract is closed, the Plan transfers the unrealized appreciation (depreciation) to a realized gain (loss) equal to the change in the value of the forward foreign currency contract when it was opened and the value when it was closed or offset.
 
Certain risks may arise upon entering into a forward foreign currency contract from the potential inability of the counterparties to meet the terms of their contracts. Additionally, when utilizing forward foreign currency contracts to hedge, the Plan gives up the opportunity to profit from favorable exchange rate movements during the term of the contract. As of December 31, 2011 and 2010, the value of currencies under forward foreign currency contracts represented less than 1% of net assets available for benefits.
 
 
19

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
6.   Derivatives (continued)
 
Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:
 
   
December 31
 
   
2011
 
2010
             
Forward foreign currency exchange
  $ 10,100,919     $ 1,178,178  
Financial futures
    153,037,262       135,000,000  
Interest rate swaps
    11,200,000       3,121,615  
Financial options
    156,500,000       (28,800,000 )
Credit default swaps
    10,466,000       134,155  
Total
  $ 341,304,181     $ 110,633,948  

Total gross notional amounts for forward foreign currency exchange contracts by currency were as follows:
 
   
December 31
 
   
2011
   
2010
 
             
South Korean won
  $ 138,993     $ 203,163  
Philippine peso
    (101,510 )     100,479  
Chinese yuan
    (438,459 )     422,615  
Mexican peso
    (91,788 )     197,982  
Singapore dollar
    (2,971,130 )     364,817  
British pound
    (159,603 )     (3,712 )
Japanese yen
    10,303,518       (1,834 )
Australian dollar
    (4,493,975 )     (57 )
Canadian dollar
    (22,619,265 )     (103,658 )
Euro
    28,734,659       (1,617 )
Brazilian real
    444,198        
Indian rupee
    (149,973 )      
Swiss franc     (921,232 )      
Danish crone     (3,698 )      
Hong Kong dollar     169,337        
Norwegian krone     1,246,315        
New Zealand dollar     856,213        
Israeli shekels     189,236        
Swedish krona     32,363        
South African rand     (63,280 )      
Total
  $ 10,100,919     $ 1,178,178  
 
 
20

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
6.   Derivatives (continued)
 
The fair values of the derivatives instruments included in the net assets available for benefits were as follows:
 
   
December 31, 2011
 
December 31, 2010
   
Derivative
Asset
 
Derivative
Liability
 
Derivative
Asset
 
Derivative
Liability
Forward foreign currency exchange
  $ 2,735,043     $ 2,870,555     $ 4,349,106     $ 4,309,996  
Financial futures
    615,876             22,125        
Interest rate swaps
    273,024             45,413        
Financial options
          96,226       6,824       33,869  
Credit default swap
    214,820                   168  
Total
  $ 3,838,763     $ 2,966,781     $ 4,423,468     $ 4,344,033  
 
All income from derivatives was recorded as net realized and unrealized appreciation (depreciation) in fair value of investments. The effects of derivatives on the net realized and unrealized appreciation (depreciation) in fair value of investments for the year ended December 31, 2011, were as follows:
 
Forward foreign currency exchange
  $ 2,103    
Financial futures
    668,006    
Financial options
    185,595    
Interest rate and credit default swaps
    564,381    
Total
  $ 1,420,085    
 
7.   Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service (IRS) dated October 24, 2009, stating that the Plan is qualified under Section 401(a) of the Code and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended. The Plan has also applied for, but not received an updated determination letter. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualified status. The plan administrator believes that the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan, as amended, is qualified and the related trust is tax-exempt. The plan administrator has indicated that it will take any steps necessary to maintain the tax qualified status of the Plan.
 
 
21

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
7.   Income Tax Status (continued)
 
Plan management evaluates any uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2011, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2008.
 
8.   Related-Party Transactions
 
The Plan engages in certain transactions involving Fidelity Management Trust Company (Fidelity), the Trustee, and the Company, which are parties-in-interest under the provisions of ERISA. These transactions involve the purchase and sale of the Company’s common stock and corporate debt and investment of Plan monies in money market and mutual funds managed by Fidelity primarily through the Tier 5 self-directed brokerage accounts. During 2011, the Plan made purchases of $57,609,398 and sales of $64,772,160 of the Company’s common stock. Additionally, as of December 31, 2011 and 2010, the Plan held $561,318,720 and $926,242,647, respectively, of the Company’s common stock and $8,484,691 and $3,736,996, respectively, of the Company’s corporate debt. As of December 31, 2011 and 2010, the Plan held $328,261,163 and $694,411,570, respectively, of investments managed by Fidelity or its affiliates.
 
9.   Risk and Uncertainties
 
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
 
 
22

 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
10.  Subsequent Events
 
Effective May 23, 2012, in order to receive a Company matching contribution with respect to a fiscal quarter, as defined, a participant must be employed as of the last day of such fiscal quarter or have terminated employment during such fiscal quarter as a result of such employee’s death, termination under a Company-approved severance program or the 2012 U.S. Enhanced Early Retirement Program, or in connection with a sale or other disposition by the Company of the business unit in which such participant had been employed. Additionally, a participant shall be 100% vested in his or her matching contribution account if he or she terminates employment from the affiliated group, as defined, in connection with a sale or other disposition by the Company of the business unit in which the participant had been employed or under the 2012 U.S. Enhanced Early Retirement Program.
 
Effective June 1, 2012, employees of Autonomy who make elective deferrals on and/or after November 16, 2011, will receive a matching contribution with respect to such elective deferrals of 50% of the first 6% of eligible pay, not to exceed $1,000 for any calendar year; provided, however, that for 2012, the minimum matching contribution for any employee will be limited to the greater of (i) the amount of matching contribution received by such employee as of May 31, 2012, or (ii) $1,000.
 
11.  Reconciliation of Financial Statements to Form 5500
 
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
 
   
December 31
   
   
2011
   
2010
   
Net assets available for benefits per the financial statements
  $ 13,988,955,586     $ 14,684,876,969  
Less: Adjustment from fair value to contract value for fully benefit-responsive              
investment contracts
        (1,786,962 )
Net assets available for benefits per the Form 5500
  $ 13,988,955,586     $ 14,683,090,007  

 
 
23

 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
11.  Reconciliation of Financial Statements to Form 5500 (continued)
 
The following is a reconciliation of the net investment loss per the financial statements for the year ended December 31, 2011, to the Form 5500:
 
Net investment loss per the financial statements (excluding interest income      
from notes receivable from participants)
$ (558,152,943 )
Add: Prior year adjustment from fair value to contract value for fully      
benefit-responsive investment contracts
  1,786,962  
Net investment loss per the Form 5500
  $ (556,365,981 )
 
 
24

 
 
 
Hewlett-Packard Company 401(k) Plan
 
EIN: 94-1081436 PN: 004
 
Schedule H, Line 4i – Schedule of Assets (Held At End of Year)
 
December 31, 2011
 
 
           
(c)
     
           
Description of Investment,
     
    (b)      
Including Maturity Date,
 
(e)
   
Identity of  Issue, Borrower,
     
Rate of Interest, Collateral,
 
Current
(a)
 
Lessor, or Similar Party
     
Par, or Maturity Value
 
Value
                       
Money market funds
               
  *  
FIDELITY INSTITUTIONAL CASH PORT
      2,832,925  
shares
  $ 2,832,925  
                             
Short-term investments
                   
     
VANGUARD PRIME MONEY MARKET
      400,849,464  
shares
    400,849,464  
     
WACHOVIA BK NA BN 6 11/15
      725,000  
shares
    800,761  
     
INTEREST-BEARING CASH
      1,956,469,377  
shares
    138,469,163  
                          540,119,388  
                             
Registered investment companies
                   
     
CRM MID CAP VALUE FD INST
      3,404,450  
shares
    90,115,794  
     
DODGE & COX INTL STOCK FD
      14,734,305  
shares
    430,831,093  
  *  
FIDELITY LOW PRICED STOCK
      7,047,188  
shares
    251,796,043  
     
HIGHBRIDGE DYNA COMM STR
      4,297,098  
shares
    73,652,259  
     
HIGH YIELD PORTFOLIO INST
      1,339,153  
shares
    9,615,116  
     
MFS INTL NEW DISCOVERY FD
      7,211,754  
shares
    143,874,491  
     
PIMCO ASSET BACK SECS POR
      2,206,040  
shares
    22,611,909  
     
PIMCO EMMERG MKTS FD INST
      1,437,258  
shares
    14,185,732  
     
PIMCO HIGH YIELD FUND
      34,148,027  
shares
    306,649,283  
     
PIMCO INTL PORT FUND (UNLISTED)
      5,611,966  
shares
    28,901,627  
     
PIMCO INV GRD PORT (UNLISTED)
      5,933,764  
shares
    60,702,404  
     
PIMCO MTG PORT INSTL CL (UNLISTED)
      10,342,732  
shares
    113,046,061  
     
PIMCO MUNI SECTR PORT INST
      698,070  
shares
    5,877,753  
     
PIMCO REAL RETRN BD FD INST
      4,320,673  
shares
    41,089,598  
     
PIMCO REAL RETURN BD FD INST
      32,086,612  
shares
    378,301,155  
     
PIMCO SHORT TERM PORT INST
      1,283,508  
shares
    11,217,861  
     
PIMCO US GOVT SECTOR PORT
      6,985,099  
shares
    60,979,915  
     
SPDR S&P 500 ETF TRUST
      32,170  
shares
    4,037,335  
     
VANGUARD PRIMECAP ADMIRAL
      11,472,897  
shares
    734,724,342  
                          2,782,209,771  
 
 
25

 
 
 
Hewlett-Packard Company 401(k) Plan
 
EIN: 94-1081436 PN: 004
 
Schedule H, Line 4i – Schedule of Assets (Held At End of Year) (continued)
 
December 31, 2011
                             
             
(c)
       
             
Description of Investment,
       
      (b)      
Including Maturity Date,
 
(e)
     
Identity of  Issue, Borrower,
     
Rate of Interest, Collateral,
 
Current
(a)
 
Lessor, or Similar Party
     
Par, or Maturity Value
 
Value
 
Common stock
                   
     
3M CO
        100,700  
shares
  $ 8,230,211  
     
AAR CORP
      99,600  
shares
    1,909,332  
     
ABB LTD (REG) (SWIT)
      243,452  
shares
    4,583,114  
     
ABERTIS INFRAESTRUCTURAS
      9,999  
shares
    159,713  
     
ABOITIZ POWER CORP
      449,100  
shares
    306,298  
     
ACADIA RLTY TR REIT
      28,909  
shares
    582,227  
     
ACCENTURE PLC CL A
      83,994  
shares
    4,471,001  
     
ACCIONA SA
      9,105  
shares
    786,447  
     
ACE LTD
      76,251  
shares
    5,346,720  
     
ACHILLION PHARMACEUTICALS
      32,510  
shares
    247,726  
     
ACME PACKET INC
      93,000  
shares
    2,874,630  
     
ACS ACTIVIDADES CONST Y S
      12,888  
shares
    382,023  
     
ACTELION LTD (REGD)
      17,591  
shares
    604,067  
     
ACTIVISION BLIZZARD INC
      60,550  
shares
    745,976  
     
ACTUANT CORP CL A
      20,638  
shares
    468,276  
     
ADARO ENERGY PT
      900,000  
shares
    175,682  
     
ADIDAS AG
      110,056  
shares
    7,159,863  
     
ADOBE SYSTEMS INC
      80,000  
shares
    2,261,600  
     
ADTRAN INC
      159,660  
shares
    4,815,346  
     
ADVANCE RESID INV CRP NEW
      136  
shares
    262,405  
     
ADVANCED INFO SVCS (LOC)
      654,500  
shares
    2,910,040  
     
ADVANTEST CORP
      15,600  
shares
    148,571  
     
ADVISORY BOARD CO
      80,000  
shares
    5,936,800  
     
AEGON NV
      402,696  
shares
    1,616,395  
     
AEGON NV (NY REGD)
      673,085  
shares
    2,705,802  
     
AEON CO LTD
      169,800  
shares
    2,331,951  
     
AERCAP HOLDINGS NV
      420,000  
shares
    4,741,800  
     
AETNA INC
      63,725  
shares
    2,688,558  
     
AFC ENTERPRISES INC
      22,330  
shares
    328,251  
     
AFFILIATED MANAGERS GRP
      14,749  
shares
    1,415,167  
     
AFLAC INC
      56,940  
shares
    2,463,224  
     
AFRICAN RAINBOW MINERALS
      47,461  
shares
    1,005,355  
     
AGEAS (BELG)
      343,827  
shares
    534,060  
     
AGILENT TECHNOLOGIES INC
      218,254  
shares
    7,623,612  
     
AGL ENERGY LTD
      65,465  
shares
    959,362  
     
AHOLD NV (KONINKLIJKE)
      139,892  
shares
    1,884,098  
     
AIR GAS INC
      25,137  
shares
    1,962,697  
     
AIR PRODUCTS & CHEMICALS
      51,287  
shares
    4,369,140  
     
AISIN SEIKI CO LTD
      62,400  
shares
    1,778,803  
 
 
26

 
 
 
Hewlett-Packard Company 401(k) Plan
 
EIN: 94-1081436 PN: 004
 
Schedule H, Line 4i – Schedule of Assets (Held At End of Year) (continued)
 
December 31, 2011
                             
             
(c)
       
             
Description of Investment,
       
      (b)      
Including Maturity Date,
 
(e)
     
Identity of  Issue, Borrower,
     
Rate of Interest, Collateral,
 
Current
(a)
 
Lessor, or Similar Party
     
Par, or Maturity Value
 
Value
 
Common stock (continued)
                   
     
AIXTRON SE
      229,655  
shares
  $ 2,928,065  
     
AJINOMOTO CO INC
      114,000  
shares
    1,368,622  
     
AKER SOLUTIONS ASA
      18,465  
shares
    194,378  
     
ALCATEL-LUCENT
      235,611  
shares
    368,105  
     
ALERE INC
      116,000  
shares
    2,678,440  
     
ALEXANDRIA REAL ES EQ REIT
      27,900  
shares
    1,924,263  
     
ALEXION PHARMACEUTICALS
      68,867  
shares
    4,923,991  
     
ALFA LAVAL AB
      282,124  
shares
    5,346,535  
     
ALFA SAB DE CV CL A
      24,700  
shares
    269,042  
     
ALIMENTATION COUCH C CL B
      43,831  
shares
    1,364,339  
     
ALKERMES PLC
      77,398  
shares
    1,343,629  
     
ALLEGIANT TRAVEL CO
      91,351  
shares
    4,872,662  
     
ALLERGAN INC
      108,495  
shares
    9,519,351  
     
ALLIANCE DATA SYS CORP
      112,500  
shares
    11,682,000  
     
ALLIED WRLD ASSURNCE HLDG
      16,060  
shares
    1,010,656  
     
ALLSCRIPTS HLTHCARE SOLS
      55,102  
shares
    1,043,632  
     
ALLSTATE CORPORATION
      162,000  
shares
    4,440,420  
     
ALSTRIA OFFICE REIT-AG
      30,329  
shares
    361,015  
     
ALTERA CORP
      90,819  
shares
    3,369,385  
     
ALTERRA CAPITAL HLDGS LTD
      157,000  
shares
    3,709,910  
     
ALTRIA GROUP INC
      36,563  
shares
    1,084,093  
     
AMADA CO LTD
      8,000  
shares
    50,724  
     
AMADEUS IT HLDGS SA CL A
      32,138  
shares
    521,449  
     
AMAZON.COM INC
      135,822  
shares
    23,510,788  
     
AMC NETWORKS INC CL A
      53,750  
shares
    2,019,925  
     
AMDOCS LTD
      215,000  
shares
    6,133,950  
     
AMERICAN ELECTRIC POWER C
      172,645  
shares
    7,131,965  
     
AMERICAN EXPRESS CO
      491,053  
shares
    23,162,970  
     
AMERICAN TOWER CL A (OLD)
      182,745  
shares
    10,966,527  
     
AMERIPRISE FINANCIAL INC
      155,142  
shares
    7,701,249  
     
AMETEK INC NEW
      17,612  
shares
    741,465  
     
AMGEN INC
      394,830  
shares
    25,352,034  
     
AMOREPACIFIC NEW
      208  
shares
    188,302  
     
AMPHENOL CORPORATION CL A
      16,369  
shares
    742,989  
     
AMYLIN PHARMACEUTICALS
      89,703  
shares
    1,020,820  
     
ANADARKO PETROLEUM CORP
      210,781  
shares
    16,088,914  
     
ANHEUSER BUSCH IV SA NV S
      68,230  
shares
    4,161,348  
     
ANIXTER INTL INC
      52,366  
shares
    3,123,108  
     
ANSYS INC
      44,047  
shares
    2,523,012  
 
 
27

 
 
 
Hewlett-Packard Company 401(k) Plan
 
EIN: 94-1081436 PN: 004
 
Schedule H, Line 4i – Schedule of Assets (Held At End of Year) (continued)
 
December 31, 2011
                             
             
(c)
       
             
Description of Investment,
       
      (b)      
Including Maturity Date,
 
(e)
     
Identity of  Issue, Borrower,
     
Rate of Interest, Collateral,
 
Current
(a)
 
Lessor, or Similar Party
     
Par, or Maturity Value
 
Value
 
Common stock (continued)
                   
     
ANTOFAGASTA PLC
      53,734  
shares
  $ 1,014,002  
     
AOL INC
      75,000  
shares
    1,132,500  
     
AON CORP
      113,868  
shares
    5,329,022  
     
APACHE CORP
      24,501  
shares
    2,219,301  
     
APARTMENT INV & MGMT CO A
      80,409  
shares
    1,842,170  
     
APPLE INC
      151,887  
shares
    61,514,235  
     
APPLIED INDU TECH INC
      69,200  
shares
    2,433,764  
     
APTARGROUP INC
      38,948  
shares
    2,031,917  
     
ARDEA BIOSCIENCES INC
      19,640  
shares
    330,148  
     
ARKEMA
      21,457  
shares
    1,519,235