8-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

February 14, 2006
Date of Report (Date of Earliest Event Reported)

HEWLETT-PACKARD COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE	1-4423	94-1081436
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
3000 HANOVER STREET, PALO ALTO, CA		94304
(Address of principal executive offices)		(Zip code)
(650) 857-1501
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Exhibit 99.1     Earnings Press Release and Furnished Financial Tables

Exhibit 99.2     Filed GAAP Quarterly Financial Statements

Exhibit 99.3     Filed Revised 2004 and 2005 Financial Statements

Exhibit 99.4     Furnished Revised 2004 and 2005 Supplemental Financial Information

Item 2.02

Results of Operations and Financial Condition

On February 15, 2006, Hewlett-Packard Company (“HP”) issued a press release relating to its fiscal quarter ended January 31, 2006, entitled “HP Reports First Quarter 2006 Results.” The text of this press release, along with the non-GAAP consolidated condensed statements of earnings, the GAAP consolidated condensed statements of cash flows and certain additional financial information are furnished herewith as Exhibit 99.1. The information in Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”). In connection with its press release announcing its earnings for its fiscal quarter ended January 31, 2006, HP also provided the GAAP consolidated condensed statements of earnings, consolidated condensed balance sheets and segment information for the fiscal quarter ended January 31, 2006 filed herewith as Exhibit 99.2. Exhibit 99.2 is filed for purposes of Section 18 of the Exchange Act and therefore may be incorporated by reference into filings under the Securities Act.  To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides certain non-GAAP financial measures. Each of these non-GAAP measures is among the primary indicators management uses as a basis for planning and forecasting future periods. We believe that these non-GAAP measures provide both management and investors with a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of HP’s financial performance, liquidity and prospects for the future. This non-GAAP information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Additional information about HP’s use of non-GAAP financial information is included in Exhibit 99.1. At the beginning of each fiscal year, HP conducts a review of its financial reporting structure and determines whether changes should be made to more closely align its financial reporting with its business structure.  As a result of HP’s fiscal 2006 review, HP is releasing today modified quarterly and year-to-date consolidated condensed statements of earnings and segment results for fiscal 2004 and 2005, which are attached hereto as Exhibit 99.3.  The new information set forth in the modified financial statements reflects primarily the impact of certain fiscal 2006 organizational realignments. To provide improved visibility and comparability, HP has reflected these realignments in prior periods on an as-if basis.  The changes are immaterial in size and reflect primarily revenue shifts among business units within the same business segment. At the segment level, only HP’s Enterprise Storage and Servers and Software segments were impacted by these realignments, with quarterly revenue and operating profit fluctuations of no more than $5 million. None of the changes reflected in these modified financial statements impacts HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. Exhibit 99.3 is filed for purposes of Section 18 of the Exchange Act and therefore may be incorporated by reference into filings under the Securities Act.  In connection with HP’s release of its modified quarterly and year-to-date consolidated condensed statements of earnings and segment results for fiscal 2004 and 2005, HP is also providing revised business unit revenue for fiscal 2004 and 2005 along with supplemental financial tables illustrating the impact by segment and business unit of the fiscal 2006 organizational realignments. This information is furnished herewith as Exhibit 99.4 and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference into any filing under the Securities Act.

Item 8.01	Other Events
	On February 14, 2006, the board of directors of HP authorized an additional $4.0 billion for future repurchases of its outstanding shares of common stock. HP intends to repurchase its shares in order to offset dilution from the issuance of shares under employee benefit plans, as well as to repurchase shares opportunistically. During its fiscal quarter ended January 31, 2006, HP repurchased approximately $1.4 billion worth of its shares and entered into a $1.7 billion prepaid variable share repurchase program. As of January 31, 2006, HP had approximately $258 million of repurchase authorization remaining under the $4.0 billion repurchase authorization approved in August 2005.
Item 9.01	Financial Statements and Exhibits
Exhibit 99.1	Text of HP’s press release relating to its fiscal quarter ended January 31, 2006, entitled “HP Reports First Quarter 2006 Results,” along with HP’s non-GAAP consolidated condensed statements of earnings, GAAP consolidated condensed statements of cash flows and certain additional financial information for that fiscal quarter (furnished herewith)
Exhibit 99.2	HP’s GAAP consolidated condensed statements of earnings, consolidated condensed balance sheets and segment information for the fiscal quarter ended January 31, 2006 (filed herewith)
Exhibit 99.3	HP’s revised consolidated condensed statements of earnings and segment results for fiscal 2004 and 2005 (filed herewith)
Exhibit 99.4	HP’s revised business unit revenue for fiscal 2004 and 2005 and certain supplemental financial tables (furnished herewith)

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HEWLETT-PACKARD COMPANY
DATE: February 15, 2006	By:	/s/  Charles N. Charnas
	Name:	Charles N. Charnas
	Title:	Vice President, Deputy General Counsel     and Assistant Secretary

EXHIBIT INDEX

Exhibit Number	Description
99.1	Text of HP’s press release relating to its fiscal quarter ended January 31, 2006, entitled “HP Reports First Quarter 2006 Results,” along with HP’s non-GAAP consolidated condensed statements of earnings, GAAP consolidated condensed statements of cash flows and certain additional financial information for that fiscal quarter (furnished herewith)
99.2	HP’s GAAP consolidated condensed statements of earnings, consolidated condensed balance sheets and segment information for the fiscal quarter ended January 31, 2006 (filed herewith)
99.3	HP’s revised consolidated condensed statements of earnings and segment results for fiscal 2004 and 2005 (filed herewith)
99.4	HP’s revised business unit revenue for fiscal 2004 and 2005 and certain supplemental financial tables (furnished herewith)

EX-99.1

	News release
	HP Reports First Quarter 2006 Results
Editorial Contacts: Robert Sherbin, HP +1 650 857 2381 robert.sherbin@hp.com Ryan J. Donovan, HP +1 650 857 8410 ryan.j.donovan@hp.com	• •	Net revenue of $22.7 billion, up 6% year-over-year, or 8% in constant currency Non-GAAP operating profit of $1.7 billion, $0.48 earnings per share
HP Media Hotline +1 866 266 7272 pr@hp.com www.hp.com/go/newsroom	•	GAAP operating profit of $1.5 billion, $0.42 earnings per share
Hewlett-Packard Company 3000 Hanover Street Palo Alto, CA 94304 www.hp.com	•	Cash flow from operations of $1.8 billion

PALO ALTO, Calif., Feb. 15, 2006 – HP today reported financial results for its first fiscal quarter ended Jan. 31, 2006, with net revenue of $22.7 billion, an increase of 6% year-over-year, or 8% in constant currency. Non-GAAP operating profit⁽¹⁾ was $1.7 billion, with non-GAAP diluted earnings per share (EPS)⁽¹⁾ of $0.48 (includes stock based compensation expense), up from $0.37 in the prior-year period. Non-GAAP financial information for the first quarter excludes $166 million of adjustments on an after-tax basis, or $0.06 per diluted share, related primarily to amortization of purchased intangibles, and in process research and development-related costs. GAAP operating profit was $1.5 billion and GAAP diluted EPS was $0.42 per share, up from $0.32 in the prior-year period.

“We are continuing to deliver on our plan to strengthen HP and better serve our customers,” said Mark Hurd, HP chief executive officer and president. “Growth was balanced across most of our businesses and geographies, cash flow was strong, and we were disciplined in controlling costs. While hard work remains ahead of us, our efforts are starting to show results.”

	Q1 FY06	Q1 FY05	Y/Y
Net revenue ($B)	$22.7	$21.5	6%
Non-GAAP operating margin (1)	7.5%	6.2%
GAAP operating margin	6.6%	5.4%
Non-GAAP net income (1) ($B)	$1.4	$1.1	29%
GAAP net income (1) ($B)	$1.2	$0.9	30%
Non-GAAP diluted EPS (1)	$0.48	$0.37	30%
GAAP diluted EPS	$0.42	$0.32	31%

During the quarter, on a year-over-year basis, revenue in the Americas grew 10% to $9.7 billion, Europe, the Middle East and Africa grew 1% to $9.4 billion, and Asia Pacific grew 6% to $3.5 billion.

Personal Systems Group

Personal Systems Group (PSG) revenue grew 8% year-over-year to $7.4 billion, with unit shipments up 16%. On a year-over-year basis, desktop revenue increased 1% and notebook revenue grew 26%. Commercial PC revenue grew 6% year-over-year, while Consumer PC revenue increased 18%. PSG reported an operating profit of $293 million, or 3.9% of revenue, up from a profit of $147 million, or 2.1% of revenue, in the prior-year period.

Imaging and Printing Group

Imaging and Printing Group (IPG) posted quarterly revenue of $6.5 billion, up 8% year-over-year. On a year-over-year basis, consumer hardware revenue increased 1%, led by All-in-One unit growth of 20%. Commercial hardware revenue grew 6%, with unit shipments of color laser printers up 36% and printer-based MFP shipments up 40%. Supplies revenue grew 11%. Operating profit was $973 million, or 14.9% of revenue, up from a profit of $932 million, or 15.4% of revenue, in the prior-year period.

Enterprise Storage and Servers

Enterprise Storage and Servers (ESS) reported revenue of $4.2 billion, up 5% over the prior-year period. On a year-over-year basis, industry-standard server revenue increased 6%, networked storage revenue grew 4% and business-critical systems revenue grew 1%. ESS reported an operating profit of $326 million, or 7.7% of revenue, up from a profit of $69 million, or 1.7% of revenue, in the prior-year period.

HP Services

HP Services (HPS) revenue declined 2% year-over-year to $3.8 billion. On a year-over-year basis, Technology Services revenue declined 2%, while Managed Services and Consulting and Integration declined 1% each. Excluding the effects of currency, HPS revenue grew 3% year-over-year. Operating profit was $293 million, or 7.8% of revenue, up from a profit of $281 million, or 7.4% of revenue, in the prior-year period.

Software

Software reported quarterly revenue of $304 million, an increase of 29% year-over-year, with revenue in HP OpenView and HP OpenCall increasing 34% and 19%, respectively. During the quarter, HP closed the acquisition of Peregrine Systems, Inc., which adds key asset and service management components to the HP OpenView portfolio. Software reported an operating profit of $9 million, or 3.0% of revenue, compared with a loss of $38 million in the prior-year period.

Financial Services

HP Financial Services (HPFS) reported revenue of $496 million, a decrease of 11% year-over-year. Finance volume and net portfolio assets declined 10% and 2% respectively. Operating profit was $38 million, or 7.7% of revenue, down from a profit of $45 million, or 8.1% of revenue, in the prior-year period.

Asset management

Inventory ended the quarter at $6.7 billion, down $146 million sequentially and down $389 million year-over-year. Accounts receivable decreased $1.2 billion sequentially and increased $14 million over the prior-year period to $8.7 billion. HP’s dividend payment of $0.08 per share in the first quarter resulted in cash usage of $227 million. HP utilized $1.4 billion of cash during the first quarter to repurchase stock. During the quarter, HP entered into a $1.7 billion prepaid forward variable share repurchase program with a third-party investment bank to limit HP’s exposure to share price volatility for repurchases made under the program during an approximate one-year period. In addition, the board of directors of HP has authorized an additional $4 billion for future repurchases of its outstanding shares of common stock. The company intends to offset dilution from the issuance of shares under employee benefit plans, as well as to use the authorization to repurchase shares opportunistically. HP exited the quarter with $12.0 billion in gross cash,⁽²⁾ which includes cash and cash equivalents of $11.9 billion and short- and certain long-term investments of $30 million.

Outlook

HP estimates Q2 FY06 revenue will be in the range of $22.4 billion to $22.6 billion, with non-GAAP diluted earnings per share expected to be in the range of $0.47 to $0.49.

On a GAAP basis, Q2 FY06 diluted earnings per share is expected to be in the range of $0.43 to $0.45.

Non-GAAP diluted earnings per share estimates exclude after-tax costs of approximately $0.04 per share, related primarily to the amortization of purchased intangible assets. Second quarter non-GAAP and GAAP diluted earnings per share include $0.03-$0.04 of stock-based compensation expense.

HP estimates full year FY06 revenue will be in the range of $90.0 billion to $91.0 billion, with full year non-GAAP diluted earnings per share expected to be in the range of $1.90 to $1.95.

On a GAAP basis, full year FY06 GAAP diluted earnings per share is expected to be in the range of $1.72 to $1.77.

Full year FY06 non-GAAP diluted earnings per share estimates exclude after-tax costs of approximately $0.18 per share, related primarily to the amortization of purchased intangible assets. Full year FY06 non-GAAP and GAAP diluted earnings per share includes $0.13 of stock-based compensation expense.

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

HP’s Q1 FY06 earnings conference call is accessible via an audio webcast at www.hp.com/hpinfo/investor/financials/quarters/2006/q1webcast.html.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

(1) Non-GAAP operating profit, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share are defined to exclude the effects of restructuring charges, charges relating to the amortization of intangible assets, in-process research and development charges and gains or losses on investments.  A reconciliation of adjustments to GAAP results for this quarter and prior periods is included in the attached tables.  A description of HP’s use of non-GAAP information is provided under “Use of Non-GAAP Financial Information.”

(2) Gross cash is a non-GAAP measure that is defined as GAAP cash and cash equivalents plus GAAP short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights.  As of January 31, 2006 cash and cash equivalents amounted to $11.9 billion and short-term and long-term investments included in gross cash amounted to $12 million and $18 million, respectively.

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 income, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share.

HP’s management uses non-GAAP operating profit, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share to evaluate and forecast HP’s baseline performance before gains, losses or other charges that are considered by management to be outside of HP’s core business segment operating results. Gross cash is considered to be a liquidity measure and provides useful information to management about the amount of cash available for investment in HP’s businesses, funding strategic acquisitions, repurchasing stock and other purposes. Each of these non-GAAP measures is among the primary indicators management uses as a basis for planning and forecasting future periods. We believe that these non-GAAP measures provide both management and investors with a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of HP’s financial performance, liquidity and prospects for the future.

This additional non-GAAP information is not meant to be considered in isolation or as a substitute for operating margin, net income, diluted earnings per share or cash and cash equivalents prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached tables. In addition, there may be limitations associated with the use of these non-GAAP financial measures. For example, items such as restructuring charges that are excluded from non-GAAP operating profit, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share can have a material impact on cash flows. In addition, there may be restrictions on our ability to liquidate the long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure. These effects are reflected in our GAAP financial statements, including our consolidated statements of cash flows. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies.

Forward-Looking Statements

This press 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, charges, earnings or other financial items; any statements of the plans, strategies, and objectives of management for future operations, including execution of any restructuring plans; any statements concerning the expected development, performance or market share relating to products or services; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; execution and performance of contracts by suppliers, customers and partners; employee management issues; the challenge of managing asset levels, including inventory; the difficulty of aligning expense levels with revenue changes; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of workforce restructuring programs; and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2005 and other reports filed after that report. As in prior quarters, the financial information set forth in this release, including tax-related items, are 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 Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2006. In particular, determining HP’s actual tax balances and provisions as of January 31, 2006 and for the fiscal quarter then ended 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
NON-GAAP CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
Excluding adjustments itemized below
(Unaudited)
(In millions except per share amounts)

	Three months ended
	January 31, 2006			October 31, 2005			January 31, 2005
Net revenue	$	22,659		$	22,913		$	21,454
Costs and expenses (a):
Cost of sales		17,392			17,532			16,537
Research and development		871			859			878
Selling, general and administrative		2,692			2,786			2,704
Total costs and expenses		20,955			21,177			20,119
Non-GAAP earnings from operations		1,704			1,736			1,335
Interest and other, net		38			132			25
Dispute settlement		--			3			(116	)
Non-GAAP earnings before taxes		1,742			1,871			1,244
Provision for taxes (b)		349			375			166
Non-GAAP net earnings	$	1,393		$	1,496		$	1,078
Non-GAAP net earnings per share:
Basic	$	0.49		$	0.52		$	0.37
Diluted	$	0.48		$	0.51		$	0.37
Weighted-average shares used to compute non-GAAP net earnings per share:
Basic		2,822			2,850			2,908
Diluted		2,893			2,915			2,936
(a) Stock-based compensation expense included under SFAS 123(R) were as follows:
Cost of sales	$	39		$	--		$	--
Research and development		18			--			--
Selling, general and administrative		87			--			--
Total costs and expenses	$	144		$	--		$	--
(b) Tax benefit from stock-based compensation	$	(43	)	$	--		$	--
An itemized reconciliation between net earnings on a GAAP basis and non-GAAP basis is as follows:
GAAP net earnings	$	1,227		$	416		$	943
Pension curtailment gain		--			(199	)		--
Restructuring charges		15			1,565			3
Amortization of purchased intangible assets		147			136			167
In-process research and development charges		50			2			--
Total non-GAAP adjustments to earnings from operations		212			1,504			170
Losses (gains) on investments		2			(14	)		24
Income tax effect of reconciling items		(48	)		(410	)		(59	)
Non-GAAP net earnings	$	1,393		$	1,496		$	1,078

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

	Three months ended
	January 31, 2006			January 31, 2005 (a)
Cash flows from operating activities:
Net earnings	$	1,227		$	943
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization		563			612
Stock-based compensation due to the implementation of SFAS 123(R)		144			13
Provision for bad debt and inventory		102			89
Losses on investments		2			24
In-process research and development charges		50			--
Restructuring charges		15			3
Deferred taxes on earnings		55			230
Excess tax benefit from stock-based compensation		(65	)		--
Other, net		77			(2	)
Changes in assets and liabilities:
Accounts and financing receivables		1,193			1,598
Inventory		89			(154	)
Accounts payable		(1,291	)		(1,143	)
Taxes on earnings		(72	)		(281	)
Restructuring		(162	)		(59	)
Other assets and liabilities		(81)			(315	)
Net cash provided by operating activities		1,846			1,558
Cash flows from investing activities:
Investment in property, plant and equipment, net		(427	)		(575	)
Proceeds from sale of property, plant and equipment		105			156
Purchases of available-for-sale securities & other investments		(13	)		(1,678	)
Maturities and sales of available-for-sale securities & other investments		21			1,693
Net cash paid for business acquisitions, net of acquisition costs		(653	)		(7	)
Net cash used in investing activities		(967	)		(411	)
Cash flows from financing activities:
(Decrease) increase in notes payable and short-term borrowings, net		(68	)		111
Issuance of debt		81			--
Payment of debt		(231	)		(11	)
Issuance of common stock under employee plans		647			262
Excess tax benefit from stock-based compensation		65			--
Repurchase of common stock		(1,401	)		(637	)
Prepayment of common stock repurchases		(1,722	)		--
Dividends		(227	)		(233	)
Net cash used in financing activities		(2,856	)		(508	)
(Decrease) increase in cash and cash equivalents		(1,977	)		639
Cash and cash equivalents at beginning of period		13,911			12,663
Cash and cash equivalents at end of period	$	11,934		$	13,302

(a) Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.

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

	Three months ended
	January 31, 2006			October 31, 2005 (a)			January 31, 2005 (a)
Net revenue:
Industry Standard Servers	$	2,482		$	2,506		$	2,332
Business Critical Systems		906			1,037			899
Storage		852			932			820
Other		--			1			--
Enterprise Storage and Servers		4,240			4,476			4,051
Technology Services		2,346			2,418			2,389
Managed Services		746			753			754
Consulting & Integration		665			729			672
Other		--			--			--
HP Services		3,757			3,900			3,815
OpenView		205			196			153
OpenCall & Other		99			110			83
Software		304			306			236
Technology Solutions Group		8,301			8,682			8,102
Desktops		3,854			3,686			3,818
Notebooks		2,954			2,795			2,338
Workstations		329			329			269
Handhelds		216			186			290
Other		96			117			158
Personal Systems Group		7,449			7,113			6,873
Commercial Hardware		1,655			1,732			1,566
Consumer Hardware		1,223			1,267			1,205
Supplies		3,652			3,771			3,281
Other		15			15			15
Imaging and Printing Group		6,545			6,785			6,067
HP Financial Services		496			514			555
Corporate Investments		129			142			115
Total Segments		22,920			23,236			21,712
Eliminations of intersegment net revenue and other		(261	)		(323	)		(258	)
Total HP Consolidated	$	22,659		$	22,913		$	21,454

(a) Reflects certain fiscal 2006 organizational realignments retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2005, the realignments resulted primarily in revenue movement of $5 million or less between ESS and SW segments within TSG. In addition, IPG and PSG revenue was impacted at the business unit level but the overall segment revenue remained as previously reported. There was no impact to the remaining segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
COMPARISON OF DILUTED NON-GAAP EPS
(Including the Effect of Stock-Based Compensation Expenses)
(Unaudited)

	Q105			Q205			Q305			Q405 (3)			FY05 (3)			Q106
Non-GAAP EPS as reported(1)	$	0.37		$	0.37		$	0.36		$	0.51		$	1.62		$	0.48
Pro forma effect of SFAS 123 on EPS(2)		(0.05	)		(0.04	)		(0.04	)		(0.04	)		(0.16	)		--
Total diluted non-GAAP EPS including the
effect of stock-based compensation
expense for all periods	$	0.32		$	0.33		$	0.32		$	0.47		$	1.46		$	0.48

(1) For each of the quarters in fiscal 2005, non-GAAP EPS includes the effect of compensation expense related to discounted options and restricted stock recognized under APB 25. Fiscal 2006 EPS includes the aforementioned expense plus the impact for stock-based compensation recognized under SFAS 123(R).

(2) For each of the quarters in fiscal 2005, non-GAAP EPS as reported excludes the effect of compensation expense related to employee stock options and employee stock purchase rights recognized under SFAS 123.

(3) In Q405, HP recorded $107 million before tax expense or $0.03 cents per share on an after tax basis within restructuring charges. This amount is excluded from the non-GAAP results shown above.

EX-99.2

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

	Three months ended
	January 31, 2006			October 31, 2005			January 31, 2005
Net revenue	$	22,659		$	22,913		$	21,454
Costs and expenses (a):
Cost of sales		17,392			17,532			16,537
Research and development		871			859			878
Selling, general and administrative		2,692			2,786			2,704
Pension curtailment gain		--			(199	)		--
Restructuring charges		15			1,565			3
Amortization of purchased intangible assets		147			136			167
In-process research and development charges		50			2			--
Total costs and expenses		21,167			22,681			20,289
Earnings from operations		1,492			232			1,165
Interest and other, net		38			132			25
(Losses) gains on investments		(2	)		14			(24	)
Dispute settlement		--			3			(116	)
Earnings before taxes		1,528			381			1,050
Provision for (benefit from) taxes (b)		301			(35	)		107
Net earnings	$	1,227		$	416		$	943
Net earnings per share:
Basic	$	0.43		$	0.15		$	0.32
Diluted	$	0.42		$	0.14		$	0.32
Cash dividends declared per share	$	0.08		$	--		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		2,822			2,850			2,908
Diluted		2,893			2,908			2,936
(a) Stock-based compensation expense included under SFAS 123(R) were as follows:
Cost of sales	$	39		$	--		$	--
Research and development		18			--			--
Selling, general and administrative		87			--			--
Total costs and expenses	$	144		$	--		$	--
(b) Tax benefit from stock-based compensation	$	(43	)	$	--		$	--

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

	January 31, 2006		October 31, 2005
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,934	$	13,911
Short-term investments		12		18
Accounts receivable, net		8,679		9,903
Financing receivables, net		2,542		2,551
Inventory		6,731		6,877
Other current assets		9,280		10,074
Total current assets		39,178		43,334
Property, plant and equipment, net		6,346		6,451
Long-term financing receivables and other assets		8,316		7,502
Goodwill and purchased intangibles, net		20,573		20,030
Total assets	$	74,413	$	77,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	2,632	$	1,831
Accounts payable		8,932		10,223
Employee compensation and benefits		1,923		2,343
Taxes on earnings		2,273		2,367
Deferred revenue		3,824		3,815
Accrued restructuring		989		1,119
Other accrued liabilities		10,104		9,762
Total current liabilities		30,677		31,460
Long-term debt		2,416		3,392
Other liabilities		5,514		5,289
Stockholders' equity		35,806		37,176
Total liabilities and stockholders' equity	$	74,413	$	77,317

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

	Three months ended
	January 31, 2006			October 31, 2005 (a)			January 31, 2005 (a)
Net revenue:
Enterprise Storage and Servers	$	4,240		$	4,476		$	4,051
HP Services		3,757			3,900			3,815
Software		304			306			236
Technology Solutions Group		8,301			8,682			8,102
Personal Systems Group		7,449			7,113			6,873
Imaging and Printing Group		6,545			6,785			6,067
HP Financial Services		496			514			555
Corporate Investments		129			142			115
Total Segments		22,920			23,236			21,712
Eliminations of intersegment net revenue and other		(261	)		(323	)		(258	)
Total HP Consolidated	$	22,659		$	22,913		$	21,454
Earnings from operations:
Enterprise Storage and Servers	$	326		$	404		$	69
HP Services		293			322			281
Software		9			28			(38	)
Technology Solutions Group		628			754			312
Personal Systems Group		293			200			147
Imaging and Printing Group		973			896			932
HP Financial Services		38			52			45
Corporate Investments		(33	)		(35	)		(51	)
Total Segments		1,899			1,867			1,385
Corporate and unallocated costs and eliminations,
excluding stock-based compensation expense		(72	)		(131	)		(50	)
Unallocated costs related to stock-based compensation expense		(123	)		--			--
Pension curtailment gain		--			199			--
Restructuring charges		(15	)		(1,565	)		(3	)
In-process research and development charges		(50	)		(2	)		--
Amortization of purchased intangible assets		(147	)		(136	)		(167	)
Interest and other, net		38			132			25
(Losses) gains on investments		(2	)		14			(24	)
Dispute settlement		--			3			(116	)
Total HP Consolidated Earnings Before Taxes	$	1,528		$	381		$	1,050

(a) Reflects certain fiscal 2006 organizational realignments retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2005, the realignments resulted primarily in revenue and operating profit movement of $5 million or less between ESS and SW segments within TSG. There was no impact to the remaining segments.

EX-99.3

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

	Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004			Apr. 30, 2004			Jul. 31, 2004			Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31, 2005			Oct. 31, 2005
Net Revenue	$	19,514		$	20,113		$	18,889		$	21,389		$	79,905		$	21,454		$	21,570		$	20,759		$	22,913		$	86,696
Cost of sales		14,691			15,182			14,545			16,393			60,811			16,537			16,429			15,942			17,532			66,440
Research and development		889			924			877			873			3,563			878			890			863			859			3,490
Selling, general and administrative		2,578			2,665			2,621			2,632			10,496			2,704			2,933			2,761			2,786			11,184
Pension curtailment		--			--			--			--			--			--			--			--			(199	)		(199	)
Restructuring charges		54			38			9			13			114			3			4			112			1,565			1,684
Amortization of purchased intangible assets		144			148			146			165			603			167			151			168			136			622
In-process research and development charges		--			9			28			--			37			--			--			--			2			2
Acquisition-related charges		15			9			6			24			54			--			--			--			--			--
Total costs and expenses		18,371			18,975			18,232			20,100			75,678			20,289			20,407			19,846			22,681			83,223
Earnings from operations		1,143			1,138			657			1,289			4,227			1,165			1,163			913			232			3,473
Operating margin %		5.9	%		5.7	%		3.5	%		6.0	%		5.3	%		5.4	%		5.4	%		4.4	%		1.0	%		4.0	%
Interest and other, net		11			2			20			2			35			25			(87	)		119			132			189
Gains (losses) on investments		9			(5	)		1			(1	)		4			(24	)		3			(6	)		14			(13	)
Dispute settlement		--			(70	)		--			--			(70	)		(116	)		--			7			3			(106	)
Earnings before taxes		1,163			1,065			678			1,290			4,196			1,050			1,079			1,033			381			3,543
Provision for (benefit from) taxes		227			181			92			199			699			107			113			960			(35	)		1,145
Net earnings	$	936		$	884		$	586		$	1,091		$	3,497		$	943		$	966		$	73		$	416		$	2,398
Net earnings per share:
Basic	$	0.31		$	0.29		$	0.19		$	0.37		$	1.16		$	0.32		$	0.33		$	0.03		$	0.15		$	0.83
Diluted	$	0.30		$	0.29		$	0.19		$	0.37		$	1.15		$	0.32		$	0.33		$	0.03		$	0.14		$	0.82

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

	Three months ended																				Twelve months ended			Three months ended																						Twelve months ended
	Jan. 31, 2004					Apr. 30, 2004					Jul. 31, 2004					Oct. 31, 2004					Oct. 31, 2004					Jan. 31, 2005					Apr. 30, 2005					Jul. 31, 2005					Oct. 31, 2005					Oct. 31, 2005
Net revenue: (1)
Enterprise Storage and Servers	$	3,702				$	3,964				$	3,335				$	4,083				$	15,084				$	4,051				$	4,187				$	4,003				$	4,476				$	16,717
HP Services		3,176					3,508					3,483					3,681					13,848					3,815					3,984					3,837					3,900					15,536
Software		201					222					223					277					923					236					274					245					306					1,061
Technology Solutions Group		7,079					7,694					7,041					8,041					29,855					8,102					8,445					8,085					8,682					33,314
Personal Systems Group		6,187					5,991					5,904					6,540					24,622					6,873					6,369					6,386					7,113					26,741
Imaging and Printing Group		5,910					6,098					5,648					6,543					24,199					6,067					6,390					5,913					6,785					25,155
HP Financial Services		441					469					488					497					1,895					555					544					489					514					2,102
Corporate Investments		103					114					113					119					449					115					123					143					142					523
Total segments		19,720					20,366					19,194					21,740					81,020					21,712					21,871					21,016					23,236					87,835
Eliminations of intersegment
net revenue and other		(206	)				(253	)				(305	)				(351	)				(1,115	)				(258	)				(301	)				(257	)				(323	)				(1,139	)
Total HP Consolidated	$	19,514				$	20,113				$	18,889				$	21,389				$	79,905				$	21,454				$	21,570				$	20,759				$	22,913				$	86,696
Earnings from operations: (1)				Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %
Enterprise Storage and Servers	$	152			4.1%	$	118			3.0%	$	(213	)		-6.4%	$	100			2.4%	$	157			1.0%	$	69			1.7%	$	180			4.3%	$	147			3.7%	$	404			9.0%	$	800			4.8%
HP Services		261			8.2%		332			9.5%		314			9.0%		375			10.2%		1,282			9.3%		281			7.4%		292			7.3%		256			6.7%		322			8.3%		1,151			7.4%
Software		(48	)	-	23.9%		(51	)	-	23.0%		(46	)	-	20.6%		(7	)		-2.5%		(152	)	-	16.5%		(38	)	-	16.1%		(2	)		-0.7%		(37	)	-	15.1%		28			9.2%		(49	)		-4.6%
Technology Solutions Group		365			5.2%		399			5.2%		55			0.8%		468			5.8%		1,287			4.3%		312			3.9%		470			5.6%		366			4.5%		754			8.7%		1,902			5.7%
Personal Systems Group		61			1.0%		44			0.7%		23			0.4%		77			1.2%		205			0.8%		147			2.1%		147			2.3%		163			2.6%		200			2.8%		657			2.5%
Imaging and Printing Group		967			16.4%		952			15.6%		836			14.8%		1,088			16.6%		3,843			15.9%		932			15.4%		814			12.7%		771			13.0%		896			13.2%		3,413			13.6%
HP Financial Services		29			6.6%		35			7.5%		42			8.6%		19			3.8%		125			6.6%		45			8.1%		58			10.7%		58			11.9%		52			10.1%		213			10.1%
Corporate Investments		(36	)	-	35.0%		(48	)	-	42.1%		(52	)	-	46.0%		(43	)	-	36.1%		(179	)	-	39.9%		(51	)	-	44.3%		(51	)	-	41.5%		(37	)	-	25.9%		(35	)	-	24.6%		(174	)	-	33.3%
Total segments		1,386			7.0%		1,382			6.8%		904			4.7%		1,609			7.4%		5,281			6.5%		1,385			6.4%		1,438			6.6%		1,321			6.3%		1,867			8.0%		6,011			6.8%
Corporate and unallocated costs,
and eliminations		(30	)				(40	)				(58	)				(118	)				(246	)				(50	)				(120	)				(128	)				(131	)				(429	)
Pension curtailment gain		--					--					--					--					--					--					--					--					199					199
Restructuring charges		(54	)				(38	)				(9	)				(13	)				(114	)				(3	)				(4	)				(112	)				(1,565	)				(1,684	)
In-process research & development     charge		--					(9	)				(28	)				--					(37	)				--					--					--					(2	)				(2	)
Acquisition-related charges		(15	)				(9	)				(6	)				(24	)				(54	)				--					--					--					--					--
Amortization of purchased intangible
assets		(144	)				(148	)				(146	)				(165	)				(603	)				(167	)				(151	)				(168	)				(136	)				(622	)
Interest and other, net		11					2					20					2					35					25					(87	)				119					132					189
(Losses) gains on investments		9					(5	)				1					(1	)				4					(24	)				3					(6	)				14					(13	)
Dispute settlement		--					(70	)				--					--					(70	)				(116	)				--					7					3					(106	)
Total HP Consolidated Earnings
Before Taxes	$	1,163				$	1,065				$	678				$	1,290				$	4,196				$	1,050				$	1,079				$	1,033				$	381				$	3,543

(1)     Reflects certain fiscal 2006 organizational realignments retroactively to provide improved visibility and comparability. For each of the quarters in fiscal years 2004 and 2005, the realignments primarily resulted in revenue and operating profit movement of $5 million or less between ESS and SW segments within TSG. There was no impact to the remaining segments.

EX-99.4

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
GAAP COMPANY SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)

	Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004			Apr. 30, 2004			Jul. 31, 2004			Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31 2005			Oct. 31, 2005
Net revenue: (1)
Industry Standard Servers		1,961			2,110			1,817			2,240			8,128			2,332			2,371			2,320			2,506			9,529
Business Critical Systems		915			972			828			1,044			3,759			899			991			885			1,037			3,812
Storage		827			882			693			799			3,201			820			825			798			932			3,375
Other		(1	)		--			(3	)		--			(4	)		--			--			--			1			1
Enterprise Storage and Servers		3,702			3,964			3,335			4,083			15,084			4,051			4,187			4,003			4,476			16,717
Technology Services		2,090			2,219			2,245			2,332			8,886			2,389			2,464			2,394			2,418			9,665
Managed Services		524			609			620			693			2,446			754			771			753			753			3,031
Consulting & Integration		560			681			615			659			2,515			672			749			690			729			2,840
Other		2			(1	)		3			(3	)		1			--			--			--			--			--
HP Services		3,176			3,508			3,483			3,681			13,848			3,815			3,984			3,837			3,900			15,536
OpenView		133			133			144			170			580			153			182			160			196			691
OpenCall & Other		68			89			79			107			343			83			92			85			110			370
Software		201			222			223			277			923			236			274			245			306			1,061
Technology Solutions Group		7,079			7,694			7,041			8,041			29,855			8,102			8,445			8,085			8,682			33,314
Desktops		3,516			3,468			3,428			3,619			14,031			3,818			3,541			3,361			3,686			14,406
Notebooks		2,142			2,011			2,003			2,267			8,423			2,338			2,212			2,418			2,795			9,763
Workstations		235			262			248			273			1,018			269			306			291			329			1,195
Handhelds		253			191			169			273			886			290			189			171			186			836
Other		41			59			56			108			264			158			121			145			117			541
Personal Systems Group		6,187			5,991			5,904			6,540			24,622			6,873			6,369			6,386			7,113			26,741
Commercial Hardware		1,491			1,526			1,499			1,648			6,164			1,566			1,677			1,583			1,732			6,558
Consumer Hardware		1,361			1,086			919			1,330			4,696			1,205			1,100			925			1,267			4,497
Supplies		3,038			3,462			3,206			3,540			13,246			3,281			3,601			3,392			3,771			14,045
Other		20			24			24			25			93			15			12			13			15			55
Imaging and Printing Group		5,910			6,098			5,648			6,543			24,199			6,067			6,390			5,913			6,785			25,155
HP Financial Services		441			469			488			497			1,895			555			544			489			514			2,102
Corporate Investments		103			114			113			119			449			115			123			143			142			523
Total segments		19,720			20,366			19,194			21,740			81,020			21,712			21,871			21,016			23,236			87,835
Eliminations of intersegment
net revenue and other		(206	)		(253	)		(305	)		(351	)		(1,115	)		(258	)		(301	)		(257	)		(323	)		(1,139	)
Total HP Consolidated net revenue	$	19,514		$	20,113		$	18,889		$	21,389		$	79,905		$	21,454		$	21,570		$	20,759		$	22,913		$	86,696

1)     Reflects certain fiscal 2006 organizational realignments retroactively to provide improved visibility and comparability. For each of the quarters in fiscal years 2004 and 2005, the realignments primarily resulted in revenue movement of $5 million or less between ESS and SW segments within TSG. In addition, IPG and PSG revenue was impacted at the business unit level but the overall segment revenue remained as previously reported. There was no impact to the remaining segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
GAAP CONSOLIDATED CONDENSED STATEMENT OF EARNINGS (Revised)
(Unaudited)
(In millions)

REVISED AMOUNTS	Three months ended										Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004		Apr. 30, 2004			Jul. 31, 2004		Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31 2005			Oct. 31, 2005
Net Revenue	$	19,514	$	20,113		$	18,889	$	21,389		$	79,905		$	21,454		$	21,570		$	20,759		$	22,913		$	86,696
Cost of sales		14,691		15,182			14,545		16,393			60,811			16,537			16,429			15,942			17,532			66,440
Research and development		889		924			877		873			3,563			878			890			863			859			3,490
Selling, general and administrative		2,578		2,665			2,621		2,632			10,496			2,704			2,933			2,761			2,786			11,184
Pension curtailment		--		--			--		--			--			--			--			--			(199	)		(199	)
Restructuring charges		54		38			9		13			114			3			4			112			1,565			1,684
Amortization of purchased intangible
assets		144		148			146		165			603			167			151			168			136			622
In-process research & development charges		--		9			28		--			37			--			--			--			2			2
Acquisition-related charges		15		9			6		24			54			--			--			--			--			--
Total costs and expenses		18,371		18,975			18,232		20,100			75,678			20,289			20,407			19,846			22,681			83,223
Earnings from operations		1,143		1,138			657		1,289			4,227			1,165			1,163			913			232			3,473
Operating margin %		5.9%		5.7%			3.5%		6.0%			5.3%			5.4%			5.4%			4.4%			1.0%			4.0%
Interest and other, net		11		2			20		2			35			25			(87	)		119			132			189
Gains (losses) on investments and other, net		9		(5	)		1		(1	)		4			(24	)		3			(6	)		14			(13	)
Dispute settlement		--		(70	)		--		--			(70	)		(116	)		--			7			3			(106	)
Earnings before taxes		1,163		1,065			678		1,290			4,196			1,050			1,079			1,033			381			3,543
Provision for (benefit from) taxes		227		181			92		199			699			107			113			960			(35	)		1,145
Net earnings	$	936	$	884		$	586	$	1,091		$	3,497		$	943		$	966		$	73		$	416		$	2,398
AMOUNTS AS PREVIOUSLY REPORTED	Three months ended										Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004		Apr. 30, 2004			Jul. 31, 2004		Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31 2005			Oct. 31, 2005
Net Revenue	$	19,514	$	20,113		$	18,889	$	21,389		$	79,905		$	21,454		$	21,570		$	20,759		$	22,913		$	86,696
Cost of sales		14,691		15,182			14,545		16,393			60,811			16,537			16,429			15,942			17,532			66,440
Research and development		889		924			877		873			3,563			878			890			863			859			3,490
Selling, general and administrative		2,578		2,665			2,621		2,632			10,496			2,704			2,933			2,761			2,786			11,184
Pension curtailment		--		--			--		--			--			--			--			--			(199	)		(199	)
Restructuring charges		54		38			9		13			114			3			4			112			1,565			1,684
Amortization of purchased intangible
assets		144		148			146		165			603			167			151			168			136			622
In-process research & development charges		--		9			28		--			37			--			--			--			2			2
Acquisition-related charges		15		9			6		24			54			--			--			--			--			--
Total costs and expenses		18,371		18,975			18,232		20,100			75,678			20,289			20,407			19,846			22,681			83,223
Earnings from operations		1,143		1,138			657		1,289			4,227			1,165			1,163			913			232			3,473
Operating margin %		5.9%		5.7%			3.5%		6.0%			5.3%			5.4%			5.4%			4.4%			1.0%			4.0%
Interest and other, net		11		2			20		2			35			25			(87	)		119			132			189
Gains (losses) on investments and other, net		9		(5	)		1		(1	)		4			(24	)		3			(6	)		14			(13	)
Dispute settlement		--		(70	)		--		--			(70	)		(116	)		--			7			3			(106	)
Earnings before taxes		1,163		1,065			678		1,290			4,196			1,050			1,079			1,033			381			3,543
Provision for (benefit from) taxes		227		181			92		199			699			107			113			960			(35	)		1,145
Net earnings	$	936	$	884		$	586	$	1,091		$	3,497		$	943		$	966		$	73		$	416		$	2,398
VARIANCE	Three months ended										Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004		Apr. 30, 2004			Jul. 31, 2004		Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31 2005			Oct. 31, 2005
Net Revenue	$	--	$	--		$	--	$	--		$	--		$	--		$	--		$	--		$	--		$	--
Cost of sales		--		--			--		--			--			--			--			--			--			--
Research and development		--		--			--		--			--			--			--			--			--			--
Selling, general and administrative		--		--			--		--			--			--			--			--			--			--
Pension curtailment		--		--			--		--			--			--			--			--			--			--
Restructuring charges		--		--			--		--			--			--			--			--			--			--
Amortization of purchased intangible
assets		--		--			--		--			--			--			--			--			--			--
In-process research & development charges		--		--			--		--			--			--			--			--			--			--
Acquisition-related charges		--		--			--		--			--			--			--			--			--			--
Total costs and expenses		--		--			--		--			--			--			--			--			--			--
Earnings from operations		--		--			--		--			--			--			--			--			--			--
Operating margin %		0.0%		0.0%			0.0%		0.0%			0.0%			0.0%			0.0%			0.0%			0.0%			0.0%
Interest and other, net		--		--			--		--			--			--			--			--			--			--
Gains (losses) on investments and other, net		--		--			--		--			--			--			--			--			--			--
Dispute settlement		--		--			--		--			--			--			--			--			--			--
Earnings before taxes		--		--			--		--			--			--			--			--			--			--
Provision for (benefit from) taxes		--		--			--		--			--			--			--			--			--			--
Net earnings	$	--	$	--		$	--	$	--		$	--		$	--		$	--		$	--		$	--		$	--

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

REVISED AMOUNTS
	Three months ended																				Twelve months ended			Three months ended																						Twelve months ended
	Jan. 31, 2004					Apr. 30, 2004					Jul. 31, 2004					Oct. 31, 2004					Oct. 31, 2004					Jan. 31, 2005					Apr. 30, 2005					Jul. 31, 2005					Oct. 31, 2005					Oct. 31, 2005
Net revenue: (1)
Enterprise Storage and Servers	$	3,702				$	3,964				$	3,335				$	4,083				$	15,084				$	4,051				$	4,187				$	4,003				$	4,476				$	16,717
HP Services		3,176					3,508					3,483					3,681					13,896					3,815					3,984					3,837					3,900					15,536
Software		201					222					223					277					923					236					274					245					306					1,061
Technology Solutions Group		7,079					7,694					7,041					8,041					29,855					8,102					8,445					8,085					8,682					33,314
Personal Systems Group		6,187					5,991					5,904					6,540					24,670					6,873					6,369					6,386					7,113					26,741
Imaging and Printing Group		5,910					6,098					5,648					6,543					24,247					6,067					6,390					5,913					6,785					25,155
HP Financial Services		441					469					488					497					1,895					555					544					489					514					2,102
Corporate Investments		103					114					113					119					497					115					123					143					142					523
Total segments		19,720					20,366					19,194					21,740					81,212					21,712					21,871					21,016					23,236					87,835
Eliminations of intersegment
net revenue and other		(206	)				(253	)				(305	)				(351	)				(1,115	)				(258	)				(301	)				(257	)				(323	)				(1,103	)
Total HP Consolidated	$	19,514				$	20,113				$	18,889				$	21,389				$	79,905				$	21,454				$	21,570				$	20,759				$	22,913				$	86,732
Earnings from operations: (1)				Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %
Enterprise Storage and Servers	$	152			4.1%	$	118			3.0%	$	(213	)		-6.4%	$	100			2.4%	$	157			1.0%	$	69			1.7%	$	180			4.3%	$	147			3.7%	$	404			9.0%	$	800			4.8%
HP Services		261			8.2%		332			9.5%		314			9.0%		375			10.2%		1,282			9.3%		281			7.4%		292			7.3%		256			6.7%		322			8.3%		1,151			7.4%
Software		(48	)	-	23.9%		(51	)	-	23.0%		(46	)	-	20.6%		(7	)		-2.5%		(152	)	-	16.5%		(38	)	-	16.1%		(2	)		-0.7%		(37	)	-	15.1%		28			9.2%		(49	)		-4.6%
Technology Solutions Group		365			5.2%		399			5.2%		55			0.8%		468			5.8%		1,287			4.3%		312			3.9%		470			5.6%		366			4.5%		754			8.7%		1,902			5.7%
Personal Systems Group		61			1.0%		44			0.7%		23			0.4%		77			1.2%		205			0.8%		147			2.1%		147			2.3%		163			2.6%		200			2.8%		657			2.5%
Imaging and Printing Group		967			16.4%		952			15.6%		836			14.8%		1,088			16.6%		3,843			15.9%		932			15.4%		814			12.7%		771			13.0%		896			13.2%		3,413			13.6%
HP Financial Services		29			6.6%		35			7.5%		42			8.6%		19			3.8%		125			6.6%		45			8.1%		58			10.7%		58			11.9%		52			10.1%		213			10.1%
Corporate Investments		(36	)	-	35.0%		(48	)	-	42.1%		(52	)	-	46.0%		(43	)	-	36.1%		(179	)	-	39.9%		(51	)	-	44.3%		(51	)		-41.5%		(37	)	-	25.9%		(35	)	-	24.6%		(174	)	-	33.3%
Total segments		1,386			7.0%		1,382			6.8%		904			4.7%		1,609			7.4%		5,281			6.5%		1,385			6.4%		1,438			6.6%		1,321			6.3%		1,867			8.0%		6,011			6.8%
Total HP Consolidated Earnings
Before Taxes	$	1,163				$	1,065				$	678				$	1,290				$	4,628				$	1,050				$	1,079				$	1,033				$	381				$	3,867

AMOUNTS AS PREVIOUSLY REPORTED

	Three months ended																				Twelve months ended			Three months ended																						Twelve months ended
	Jan. 31, 2004					Apr. 30, 2004					Jul. 31, 2004					Oct. 31, 2004					Oct. 31, 2004					Jan. 31, 2005					Apr. 30, 2005					Jul. 31, 2005					Oct. 31, 2005					Oct. 31, 2005
Net revenue: (1)
Enterprise Storage and Servers	$	3,700				$	3,961				$	3,333				$	4,080				$	15,074				$	4,047				$	4,184				$	3,999				$	4,471				$	16,701
HP Services		3,176					3,508					3,483					3,681					13,848					3,815					3,984					3,837					3,900					15,536
Software		203					225					225					280					933					240					277					249					311					1,077
Technology Solutions Group		7,079					7,694					7,041					8,041					29,855					8,102					8,445					8,085					8,682					33,314
Personal Systems Group		6,187					5,991					5,904					6,540					24,622					6,873					6,369					6,386					7,113					26,741
Imaging and Printing Group		5,910					6,098					5,648					6,543					24,199					6,067					6,390					5,913					6,785					25,155
HP Financial Services		441					469					488					497					1,895					555					544					489					514					2,102
Corporate Investments		103					114					113					119					449					115					123					143					142					523
Total segments		19,720					20,366					19,194					21,740					81,212					21,712					21,871					21,016					23,236					87,835
Eliminations of intersegment
net revenue and other		(206	)				(253	)				(305	)				(351	)				(1,115	)				(258	)				(301	)				(257	)				(323	)				(1,139	)
Total HP Consolidated	$	19,514				$	20,113				$	18,889				$	21,389				$	79,905				$	21,454				$	21,570				$	20,759				$	22,913				$	86,696
Earnings from operations: (1)				Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %					Op %
Enterprise Storage and Servers	$	153			4.1%	$	119			3.0%	$	(213	)		-6.3%	$	100			2.5%	$	161			1.1%	$	71			1.7%	$	184			4.4%	$	150			3.8%	$	405			9.0%	$	810			4.8%
HP Services		261			8.2%		332			9.5%		314			9.0%		375			10.2%		1,282			9.3%		281			7.4%		292			7.3%		256			6.7%		322			8.3%		1,151			7.4%
Software		(49	)	-	24.1%		(52	)	-	23.0%		(46	)	-	21.3%		(7	)		-2.5%		(156	)	-	16.5%		(38	)	-	16.7%		(6	)		-2.2%		(40	)	-	16.1%		27			8.7%		(59	)		-5.5%
Technology Solutions Group		365			5.2%		399			5.2%		55			0.8%		468			5.8%		1,287			4.3%		312			3.9%		470			5.6%		366			4.5%		754			8.7%		1,902			5.7%
Personal Systems Group		61			1.0%		44			0.7%		23			0.4%		77			1.2%		205			0.8%		147			2.1%		147			2.3%		163			2.6%		200			2.8%		657			2.5%
Imaging and Printing Group		967			16.4%		952			15.6%		836			14.8%		1,088			16.6%		3,843			15.9%		932			15.4%		814			12.7%		771			13.0%		896			13.2%		3,413			13.6%
HP Financial Services		29			6.6%		35			7.5%		42			8.6%		19			3.8%		125			6.6%		45			8.1%		58			10.7%		58			11.9%		52			10.1%		213			10.1%
Corporate Investments		(36	)	-	35.0%		(48	)	-	42.1%		(52	)	-	46.0%		(43	)	-	36.1%		(179	)	-	39.9%		(51	)	-	44.3%		(51	)		-41.5%		(37	)	-	25.9%		(35	)	-	24.6%		(174	)	-	33.3%
Total segments		1,386			7.0%		1,382			6.8%		904			4.7%		1,609			7.4%		5,281			6.5%		1,385			6.4%		1,438			6.6%		1,321			6.3%		1,867			8.0%		6,011			6.8%
Total HP Consolidated Earnings
Before Taxes	$	1,163				$	1,065				$	678				$	1,290				$	4,196				$	1,050				$	1,079				$	1,033				$	381				$	3,867

VARIANCE

	Three months ended									Twelve months ended		Three months ended									Twelve months ended
	Jan. 31, 2004		Apr. 30, 2004		Jul. 31, 2004			Oct. 31, 2004		Oct. 31, 2004			Jan. 31, 2005		Apr. 30, 2005		Jul. 31, 2005		Oct. 31, 2005		Oct. 31, 2005
Net revenue: (1)
Enterprise Storage and Servers	$	2	$	3	$	2		$	3	$	10		$	4	$	3	$	4	$	5	$	16
HP Services		-		-		-			-		-			-		-		-		-		-
Software		(2)		(3)		(2)			(3)		(10)			(4)		(3)		(4)		(5)		(16)
Technology Solutions Group		-		-		-			-		-			-		-		-		-		-
Personal Systems Group		-		-		-			-		-			-		-		-		-		-
Imaging and Printing Group		-		-		-			-		-			-		-		-		-		-
HP Financial Services		-		-		-			-		-			-		-		-		-		-
Corporate Investments		-		-		-			-		-			-		-		-		-		-
Total segments		-		-		-			-		-			-		-		-		-		-
Eliminations of intersegment
net revenue and other		-		-		-			-		-			-		-		-		-		-
Total HP Consolidated	$	-	$	-	$	-		$	-	$	-		$	-	$	-	$	-	$	-	$	-
Earnings from operations: (1)
Enterprise Storage and Servers	$	(1)	$	(1)	$	(2	)	$	-	$	(4)		$	(2)	$	(4)	$	(3)	$	(1)	$	(10)
HP Services		-		-		-			-		-			-		-		-		-		-
Software		1		1		2			-		4			2		4		3		1		10
Technology Solutions Group		-		-		-			-		-			-		-		-		-		-
Personal Systems Group		-		-		-			-		-			-		-		-		-		-
Imaging and Printing Group		-		-		-			-		-			-		-		-		-		-
HP Financial Services		-		-		-			-		-			-		-		-		-		-
Corporate Investments		-		-		-			-		-			-		-		-		-		-
Total segments		-		-		-			-		-			-		-		-		-		-
Total HP Consolidated Earnings
Before Taxes	$	-	$	-	$	-		$	-	$	-		$	-	$	-	$	-	$	-	$	-

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
GAAP COMPANY SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															VARIANCE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2004			Apr. 30, 2004			Jul. 31, 2004			Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2004			Apr. 30, 2004			Jul. 31, 2004			Oct. 31, 2004			Oct. 31, 2004			Jan. 31, 2004			Apr. 30, 2004			Jul. 31, 2004			Oct. 31, 2004			Oct. 31, 2004
Net revenue:
Industry Standard Servers		1,961			2,110			1,817			2,240			8,128			1,959			2,107			1,815			2,237			8,118			2			3			2			3			10
Business Critical Systems		915			972			828			1,044			3,759			915			972			828			1,044			3,759			--			--			--			--			--
Storage		827			882			693			799			3,201			827			882			693			799			3,201			--			--			--			--			--
Other		(1	)		--			(3	)		--			(4	)		(1	)		--			(3	)		--			(4	)		--			--			--			--			--
Enterprise Storage and Servers		3,702			3,964			3,335			4,083			15,084			3,700			3,961			3,333			4,080			15,074			2			3			2			3			10
Technology Services		2,090			2,219			2,245			2,332			8,886			2,090			2,219			2,245			2,332			8,886			--			--			--			--			--
Managed Services		524			609			620			693			2,446			524			609			620			693			2,446			--			--			--			--			--
Consulting & Integration		560			681			615			659			2,515			560			681			615			659			2,515			--			--			--			--			--
Other		2			(1	)		3			(3	)		1			2			(1	)		3			(3	)		1			--			--			--			--			--
HP Services		3,176			3,508			3,483			3,681			13,848			3,176			3,508			3,483			3,681			13,848			--			--			--			--			--
OpenView		133			133			144			170			580			133			135			145			172			585			--			(2	)		(1	)		(2	)		(5	)
OpenCall & Other		68			89			79			107			343			70			90			80			108			348			(2	)		(1	)		(1	)		(1	)		(5	)
Software		201			222			223			277			923			203			225			225			280			933			(2	)		(3	)		(2	)		(3	)		(10	)
Technology Solutions Group		7,079			7,694			7,041			8,041			29,855			7,079			7,694			7,041			8,041			29,855			--			--			--			--			--
Desktops		3,516			3,468			3,428			3,619			14,031			3,516			3,468			3,428			3,619			14,031			--			--			--			--			--
Notebooks		2,142			2,011			2,003			2,267			8,423			2,142			2,011			2,003			2,267			8,423			--			--			--			--			--
Workstations		235			262			248			273			1,018			235			262			248			273			1,018			--			--			--			--			--
Handhelds		253			191			169			273			886			253			191			169			273			886			--			--			--			--			--
Other		41			59			56			108			264			41			59			56			108			264			--			--			--			--			--
Personal Systems Group		6,187			5,991			5,904			6,540			24,622			6,187			5,991			5,904			6,540			24,622			--			--			--			--			--
Commercial Hardware		1,491			1,526			1,499			1,648			6,164			1,547			1,591			1,546			1,706			6,390			(56	)		(65	)		(47	)		(58	)		(226	)
Consumer Hardware		1,361			1,086			919			1,330			4,696			1,276			986			834			1,239			4,335			85			100			85			91			361
Supplies		3,038			3,462			3,206			3,540			13,246			3,026			3,451			3,192			3,528			13,197			12			11			14			12			49
Other		20			24			24			25			93			61			70			76			70			277			(41	)		(46	)		(52	)		(45	)		(184	)
Imaging and Printing Group		5,910			6,098			5,648			6,543			24,199			5,910			6,098			5,648			6,543			24,199			--			--			--			--			--
HP Financial Services		441			469			488			497			1,895			441			469			488			497			1,895			--			--			--			--			--
Corporate Investments		103			114			113			119			449			103			114			113			119			449			--			--			--			--			--
Total segments		19,720			20,366			19,194			21,740			81,020			19,720			20,366			19,194			21,740			81,020			--			--			--			--			--
Eliminations of intersegment
net revenue and other		(206	)		(253	)		(305	)		(351	)		(1,115	)		(206	)		(253	)		(305	)		(351	)		(1,115	)		--			--			--			--			--
Total HP Consolidated net revenue	$	19,514		$	20,113		$	18,889		$	21,389		$	79,905		$	19,514		$	20,113		$	18,889		$	21,389		$	79,905		$	--		$	--		$	--		$	--		$	--

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
GAAP COMPANY SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															VARIANCE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31, 2005			Oct. 31, 2005			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31, 2005			Oct. 31, 2005			Jan. 31, 2005			Apr. 30, 2005			Jul. 31, 2005			Oct. 31, 2005			Oct. 31, 2005
Net revenue:
Industry Standard Servers		2,332			2,371			2,320			2,506			9,529			2,328			2,368			2,316			2,501			9,513			4			3			4			5			16
Business Critical Systems		899			991			885			1,037			3,812			899			991			885			1,037			3,812			--			--			--			--			--
Storage		820			825			798			932			3,375			820			825			798			932			3,375			--			--			--			--			--
Other		--			--			--			1			1			--			--			--			1			1			--			--			--			--			--
Enterprise Storage and Servers		4,051			4,187			4,003			4,476			16,717			4,047			4,184			3,999			4,471			16,701			4			3			4			5			16
Technology Services		2,389			2,464			2,394			2,418			9,665			2,389			2,464			2,394			2,418			9,665			--			--			--			--			--
Managed Services		754			771			753			753			3,031			754			771			753			753			3,031			--			--			--			--			--
Consulting & Integration		672			749			690			729			2,840			672			749			690			729			2,840			--			--			--			--			--
Other		--			--			--			--			--			--			--			--			--			--			--			--			--			--			--
HP Services		3,815			3,984			3,837			3,900			15,536			3,815			3,984			3,837			3,900			15,536			--			--			--			--			--
OpenView		153			182			160			196			691			154			183			164			200			701			(1	)		(1	)		(4	)		(4	)		(10	)
OpenCall & Other		83			92			85			110			370			86			94			85			111			376			(3	)		(2	)		--			(1	)		(6	)
Software		236			274			245			306			1,061			240			277			249			311			1,077			(4	)		(3	)		(4	)		(5	)		(16	)
Technology Solutions Group		8,102			8,445			8,085			8,682			33,314			8,102			8,445			8,085			8,682			33,314			--			--			--			--			--
Desktops		3,818			3,541			3,361			3,686			14,406			3,802			3,520			3,335			3,664			14,321			16			21			26			22			85
Notebooks		2,338			2,212			2,418			2,795			9,763			2,338			2,212			2,418			2,795			9,763			--			--			--			--			--
Workstations		269			306			291			329			1,195			285			327			317			351			1,280			(16	)		(21	)		(26	)		(22	)		(85	)
Handhelds		290			189			171			186			836			290			189			171			186			836			--			--			--			--			--
Other		158			121			145			117			541			158			121			145			117			541			--			--			--			--			--
Personal Systems Group		6,873			6,369			6,386			7,113			26,741			6,873			6,369			6,386			7,113			26,741			--			--			--			--			--
Commercial Hardware		1,566			1,677			1,583			1,732			6,558			1,611			1,723			1,624			1,773			6,731			(45	)		(46	)		(41	)		(41	)		(173	)
Consumer Hardware		1,205			1,100			925			1,267			4,497			1,114			1,019			842			1,187			4,162			91			81			83			80			335
Supplies		3,281			3,601			3,392			3,771			14,045			3,272			3,590			3,389			3,759			14,010			9			11			3			12			35
Other		15			12			13			15			55			70			58			58			66			252			(55	)		(46	)		(45	)		(51	)		(197	)
Imaging and Printing Group		6,067			6,390			5,913			6,785			25,155			6,067			6,390			5,913			6,785			25,155			--			--			--			--			--
HP Financial Services		555			544			489			514			2,102			555			544			489			514			2,102			--			--			--			--			--
Corporate Investments		115			123			143			142			523			115			123			143			142			523			--			--			--			--			--
Total segments		21,712			21,871			21,016			23,236			87,835			21,712			21,871			21,016			23,236			87,835			--			--			--			--			--
Eliminations of intersegment
net revenue and other		(258	)		(301	)		(257	)		(323	)		(1,139	)		(258	)		(301	)		(257	)		(323	)		(1,139	)		--			--			--			--			--
Total HP Consolidated net revenue	$	21,454		$	21,570		$	20,759		$	22,913		$	86,696		$	21,454		$	21,570		$	20,759		$	22,913		$	86,696		$	--		$	--		$	--		$	--		$	--