q3ex99-2_082012.htm

EXHIBIT 99.2

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)

		Three months ended
		July 31, 2012			April 30, 2012			July 31, 2011

Net revenue		$	29,669		$	30,693		$	31,189

Costs and expenses:(a)
Cost of sales			22,820			23,541			23,901
Research and development			854			850			812
Selling, general and administrative			3,366			3,540			3,430
Amortization of purchased intangible assets			476			470			358
Impairment of goodwill and purchased intangible assets			9,188			-			-
Restructuring charges			1,795			53			150
Acquisition-related charges			3			17			18
Total costs and expenses			38,502			28,471			28,669

(Loss) earnings from operations			(8,833	)		2,222			2,520

Interest and other, net			(224	)		(243	)		(121	)

(Loss) earnings before taxes			(9,057	)		1,979			2,399

(Benefit) provision for taxes			(200	)		386			473

Net (loss) earnings		$	(8,857	)	$	1,593		$	1,926

Net (loss) earnings per share:
Basic		$	(4.49	)	$	0.80		$	0.94
Diluted		$	(4.49	)	$	0.80		$	0.93

Cash dividends declared per share		$	0.26		$	-		$	0.24

Weighted-average shares used to compute net (loss) earnings per share:
Basic			1,971			1,979			2,054
Diluted			1,971			1,987			2,080

(a)	In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)

	Nine months ended
	July 31,
	2012			2011

Net revenue	$	90,398		$	95,123

Costs and expenses:(a)
Cost of sales		69,674			72,114
Research and development		2,490			2,425
Selling, general and administrative		10,273			9,972
Amortization of purchased intangible assets		1,412			1,196
Impairment of goodwill and purchased intangible assets		9,188			-
Restructuring charges		1,888			466
Acquisition-related charges		42			68
Total costs and expenses		94,967			86,241

(Loss) earnings from operations		(4,569	)		8,882

Interest and other, net		(688	)		(294	)

(Loss) earnings before taxes		(5,257	)		8,588

Provision for taxes		539			1,753

Net (loss) earnings	$	(5,796	)	$	6,835

Net (loss) earnings per share:
Basic	$	(2.93	)	$	3.21
Diluted	$	(2.93	)	$	3.16

Cash dividends declared per share	$	0.50		$	0.40

Weighted-average shares used to compute net (loss) earnings per share:
Basic		1,977			2,129
Diluted		1,977			2,161

(a)

In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)


	July 31, 2012		October 31, 2011
	(unaudited)

ASSETS

Current assets:
Cash and cash equivalents	$	9,509	$	8,043
Accounts receivable		15,686		18,224
Financing receivables		3,116		3,162
Inventory		7,292		7,490
Other current assets		14,634		14,102

Total current assets		50,237		51,021

Property, plant and equipment		12,069		12,292

Long-term financing receivables and other assets		10,479		10,755

Goodwill and purchased intangible assets		44,771		55,449

Total assets	$	117,556	$	129,517


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Notes payable and short-term borrowings	$	5,681	$	8,083
Accounts payable		12,554		14,750
Employee compensation and benefits		3,701		3,999
Taxes on earnings		712		1,048
Deferred revenue		7,598		7,449
Other accrued liabilities		14,673		15,113

Total current liabilities		44,919		50,442

Long-term debt		24,063		22,551

Other liabilities		16,564		17,520

Stockholders' equity:
HP stockholders' equity		31,601		38,625
Non-controlling interests		409		379

Total stockholders' equity		32,010		39,004

Total liabilities and stockholders' equity	$	117,556	$	129,517

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

		Three months ended
		July 31, 2012			April 30, 2012			July 31, 2011

Net revenue:(a)

	Personal Systems Group	$	8,620		$	9,452		$	9,592
	Services		8,754			8,831			9,030
	Imaging and Printing Group		6,017			6,132			6,183
	Enterprise Servers, Storage and Networking		5,143			5,211			5,348
	Software		973			970			822
	HP Financial Services		935			968			932
	Corporate Investments		19			18			235
	Total segments		30,461			31,582			32,142
	Eliminations of intersegment net revenue and other	(792		)		(889	)		(953	)

	Total HP consolidated net revenue	$	29,669		$	30,693		$	31,189

Earnings before taxes:(a)

	Personal Systems Group	$	409		$	524		$	567
	Services		959			997			1,240
	Imaging and Printing Group		949			808			879
	Enterprise Servers, Storage and Networking		562			585			690
	Software		175			172			160
	HP Financial Services		97			96			88
	Corporate Investments		(58	)		(49	)		(334	)
	Total segment earnings from operations		3,093			3,133			3,290

	Corporate and unallocated costs and eliminations		(314	)		(203	)		(114	)
	Unallocated costs related to stock-based compensation expense	(150		)		(168	)		(130	)
	Amortization of purchased intangible assets		(476	)		(470	)		(358	)
	Impairment of goodwill and purchased intangible assets	(9,188		)		-			-
	Restructuring charges		(1,795	)		(53	)		(150	)
	Acquisition-related charges		(3	)		(17	)		(18	)
	Interest and other, net		(224	)		(243	)		(121	)

	Total HP consolidated (loss) earnings before taxes	$	(9,057	)	$	1,979		$	2,399

(a)	Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Imaging and Printing Group, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to the Imaging and Printing Group, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems Group and HP Financial Services segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

		Nine months ended
		July 31,
		2012			2011

Net revenue:(a)

	Personal Systems Group	$	26,945		$	29,456
	Services		26,211			26,475
	Imaging and Printing Group		18,407			19,757
	Enterprise Servers, Storage and Networking		15,372			16,463
	Software		2,889			2,344
	HP Financial Services		2,853			2,644
	Corporate Investments		95			339
	Total Segments		92,772			97,478
	Eliminations of intersegment net revenue and other		(2,374	)		(2,355	)

	Total HP consolidated net revenue	$	90,398		$	95,123

Earnings before taxes:(a)

	Personal Systems Group	$	1,397		$	1,772
	Services		2,861			3,993
	Imaging and Printing Group		2,518			3,134
	Enterprise Servers, Storage and Networking		1,709			2,280
	Software		509			438
	HP Financial Services		284			250
	Corporate Investments		(155	)		(711	)
	Total segment earnings from operations		9,123			11,156

	Corporate and unallocated costs and eliminations		(670	)		(118	)
	Unallocated costs related to stock-based compensation expense		(492	)		(426	)
	Amortization of purchased intangible assets		(1,412	)		(1,196	)
	Impairment of goodwill and purchased intangible assets		(9,188	)		-
	Restructuring charges		(1,888	)		(466	)
	Acquisition-related charges		(42	)		(68	)
	Interest and other, net		(688	)		(294	)

	Total HP consolidated (loss) earnings before taxes	$	(5,257	)	$	8,588

(a)	Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Imaging and Printing Group, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to the Imaging and Printing Group, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems Group and HP Financial Services segments.