-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q17ZxrP3CtLYNAX1tM71UqK6cDbG4zJo4DPTijVuf4uOFBnICS7MEULBB/y0aGf+ 5SKBssHi/pDA6UEurESvVg== 0001047469-09-008166.txt : 20090908 0001047469-09-008166.hdr.sgml : 20090907 20090904211317 ACCESSION NUMBER: 0001047469-09-008166 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 31 CONFORMED PERIOD OF REPORT: 20090731 FILED AS OF DATE: 20090908 DATE AS OF CHANGE: 20090904 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEWLETT PACKARD CO CENTRAL INDEX KEY: 0000047217 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER & OFFICE EQUIPMENT [3570] IRS NUMBER: 941081436 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-04423 FILM NUMBER: 091056971 BUSINESS ADDRESS: STREET 1: 3000 HANOVER ST STREET 2: MS 1050 CITY: PALO ALTO STATE: CA ZIP: 94304 BUSINESS PHONE: 6508571501 MAIL ADDRESS: STREET 1: 3000 HANOVER ST STREET 2: MS 1050 CITY: PALO ALTO STATE: CA ZIP: 94304 10-Q/A 1 a2194478z10-qa.htm 10-Q/A
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 10-Q/A

(Mark One)    

ý

 

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

For the quarterly period ended: July 31, 2009

Or

o

 

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

For the transition period from                             to                              

Commission file number 1-4423



HEWLETT-PACKARD COMPANY
(Exact name of registrant as specified in its charter)

Delaware   94-1081436
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. employer
identification no.)

3000 Hanover Street, Palo Alto, California

 

94304
(Address of principal executive offices)   (Zip code)

(650) 857-1501
(Registrant's telephone number, including area code)



        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ý    No o

        Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ý    No o

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o
(Do not check if a smaller
reporting company)
  Smaller reporting company o

        Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes o    No ý

        The number of shares of HP common stock outstanding as of August 31, 2009 was 2,371,067,899 shares.



Explanatory Note

        This Form 10-Q/A amends the Quarterly Report on Form 10-Q of Hewlett-Packard Company for the quarter ended July 31, 2009 filed on September 4, 2009 (the "Form 10-Q") for the sole purpose of furnishing the Interactive Data File as Exhibit 101 in accordance with Rule 405(a)(2) of Regulation S-T.

        No other changes have been made to the Form 10-Q. This Form 10-Q/A speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10-Q.


PART II. OTHER INFORMATION

Item 6. Exhibits.

        The Exhibit Index beginning on page 3 of this report sets forth a list of exhibits.

1



SIGNATURE

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

    HEWLETT-PACKARD COMPANY

 

 

/s/ CATHERINE A. LESJAK

Catherine A. Lesjak
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Authorized Signatory)

Date: September 4, 2009

2



HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
EXHIBIT INDEX

 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
2(a)   Agreement and Plan of Merger by and among Electronic Data Systems Corporation, Hewlett-Packard Company and Hawk Merger Corporation.   8-K/A   001-04423   2.1   May 13, 2008

2(b)

 

Amendment No. 1 to Agreement and Plan of Merger by and among Electronic Data Systems Corporation, Hewlett- Packard Company and Hawk Merger Corporation.

 

8-K

 

001-04423

 

2.1

 

July 25, 2008

3(a)

 

Registrant's Certificate of Incorporation.

 

10-Q

 

001-04423

 

3(a)

 

June 12, 1998

3(b)

 

Registrant's Amendment to the Certificate of Incorporation.

 

10-Q

 

001-04423

 

3(b)

 

March 16, 2001

3(c)

 

Registrant's Amended and Restated By-Laws effective March 18, 2009.

 

8-K

 

001-04423

 

3.1

 

March 23, 2009

4(a)

 

Form of Senior Indenture.

 

S-3

 

333-30786

 

4.1

 

March 17, 2000

4(b)

 

Form of Registrant's Fixed Rate Note and Floating Rate Note and related Officers' Certificate.

 

8-K

 

001-04423

 

4.1, 4.2 and 4.4

 

May 24, 2001

4(c)

 

Form of Registrant's 6.50% Global Note due July 1, 2012, and form of related Officers' Certificate.

 

8-K

 

001-04423

 

4.2 and 4.3

 

June 27, 2002

4(d)

 

Form of Registrant's Fixed Rate Note and form of Floating Rate Note.

 

8-K

 

001-04423

 

4.1 and 4.2

 

December 11, 2002

4(e)

 

Indenture, dated as of June 1, 2000, between the Registrant and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Bank), as Trustee.

 

S-3

 

333-134327

 

4.9

 

June 7, 2006

4(f)

 

Form of Registrant's Floating Rate Global Note due March 1, 2012, form of 5.25% Global Note due March 1, 2012 and form of 5.40% Global Note due March 1, 2017.

 

8-K

 

001-04423

 

4.1, 4.2 and 4.3

 

February 28, 2007

4(g)

 

Form of Registrant's Floating Rate Global Note due June 15, 2009 and Floating Rate Global Note due June 15, 2010.

 

10-Q

 

001-04423

 

4(l)

 

September 7, 2007

3


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
4(h)   Form of Registrant's Floating Rate Global Note due September 3, 2009, 4.50% Global Note due March 1, 2013 and 5.50% Global Note due March 1, 2018.   8-K   001-04423   4.1, 4.2 and 4.3   February 29, 2008

4(i)

 

Form of Registrant's 6.125% Global Note due March 1, 2014 and form of related Officers' Certificate.

 

8-K

 

001-04423

 

4.1 and 4.2

 

December 8, 2008

4(j)

 

Form of Registrant's Floating Rate Global Note due February 24, 2011, 4.250% Global Note due February 24, 2012 and 4.750% Global Note due June 2, 2014 and form of related Officers' Certificate.

 

8-K

 

001-04423

 

4.1, 4.2, 4.3
and 4.4

 

February 27, 2009

4(k)

 

Form of Registrant's Floating Rate Global Note due May 27, 2011, 2.25% Global Note due May 27, 2011 and 2.95% Global Note due August 15, 2012 and form of related Officers' Certificate.

 

8-K

 

001-04423

 

4.1, 4.2, 4.3 and 4.4

 

May 28, 2009

4(l)

 

Speciman certificate for the Registrant's common stock.

 

8-A/A

 

001-04423

 

4.1

 

June 23, 2006

10(a)

 

Registrant's 2004 Stock Incentive Plan.*

 

S-8

 

333-114253

 

4.1

 

April 7, 2004

10(b)

 

Registrant's 2000 Stock Plan, amended and restated effective September 17, 2008.*

 

10-K

 

001-04423

 

10(b)

 

December 18, 2008

10(c)

 

Registrant's 1997 Director Stock Plan, amended and restated effective November 1, 2005.*

 

8-K

 

001-04423

 

99.4

 

November 23, 2005

10(d)

 

Registrant's 1995 Incentive Stock Plan, amended and restated effective May 1, 2007.*

 

10-Q

 

001-04423

 

10(d)

 

June 8, 2007

10(e)

 

Registrant's 1990 Incentive Stock Plan, amended and restated effective May 1, 2007.*

 

10-Q

 

001-04423

 

10(e)

 

June 8, 2007

10(f)

 

Compaq Computer Corporation 2001 Stock Option Plan, amended and restated effective November 21, 2002.*

 

10-K

 

001-04423

 

10(f)

 

January 21, 2003

10(g)

 

Compaq Computer Corporation 1998 Stock Option Plan, amended and restated effective November 21, 2002.*

 

10-K

 

001-04423

 

10(g)

 

January 21, 2003

10(h)

 

Compaq Computer Corporation 1995 Equity Incentive Plan, amended and restated effective November 21, 2002.*

 

10-K

 

001-04423

 

10(h)

 

January 21, 2003

4


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
10(i)   Compaq Computer Corporation 1989 Equity Incentive Plan, amended and restated effective November 21, 2002.*   10-K   001-04423   10(i)   January 21, 2003

10(j)

 

Compaq Computer Corporation 1985 Nonqualified Stock Option Plan for Non-Employee Directors.*

 

S-3

 

333-86378

 

10.5

 

April 18, 2002

10(k)

 

Amendment of Compaq Computer Corporation Non-Qualified Stock Option Plan for Non-Employee Directors, effective September 3, 2001.*

 

S-3

 

333-86378

 

10.11

 

April 18, 2002

10(l)

 

Compaq Computer Corporation 1998 Former Nonemployee Replacement Option Plan.*

 

S-3

 

333-86378

 

10.9

 

April 18, 2002

10(m)

 

Registrant's Excess Benefit Retirement Plan, amended and restated as of January 1, 2006.*

 

8-K

 

001-04423

 

10.2

 

September 21, 2006

10(n)

 

Hewlett-Packard Company Cash Account Restoration Plan, amended and restated as of January 1, 2005.*

 

8-K

 

001-04423

 

99.3

 

November 23, 2005

10(o)

 

Registrant's 2005 Pay-for-Results Plan.*

 

8-K

 

001-04423

 

99.5

 

November 23, 2005

10(p)

 

Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*

 

8-K

 

001-04423

 

10.1

 

September 21, 2006

10(q)

 

First Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*

 

10-Q

 

001-04423

 

10(q)

 

June 8, 2007

10(r)

 

Employment Agreement, dated March 29, 2005, between Registrant and Mark V. Hurd.*

 

8-K

 

001-04423

 

99.1

 

March 30, 2005

10(s)

 

Employment Agreement, dated June 9, 2005, between Registrant and R. Todd Bradley.*

 

10-Q

 

001-04423

 

10(x)

 

September 8, 2005

10(t)

 

Employment Agreement, dated July 11, 2005, between Registrant and Randall D. Mott.*

 

10-Q

 

001-04423

 

10(y)

 

September 8, 2005

10(u)

 

Registrant's Amended and Restated Severance Plan for Executive Officers.*

 

8-K

 

001-04423

 

99.1

 

July 27, 2005

10(v)

 

Form letter to participants in the Registrant's Pay-for-Results Plan for fiscal year 2006.*

 

10-Q

 

001-04423

 

10(w)

 

March 10, 2006

10(w)

 

Registrant's Executive Severance Agreement.*

 

10-Q

 

001-04423

 

10(u)(u)

 

June 13, 2002

5


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
10(x)   Registrant's Executive Officers Severance Agreement.*   10-Q   001-04423   10(v)(v)   June 13, 2002

10(y)

 

Form letter regarding severance offset for restricted stock and restricted units.*

 

8-K

 

001-04423

 

10.2

 

March 22, 2005

10(z)

 

Form of Indemnity Agreement between Compaq Computer Corporation and its executive officers.*

 

10-Q

 

001-04423

 

10(x)(x)

 

June 13, 2002

10(a)(a)

 

Form of Stock Option Agreement for Registrant's 2004 Stock Incentive Plan, Registrant's 2000 Stock Plan, as amended, Registrant's 1995 Incentive Stock Plan, as amended, the Compaq Computer Corporation 2001 Stock Option Plan, as amended, the Compaq Computer Corporation 1998 Stock Option Plan, as amended, the Compaq Computer Corporation 1995 Equity Incentive Plan, as amended and the Compaq Computer Corporation 1989 Equity Incentive Plan, as amended.*

 

10-Q

 

001-04423

 

10(a)(a)

 

June 8, 2007

10(b)(b)

 

Form of Restricted Stock Agreement for Registrant's 2004 Stock Incentive Plan, Registrant's 2000 Stock Plan, as amended, and Registrant's 1995 Incentive Stock Plan, as amended.*

 

10-Q

 

001-04423

 

10(b)(b)

 

June 8, 2007

10(c)(c)

 

Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*

 

10-Q

 

001-04423

 

10(c)(c)

 

June 8, 2007

10(d)(d)

 

Form of Stock Option Agreement for Registrant's 1990 Incentive Stock Plan, as amended.*

 

10-K

 

001-04423

 

10(e)

 

January 27, 2000

10(e)(e)

 

Form of Common Stock Payment Agreement and Option Agreement for Registrant's 1997 Director Stock Plan, as amended.*

 

10-Q

 

001-04423

 

10(j)(j)

 

March 11, 2005

10(f)(f)

 

Form of Restricted Stock Grant Notice for the Compaq Computer Corporation 1989 Equity Incentive Plan.*

 

10-Q

 

001-04423

 

10(w)(w)

 

June 13, 2002

10(g)(g)

 

Forms of Stock Option Notice for the Compaq Computer Corporation Non-Qualified Stock Option Plan for Non-Employee Directors, as amended.*

 

10-K

 

001-04423

 

10(r)(r)

 

January 14, 2005

6


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
10(h)(h)   Form of Long-Term Performance Cash Award Agreement for Registrant's 2004 Stock Incentive Plan and Registrant's 2000 Stock Plan, as amended.*   10-K   001-04423   10(t)(t)   January 14, 2005

10(i)(i)

 

Amendment One to the Long-Term Performance Cash Award Agreement for the 2004 Program.*

 

10-Q

 

001-04423

 

10(q)(q)

 

September 8, 2005

10(j)(j)

 

Form of Long-Term Performance Cash Award Agreement for the 2005 Program.*

 

10-Q

 

001-04423

 

10(r)(r)

 

September 8, 2005

10(k)(k)

 

Form of Long-Term Performance Cash Award Agreement.*

 

10-Q

 

001-04423

 

10(o)(o)

 

March 10, 2006

10(l)(l)

 

Second Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*

 

10-K

 

001-04423

 

10(l)(l)

 

December 18, 2007

10(m)(m)

 

Form of Stock Notification and Award Agreement for awards of performance-based restricted units.*

 

8-K

 

001-04423

 

10.1

 

January 24, 2008

10(n)(n)

 

Form of Agreement Regarding Confidential Information and Proprietary Developments (California).*

 

8-K

 

001-04423

 

10.2

 

January 24, 2008

10(o)(o)

 

Form of Agreement Regarding Confidential Information and Proprietary Developments (Texas).*

 

10-Q

 

001-04423

 

10(o)(o)

 

March 10, 2008

10(p)(p)

 

Form of Restricted Stock Agreement for Registrant's 2004 Stock Incentive Plan.*

 

10-Q

 

001-04423

 

10(p)(p)

 

March 10, 2008

10(q)(q)

 

Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*

 

10-Q

 

001-04423

 

10(q)(q)

 

March 10, 2008

10(r)(r)

 

Form of Stock Option Agreement for Registrant's 2004 Stock Incentive Plan.*

 

10-Q

 

001-04423

 

10(r)(r)

 

March 10, 2008

10(s)(s)

 

Form of Special Performance-Based Cash Incentive Notification Letter.*

 

8-K

 

001-04423

 

10.1

 

May 20, 2008

10(t)(t)

 

Form of Option Agreement for Registrant's 2000 Stock Plan.*

 

10-Q

 

001-04423

 

10(t)(t)

 

June 6, 2008

10(u)(u)

 

Form of Common Stock Payment Agreement for Registrant's 2000 Stock Plan.*

 

10-Q

 

001-04423

 

10(u)(u)

 

June 6, 2008

10(v)(v)

 

Third Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*

 

10-K

 

001-04423

 

10(v)(v)

 

December 18, 2008

7


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
10(w)(w)   Form of Stock Notification and Award Agreement for awards of restricted stock units.*   10-K   001-04423   10(w)(w)   December 18, 2008

10(x)(x)

 

Form of Stock Notification and Award Agreement for awards of performance-based restricted units.*

 

10-K

 

001-04423

 

10(x)(x)

 

December 18, 2008

10(y)(y)

 

Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*

 

10-K

 

001-04423

 

10(y)(y)

 

December 18, 2008

10(z)(z)

 

Form of Stock Notification and Award Agreement for awards of restricted stock.*

 

10-K

 

001-04423

 

10(z)(z)

 

December 18, 2008

10(a)(a)(a)

 

Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*

 

10-Q

 

001-04423

 

10(a)(a)(a)

 

March 10, 2009

10(b)(b)(b)

 

First Amendment to the Hewlett-Packard Company Excess Benefit Retirement Plan.*

 

10-Q

 

001-04423

 

10(b)(b)(b)

 

March 10, 2009

10(c)(c)(c)

 

Fourth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*

 

10-Q

 

001-04423

 

10(c)(c)(c)

 

June 5, 2009

10(d)(d)(d)

 

Fifth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*‡

 

 

 

 

 

 

 

 

11

 

None.

 

 

 

 

 

 

 

 

12

 

Statement of Computation of Ratio of Earnings to Fixed Charges.‡

 

 

 

 

 

 

 

 

15

 

None.

 

 

 

 

 

 

 

 

18-19

 

None.

 

 

 

 

 

 

 

 

22-24

 

None.

 

 

 

 

 

 

 

 

31.1

 

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.‡

 

 

 

 

 

 

 

 

31.2

 

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.‡

 

 

 

 

 

 

 

 

32

 

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†

 

 

 

 

 

 

 

 

101.INS

 

XBRL Instance Document.§

 

 

 

 

 

 

 

 

8


 
   
  Incorporated by Reference
Exhibit
Number
   
  Exhibit Description   Form   File No.   Exhibit(s)   Filing Date
101.SCH   XBRL Taxonomy Extension Schema Document.§                

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document.§

 

 

 

 

 

 

 

 

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document.§

 

 

 

 

 

 

 

 

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document.§

 

 

 

 

 

 

 

 

*
Indicates management contract or compensatory plan, contract or arrangement.

Previously filed.

Previously furnished.

§
Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

        The registrant agrees to furnish to the Commission supplementally upon request a copy of (1) any instrument with respect to long-term debt not filed herewith as to which the total amount of securities authorized thereunder does not exceed 10 percent of the total assets of the registrant and its subsidiaries on a consolidated basis and (2) any omitted schedules to any material plan of acquisition, disposition or reorganization set forth above.

9




QuickLinks

Explanatory Note
PART II. OTHER INFORMATION
SIGNATURE
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES EXHIBIT INDEX
EX-101.INS 2 hpq-20090731.xml EX-101.INS 0000047217 2009-07-31 0000047217 2008-10-31 0000047217 2009-05-01 2009-07-31 0000047217 2008-05-01 2008-07-31 0000047217 2008-11-01 2009-07-31 0000047217 2007-11-01 2008-07-31 0000047217 2007-10-31 0000047217 2008-07-31 0000047217 2007-11-01 2008-10-31 0000047217 2008-04-30 0000047217 2009-08-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares HEWLETT-PACKARD COMPANY 0000047217 10-Q false 2009-07-31 --10-31 Yes No Yes Large Accelerated Filer 114540461000 0.01 0.01 2415000000 22180000000 5757000000 95000000 28032000000 4297000000 79000000 895000000 3193000000 213000000 5000000 25503000000 2529000000 23000000 2552000000 525000000 2027000000 0.82 0.80 0.16 2459000000 2533000000 67866000000 16619000000 276000000 84761000000 2.49 2.41 0.32 2497000000 2577000000 2268000000 449000000 296000000 1163000000 213000000 -25000000 437000000 255000000 2171000000 -269000000 -69000000 13000000 11315000000 1966000000 271000000 86000000 212000000 1478000000 -3047000000 -21000000 3054000000 1051000000 1347000000 7720000000 213000000 600000000 -4778000000 3490000000 -4000000 14783000000 11293000000 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;2: Stock-Based Compensation </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's stock-based compensation plans include incentive compensation plans and an employee stock purchase plan. Incentive compensation plans include principal option plans as well as various stock option plans assumed through acquisitions. Principal option plans include performance-based restricted units ("PRU"), stock options and restricted stock awards. HP accounts for its stock-based compensation plans under SFAS No.&nbsp;123(R), "Share-Based Payment." </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense for the three and nine months ended July&nbsp;31, 2009 and 2008 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In&nbsp;millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In&nbsp;millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cost of sales</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>141</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Research and development</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Selling, general and administrative</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisition-related charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Stock-based compensation expense before income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>501</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>449</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(158</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(130</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total stock-based compensation expense after income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>99</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>102</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>319</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Performance-based Restricted Units </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2008, HP implemented a program that provides for the issuance of PRUs representing hypothetical shares of HP common stock that may be issued under the Hewlett-Packard Company 2004 Stock Incentive Plan. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the PRU program, a target number of units are awarded at the beginning of each three-year performance period. The number of shares released at the end of the performance period will range from zero to two times the target number depending on performance during the period. The performance metrics of the PRU program are (a)&nbsp;annual targets based on cash flow from operations as a percentage of revenue, and (b)&nbsp;an overall "modifier" based on Total Shareholder Return ("TSR") relative to the S&amp;P&nbsp;500 over the three-year performance period. TSR is calculated using the quarterly average performance of the S&amp;P&nbsp;500 during the three-year performance period. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the cash flow goals are considered performance conditions, the expense for these awards, net of estimated forfeitures, will be recorded over the three-year performance period based on the number of shares that are expected to be earned based on the achievement of the cash flow goals during the performance period. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP estimates the fair value of a target PRU share using the Monte Carlo simulation model, as the TSR modifier contains a market condition. The following weighted-average assumptions were used to determine the weighted-average fair value of the PRU awards: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=287></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average fair value of grants per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35.47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40.56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40.21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected volatility<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Risk-free interest rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dividend yield</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.88</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected life in months</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in the three months ended July&nbsp;31, 2009. The estimated fair value of a target share for the second and third years for PRUs granted in the three months ended July&nbsp;31, 2009 will be determined when the annual cash flow goals are approved, and the expense will be amortized over the remainder of the applicable three-year performance period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2008 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2009. The estimated fair value of a target share for the third year for PRUs granted in fiscal 2008 and for the second and third years for PRUs granted in fiscal 2009 will be determined when the annual cash flow goals are approved, and the expense will be amortized over the remainder of the applicable three-year performance period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>HP uses historic volatility for PRU awards as implied volatility cannot be used when simulating multivariate prices for companies in the S&amp;P&nbsp;500. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding PRUs as of July&nbsp;31, 2009 and October&nbsp;31, 2008 and changes during the nine months ended July&nbsp;31, 2009 and twelve months ended October&nbsp;31, 2008 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=322></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=56></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine months<BR>ended<BR>July&nbsp;31, 2009<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Twelve months<BR>ended<BR>October&nbsp;31, 2008<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Beginning units outstanding</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,965</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,949</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,783</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in units due to performance and market conditions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>979</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,492</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,021</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(310</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending units outstanding</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,872</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,965</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>PRUs assigned a fair value</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,338</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,292</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $248&nbsp;million of unrecognized pre-tax stock-based compensation expense related to PRUs with an assigned fair value, which HP expects to recognize over the remaining weighted-average vesting period of 1.7&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Stock Options </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP estimated the weighted-average fair value of stock options using the Black-Scholes option pricing model with the following weighted-average assumptions: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=287></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average fair value of grants per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14.20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12.89</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Implied volatility</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Risk-free interest rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dividend yield</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.68</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected life in months</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option activity as of July&nbsp;31, 2009 and changes during the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=214></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=55></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Exercise<BR>Price&nbsp;Per&nbsp;Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Remaining<BR>Contractual<BR>Term<BR>(in years) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Aggregate<BR>Intrinsic<BR>Value<BR>(in&nbsp;millions) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>307,728</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted and assumed through acquisitions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,933</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Exercised</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(27,103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited/cancelled/expired</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(18,803</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>263,755</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,231</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested and expected to vest at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>261,931</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Exercisable at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>237,135</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,073</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have received had all option holders exercised their options on July&nbsp;31, 2009. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the third quarter of fiscal 2009 and the exercise price, multiplied by the number of in-the-money options. Total intrinsic value of options exercised for the three and nine months ended July&nbsp;31, 2009 was $188&nbsp;million and $326&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $244&nbsp;million of unrecognized pre-tax stock-based compensation expense related to stock options, which HP expects to recognize over the remaining weighted-average vesting period of 1.3&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Restricted Stock Awards </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-vested restricted stock awards as of July&nbsp;31, 2009 and changes during the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=327></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=51></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average Grant<BR>Date Fair Value<BR>Per Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-vested at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,930</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>743</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,066</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(941</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-vested at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,666</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $155&nbsp;million of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expects to recognize over the remaining weighted-average vesting period of 0.9&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Changes to the Employee Stock Purchase Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP sponsors the Hewlett-Packard Company 2000 Employee Stock Purchase Plan, also known as the Share Ownership Plan (the "ESPP"), pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of HP's common stock. Employees purchase stock pursuant to the ESPP semi-annually at a price equal to 85% of the fair market value on the purchase date. HP recognized expense based on a 15% discount from fair market value for purchases made under the ESPP on or before April&nbsp;30, 2009. Effective May&nbsp;1, 2009, HP modified the ESPP to eliminate the 15% discount applicable to purchases made under the ESPP. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;4: Balance Sheet Details </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance sheet details were as follows: </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Accounts and Financing Receivables </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=360></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accounts receivable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15,376</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(641</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(553</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,735</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,928</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Financing receivables</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,580</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,355</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,532</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,314</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has revolving trade receivables-based facilities permitting it to sell certain trade receivables to third parties on a non-recourse basis. The aggregate maximum capacity under these programs was $586&nbsp;million as of July&nbsp;31, 2009. HP sold $1,321&nbsp;million of trade receivables during the first nine months of fiscal 2009. As of July&nbsp;31, 2009, HP had $342&nbsp;million available under these programs. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Inventory </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=365></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Finished goods</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,809</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,219</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchased parts and fabricated assemblies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,850</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,879</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Property, Plant and Equipment </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=360></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Land</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>514</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>526</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Buildings and leasehold improvements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,383</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Machinery and equipment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,121</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20,129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,885</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated Depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8,935</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8,047</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,194</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,838</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;5: Acquisitions </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the first nine months of fiscal 2009, HP completed its acquisition of Lefthand Networks,&nbsp;Inc., a leading provider of storage virtualization and solutions for $347&nbsp;million in cash including direct transaction costs and the assumption of certain liabilities in connection with the transaction. HP recorded $273&nbsp;million to goodwill, $95&nbsp;million to purchased intangibles and $6&nbsp;million to in-process research and development ("IPR&amp;D") charges related to this acquisition. Lefthand Networks is being integrated into HP's Enterprise Storage and Servers segment within the Technology Solutions Group. HP does not expect goodwill recorded with respect to this acquisition to be deductible for tax purposes. HP has not presented pro forma results of operations because this acquisition is not material to HP's consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Subsequent Acquisition </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2009, HP completed its acquisition of IBRIX, Inc. a leading provider of enterprise-class file serving software. IBRIX will be integrated into the Enterprise Storage&nbsp;and Servers segment. This acquisition is not material to HP's consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Acquisition of Electronic Data Systems Corporation ("EDS") </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed in its Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008, HP completed its acquisition of EDS on August&nbsp;26, 2008. The purchase price for EDS was $13.0&nbsp;billion, comprised of $12.7&nbsp;billion cash paid for outstanding common stock, $328&nbsp;million for the estimated fair value of stock options and restricted stock units assumed, and $36&nbsp;million for direct transaction costs. Of the total purchase price, a preliminary estimate of $10.5&nbsp;billion has been allocated to goodwill, $4.5&nbsp;billion has been allocated to amortizable intangible assets acquired and $2.0&nbsp;billion has been allocated to net tangible liabilities assumed in connection with the acquisition. HP also expensed $30&nbsp;million for IPR&amp;D charges. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase price allocation as of the date of the acquisition reflects various preliminary estimates and analyses, including preliminary work performed by third-party valuation specialists, and is subject to change during the purchase price allocation period (generally one year from the acquisition date) as valuations are finalized. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has evaluated and continues to evaluate certain pre-acquisition contingencies related to EDS that existed as of the acquisition date. Additional information, which existed as of the acquisition date but was at that time unknown to HP, may become known to HP during the remainder of the purchase price allocation period, and may result in goodwill adjustments. If these pre-acquisition contingencies become probable in nature and estimable after the end of the purchase price allocation period, amounts would be recorded for such matters in HP's results of operations. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Pro forma results for EDS acquisition </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the unaudited results of HP (including EDS) for the three and nine months ended July&nbsp;31, 2009 and the unaudited pro forma results for the three and nine months ended July&nbsp;31, 2008. The unaudited pro forma financial information for the three and nine months ended July&nbsp;31, 2008 combines the results of operations of HP and EDS as though the companies had been combined as of the beginning of fiscal 2008. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place at the beginning of fiscal 2008. The unaudited pro forma results presented include amortization charges for acquired intangible assets, eliminations of intercompany transactions, restructuring charges, IPR&amp;D charges, adjustments for incremental stock-based compensation expense related to the unearned portion of EDS stock options and restricted stock units assumed, adjustments for depreciation expense for property, plant and equipment, adjustments to interest expense and related tax effects. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=266></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=34></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 120pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>In millions, except per share data <!-- COMMAND=ADD_SCROPPEDRULE,120pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Unaudited</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Unaudited</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33,681</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>101,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,090</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,529</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic net earnings per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted net earnings per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;6: Goodwill and Purchased Intangible Assets </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Goodwill </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill allocated to HP's business segments as of July&nbsp;31, 2009 and changes in the carrying amount of goodwill for the nine months ended July&nbsp;31, 2009 are as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=144></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=26></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=25></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Services </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Enterprise<BR>Storage<BR>and<BR>Servers </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>HP<BR>Software </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Personal<BR>Systems<BR>Group </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Imaging<BR>and<BR>Printing<BR>Group </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>HP<BR>Financial<BR>Services </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Corporate<BR>Investments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,284</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,745</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32,335</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Goodwill acquired during the period</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>273</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>273</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Goodwill adjustments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,964</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,016</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,462</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33,277</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended July&nbsp;31, 2009, HP recorded adjustments of approximately $500&nbsp;million to the estimated fair values of EDS's intangible assets and net liabilities acquired resulting in an increase to EDS's goodwill, which is allocated to the Services segment. These changes in the estimated fair values relate primarily to restructuring liabilities, fixed assets, intangible assets and net deferred tax liabilities. In addition, goodwill increased approximately $180&nbsp;million as a result of currency translation related to certain of EDS's foreign subsidiaries whose functional currency is not the U.S. dollar. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Purchased Intangible Assets </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's purchased intangible assets associated with completed acquisitions are composed of: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=174></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Customer contracts, customer lists and distribution agreements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,685</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,806</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,879</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,530</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Developed and core technology and patents</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,151</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,627</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,524</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,189</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product trademarks</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>247</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>253</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(109</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total amortizable purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,083</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,480</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,972</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,540</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Compaq trade name</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,505</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,902</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,394</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,962</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended July&nbsp;31, 2009, HP recorded an increase of $51&nbsp;million to purchased intangibles as a result of currency translation related to certain of EDS's foreign subsidiaries whose financial currency is not the U.S. dollar. HP also recorded a reduction of $35&nbsp;million to the estimated fair value of EDS's intangible assets acquired. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated future amortization expense related to finite lived purchased intangible assets at July&nbsp;31, 2009 is as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=367></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 41pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Fiscal year: <!-- COMMAND=ADD_SCROPPEDRULE,41pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>In millions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009 (remaining 3&nbsp;months)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,320</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,035</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>707</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,480</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;7: Restructuring Charges </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fiscal 2009 Restructuring Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2009, HP's management approved and initiated a restructuring plan to structurally change and improve the effectiveness of IPG, PSG and ESS. In the third quarter of fiscal 2009, HP recorded a net charge of $295&nbsp;million in severance-related costs associated with the planned elimination of approximately 5,000 positions. As of July&nbsp;31, 2009, approximately 1,200 positions have been eliminated. HP expects the majority of the restructuring costs to be paid out by the fourth quarter of fiscal 2010. In future quarters, HP expects to record an additional charge of approximately $8&nbsp;million related to severance costs associated with this plan. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fiscal 2008 Restructuring Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the acquisition of EDS on August&nbsp;26, 2008, HP's management approved and initiated a restructuring plan to streamline the combined company's services business and to better align the structure and efficiency of that business with HP's operating model. The restructuring plan is expected to be implemented over four years from the acquisition date and includes changes to the combined company's workforce as well as changes to corporate overhead functions such as real estate and IT. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the fourth quarter of fiscal 2008, HP recorded a liability of approximately $1.8&nbsp;billion related to this restructuring plan. Approximately $1.5&nbsp;billion of the liability was associated with pre-acquisition EDS and was recorded to goodwill, and the remaining approximately $0.3&nbsp;billion was associated with HP and was recorded as a restructuring charge. The liability consisted mainly of severance costs to eliminate approximately 25,000 positions, costs to vacate duplicative facilities and costs associated with early termination of certain contractual obligations. HP recorded net charges for severance and facilities costs of $67&nbsp;million and $310&nbsp;million, for the three and nine months ended July&nbsp;31, 2009, respectively, along with year-to-date adjustments to goodwill of $276&nbsp;million. As of July&nbsp;31, 2009, over 16,000 positions have been eliminated. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP expects the majority of the restructuring costs to be paid out by the second quarter of fiscal 2010. In future quarters, HP expects to record an additional charge of approximately $497&nbsp;million related to the cost to vacate duplicative facilities and severance costs. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All restructuring costs associated with pre-acquisition EDS are reflected in the purchase price of EDS in accordance with EITF&nbsp;95-3, "Recognition of Liabilities in Connection with a Purchase Business Combination." These costs are subject to change based on the actual costs incurred. Changes to these estimates could increase or decrease the amount of the purchase price allocated to goodwill. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Prior Fiscal Year Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring plans initiated prior to 2008 are substantially complete and HP expects to record only minor revisions to these plans as necessary. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Summary of Restructuring Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The adjustments to the accrued restructuring expenses related to all of HP's restructuring plans described above for the three and nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=8></TD> <TD style="FONT-FAMILY: times" width=94></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=25></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=3><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=3><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009<BR>charges<BR>(reversals) </B></FONT></TH> <TH style="FONT-FAMILY: times" rowSpan=3><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=3><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009<BR>charges<BR>(reversals) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Non-cash<BR>settlements<BR>and<BR>other<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Goodwill<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cash<BR>payments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total costs<BR>and<BR>adjustments<BR>to date </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total<BR>expected<BR>costs and<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Fiscal 2009 Plan</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>303</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Fiscal 2008 HP/EDS Plan:</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Severance</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,444</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>267</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(770</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,898</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,936</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Infrastructure</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>248</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>180</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>420</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>476</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>935</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Total severance and other restructuring activities</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,692</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>310</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>276</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(804</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,527</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>2,374</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>2,871</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Prior fiscal year plans</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6,343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6,343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Total restructuring plans</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,769</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>362</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>274</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>60</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,861</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>9,012</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>9,517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009 and October&nbsp;31, 2008, HP included the long-term portion of the restructuring liability of $440&nbsp;million and $670&nbsp;million, respectively, in Other liabilities, and the short-term portion in Accrued restructuring in the accompanying Consolidated Condensed Balance Sheets. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Workforce Rebalancing </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of HP's ongoing business operations, HP incurred workforce rebalancing charges for severance and related costs within certain business segments during the first nine months of fiscal 2009. Workforce rebalancing activities are considered part of normal operations as HP continues to optimize its cost structure. Workforce rebalancing costs are included in HP's business segment results, and HP expects to incur additional workforce rebalancing costs in the future.&nbsp;</FONT><FONT size=2><B>&nbsp;</B></FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;8: Fair Value </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;1, 2008, HP adopted the applicable portions of SFAS&nbsp;157 as referenced in Note&nbsp;1. Pursuant to the provisions of SFAS&nbsp;157-2, HP will not apply the provisions of SFAS&nbsp;157 until the first quarter of fiscal 2010 for the following major categories of nonfinancial assets and liabilities from the Consolidated Condensed Balance Sheet: Property, plant and equipment, Goodwill, Purchased intangible assets and the Asset retirement obligations within Other accrued liabilities and Other liabilities. The adoption did not have a material impact on HP's financial statements and did not result in any changes to the opening balance of retained earnings as of November&nbsp;1, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS&nbsp;157 establishes a new framework for measuring fair value and expands related disclosures. The SFAS&nbsp;157 framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation techniques required by SFAS&nbsp;157 are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect HP's assumptions about market participant assumptions based on best information available. Observable inputs are the preferred source of values. In accordance with SFAS&nbsp;157, these two types of inputs create the following fair value hierarchy: </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;1&#151;Quoted prices (unadjusted) for identical instruments in active markets. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;2&#151;Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;3&#151;Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following section describes the valuation methodologies HP uses to measure its financial assets and liabilities at fair value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Equivalents: HP holds money market funds investing mainly in treasury bills, which are classified under level&nbsp;1. HP also invests in time deposits and commercial paper, which are classified under level&nbsp;2. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments: HP holds time deposits, corporate and foreign government notes and bonds, commercial paper, and common stock and equivalents. In general, and where applicable, HP uses quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, HP uses quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, HP uses internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying assets assumptions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative Instruments: As discussed in Note&nbsp;9, HP mainly holds non-speculative forwards, swaps and options to hedge certain foreign currency and interest rate exposures. When active market quotes are not available, HP uses industry standard valuation models. Where applicable, these models project </FONT><FONT size=2>future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. In certain cases, market-based observable inputs are not available and, in those cases, HP uses management judgment to develop assumptions which are used to determine fair value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents HP's assets and liabilities as of July&nbsp;31, 2009 that are measured at fair value on a recurring basis: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=284></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8 rowSpan=2><FONT size=1><B>Fair Value Measured Using </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Total<BR>Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;1 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;2 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;3 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Time deposits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,049</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Money market funds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>715</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>715</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>357</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Marketable equity securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>663</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>736</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,996</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,784</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>705</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>705</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables present the changes in level&nbsp;3 instruments for the three and nine months ended July&nbsp;31, 2009 that are measured on a recurring basis. The majority of the level&nbsp;3 balances consist of investment securities classified as available-for-sale with changes in fair value recorded in other comprehensive income ("OCI"). </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=275></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=61></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Fair Value Measured Using<BR>Significant Unobservable Inputs<BR>(Level&nbsp;3) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left colSpan=3> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 121pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Three Months Ended July&nbsp;31, 2009 <!-- COMMAND=ADD_SCROPPEDRULE,121pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Commercial Paper </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Derivative<BR>Instruments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Beginning balance at May&nbsp;1, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total losses (realized/unrealized):</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in earnings<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchases, issuances, and settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held as of July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=9> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=1><B><U>Nine Months Ended July&nbsp;31, 2009</U></B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-TOP: 8pt; MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1><B></B></FONT><FONT size=2>Beginning balance at November&nbsp;1, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total losses (realized/unrealized):</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in earnings<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchases, issuances, and settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held as of July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Included in Interest and other, net in the accompanying Consolidated Condensed Statements of Earnings. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP measures certain assets including cost and equity method investments at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. As of July&nbsp;31, 2009, such assets with a total fair value of $2&nbsp;million were included in the level&nbsp;2 hierarchy. In the three and nine months ended July&nbsp;31, 2009, HP recorded an impairment charge of $3&nbsp;million and $37&nbsp;million, respectively. Of the $37&nbsp;million, $33&nbsp;million was charged to goodwill. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP reviews the carrying values of the investments when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary. The fair values of the investments are determined based on valuation techniques using the best information available, which may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value, is determined to be other-than-temporary and is related to credit loss for debt securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;1, 2008, HP also adopted SFAS&nbsp;159, which allows an entity to elect to measure certain financial instruments at fair value on a contract-by-contract basis. Subsequent to the election, any unrealized gains and losses from the fair value measurement of the financial instruments will be recognized in earnings. As of July&nbsp;31, 2009, HP did not elect such option for any eligible financial instruments. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;9: Financial Instruments </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Investments in Debt and Equity Securities </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in short-term and long-term available-for-sale debt and equity securities at fair value as of July&nbsp;31, 2009 and October&nbsp;31, 2008 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=146></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>As of October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Gain </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Loss </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Gain </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Loss </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Available-for-Sale Securities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Time deposits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>207</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>188</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity securities in public companies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>210</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits consist of certificate of deposits with maturity dates greater than three months. Other debt securities consist primarily of fixed-interest securities invested for early retirement purposes and also a fixed income fund. Equity securities in public companies are primarily common stock. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;8, HP estimated the fair values based on quoted market prices or pricing models using current market rates. These estimated fair values may not be representative of actual values that could have been realized as of the reporting period or that will be realized in the future. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gross unrealized loss as of July&nbsp;31, 2009 was due primarily to declines in commercial paper that had been in a continuous loss position for less than twelve months. HP intends to hold the commercial paper and believes that it is unlikely that HP will be required to sell the commercial paper before recovery of the amortized cost. In the three months ended July&nbsp;31, 2009, HP did not recognize </FONT><FONT size=2>any impairment charge associated with the commercial paper. In the nine months ended July&nbsp;31, 2009, HP recognized an impairment charge of $2&nbsp;million associated with its commercial paper. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual maturities of available-for-sale debt securities at July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=377></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Available-for-Sale<BR>Securities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in less than one year</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in 1-5&nbsp;years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in more than five years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no sales or maturities of available-for-sale and other securities for the three months ended July&nbsp;31, 2009. Proceeds from sales or maturities of available-for-sale and other securities were $103&nbsp;million for the nine months ended July&nbsp;31, 2009. There were no realized gains or losses on available-for-sale and other securities for the three and nine months ended July&nbsp;31, 2009. The specific identification method is used to account for gains and losses on available-for-sale securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the carrying values and balance sheet classification of all short-term and long-term investments in debt and equity securities as of July&nbsp;31, 2009 and October&nbsp;31, 2008 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=356></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Short-term investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale equity securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity securities in privately-held companies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>145</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Marketable trading securities and other investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>280</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in long-term financing receivables and other assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>242</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>525</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>618</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities in privately-held companies include cost basis and equity method investments. Marketable trading securities and other investments consist primarily of marketable trading securities held to generate returns that HP expects to offset changes in certain liabilities related to deferred compensation arrangements. HP includes gains or losses from changes in fair value of these securities, offset by losses or gains on the related liabilities, in Interest and other, net, in HP's Consolidated Condensed Statements of Earnings. The net losses associated with these securities were $5&nbsp;million and $11&nbsp;million, respectively, for the three and nine months ended July&nbsp;31, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Derivative Financial Instruments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;1, 2009, HP adopted SFAS&nbsp;161 as referenced in Note&nbsp;1. The adoption of SFAS&nbsp;161 requires additional disclosures about HP's objectives and strategies for using derivative instruments, the accounting for the derivative instruments and related hedged items under SFAS No.&nbsp;133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS&nbsp;133"), and the effect of derivative instruments and related hedged items on the financial statements. The adoption had no financial impact on the consolidated condensed financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is a global company that is exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps, and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. HP does not have any leveraged derivatives. HP does not use derivative contracts for speculative purposes. HP applies hedge accounting based upon the criteria established by SFAS&nbsp;133, whereby HP designates its derivatives as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments under SFAS&nbsp;133, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives in the Consolidated Condensed Balance Sheets at fair value and reports them in Other current assets, Long-term financing receivables and other assets, Other accrued liabilities, or Other liabilities. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Condensed Statement of Cash Flows. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the use of derivative instruments, HP is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, HP has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and HP maintains dollar and term limits that correspond to each institution's credit rating. HP's established policies and procedures for mitigating credit risk on principal transactions and short-term cash include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. Master agreements with counterparties include master netting arrangements as further mitigation of credit exposure to counterparties. These arrangements permit HP to net amounts due from HP to a counterparty with amounts due to HP from a counterparty, which reduces the maximum loss from credit risk in the event of counterparty default. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of HP's derivative instruments contain credit-risk-related contingent features, such as a provision whereby the counterparties to the derivative instruments could request collateralization on derivative instruments in net liability positions if HP's credit rating falls below investment grade. As of July&nbsp;31, 2009, HP was not required to post any collateral and HP did not have any derivative instruments with credit-risk-related contingent features that were in a significant net liability position. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fair Value Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP enters into fair value hedges to reduce the exposure of its debt portfolio to interest rate risk. HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP uses interest rate swaps to modify the market risk exposures in connection with the debt to achieve primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest returns into variable interest returns and would classify these swaps as fair value hedges. For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the current period. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Cash Flow Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP uses a combination of forward contracts and options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expense, and intercompany lease loan denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within six months. However, certain leasing revenue-related forward contracts and intercompany lease loan forward contracts extend for the duration of the lease term, which can be up to five years. For derivative instruments that are designated and qualify as cash flow hedges, HP initially records the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive loss as a separate component of stockholders' equity and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of cash flow hedges in the same financial statement line item as the changes in value of the hedged item. During the nine months ended July&nbsp;31, 2009, HP did not discontinue any cash flow hedge for which it was probable that a forecasted transaction would not occur. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Net Investment Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. For derivative instruments that are designated as net investment hedges, HP records the effective portion of the gain or loss on the derivative instrument together with changes in the hedged items in cumulative translation adjustment as a separate component of stockholders' equity. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Other Derivatives </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other derivatives not designated as hedging instruments under SFAS&nbsp;133 consist primarily of forward contracts HP uses to hedge foreign currency balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on the equity and fixed income indices, to hedge its executive deferred compensation plan liability. For derivative instruments not designated as hedging instruments under SFAS&nbsp;133, HP recognizes changes in the fair values in earnings in the </FONT><FONT size=2>period of change. HP recognizes the gain or loss on foreign currency forward contracts used to hedge balance sheet exposures in Interest and other, net in the same period as the remeasurement gain and loss of the related foreign currency denominated assets and liabilities. HP recognizes the gain or loss on the total return swaps and interest rate swaps in Interest and other, net in the same period as the gain or loss from the change in market value of the executive deferred compensation plan liability. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Hedge Effectiveness </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For interest rate swaps designated as fair value hedges, HP measures effectiveness by offsetting the change in fair value of the hedged debt with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures effectiveness by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Condensed Statements of Earnings. As of July&nbsp;31, 2009, the portion of hedging instruments' gain or loss excluded from the assessment of effectiveness was not material for fair value, cash flow or net investment hedges. Hedge ineffectiveness for fair value, cash flow and net investment hedges was not material for the three and nine months ended July&nbsp;31, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheet </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;8, HP estimates the fair values of derivatives based on quoted market prices or pricing models using current market rates and records all derivatives on the balance sheet at fair </FONT><FONT size=2>value. The gross notional and fair value of derivative financial instruments in the Consolidated Condensed Balance Sheet as of July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=194></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=36></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=52></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Notional<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Current<BR>Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Long-term<BR>Financing<BR>Receivables and<BR>Other Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Accrued<BR>Liabilities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Liabilities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,575</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,397</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net investment hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,268</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>330</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>391</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives not designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,553</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total return contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives not designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>117</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,257</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>253</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>550</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>160</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represents the face amounts of contracts that were outstanding as of July&nbsp;31, 2009. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represents offsetting swaps acquired through previous business combination that were not designated as hedging instruments under SFAS&nbsp;133. </FONT></DD></DL> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of a derivative instrument and related hedged item in a fair value hedging relationship for the three and nine months ended July&nbsp;31, 2009 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=100></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=49></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=75></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=49></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Gain (Loss) Recognized in Income on Derivative and Related Hedged Item </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 78pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Derivative Instrument <!-- COMMAND=ADD_SCROPPEDRULE,78pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Hedged Item </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>155</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Fixed-rate Debt</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and nine months ended July&nbsp;31, 2009 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=65></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" width=83></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" width=83></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Gain (Loss)<BR>Recognized in<BR>OCI on Derivative<BR>(Effective Portion) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain (Loss) Reclassified from<BR>Accumulated OCI Into Income<BR>(Effective Portion) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain Recognized in<BR>Income on Derivative<SUP>(1)</SUP><BR>(Ineffective portion<BR>and Amount Excluded<BR>from Effectiveness Testing) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(612</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(743</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>713</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Cost of products</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>124</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Cost of products</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Other operating expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Other operating expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total cash flow hedges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(560</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(662</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(120</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>835</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-TOP: 10pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net investment hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(127</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Amount of gain recognized in income on derivative represents a $2&nbsp;million gain and a $4&nbsp;million gain related to the amount excluded from the assessment of hedge effectiveness in the three and nine months ended July&nbsp;31, 2009, respectively. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP expects to reclassify net accumulated other comprehensive gain of $154&nbsp;million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions in association with cash flow hedges. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=229></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=100></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=41></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain (Loss) Recognized in Income on Derivative </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(452</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(663</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total return contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(433</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(627</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Other Financial Instruments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For certain of HP's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, financing receivables, notes payable and short-term borrowings, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. The estimated fair value of HP's short- and long-term debt was approximately $17.3&nbsp;billion at July&nbsp;31, 2009, compared to a carrying value of $17.2&nbsp;billion at that date. The estimated fair value of the debt is based primarily on quoted market prices, as well as borrowing rates currently available to HP for bank loans with similar terms and maturities. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;10: Financing Receivables and Operating Leases </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables represent sales-type and direct-financing leases resulting from the marketing of HP's and third-party products. These receivables typically have terms from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include </FONT><FONT size=2>billed receivables from operating leases. The components of net financing receivables, which are included in financing receivables and long-term financing receivables and other assets, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=361></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Minimum lease payments receivable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,033</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,338</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(108</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unguaranteed residual value</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>245</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unearned income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(466</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Financing receivables, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,618</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,036</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less current portion</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,532</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,314</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amounts due after one year, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,722</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment leased to customers under operating leases was $3.0&nbsp;billion at July&nbsp;31, 2009 and $2.3&nbsp;billion at October&nbsp;31, 2008 and is included in Property, plant and equipment in the Consolidated Condensed Balance Sheets. Accumulated depreciation on these operating leases was $0.9&nbsp;billion at July&nbsp;31, 2009 and $0.5&nbsp;billion at October&nbsp;31, 2008. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;11: Guarantees </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Guarantees and Indemnifications </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, HP may provide certain clients, principally governmental entities, with subsidiary performance guarantees and/or financial performance guarantees, which may be backed by standby letters of credit or surety bonds. In general, HP would be liable for the amounts of these guarantees in the event HP or HP's subsidiaries' nonperformance permits termination of the related contract by the client, the likelihood of which HP believes is remote. HP believes that the company is in compliance with the performance obligations under all material service contracts for which there is a performance guarantee. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the acquisition of EDS, HP acquired certain service contracts supported by client financing or securitization arrangements. Under specific circumstances involving non-performance resulting in service contract termination or failure to comply with terms under the financing arrangement, HP would be required to acquire certain assets. HP considers the possibility of its failure to comply to be remote and the asset amounts involved to be immaterial. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify the third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Warranty </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP provides for the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in HP's aggregate product warranty liabilities for the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=367></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>In millions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product warranty liability at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accruals for warranties issued</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,915</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Adjustments related to pre-existing warranties (including changes in estimates)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlements made (in cash or in kind)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,003</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product warranty liability at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,333</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;12: Borrowings </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Notes Payable and Short-Term Borrowings </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=254></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amount<BR>Outstanding </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Interest<BR>Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amount<BR>Outstanding </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Interest<BR>Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current portion of long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,610</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notes payable to banks, lines of credit and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>403</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>356</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5.3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $311&nbsp;million and $262&nbsp;million at July&nbsp;31, 2009 and October&nbsp;31, 2008, respectively. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Long-Term Debt </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=344></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>U.S. Dollar Global Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2002 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$500 issued at discount to par of 99.505% in June 2002 at 6.5%, due July 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2006 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$600 issued at par in February 2007 at three-month USD LIBOR plus 0.11%, due March 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>600</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>600</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$900 issued at discount to par of 99.938% in February 2007 at 5.25%, due March 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>900</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>900</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$500 issued at discount to par of 99.694% in February 2007 at 5.4%, due March 2017</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at par in June 2007 at three-month USD LIBOR plus 0.01%, due June 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at par in June 2007 at three-month USD LIBOR plus 0.06%, due June 2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at par in March 2008 at three-month USD LIBOR plus 0.40%, due September 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,500 issued at discount to par of 99.921% in March 2008 at 4.5%, due March 2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at discount to par of 99.932% in March 2008 at 5.5%, due March 2018</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$2,000 issued at discount to par of 99.561% in December 2008 at 6.125%, due March 2014</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,992</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$275 issued at par in February 2009 at three-month USD LIBOR plus 1.75%, due February 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at discount to par of 99.956% in February 2009 at 4.25%, due February 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,500 issued at discount to par of 99.993% in February 2009 at 4.75%, due June 2014</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at par in May 2009 at three-month USD LIBOR plus 1.05%, due May 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at discount to par of 99.967% in May 2009 at 2.25%, due May 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$250 issued at discount to par of 99.984% in May 2009 at 2.95%, due August 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>250</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,497</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=353></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28> <P>&nbsp;</P> <P>&nbsp;</P></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>EDS Senior Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$700 issued October 1999 at 7.125%, due October 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>702</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>712</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,100 issued June 2003 at 6.0%, due August 2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,143</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$300 issued October 1999 at 7.45%, due October 2029</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>316</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>316</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other, including capital lease obligations, at 3.75%-9.14%, due in calendar year 2009-2029 and at 3.75%-8.63%, due in calendar year 2008-2029</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>784</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>597</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value adjustment related to SFAS No.&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>293</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,502</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: current portion</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,610</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,892</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,676</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP may redeem some or all of the Global Notes set forth in the above table at any time at the redemption prices described in the prospectus supplements relating thereto. The Global Notes are senior unsecured debt. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP registered the sale of up to $3.0&nbsp;billion of debt or global securities, common stock, preferred stock, depositary shares and warrants under a shelf registration statement in March 2002 (the "2002 Shelf Registration Statement"). The 2002 Shelf Registration Statement expired on December&nbsp;1, 2008, and, accordingly, HP is no longer able to issue any additional securities under this Registration Statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2009, HP filed a shelf registration statement (the "2009 Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") to enable the Company to offer and sell, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2009 Shelf Registration Statement replaced a similar registration statement filed in May 2006 that expired in May 2009 (the "2006 Shelf Registration Statement"). As of July&nbsp;31, 2009, HP had $10.8&nbsp;billion of global notes issued under the 2006 Shelf Registration Statement and $2.0&nbsp;billion of global notes issued under the 2009 Shelf Registration Statement. On December&nbsp;5, 2008, HP issued $2.0&nbsp;billion of global notes under the 2006 Shelf Registration Statement. The global notes issued in December 2008 are due in March 2014, bear interest at a fixed interest rate of 6.125% per annum and were issued at a discount to par of 99.561%. On February&nbsp;26, 2009, HP issued an additional $2.8&nbsp;billion of global notes under the 2006 Shelf Registration Statement. The global notes include $275&nbsp;million of floating rate notes at three-month USD LIBOR plus 1.75% due February 2011 issued at par, $1.0&nbsp;billion of notes due February 2012 with a fixed rate of 4.25% per annum issued at a discount to par of 99.956% and $1.5&nbsp;billion of notes due June 2014 with a fixed rate of 4.75% per annum issued at a discount to par of 99.993%. On May&nbsp;27, 2009, HP issued $2.0&nbsp;billion of global notes under the 2009 Shelf Registration Statement. The global notes issued in May 2009 include $1.0&nbsp;billion of notes due May 2011 with a fixed rate of 2.25% per annum issued at a discount to par of 99.967%, $750&nbsp;million of floating rate notes due May 2011 at three-month USD LIBOR plus 1.05% issued at par, and $250&nbsp;million of notes due August 2012 with a fixed rate of 2.95% per annum issued at a discount to par of 99.984%. HP used the net proceeds from </FONT><FONT size=2>the December 2008, February 2009 and May 2009 offerings for general corporate purposes and the repayment of short-term commercial paper, some of which was issued in connection with its acquisition of EDS. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2008, HP's Board of Directors approved increasing the capacity of HP's U.S. commercial paper program by $10.0&nbsp;billion to $16.0&nbsp;billion. HP's subsidiaries are authorized to issue up to an additional $1.0&nbsp;billion of commercial paper, of which $500&nbsp;million of capacity is currently available to be used by Hewlett-Packard International Bank&nbsp;PLC, a wholly-owned subsidiary of HP, for its Euro Commercial Paper/Certificate of Deposit Programme. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2008, HP registered for the Commercial Paper Funding Facility ("CPFF") provided by the Federal Reserve Bank of New York. The facility enables HP to issue three-month unsecured commercial paper through a special purpose vehicle of the Federal Reserve at a rate established by the CPFF program, which is currently equal to a spread over the three-month overnight index swap rate. The maximum amount of commercial paper that HP may issue at any time through this program is $10.4&nbsp;billion less the total principal amount of all other outstanding commercial paper that HP has issued. The CPFF program is currently scheduled to expire on February&nbsp;1, 2010. As of July&nbsp;31, 2009, HP had not issued any commercial paper under the CPFF program. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has a $2.9&nbsp;billion five-year credit facility expiring in May 2012. In February and July 2008, HP entered into additional 364-day credit facilities of $3.0&nbsp;billion and $8.0&nbsp;billion, respectively. The February 2008 credit facility expired in February 2009, at which time HP entered into a new $3.5&nbsp;billion 364-day credit facility. HP terminated the July 2008 credit facility in May 2009, which reduced the total amount available under its credit facilities to $6.4&nbsp;billion. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. The credit facilities are senior unsecured committed borrowing arrangements primarily to support the issuance of U.S. commercial paper. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP also maintains uncommitted lines of credit from a number of financial institutions that are available through various foreign subsidiaries. The amount available for use as of July&nbsp;31, 2009 was approximately $1.3&nbsp;billion. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of July&nbsp;31, 2009, the carrying value of the assets approximated the carrying value of the borrowings of $10&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, HP was able to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2009 Shelf Registration Statement. As of that date, HP also had up to approximately $17.5&nbsp;billion of available borrowing resources, including $16.2&nbsp;billion under its commercial paper programs, $6.4&nbsp;billion of which is supported by its credit facilities, and approximately $1.3&nbsp;billion under other programs. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;13: Income Taxes </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Provision for Taxes </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's effective tax rate was 17.8% and 20.6% for the three months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, respectively, and 18.1% and 20.6% for the nine months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, respectively. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% </FONT><FONT size=2>due to favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world. HP has not provided U.S. taxes for all of such earnings because HP plans to reinvest some of those earnings indefinitely outside the United States. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three and nine months ended July&nbsp;31, 2009, HP recorded discrete items with a net tax benefit of $145&nbsp;million and $163&nbsp;million, respectively, decreasing the effective tax rate. These amounts include a net tax benefit of $141&nbsp;million for the adjustment to estimated fiscal 2008 tax accruals upon filing the 2008 U.S. federal income tax return and other miscellaneous discrete items that resulted in a net tax benefit of $4&nbsp;million and $22&nbsp;million for the three and nine months ended July&nbsp;31, 2009, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three and nine months ended July&nbsp;31, 2008, HP recorded discrete items with a net tax benefit of $5&nbsp;million and $52&nbsp;million, respectively, decreasing the effective tax rate. These amounts include reductions to net income tax accruals of $72&nbsp;million and $296&nbsp;million for the three and nine months ended July&nbsp;31, 2008, respectively, as a result of settlements with tax authorities regarding certain transfer pricing issues for fiscal years 1993 through 2005. These favorable adjustments in the three and nine months ended July&nbsp;31, 2008 were offset in part by a tax charge of $44&nbsp;million for the adjustment to estimated fiscal 2007 tax accruals upon filing the 2007 U.S. federal income tax return, and by net increases of $30&nbsp;million and $235&nbsp;million, respectively, to deferred tax liabilities related to earnings outside the United States. HP recorded other miscellaneous discrete items that resulted in a net tax benefit of $7&nbsp;million and $35&nbsp;million for the three and nine months ended July&nbsp;31, 2008, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of fiscal 2009, the amounts of gross unrecognized tax benefits determined in accordance with Financial Interpretation No.&nbsp;48, "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement No.&nbsp;109" ("FIN&nbsp;48") decreased by $160&nbsp;million to $2.1&nbsp;billion as of July&nbsp;31, 2009, of which up to $775&nbsp;million would affect HP's effective tax rate if realized. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP recognizes interest expense and penalties on unrecognized tax benefits and interest income from favorable settlements and income tax receivables within income tax expense. As of July&nbsp;31, 2009 HP had accrued a net $158&nbsp;million income tax payable for interest and penalties. There were no material amounts of net interest income on tax overpayments recorded during the three and nine months ended July&nbsp;31, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP engages in continuous discussion and negotiation with tax authorities regarding tax matters in the various jurisdictions. HP does not expect complete resolution of any Internal Revenue Service ("IRS") audit cycle within the next 12&nbsp;months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12&nbsp;months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $170&nbsp;million within the next twelve months. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;30, 2009, HP received a Notice of Deficiency from the IRS for its fiscal 2004 and 2005 tax years. The Notice of Deficiency asserted that HP owes additional tax of $92&nbsp;million and penalties of $5&nbsp;million. In addition to the proposed deficiency for fiscal 2004 and 2005, the IRS's adjustments for both years, if sustained, would reduce the tax benefits of net operating loss and tax credit carryforwards to subsequent years by approximately $563&nbsp;million. HP plans to contest certain of the adjustments </FONT><FONT size=2>proposed in the Notice of Deficiency. HP believes that it has provided adequate reserves for any tax deficiencies or reductions in tax benefits that could result from the IRS actions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is subject to income tax in the United States and over sixty foreign countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by state and foreign tax authorities. HP has received from the IRS Notices of Deficiency for its fiscal 1999, 2000, 2004 and 2005 tax years, and Revenue Agent's Reports for its fiscal 2001 and 2002 tax years. The IRS began an audit of HP's 2006 and 2007 income tax returns in 2009. With respect to major foreign and state tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 1999. HP believes that adequate reserves have been provided for all open tax years. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The breakdown between current and long-term deferred tax assets and deferred tax liabilities was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=361></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current deferred tax assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,920</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(97</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Long-term deferred tax assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,017</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>792</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Long-term deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,657</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total deferred tax assets net of deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,570</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;14: Stockholders' Equity </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Share Repurchase Program </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and nine months ended July&nbsp;31, 2009, HP executed share repurchases of 29&nbsp;million shares and 74&nbsp;million shares, respectively. For the three months ended July&nbsp;31, 2009, repurchases of 28&nbsp;million shares were settled for $1.0&nbsp;billion. For the nine months ended July&nbsp;31, 2009, repurchases of approximately 85&nbsp;million shares were settled for $3.0&nbsp;billion, which included 14&nbsp;million shares repurchased in transactions that were executed in fiscal 2008 but settled in the first nine months of fiscal 2009. HP had approximately 3&nbsp;million shares repurchased in the third quarter of fiscal 2009 that will be settled in the fourth quarter of fiscal 2009. HP paid approximately $1.6&nbsp;billion and $7.7&nbsp;billion in connection with repurchases of approximately 34&nbsp;million shares and 171&nbsp;million shares in the three and nine months ended July&nbsp;31, 2008, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;31, 2009, HP had remaining authorization of $6.1&nbsp;billion for future share repurchases under the $8.0&nbsp;billion repurchase authorization approved by HP's Board of Directors on September&nbsp;19, 2008. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Comprehensive Income </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in the components of other comprehensive income ("OCI"), net of taxes, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=328></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on available-for-sale securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized gains, net of tax of $1&nbsp;million in 2009 and with no tax effect in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized (losses) gains, net of tax benefit of $112&nbsp;million in 2009 and net of tax of $1&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (gains) losses reclassified into earnings, net of tax of $48&nbsp;million in 2009 and net of tax benefit of $5&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in cumulative translation adjustment, net of tax of $189&nbsp;million in 2009 and $6&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>423</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized components of defined benefit plans, net of tax benefit of $30&nbsp;million in 2009 and $7&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,772</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,040</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=328></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5> <P>&nbsp;</P> <P>&nbsp;</P></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,217</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on available-for-sale securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized gains (losses), net of tax of $1&nbsp;million in 2009 and with no tax effect in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized gains reclassified into earnings, with no tax effect in 2009 and 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized (losses) gains, net of tax benefit of $138&nbsp;million in 2009 and net of tax of $6&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (gains) losses reclassified into earnings, net of tax of $418&nbsp;million in 2009 and net of tax benefit of $32&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(721</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(959</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in cumulative translation adjustment, net of tax of $180&nbsp;million in 2009 and $7&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized components of defined benefit plans, net of tax of $24&nbsp;million in 2009 and net of tax benefit of $21&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(46</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of accumulated other comprehensive loss, net of taxes, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=326></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized losses on available-for-sale securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (losses) gains on cash flow hedges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(157</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cumulative translation adjustment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(585</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(763</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unrealized components of defined benefit plans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(92</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(796</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;15: Retirement and Post-Retirement Benefit Plans </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Modifications to Defined Contribution Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP offers various defined contribution plans for U.S. and non-U.S. employees. As disclosed in our Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008, HP matches employee contributions to the U.S. HP 401(k) Plan with cash contributions up to a maximum of 6% of eligible compensation for U.S. employees hired prior to August&nbsp;1, 2008 and up to a maximum of 4% of eligible compensation for U.S. employees hired on or after August&nbsp;1, 2008. Further, effective January&nbsp;1, 2009, </FONT><FONT size=2>U.S. employees participating in the EDS 401(k) Plan became eligible for a 4% HP matching contribution on eligible compensation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective April&nbsp;1, 2009, HP matching contributions under both the U.S. HP 401(k) Plan and the EDS 401(k) Plan were changed to a quarterly, discretionary, performance-based match of up to a maximum of 4% of eligible compensation for all U.S. employees, which will be determined each fiscal quarter based on business results. HP matching contributions will vary from 0% to 100% of the maximum 4% match, based on factors such as quarterly earnings, market share growth, and performance relative to market and economic conditions. HP's matching contributions for the extended period of April&nbsp;1, 2009 through July&nbsp;31, 2009 was 100% of the maximum 4% match. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's net pension and post-retirement benefit costs were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=247></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Non-U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Post-<BR>Retirement<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>109</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization and deferrals:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actuarial (gain) loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prior service benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net periodic benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Special termination benefits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=242></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Non-U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Post-<BR>Retirement<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>231</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>444</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>177</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>458</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>323</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(399</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(190</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(506</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization and deferrals:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actuarial (gain) loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prior service benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net periodic benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>242</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlement gain</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Curtailment gain</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Special termination benefits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>246</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Employer Contributions and Funding Policy </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008 that it expected to contribute approximately $360&nbsp;million to its non-U.S. pension plans and approximately $35&nbsp;million to cover benefit payments to U.S. non-qualified plan participants in fiscal 2009. In addition, HP expected to pay approximately $70&nbsp;million to cover benefit claims for HP's post-retirement benefit plans. HP's funding policy is to contribute cash to its pension plans so that it meets at least the minimum contribution requirements, as established by local government and funding and taxing authorities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;31, 2009, HP has made $394&nbsp;million of contributions to non-U.S. pension plans, paid $24&nbsp;million to cover benefit payments to U.S. non-qualified plan participants, and paid $29&nbsp;million to cover benefit claims under post-retirement benefit plans. HP presently anticipates making additional contributions of approximately $70&nbsp;million to its non-U.S. pension plans and approximately $5&nbsp;million to its U.S. non-qualified plan participants and expects to pay up to $15&nbsp;million to cover benefit claims under post-retirement benefit plans during the remainder of fiscal 2009. HP's pension and other post-retirement benefit costs and obligations are dependent on various assumptions. Differences between expected and actual returns on investments will be reflected as unrecognized gains or losses, and such gains or losses will be amortized and recorded in future periods. Poor financial performance of asset markets in any year could lead to increased contributions in certain countries and increased future pension plan expense. Asset gains or losses are determined at the measurement date and amortized over the remaining service life or life expectancy of plan participants. HP's next expected measurement date is October&nbsp;31, 2009. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;16: Litigation and Contingencies </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. In accordance with SFAS No.&nbsp;5, "Accounting for Contingencies," HP records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. HP believes it has adequate provisions for any such matters. HP reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes that it has valid defenses with respect to legal matters pending against it. Nevertheless, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies or because of the diversion of management's attention and the creation of significant expenses. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Pending Litigation, Proceedings and Investigations </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Copyright levies</U></I></FONT><FONT size=2>. As described below, proceedings are ongoing against HP in certain European Union ("EU") member countries, including litigation in Germany, seeking to impose levies upon equipment (such as multifunction devices ("MFDs"), personal computers ("PCs") and printers) and alleging that these devices enable producing private copies of copyrighted materials. The total levies due, if imposed, would be based upon the number of products sold and the per-product amounts of the levies, which vary. Some EU member countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them to extend existing levy schemes, while some other EU member countries are expected to limit the scope of levy schemes and applicability in the digital hardware environment. HP, other companies and various industry associations are opposing the extension of levies to the digital environment and advocating alternative models of compensation to rights holders. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted non-binding arbitration proceedings against HP in June 2001 in Germany before the arbitration board of the Patent and Trademark Office. The proceedings relate to whether and to what extent copyright levies for photocopiers should be imposed in accordance with copyright laws implemented in Germany on MFDs that allegedly enable the production of copies by private persons. Following unsuccessful arbitration, VG Wort filed a lawsuit against HP in May 2004 in the Stuttgart Civil Court in Stuttgart, Germany seeking levies on certain MFDs sold from 1997 to 2001. On December&nbsp;22, 2004, the court held that HP is liable for payments regarding MFDs sold in Germany, and ordered HP to pay VG Wort an amount equal to 5% of the outstanding levies claimed, plus interest, on MFDs sold in Germany up to December 2001. VG Wort appealed this decision. On July&nbsp;6, 2005, the Stuttgart Court of Appeals ordered HP to pay VG Wort levies based on the published tariffs for photocopiers in Germany (which range from EUR 38.35 to EUR 613.56 per unit), plus interest, on MFDs sold in Germany up to December 2001. HP appealed the Stuttgart Court of Appeals' decision to the Bundesgerichtshof (the German Federal Supreme Court). On January&nbsp;30, 2008, the German Federal Supreme Court held that the MFDs covered by this lawsuit were photocopiers within the meaning of the German copyright law that was in effect until December&nbsp;31, 2007, and, therefore, are </FONT><FONT size=2>subject to the levies on photocopiers established by that law. HP subsequently appealed the decision by filing a claim with the German Federal Constitutional Court challenging that ruling and the application of conventional photocopier levies for MFDs sold in Germany up to December 2001. On June&nbsp;4, 2009, the German Constitutional Court declined to hear HP's appeal. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;26, 2005, VG Wort filed an additional lawsuit against HP in the Stuttgart Civil Court in Stuttgart, Germany seeking assurance of full payment of levies on MFD units sold in Germany between 1997 and 2001, as well as for MFDs sold from 2002 onwards. On July&nbsp;26, 2007, the court issued a decision following the ruling of the Stuttgart Court of Appeals with respect to the initial VG Wort lawsuit as described above. HP appealed the decision. On March&nbsp;25, 2009, the German Association for Information Technology, Telecommunications and New Media e.V. entered into a settlement agreement with VG Wort and Verwertungsgesellschaft Bild-Kunst, another collection agency representing copyright holders ("VG Bild-Kunst"), that provides for the payment of levies on MFDs sold from 2002 through 2007. The levies vary from approximately &#128;13 to &#128;307 per unit depending on the type of device, the date sold and the copy speed and are subject to reduction if VG Wort or VG Bild-Kunst grants more favorable rates in the future to parties within Germany that are not covered by the settlement. HP has acceded to the settlement and paid all amounts due thereunder. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July 2004, VG Wort filed a separate lawsuit against HP in the Stuttgart Civil Court seeking levies on printers. On December&nbsp;22, 2004, the court held that HP is liable for payments regarding all printers using ASCII code sold in Germany but did not determine the amount payable per unit. HP appealed this decision in January 2005 to the Stuttgart Court of Appeals. On May&nbsp;11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June&nbsp;6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December&nbsp;6, 2007, the German Federal Supreme Court issued a judgment that printers are not subject to levies under the existing law. The court issued a written decision on January&nbsp;25, 2008, and VG Wort subsequently filed an application with the German Federal Supreme Court under Section&nbsp;321a of the German Code of Civil Procedure contending that the court did not consider their arguments. On May&nbsp;9, 2008, the German Federal Supreme Court denied VG Wort's application. In addition, VG Wort has appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. HP has been directed by the Constitutional Court to respond to VG Wort's claim by October&nbsp;12, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2003, VG Wort filed a lawsuit against Fujitsu Siemens Computer&nbsp;GmbH ("FSC") in the Munich Civil Court in Munich, Germany seeking levies on PCs. This is an industry test case in Germany, and HP has agreed not to object to the delay if VG Wort sues HP for such levies on PCs following a final decision against FSC. On December&nbsp;23, 2004, the Munich Civil Court held that PCs are subject to a levy and that FSC must pay 12&nbsp;euros plus compound interest for each PC sold in Germany since March 2001. FSC appealed this decision in January 2005 to the Munich Court of Appeals. On December&nbsp;15, 2005, the Munich Court of Appeals affirmed the Munich Civil Court decision. FSC filed an appeal with the German Federal Supreme Court in February 2006. On October&nbsp;2, 2008, the German Federal Supreme Court issued a judgment that PCs were not photocopiers within the meaning of the German copyright law that was in effect until December&nbsp;31, 2007 and, therefore, not subject to the levies on photocopiers established by that law. VG Wort has filed a claim with the German Federal Constitutional Court challenging that ruling. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;29, 2005, ZPU, a joint association of various German collection societies, instituted non-binding arbitration proceedings against HP before the arbitration board of the Patent and Trademark Office demanding reporting of every PC sold by HP in Germany from January 2002 through December 2005 and seeking a levy of 18.42&nbsp;euros plus tax for each PC sold during that period. HP filed a notice of defense in connection with these proceedings in February 2006, and an arbitration hearing was held in December 2006. On July&nbsp;31, 2007, the arbitration board issued a ruling proposing a levy of 15&nbsp;euros plus tax for each PC sold during that period. HP has rejected the ruling of the arbitration board, and the arbitration proceedings have concluded. ZPU has filed a claim with the Munich Court of Appeals to which HP has responded. A hearing date has been set by the court for February&nbsp;18, 2010. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on industry opposition to the extension of levies to digital products, HP's assessments of the merits of various proceedings and HP's estimates of the units impacted and levies, HP has accrued amounts that it believes are adequate to address the matters described above. However, the ultimate resolution of these matters and the associated financial impact on HP, including the number of units impacted, the amount of levies imposed and the ability of HP to recover such amounts through increased prices, remains uncertain. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Sky Subscribers Services Limited and British Sky Broadcasting Limited v. EDS and EDS Limited (UK)</U></I></FONT><FONT size=2> is a lawsuit filed on August&nbsp;17, 2004 by Sky Subscribers Services Limited and British Sky Broadcasting Limited against Electronic Data Systems Corporation ("EDS"), a company that HP acquired in August 2008, and EDS Limited (UK) ("EDS UK"), one of EDS's subsidiaries, alleging deceit, negligent misrepresentation, negligent misstatement and breach of contract. The claims arose out of a customer relationship management project that was awarded to EDS in 2000, the principal objective of which was to develop a customer call center in Scotland. EDS's main role in the project was as systems integrator. On November&nbsp;12, 2004, EDS and EDS UK filed their defense and counterclaim denying the claims and seeking damages for monies owed under the contract. The trial of this action commenced on October&nbsp;15, 2007, and final arguments concluded on July&nbsp;30, 2008. At trial, the plaintiffs claimed damages in excess of &#163;700&nbsp;million, and EDS and EDS UK counterclaimed for damages of approximately &#163;5&nbsp;million. HP is awaiting a decision from the court. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Skold, et al. v. Intel Corporation and Hewlett-Packard Company</U></I></FONT><FONT size=2> is a lawsuit in which HP was joined on June&nbsp;14, 2004 that is pending in state court in Santa Clara County, California. The lawsuit alleges that HP (along with Intel) misled the public by suppressing and concealing the alleged material fact that systems that use the Intel Pentium 4 processor are less powerful and slower than systems using the Intel Pentium III processor and processors made by a competitor of Intel. The plaintiffs seek unspecified damages, restitution, attorneys' fees and costs, and certification of a nationwide class. On February&nbsp;27, 2009, the court denied without prejudice plaintiffs' motion for nationwide class certification for a third time. The plaintiffs have appealed the court's decision. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Inkjet Printer Litigation</U></I></FONT><FONT size=2>. As described below, HP is involved in several lawsuits claiming breach of express and implied warranty, unjust enrichment, deceptive advertising and unfair business practices where the plaintiffs have alleged, among other things, that HP employed a "smart chip" in certain inkjet printing products in order to register ink depletion prematurely and to render the cartridge unusable through a built-in expiration date that is hidden, not documented in marketing materials to consumers, or both. The plaintiffs have also contended that consumers received false ink depletion </FONT><FONT size=2>warnings and that the smart chip limits the ability of consumers to use the cartridge to its full capacity or to choose competitive products. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>A consolidated lawsuit captioned </FONT><FONT size=2><I><U>In re HP Inkjet Printer Litigation</U></I></FONT><FONT size=2> is pending in the United States District Court for the Northern District of California where the plaintiffs are seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees. On January&nbsp;4, 2008, the court heard plaintiffs' motions for class certification and to add a class representative and HP's motion for summary judgment. On July&nbsp;25, 2008, the court denied all three motions. On March&nbsp;30, 2009, the plaintiffs filed a renewed motion for class certification. A hearing on the plaintiffs' motion for class certification is scheduled for November&nbsp;13, 2009. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>A lawsuit captioned </FONT><FONT size=2><I><U>Blennis v. HP</U></I></FONT><FONT size=2> was filed on January&nbsp;17, 2007 in the United States District Court for the Northern District of California where the plaintiffs are seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees. A class certification hearing is scheduled for January&nbsp;8, 2010. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Four class actions against HP and its subsidiary, Hewlett-Packard (Canada)&nbsp;Co., are pending in Canada, one commenced in British Columbia in February 2006, two commenced in Quebec in April 2006 and May 2006, respectively, and one commenced in Ontario in June 2006, where the plaintiffs are seeking class certification, restitution, declaratory relief, injunctive relief and unspecified statutory, compensatory and punitive damages. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Baggett v. HP</U></I></FONT><FONT size=2> is a consumer class action filed against HP on June&nbsp;6, 2007 in the United States District Court for the Central District of California alleging that HP employs a technology in its LaserJet color printers whereby the printing process shuts down prematurely, thus preventing customers from using the toner that is allegedly left in the cartridge. The plaintiffs also allege that HP fails to disclose to consumers that they will be unable to utilize the toner remaining in the cartridge after the printer shuts down. The complaint seeks certification of a nationwide class of purchasers of all HP LaserJet color printers and seeks unspecified damages, restitution, disgorgement, injunctive relief, attorneys' fees and costs. The plaintiffs' motion for class certification and HP's motion for summary judgment are currently pending before the court. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Rich v. HP</U></I></FONT><FONT size=2> is a consumer class action filed against HP on May&nbsp;22, 2006 in the United States District Court for the Northern District of California. The suit alleges that HP designed its color inkjet printers to unnecessarily use color ink in addition to black ink when printing black and white images and text. The plaintiffs are seeking to certify a nationwide injunctive class and a California-only damages class. A class certification hearing is scheduled for January&nbsp;8, 2010. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;27, 2001, </FONT><FONT size=2><I><U>Cornell University</U></I></FONT><FONT size=2> and the </FONT><FONT size=2><I><U>Cornell Research Foundation,&nbsp;Inc.</U></I></FONT><FONT size=2> filed a complaint, amended on September&nbsp;6, 2002, against HP in United States District Court for the Northern District of New York alleging that HP's PA-RISC 8000 family of microprocessors, and servers and workstations incorporating those processors, infringe a patent assigned to Cornell Research Foundation,&nbsp;Inc. that describes a way of executing microprocessor instructions. The complaint sought declaratory and injunctive relief and unspecified damages. The patent at issue in this litigation, United States Patent No.&nbsp;4,807,115, expired on February&nbsp;21, 2006. Therefore, the plaintiffs are no longer entitled to seek injunctive relief against HP. This matter was tried between May&nbsp;19 and May&nbsp;30, 2008, </FONT><FONT size=2>and, on May&nbsp;30, 2008, a jury returned a verdict in favor of the plaintiffs in the amount of $184&nbsp;million. On March&nbsp;30, 2009, the trial court issued four post-trial decisions. The court denied several of HP's post-trial motions, but granted HP's motion to reduce the damages award. The court reduced the award to approximately $53&nbsp;million and subsequently entered judgment in favor of the plaintiffs in that amount. On April&nbsp;10, 2009, HP filed a notice that it will appeal the judgment to the United States Court of Appeals for the Federal Circuit. On May&nbsp;15, 2009, the court awarded approximately $17&nbsp;million in pre-judgment interest and approximately $1&nbsp;million in costs and subsequently entered an amended judgment reflecting those awards. On June&nbsp;2, 2009, the court entered a final amended judgment reflecting the total amount of damages, pre-judgment interest and taxable costs. On June&nbsp;4, 2009, HP filed an amended notice of appeal. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Fair Labor Standards Act Litigation</U></I></FONT><FONT size=2>. As described below, HP is involved in several lawsuits in which the plaintiffs are seeking unpaid overtime compensation and other damages based on allegations that various employees of EDS or HP have been misclassified as exempt employees under the Fair Labor Standards Act and/or in violation of the California Labor Code: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Cunningham and Cunningham, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2> is a purported action filed on May&nbsp;10, 2006 in the U.S. District Court for the Eastern District of New York claiming that current and former EDS employees involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Two other purported class actions, </FONT><FONT size=2><I><U>Steavens, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on October&nbsp;23, 2007, and </FONT><FONT size=2><I><U>Azar&nbsp;v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on February&nbsp;20, 2009, are also pending in the same court alleging similar facts. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Heffelfinger, et&nbsp;al v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2> is a class action filed on November 2006 in California Superior Court claiming that certain EDS information technology workers in California were misclassified exempt employees. The case was subsequently transferred to the U.S. District Court for the Central District of California, which, on January&nbsp;7, 2008, certified a class of information technology workers in California. On June&nbsp;6, 2008, the court granted the defendant's motion for summary judgment. The plaintiffs subsequently filed an appeal with the U.S. Court of Appeals for the Ninth Circuit. Three other purported class actions originally filed in California Superior Court, </FONT><FONT size=2><I><U>Jameson, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on July&nbsp;16, 2008, </FONT><FONT size=2><I><U>Karlbom, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on March&nbsp;16, 2009, and </FONT><FONT size=2><I><U>George, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on April&nbsp;2, 2009, are pending in the U.S. District Court for the Central or Southern District of California alleging similar facts. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Mathias, et al. v. Hewlett-Packard Company</U></I></FONT><FONT size=2> is a purported class action filed on August&nbsp;21, 2009 in the United States District Court for the Northern District of Georgia, Atlanta Division, claiming that certain HP presales technical consulting employees were misclassified as exempt employees. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>The United States of America, ex rel. Norman Rille and Neal Roberts v. Hewlett-Packard Company, et&nbsp;al.</U></I></FONT><FONT size=2> In 2004, two private individuals filed a civil "</FONT><FONT size=2><I>qui tam</I></FONT><FONT size=2>" complaint under the False Claims Act in the United States District Court for the Eastern District of Arkansas containing generalized allegations that HP and several other companies participated in an industry-wide practice of using partnership and alliance programs to make improper payments and cause the submission of false claims in connection </FONT><FONT size=2>with contracts to provide products and services to the federal government. On April&nbsp;12, 2007, the U.S. Department of Justice intervened in the </FONT><FONT size=2><I>qui tam</I></FONT><FONT size=2> action and filed a complaint against HP (and several other companies in separate actions) on behalf of the United States containing allegations that HP violated the False Claims Act and the Anti-Kickback Act of 1986 by providing millions of dollars in kickbacks to its alliance partners, including "influencer fees" and "new business opportunity rebates." The U.S. complaint further alleges that HP violated the False Claims Act and the Anti-Kickback Act, breached its federal government contracts, induced the federal government to make payments to HP that HP was not entitled to receive under those contracts, and was unjustly enriched by expressly or impliedly making false statements, records or certifications to the federal government that it complied with and would continue to comply with the Anti-Kickback Act and by submitting claims to the government that allegedly were inflated because they included the amounts of the influencer fees and new business opportunity rebates. The U.S. complaint seeks treble damages plus civil penalties in connection with the alleged violations of the False Claims Act, double damages plus civil penalties in connection with the alleged violations of the Anti-Kickback Act and disgorgement of profits earned in connection with the breach of contract and unjust enrichment claims. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Leak Investigation Proceedings</U></I></FONT><FONT size=2>. As described below, HP is or has been the subject of various governmental inquiries concerning the processes employed in an investigation into leaks of HP confidential information to members of the media that concluded in May 2006: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In August 2006, HP was informally contacted by the Attorney General of the State of California requesting information concerning the processes employed in the leak investigation. On December&nbsp;7, 2006, HP announced that it entered into an agreement with the California Attorney General to resolve civil claims arising from the leak investigation, including a claim made by the California Attorney General in a Santa Clara County Superior Court action filed on December&nbsp;7, 2006, that HP committed unfair business practices under California law in connection with the leak investigation. As a result of this agreement, which includes an injunction, the California Attorney General will not pursue civil claims against HP or its current and former directors, officers and employees. Under the terms of the agreement, HP paid a total of $14.5&nbsp;million and agreed to implement and maintain for five years a series of measures designed to ensure that HP's corporate investigations are conducted in accordance with California law and the company's high ethical standards. Of the $14.5&nbsp;million, $13.5&nbsp;million has been used to create a Privacy and Piracy Fund to assist California prosecutors in investigating and prosecuting consumer privacy and information piracy violations, $650,000 was used to pay statutory damages and $350,000 reimbursed the California Attorney General's office for its investigation costs. There was no finding of liability against HP as part of the settlement. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Beginning in September 2006, HP received requests from the Committee on Energy and Commerce of the U.S. House of Representatives (the "Committee") for records and information concerning the leak investigation, securities transactions by HP officers and directors, including an August&nbsp;25, 2006, securities transaction by Mark Hurd, HP's Chairman and Chief Executive Officer, and related matters. HP has responded to those requests. In addition, Mr.&nbsp;Hurd voluntarily gave testimony to the Committee regarding the leak investigation on September&nbsp;28, 2006. </FONT></DD></DL></UL> <UL> <UL></UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In September 2006, HP was informally contacted by the U.S. Attorney for the Northern District of California requesting similar information concerning the processes employed in the leak investigation. HP has responded to that request. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Beginning in September 2006, HP has received requests from the Division of Enforcement of the Securities and Exchange Commission for records and information and interviews with current and former HP directors and officers relating to the leak investigation, the resignation of Thomas J. Perkins from HP's Board of Directors, HP's May&nbsp;22, 2006 and September&nbsp;6, 2006 filings with the SEC on Form&nbsp;8-K, stock repurchases by HP and securities transactions by its officers and directors that occurred between May&nbsp;1 and October&nbsp;1, 2006, and HP's policies, practices and approval of securities transactions. In May 2007, HP consented to the entry of an order by the SEC ordering HP to cease and desist from committing or causing violations of the public reporting requirements of the Securities Exchange Act of 1934, as amended. HP has been advised by the staff of the Division of Enforcement that the staff has completed its investigation and does not intend to recommend that any other SEC enforcement action be brought in connection with these matters. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In September 2006, HP received a request from the U.S. Federal Communications Commission for records and information relating to the processes employed in the leak investigation. HP has responded to that request. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, four stockholder derivative lawsuits have been filed in California purportedly on behalf of HP stockholders seeking to recover damages for alleged breach of fiduciary duty and to require HP to improve its corporate governance and internal control procedures as a result of the activities of the leak investigation: </FONT><FONT size=2><I><U>Staehr v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;18, 2006; </FONT><FONT size=2><I><U>Worsham v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;14, 2006; </FONT><FONT size=2><I><U>Tansey v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;20, 2006; and </FONT><FONT size=2><I><U>Hall v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;25, 2006. On October&nbsp;19, 2006, the Santa Clara County Superior Court consolidated the four California cases under the caption </FONT><FONT size=2><I><U>In re Hewlett-Packard Company Derivative Litigation</U></I></FONT><FONT size=2>. The consolidated complaint filed on November&nbsp;19, 2006, also seeks to recover damages in connection with sales of HP stock alleged to have been made by certain current and former HP officers and directors while in possession of material non-public information. Two additional stockholder derivative lawsuits, </FONT><FONT size=2><I><U>Pifko v. Babbio, et al.</U></I></FONT><FONT size=2>, filed on September&nbsp;19, 2006, and </FONT><FONT size=2><I><U>Gross v. Babbio, et al.</U></I></FONT><FONT size=2>, filed on November&nbsp;21, 2006, were filed in Chancery Court, County of New Castle, Delaware; both seek to recover damages for alleged breaches of fiduciary duty and to obtain an order instructing the defendants to refrain from further breaches of fiduciary duty and to implement corrective measures that will prevent future occurrences of the alleged breaches of fiduciary duty. On January&nbsp;24, 2007, the Delaware court consolidated the two cases under the caption </FONT><FONT size=2><I><U>In re Hewlett-Packard Company Derivative Litigation</U></I></FONT><FONT size=2> and subsequently stayed the proceedings, as the parties had reached a tentative settlement. The HP Board of Directors appointed a Special Litigation Committee consisting of independent Board members authorized to investigate, review and evaluate the facts and circumstances asserted in these derivative matters and to determine how HP should proceed in these matters. On December&nbsp;14, 2007, HP and the plaintiffs in the California and Delaware derivative actions entered into an agreement to settle those lawsuits. Under the terms of the settlement, HP agreed to continue certain corporate governance </FONT><FONT size=2>changes until December&nbsp;31, 2012 and to pay the plaintiffs' attorneys' fees. The California court granted final approval to the settlement on March&nbsp;11, 2008 and subsequently granted plaintiffs' counsel's fee application and dismissed the action. On June&nbsp;12, 2008, the Delaware court granted final approval to the settlement and the plaintiffs' application for attorneys' fees and also dismissed the action. Because neither the dismissal of the California nor the Delaware derivative action was thereafter appealed, both cases are now concluded. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Concluded Litigation </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Schorsch v. HP</U></I></FONT><FONT size=2> was a consumer class action filed against HP on October&nbsp;28, 2003 in Illinois state court alleging that HP had included an electrically erasable programmable read only memory (EEPROM) chip in certain of its LaserJet printers that prematurely advises the user that the drum kit needs replacing in violation of Illinois state law. The plaintiffs subsequently filed an amended complaint seeking to expand the class from purchasers of drum kits to purchasers of all HP printer consumables that contain EEPROM chips. The plaintiffs sought certification of an Illinois-only class and unspecified damages, attorneys' fees and costs. The action was dismissed by the court with prejudice on December&nbsp;20, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>CSIRO Patent Litigation</U>. <U>Microsoft Corporation, Hewlett-Packard Company, et al. v. Commonwealth Scientific and Industrial Research Organisation of Australia</U></I></FONT><FONT size=2> is an action filed by HP and two other plaintiffs on May&nbsp;9, 2005, in the District Court for the Northern District of California seeking a declaratory judgment against Commonwealth Scientific and Industrial Research Organisation of Australia ("CSIRO") that HP's products employing the IEEE 802.11a and 802.11g wireless protocol standards do not infringe CSIRO's United States Patent No.&nbsp;5,487,069 relating to wireless transmission of data at frequencies in excess of 10GHz. On September&nbsp;22, 2005, CSIRO filed an answer and counterclaims alleging that all HP products which employ those wireless protocol standards infringe the CSIRO patent and seeking damages, including enhanced damages and attorneys' fees and costs, and an injunction against sales of infringing products. On December&nbsp;12, 2006, CSIRO successfully moved to have the case transferred to the District Court of the Eastern District of Texas. In March 2009, the parties agreed to settle the matter and dismiss the pending lawsuit. Under the terms of the settlement agreement, HP agreed to pay CSIRO an amount of money that is immaterial to HP in exchange for protection from claims of infringement of the patent at issue, including all United States and worldwide continuations and counterparts of that patent, in the form of a combination of licenses and covenants not to sue. The parties filed a stipulation dismissing the case on March&nbsp;26, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Environmental </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of its products and the recycling, treatment and disposal of its products including batteries. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, the energy consumption associated with those products and product take-back legislation. HP could incur substantial costs, its products could be restricted from entering certain </FONT><FONT size=2>jurisdictions, and it could face other sanctions if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean up costs. The amount and timing of costs under environmental laws are difficult to predict. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or state laws similar to CERCLA. HP is also conducting environmental investigations or remediations at several current or former operating sites pursuant to administrative orders or consent agreements with state environmental agencies. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). For example, the European Union ("EU") adopted the Waste Electrical and Electronic Equipment Directive in January 2003. That directive makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products. The EU member states were obliged to make producers participating in the market financially responsible for implementing these responsibilities. </FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;17: Segment Information </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Description of Segments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small and medium sized businesses ("SMBs"), and large enterprises including the public and education sectors. HP's offerings span personal computing and other access devices; imaging and printing-related products and services; enterprise information technology ("IT") infrastructure, including enterprise storage and server technology; software that optimizes business technology investments; financial services including leasing; and multi-vendor customer services, including technology support and maintenance, consulting and integration, information technology and business process outsourcing services and application services. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP and its operations are organized into seven business segments for financial reporting purposes: Services, Enterprise Storage and Servers ("ESS"), HP Software, the Personal Systems Group ("PSG"), the Imaging and Printing Group ("IPG"), HP Financial Services ("HPFS"), and Corporate Investments. HP's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology. The business segments disclosed in the accompanying Consolidated Condensed Financial Statements are based on this organizational structure and information reviewed by HP's management to evaluate the business segment results. Services, ESS and HP Software are reported collectively as a broader Technology Solutions Group ("TSG"). In order to provide a supplementary view of HP's business, aggregated financial data for TSG is presented herein. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has reclassified segment operating results for fiscal 2008 to conform to certain fiscal 2009 organizational realignments. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. Future changes to this organizational structure may result in changes to the business segments disclosed. A description of the types of products and services provided by each business segment follows. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Technology Solutions Group. </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the business segments within TSG is described in detail below. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Services,</I></FONT><FONT size=2> formerly HP Services, was renamed after the reorganization of the business units subsequent to the acquisition of EDS. Services provides consulting, outsourcing, and technology services across infrastructure, applications, and business process domains. Services delivers to its clients by leveraging investments in consulting and support professionals, infrastructure technology, applications, standardized methodologies, and global supply and delivery. It is divided into four main business units: applications services ("AS"), infrastructure technology outsourcing ("ITO"), business process outsourcing ("BPO") and technology services ("TS"). AS provides a full lifecycle of service offerings to support diverse client requirements, including transformation and modernization services, applications development and applications management. ITO offers five service lines: data center services, workplace services, security compliance and continuity services, networking services, and managed services. BPO is powered by a platform of underlying infrastructure technology, applications and standardized methodologies. It includes four main service lines: enterprise shared services, customer relationship management, financial process management services and administrative services. TS provides services and warranty support across HP's product lines. TS also provides multivendor support to products and environments that are consistent with HP's stated growth strategy. TS specializes in proactive mission-critical support, datacenter transformation and infrastructure services for storage and server environments, as well as unified communication environments and networks. TS offers product support in the form of installation and startup services, hardware and software support, education and training, warranty extensions and replacement parts. Service and support offerings from TS are available in the form of service contracts, pre-packaged offerings or on an individual basis and are available from HP directly or through HP authorized channel partners. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Enterprise Storage and Servers</I></FONT><FONT size=2> provides storage and server products. The various server offerings range from entry-level servers to high-end scalable servers, including Superdome servers. Industry standard servers include primarily entry-level and mid-range ProLiant servers, which run primarily Windows&#174;<SUP>(1)</SUP>, Linux and Novell operating systems and leverage Intel Corporation ("Intel") and Advanced Micro Devices ("AMD") processors. The business spans a range of product lines, including pedestal-tower servers, density-optimized rack servers and HP's BladeSystem family of server blades. Business critical systems include Itanium&#174;<SUP>(2)</SUP>-based Integrity servers running on HP-UX, Windows&#174;, Linux, OpenVMS and NonStop operating systems, including the high-end Superdome servers and fault-tolerant Integrity NonStop servers. Business critical systems also include the Reduced Instruction Set Computing ("RISC")-based servers with the HP 9000 line running on the HP-UX operating system, HP AlphaServers running on </FONT><FONT size=2>both Tru64 UNIX&#174;<SUP>(3)</SUP> and OpenVMS, and MIPs-based NonStop servers. HP's StorageWorks offerings include entry-level, mid-range and high-end arrays, storage area networks ("SANs"), network attached storage ("NAS"), storage management software, and virtualization technologies, as well as tape drives, tape libraries and optical archival storage. </FONT> <DD style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp; <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>HP Software</I></FONT><FONT size=2> provides enterprise IT management software solutions, including professional services and support, that allow customers to manage and automate their IT infrastructure, operations, applications, IT services and business processes under the HP Business Technology Optimization ("BTO") brand. The portfolio of BTO solutions also includes tools to automate data center operations and IT processes. These solutions are reported as BTO Software. HP Software also provides a comprehensive suite of solutions that enables communication service providers to deploy revenue generating infrastructure and applications, customer intelligence and billing systems, and operational support systems. In addition, for media companies and distributors, HP Software provides solutions that address content management and streamlining of digital media workflows. HP Software further provides information management and business intelligence solutions, which include enterprise data warehousing, business continuity, data availability, records management, compliance and e-discovery products and services that enable our customers to extract more value from their structured and unstructured data and information. These solutions are reported as Other Software. </FONT></DD></DL></UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Windows&#174; is a registered trademark of Microsoft Corporation. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Itanium&#174; is a registered trademark of Intel Corporation. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>UNIX&#174; is a registered trademark of The Open Group. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's other business segments are described below. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Personal Systems Group</I></FONT><FONT size=2> provides commercial PCs, consumer PCs, workstations, handheld computing devices, calculators and other related accessories, software and services for the commercial and consumer markets. Commercial PCs are optimized for commercial uses, including enterprise and SMB customers, and for connectivity and manageability in networked environments. Commercial PCs include the HP Compaq business desktops and notebooks, HP EliteBook Tablet Pcs, the HP EliteBook and ProBook lines of professional notebooks, as well as the HP Mini-Note&nbsp;PC, HP Blade PCs, Retail POS systems, and the HP Compaq and Neoware Thin Clients. Consumer PCs are targeted at the home user and include the HP Pavilion and Compaq Presario series of multi media consumer desktops and notebooks, as well as the HP Pavilion Elite desktops, HP HDX Premium notebooks, Touchsmart PCs, HP and Compaq Mini notebooks, Voodoo Gaming PCs and the Media Smart Home Server. HP's Z series desktop workstations and HP Elitebook Mobile Workstations provide advanced graphics, computing, and large modeling capabilities, certified with applications in a wide range of industries and running both Windows&#174; and Linux operating systems. PSG provides a series of HP iPAQ Pocket PC handheld computing devices that run on Windows&#174; Mobile software. These products range from basic PDAs to advanced devices with voice and data capability. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Imaging and Printing Group</I></FONT><FONT size=2> provides consumer and commercial printer hardware, printing supplies, printing media and scanning devices. IPG is also focused on imaging solutions in the </FONT><FONT size=2>commercial markets, from managed print services solutions to addressing new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP's consumer and SMB inkjet solutions (hardware, ink, media) and develops HP's retail and web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs as well as retail publishing solutions, Snapfish, and Logoworks. LaserJet and Enterprise Solutions delivers products and services to the enterprise segment. It includes LaserJet printers and supplies, multi-function printers, scanners, enterprise software solutions such as Exstream Software and Web Jetadmin, managed print services products and solutions, and Halo telepresence. Graphics solutions include large format printing (Designjet, Scitex, ColorSpan and NUR), large format supplies, WebPress supplies, Indigo printing, specialty printing systems, inkjet high-speed production solutions and light production solutions. Printer supplies include LaserJet toner and inkjet printer cartridges and other printing-related media. </FONT> <DD style="FONT-FAMILY: times">&nbsp; <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>HP Financial Services</I></FONT><FONT size=2> supports and enhances HP's global product and services solutions, providing a broad range of value-added financial life-cycle management services. HPFS enables HP's worldwide customers to acquire complete IT solutions, including hardware, software and services. HPFS offers leasing, financing, utility programs, and asset recovery services, as well as financial asset management services, for large global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and governmental entities. HPFS offers innovative, customized and flexible alternatives to balance unique customer cash flow, technology obsolescence and capacity needs. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Corporate Investments</I></FONT><FONT size=2> includes HP Labs and certain business incubation projects. Revenue in this segment is attributable to the sale of certain network infrastructure products, including Ethernet switch products that enhance computing and enterprise solutions sold under the brand "ProCurve Networking." </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2><I>Segment Data </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP derives the results of the business segments directly from its internal management reporting system. The accounting policies&nbsp;HP uses to derive business segment results are substantially the same as those the consolidated company uses. Management measures the performance of each business segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. HP does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, stock-based compensation expense related to HP-granted employee stock options, PRUs and the employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&amp;D, as well as certain corporate governance costs. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP does not allocate to its business segments restructuring charges and any associated adjustments related to restructuring actions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected operating results information for each business segment was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Net Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Earnings (Loss)<BR>from Operations </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,470</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,289</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>567</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,741</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>356</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>544</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>847</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>153</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>135</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,798</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,246</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>587</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>960</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>670</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>271</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,187</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,952</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT>&nbsp;</P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Net Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Earnings (Loss)<BR>from Operations </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,704</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,700</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,584</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,064</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,341</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,872</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,605</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>450</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,373</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30,113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,045</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,733</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31,116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,195</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,759</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,139</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,404</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,947</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,007</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>141</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>719</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,471</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,077</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes the results of EDS, which was acquired on August&nbsp;26, 2008. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation of segment operating results information to HP consolidated totals was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=279></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Elimination of inter-segment net revenue and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(427</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,236</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,761</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Earnings before taxes:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total segment earnings from operations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,187</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,952</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,471</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,077</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate and unallocated costs and eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(81</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unallocated costs related to stock-based compensation expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(132</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(120</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(436</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(375</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization of purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(379</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(630</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>In-process research and development charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Restructuring charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(362</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisition-related charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(182</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(177</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(589</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>98</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated earnings before taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,366</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,830</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP allocates its assets to its business segments based on the primary segments benefiting from the assets. The total assets of PSG decreased 16% to $13.9&nbsp;billion as of July&nbsp;31, 2009 from $16.4&nbsp;billion as of October&nbsp;31, 2008 due primarily to a decline in accounts and other receivables and inventory related to the current economic slowdown. The total assets of IPG decreased 19% to $11.5&nbsp;billion as of July&nbsp;31, 2009 from $14.2&nbsp;billion as of October&nbsp;31, 2008 due primarily to declines in inventory and other receivables. The total assets of HPFS increased 10% to $10.1&nbsp;billion as of July&nbsp;31, 2009 from $9.2&nbsp;billion as of October&nbsp;31, 2008 due primarily to an increase in financing receivables and assets under operating leases. There have been no material changes in the total assets of HP's other segments. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Net revenue by segment and business unit </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=256></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months<BR>ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=5> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 9pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Infrastructure technology outsourcing</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>3,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>1,393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>11,620</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>3,957</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,404</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,640</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Application services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,384</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>336</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,478</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>984</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business process outsourcing</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>711</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,470</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,704</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,700</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Industry standard servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,874</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,572</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Storage</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>820</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,038</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,551</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,058</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business critical systems</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>578</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>829</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,941</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,741</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,064</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,341</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business technology optimization</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>563</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,725</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,006</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>284</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>368</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>880</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,066</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>847</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,605</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,977</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,373</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30,113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notebooks</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,406</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,387</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Desktops</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,090</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,360</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,494</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Workstations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>299</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>919</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,415</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Handhelds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>281</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>209</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>188</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>589</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>539</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31,116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Supplies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,949</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,527</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,102</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,664</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial hardware</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,085</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,576</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Consumer hardware</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>626</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>796</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,938</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>670</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,947</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,007</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>271</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>719</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total segments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Eliminations of inter-segment net revenue and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(427</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,236</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,761</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes the results of EDS, which was acquired on August&nbsp;26, 2008. The businesses included in the former consulting and integration business unit were divided among the application services and technology services business units and the HP Software segment. The businesses included in the former outsourcing services business unit were divided among the infrastructure technology outsourcing and business process outsourcing business units. The infrastructure technology outsourcing, application services and business process outsourcing business units were added with the technology services business unit, and these four business units now comprise the Services segment. </FONT></DD></DL></BODY></HTML> 2382000000 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;3: Net Earnings Per Share </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP calculates basic earnings per share using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes any dilutive effect of outstanding stock options, PRUs, restricted stock units, restricted stock and convertible debt. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation of the numerators and denominators of the basic and diluted EPS calculations was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=249></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions, except per share amounts</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Numerator:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,217</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings, adjusted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Denominator:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average shares used to compute basic EPS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,382</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,395</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,497</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effect of dilutive securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dilution from employee stock plans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>54</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>76</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Zero-coupon subordinated convertible notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dilutive potential common shares</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>54</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average shares used to compute diluted EPS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,436</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,533</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,442</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted EPS because their effect would be anti-dilutive. For the three and nine months ended July&nbsp;31, 2009, HP excluded from the calculation of diluted EPS options to purchase 96&nbsp;million shares and 100&nbsp;million shares, respectively, as compared to 57&nbsp;million shares and 55&nbsp;million shares, respectively, in the prior-year comparable periods. Also, in accordance with SFAS&nbsp;123R, HP excluded from the calculation of diluted EPS options to purchase an additional 2&nbsp;million shares in the third quarter and the first nine months of fiscal 2009 compared to an additional 28&nbsp;million shares and 29&nbsp;million shares, respectively, in the prior-year comparable periods whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's common stock because their effect would be anti-dilutive. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As disclosed in Note&nbsp;2, during the nine months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, HP granted PRU awards representing at target approximately 14&nbsp;million shares and 9&nbsp;million shares, respectively. HP includes the shares underlying PRU awards in the calculation of diluted EPS when they become contingently issuable per SFAS No.&nbsp;128, "Earnings per Share," and excludes such shares when they are not contingently issuable. Accordingly, for the three and nine months ended July&nbsp;31, 2009, HP has included 4&nbsp;million shares and 3&nbsp;million shares, respectively, underlying the PRU awards granted in fiscal 2008 when calculating diluted EPS as those shares became contingently issuable upon the satisfaction of the cash flow from operations condition with respect to the first year of the performance period applicable to those awards. HP has excluded all other shares underlying the fiscal 2008 awards </FONT><FONT size=2>and all shares underlying the fiscal 2009 awards when calculating diluted EPS as those shares are not contingently issuable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October and November 1997, HP issued U.S. dollar zero-coupon subordinated convertible notes due 2017 (the "LYONs"), the outstanding principal amount of which was redeemed in March 2008. The LYONs were convertible at the option of the holders at any time prior to maturity, unless previously redeemed or otherwise purchased. For purposes of calculating diluted earnings per share for the nine months ended July&nbsp;31, 2008, the interest expense (net of tax) associated with the LYONs was added back to net earnings, and the shares issuable upon conversion of the LYONs were included in the weighted-average shares used to compute diluted earnings per share for periods that the LYONs were outstanding. </FONT></P></BODY></HTML> 0 0.01 0.01 300000000 300000000 0 0 9600000000 9600000000 2415000000 2382000000 27451000000 25277000000 83602000000 76647000000 111072000000 41810000000 41535000000 111072000000 5212000000 9946000000 -2698000000 -3880000000 3368000000 17606000000 9749000000 96000000 13538000000 7317000000 81000000 667000000 2874000000 379000000 16821000000 362000000 2174000000 -177000000 1997000000 355000000 1642000000 0.69 0.67 0.16 2382000000 2436000000 53627000000 29700000000 275000000 41047000000 22626000000 251000000 2115000000 8647000000 1171000000 6000000 602000000 6955000000 -589000000 6366000000 1154000000 2.18 2.13 0.32 2395000000 2442000000 51091000000 12511000000 244000000 2701000000 9820000000 630000000 13000000 19000000 77029000000 7732000000 98000000 7830000000 1613000000 6217000000 13521000000 66000000 14735000000 2532000000 5850000000 12138000000 48842000000 11194000000 10857000000 33277000000 6902000000 3288000000 12778000000 3596000000 786000000 6458000000 1421000000 13483000000 13892000000 13835000000 24000000 13798000000 28509000000 -796000000 0 10153000000 93000000 16928000000 2314000000 7879000000 14361000000 51728000000 10838000000 10468000000 32335000000 7962000000 113331000000 10176000000 14917000000 4159000000 869000000 6287000000 1099000000 15432000000 52939000000 7676000000 13774000000 24000000 14012000000 24971000000 -65000000 38942000000 113331000000 3546000000 501000000 462000000 272000000 67000000 -1000000 -1635000000 -1843000000 -2228000000 691000000 -844000000 1684000000 2749000000 401000000 105000000 103000000 348000000 -6866000000 6778000000 1181000000 936000000 3038000000 67000000 576000000 -3000000 283000000 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;1: Basis of Presentation and Significant Accounting Policies </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of management, the accompanying Consolidated Condensed Financial Statements of Hewlett-Packard Company and its consolidated subsidiaries ("HP") contain all adjustments, including normal recurring adjustments, necessary to present fairly HP's financial position as of July&nbsp;31, 2009, its results of operations for the three and nine months ended July&nbsp;31, 2009 and 2008 and its cash flows for the nine months ended July&nbsp;31, 2009 and 2008. The Consolidated Condensed Balance Sheet as of October&nbsp;31, 2008 is derived from the October&nbsp;31, 2008 audited consolidated financial statements. Certain reclassifications have been made to prior-year amounts in order to conform to the current year presentation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of operations for the three and nine months ended July&nbsp;31, 2009 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form&nbsp;10-Q should be read in conjunction with "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items&nbsp;1A, 3, 7, 7A and 8, respectively, of the Hewlett-Packard Company Annual Report on Form&nbsp;10-K for the fiscal year ended October&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. In accordance with Statement of Financial Accounting Standards ("SFAS") No.&nbsp;5, "Accounting for Contingencies," HP records a provision for a liability when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. HP reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond HP's control. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP evaluated all subsequent events that occurred after the balance sheet date and through the date and time its financial statements were issued on September&nbsp;4, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Accounting Pronouncements </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously reported in HP's 2008 Annual Report on Form&nbsp;10-K, HP recognized the funded status of its benefit plans at October&nbsp;31, 2007 in accordance with the recognition provisions of SFAS No.&nbsp;158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans&#151;An Amendment of Financial Accounting Standards Board ("FASB") Statements No.&nbsp;87, 88, 106 and 132(R)" ("SFAS&nbsp;158"). In addition to the recognition provisions, SFAS&nbsp;158 also requires companies to measure the funded status of the plan as of the date of their fiscal year end, effective for fiscal years ending after December&nbsp;15, 2008. HP will adopt the measurement provisions of SFAS&nbsp;158 effective October&nbsp;31, 2009 for the HP pension and post retirement plans. HP does not expect the adoption of the measurement provisions of SFAS&nbsp;158 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2008, the FASB issued FASB Staff Position ("FSP") SFAS&nbsp;157-2, "Effective Date of FASB Statement No.&nbsp;157" ("FSP SFAS&nbsp;157-2"). FSP SFAS&nbsp;157-2 delays the effective date of SFAS No.&nbsp;157, "Fair Value Measurements" ("SFAS&nbsp;157") to fiscal years beginning after November&nbsp;15, 2008 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). As a result of adoption of FSP SFAS&nbsp;157-2, HP will adopt SFAS&nbsp;157 for all nonfinancial assets and nonfinancial liabilities in the first quarter of fiscal 2010. Although HP will continue to evaluate the application of SFAS&nbsp;157 to nonfinancial assets and nonfinancial liabilities, HP does not expect the adoption of SFAS&nbsp;157 with respect to nonfinancial assets and nonfinancial liabilities will have a material impact on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141 (revised 2007), "Business Combinations" ("SFAS&nbsp;141(R)"). SFAS&nbsp;141(R) expands the definition of a business and a business combination; requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an intangible asset; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. SFAS&nbsp;141(R) also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. SFAS&nbsp;141(R) is effective for fiscal years beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is currently evaluating the potential impact of the adoption of SFAS&nbsp;141(R) on its consolidated financial statements, which will be largely dependent on the size and nature of the business combinations completed after the adoption of this statement. Among other potential impacts, the adoption of SFAS&nbsp;141(R) will result in the recognition of certain types of expenses in its results of operations that are currently capitalized pursuant to existing accounting standards. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, "Noncontrolling Interests in Consolidated Financial Statements&#151;an amendment of Accounting Research Bulletin No.&nbsp;51" ("SFAS&nbsp;160"). SFAS&nbsp;160 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent's ownership interest, and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS&nbsp;160 also establishes disclosure requirements that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS&nbsp;160 is effective for fiscal years beginning after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP does not expect the adoption of SFAS&nbsp;160 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2008, the FASB issued FSP&nbsp;Accounting Principles Board ("APB")&nbsp;14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" ("FSP APB&nbsp;14-1"). FSP APB&nbsp;14-1 requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. FSP APB&nbsp;14-1 is effective for fiscal years beginning after December&nbsp;15, 2008 on a retrospective basis and will be adopted by HP in the first quarter of </FONT><FONT size=2>fiscal 2010. HP currently does not have any outstanding convertible debt instruments that are subject to the provisions of FSP APB&nbsp;14-1. However, HP's U.S. dollar zero-coupon convertible notes that were redeemed in full in March&nbsp;2008 are subject to the provisions of FSP APB&nbsp;14-1. As a result, upon adoption of FSP APB&nbsp;14-1 in the first quarter of fiscal 2010, HP's fiscal 2008 consolidated results of operations and financial condition will be affected on a retrospective basis. HP does not expect the adoption of FSP APB&nbsp;14-1 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2008, the FASB issued FSP&nbsp;Emerging Issues Task Force ("EITF")&nbsp;03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" ("FSP EITF&nbsp;03-6-1"). FSP EITF&nbsp;03-6-1 clarifies that share-based payment awards that entitle their holders to receive nonforfeitable dividends or dividend equivalents before vesting should be considered participating securities. HP has granted and is expected to continue to grant restricted stock that contain non-forfeitable rights to dividends and such restricted stock will be considered participating securities upon adoption of FSP EITF&nbsp;03-6-1. As participating securities, HP will be required to include these instruments in the calculation of HP's basic earnings per share ("EPS"), and it will need to calculate basic EPS using the "two-class method." Restricted stock is currently included in HP's dilutive EPS calculation using the treasury stock method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. FSP EITF&nbsp;03-6-1 is effective for fiscal years beginning after December&nbsp;15, 2008 on a retrospective basis and will be adopted by HP in the first quarter of fiscal 2010. HP does not expect the adoption of FSP EITF&nbsp;03-6-1 will have a material effect on its calculation of basic EPS. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2008, the FASB ratified EITF Issue No.&nbsp;08-7, "Accounting for Defensive Intangible Assets" ("EITF&nbsp;08-7"). EITF&nbsp;08-7 applies to defensive intangible assets, which are acquired intangible assets that the acquirer does not intend to actively use but intends to hold to prevent its competitors from obtaining access to them. As these assets are separately identifiable, EITF&nbsp;08-7 requires an acquiring entity to account for defensive intangible assets as a separate unit of accounting. Defensive intangible assets must be recognized initially at fair value in accordance with SFAS&nbsp;141(R) and SFAS&nbsp;157 and amortized over the benefit period. EITF&nbsp;08-7 is effective for defensive intangible assets acquired in fiscal years beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is currently evaluating the potential impact of the adoption of EITF&nbsp;08-7 on its consolidated financial statements, which will be largely dependent on the nature of the business combinations completed after the adoption of this statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the FASB issued FSP SFAS&nbsp;132(R)-1, "Employer's Disclosures about Postretirement Benefit Plan Assets" ("FSP SFAS&nbsp;132(R)-1"). FSP SFAS&nbsp;132(R)-1 requires additional disclosures about assets held in an employer's defined benefit pension or other postretirement plan. FSP SFAS&nbsp;132(R)-1 is effective for fiscal years ending after December&nbsp;15, 2009 and will be adopted by HP in the first quarter of fiscal 2010. HP will present the required disclosures in the prescribed format on a prospective basis upon adoption. FSP SFAS&nbsp;132(R)-1 will only affect the notes to HP's consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2009, the FASB issued FSP SFAS&nbsp;141(R)-1, "Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies" ("FSP SFAS&nbsp;141(R)-1"). FSP SFAS&nbsp;141(R)-1 addresses application issues on initial recognition and </FONT><FONT size=2>measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. FSP SFAS&nbsp;141(R)-1 is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is evaluating the impact the adoption of FSP SFAS&nbsp;141(R)-1 will have on its consolidated financial statements, which will be largely dependent on the size and nature of the business combinations completed after the adoption of this statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;166, "Accounting for Transfers of Financial Assets&#151;an amendment of FASB Statement No.&nbsp;140" ("SFAS&nbsp;166"). The most significant amendments resulting from SFAS&nbsp;166 consist of the removal of the concept of a qualifying special-purpose entity from FASB Statement No.&nbsp;140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," and, for qualifying special-purpose entities, the removal of the exception from applying FASB Interpretation No.&nbsp;46 (revised December&nbsp;2003), "Consolidation of Variable Interest Entities&#151;an interpretation of Accounting Research Bulletin No.&nbsp;51" ("FIN&nbsp;46(R)"). SFAS&nbsp;166 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November&nbsp;15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. SFAS&nbsp;166 will be adopted by HP in the first quarter of fiscal 2011. HP does not expect the adoption of SFAS&nbsp;166 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;167, "Amendments to FASB Interpretation No.&nbsp;46(R)" ("SFAS&nbsp;167"). SFAS&nbsp;167 amends FIN&nbsp;46(R) to eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity and to require ongoing qualitative reassessments of whether an enterprise is the primary beneficiary of a variable interest entity. SFAS&nbsp;167 also amends FIN&nbsp;46(R) to require additional disclosures about an enterprise's involvement in variable interest entities. SFAS&nbsp;167 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November&nbsp;15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. Earlier application is prohibited. SFAS&nbsp;167 will be adopted by HP in the first quarter of fiscal 2011. HP is currently evaluating the impact the adoption of SFAS&nbsp;167 will have on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles&#151;a replacement of FASB Statement No.&nbsp;162" ("SFAS&nbsp;168"). SFAS&nbsp;168 establishes the FASB Accounting Standards Codification ("ASC") as the source of authoritative accounting principles recognized by the FASB. Following this statement, the FASB will issue new standards in the form of Accounting Standards Updates ("ASUs"). SFAS&nbsp;168 is effective for financial statements issued for interim and annual periods ending after September&nbsp;15, 2009 and therefore is effective for HP in the fourth quarter of fiscal 2009. The issuance of SFAS&nbsp;168 will not change GAAP and therefore the adoption of SFAS&nbsp;168 will only affect the specific references to GAAP literature in the notes to HP's consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2009, the FASB issued Accounting Standards Update No.&nbsp;2009-05, "Measuring Liabilities at Fair Value" ("ASU 2009-05"). This update provides amendments to ASC Topic 820, "Fair Value Measurements and Disclosure" for the fair value measurement of liabilities. HP will adopt ASU 2009-05 for all financial liabilities in the fourth quarter of fiscal 2009. HP will adopt ASU 2009-05 for </FONT><FONT size=2>all non-financial liabilities in the first quarter of fiscal 2010 when HP fully adopts SFAS&nbsp;157. Although HP will continue to evaluate the application of SFAS&nbsp;157 and this update for its non-financial liabilities, HP does not expect the adoption of ASU 2009-05 will have a material effect on its consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Recently Adopted Accounting Pronouncements </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the first nine months of fiscal 2009, HP adopted the following accounting standards, none of which had a material effect on its consolidated financial statements during the period or at the end of the period: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;115-2 and SFAS&nbsp;124-2, "Recognition and Presentation of Other-Than-Temporary Impairments"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;107-1 and APB&nbsp;28-1, "Interim Disclosures about Fair Value of Financial Instruments"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;165, "Subsequent Events"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS&nbsp;157; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-1, "Application of FASB Statement No.&nbsp;157 to FASB Statement No.&nbsp;13 and Other Accounting Pronouncements that Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement&nbsp;13" ("FSP SFAS&nbsp;157-1"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-2; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-3, "Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active" ("FSP SFAS&nbsp;157-3"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;159, "The Fair Value Option for Financial Assets and Financial Liabilities&#151;Including an amendment of FASB Statement No.&nbsp;115" ("SFAS&nbsp;159"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>EITF&nbsp;07-3, "Accounting for Nonrefundable Advance Payments for Goods or Services Received for Use in Future Research and Development Activities"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No.&nbsp;133" ("SFAS&nbsp;161"); and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>EITF&nbsp;06-11, "Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards." </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;8 for additional information pertaining to SFAS&nbsp;157, FSP SFAS&nbsp;157-1, FSP SFAS&nbsp;157-2, FSP SFAS&nbsp;157-3, FSP SFAS&nbsp;157-4 and SFAS&nbsp;159. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;9 for additional information pertaining to SFAS&nbsp;161. </FONT></P> <P style="FONT-FAMILY: times" align=center><FONT size=2>10</FONT></P></BODY></HTML> 2371067899 74000000 59000000 182000000 0 0 0 0 0 0 For the prior year reporting periods presented, certain pursuit-related costs previously reported as Cost of services have been realigned retroactively to Selling, general and administrative expenses due to organizational realignments. 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May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Also describes all siginficant accounting policies of the reporting entity. 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Statement [Table]Statement [Line Items] EX-101.PRE 6 hpq-20090731_pre.xml EX-101.PRE XML 7 R19.xml IDEA: Retirement and Post-Retirement Benefit Plans 1.0.0.3 false Retirement and Post-Retirement Benefit Plans false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;15: Retirement and Post-Retirement Benefit Plans </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Modifications to Defined Contribution Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP offers various defined contribution plans for U.S. and non-U.S. employees. As disclosed in our Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008, HP matches employee contributions to the U.S. HP 401(k) Plan with cash contributions up to a maximum of 6% of eligible compensation for U.S. employees hired prior to August&nbsp;1, 2008 and up to a maximum of 4% of eligible compensation for U.S. employees hired on or after August&nbsp;1, 2008. Further, effective January&nbsp;1, 2009, </FONT><FONT size=2>U.S. employees participating in the EDS 401(k) Plan became eligible for a 4% HP matching contribution on eligible compensation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective April&nbsp;1, 2009, HP matching contributions under both the U.S. HP 401(k) Plan and the EDS 401(k) Plan were changed to a quarterly, discretionary, performance-based match of up to a maximum of 4% of eligible compensation for all U.S. employees, which will be determined each fiscal quarter based on business results. HP matching contributions will vary from 0% to 100% of the maximum 4% match, based on factors such as quarterly earnings, market share growth, and performance relative to market and economic conditions. HP's matching contributions for the extended period of April&nbsp;1, 2009 through July&nbsp;31, 2009 was 100% of the maximum 4% match. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's net pension and post-retirement benefit costs were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=247></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Non-U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Post-<BR>Retirement<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>109</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(133</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization and deferrals:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actuarial (gain) loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prior service benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net periodic benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Special termination benefits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=242></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Non-U.S.<BR>Defined<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Post-<BR>Retirement<BR>Benefit Plans </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Service cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>231</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest cost</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>444</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>177</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>458</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>323</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected return on plan assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(399</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(190</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(506</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(24</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization and deferrals:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Actuarial (gain) loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Prior service benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net periodic benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>242</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlement gain</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Curtailment gain</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Special termination benefits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net benefit cost (gain)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>246</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Employer Contributions and Funding Policy </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008 that it expected to contribute approximately $360&nbsp;million to its non-U.S. pension plans and approximately $35&nbsp;million to cover benefit payments to U.S. non-qualified plan participants in fiscal 2009. In addition, HP expected to pay approximately $70&nbsp;million to cover benefit claims for HP's post-retirement benefit plans. HP's funding policy is to contribute cash to its pension plans so that it meets at least the minimum contribution requirements, as established by local government and funding and taxing authorities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;31, 2009, HP has made $394&nbsp;million of contributions to non-U.S. pension plans, paid $24&nbsp;million to cover benefit payments to U.S. non-qualified plan participants, and paid $29&nbsp;million to cover benefit claims under post-retirement benefit plans. HP presently anticipates making additional contributions of approximately $70&nbsp;million to its non-U.S. pension plans and approximately $5&nbsp;million to its U.S. non-qualified plan participants and expects to pay up to $15&nbsp;million to cover benefit claims under post-retirement benefit plans during the remainder of fiscal 2009. HP's pension and other post-retirement benefit costs and obligations are dependent on various assumptions. Differences between expected and actual returns on investments will be reflected as unrecognized gains or losses, and such gains or losses will be amortized and recorded in future periods. Poor financial performance of asset markets in any year could lead to increased contributions in certain countries and increased future pension plan expense. Asset gains or losses are determined at the measurement date and amortized over the remaining service life or life expectancy of plan participants. HP's next expected measurement date is October&nbsp;31, 2009. </FONT></P></BODY></HTML> Note&nbsp;15: Retirement and Post-Retirement Benefit Plans Modifications to Defined Contribution Plans false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 8 R11.xml IDEA: Restructuring Charges 1.0.0.3 false Restructuring Charges false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;7: Restructuring Charges </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fiscal 2009 Restructuring Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2009, HP's management approved and initiated a restructuring plan to structurally change and improve the effectiveness of IPG, PSG and ESS. In the third quarter of fiscal 2009, HP recorded a net charge of $295&nbsp;million in severance-related costs associated with the planned elimination of approximately 5,000 positions. As of July&nbsp;31, 2009, approximately 1,200 positions have been eliminated. HP expects the majority of the restructuring costs to be paid out by the fourth quarter of fiscal 2010. In future quarters, HP expects to record an additional charge of approximately $8&nbsp;million related to severance costs associated with this plan. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fiscal 2008 Restructuring Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the acquisition of EDS on August&nbsp;26, 2008, HP's management approved and initiated a restructuring plan to streamline the combined company's services business and to better align the structure and efficiency of that business with HP's operating model. The restructuring plan is expected to be implemented over four years from the acquisition date and includes changes to the combined company's workforce as well as changes to corporate overhead functions such as real estate and IT. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the fourth quarter of fiscal 2008, HP recorded a liability of approximately $1.8&nbsp;billion related to this restructuring plan. Approximately $1.5&nbsp;billion of the liability was associated with pre-acquisition EDS and was recorded to goodwill, and the remaining approximately $0.3&nbsp;billion was associated with HP and was recorded as a restructuring charge. The liability consisted mainly of severance costs to eliminate approximately 25,000 positions, costs to vacate duplicative facilities and costs associated with early termination of certain contractual obligations. HP recorded net charges for severance and facilities costs of $67&nbsp;million and $310&nbsp;million, for the three and nine months ended July&nbsp;31, 2009, respectively, along with year-to-date adjustments to goodwill of $276&nbsp;million. As of July&nbsp;31, 2009, over 16,000 positions have been eliminated. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP expects the majority of the restructuring costs to be paid out by the second quarter of fiscal 2010. In future quarters, HP expects to record an additional charge of approximately $497&nbsp;million related to the cost to vacate duplicative facilities and severance costs. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All restructuring costs associated with pre-acquisition EDS are reflected in the purchase price of EDS in accordance with EITF&nbsp;95-3, "Recognition of Liabilities in Connection with a Purchase Business Combination." These costs are subject to change based on the actual costs incurred. Changes to these estimates could increase or decrease the amount of the purchase price allocated to goodwill. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Prior Fiscal Year Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring plans initiated prior to 2008 are substantially complete and HP expects to record only minor revisions to these plans as necessary. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Summary of Restructuring Plans </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The adjustments to the accrued restructuring expenses related to all of HP's restructuring plans described above for the three and nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=8></TD> <TD style="FONT-FAMILY: times" width=94></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=25></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=4></TD> <TD style="FONT-FAMILY: times" align=right width=3></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=3><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=3><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009<BR>charges<BR>(reversals) </B></FONT></TH> <TH style="FONT-FAMILY: times" rowSpan=3><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=3><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009<BR>charges<BR>(reversals) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5 rowSpan=2><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Non-cash<BR>settlements<BR>and<BR>other<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Goodwill<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cash<BR>payments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Balance,<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total costs<BR>and<BR>adjustments<BR>to date </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total<BR>expected<BR>costs and<BR>adjustments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Fiscal 2009 Plan</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>279</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>295</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>303</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Fiscal 2008 HP/EDS Plan:</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Severance</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,444</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>267</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(770</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,107</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,898</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,936</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Infrastructure</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>248</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>180</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>420</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>476</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>935</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=top> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Total severance and other restructuring activities</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,692</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>310</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>276</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(804</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,527</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>2,374</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>2,871</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1><I>Prior fiscal year plans</I></FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6,343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>6,343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" vAlign=top colSpan=2> <P style="MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1></FONT><FONT size=1>Total restructuring plans</FONT></P></TD> <TD style="FONT-FAMILY: times" vAlign=top><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,769</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>362</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>274</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>(844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>60</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>1,861</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>9,012</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=1>9,517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009 and October&nbsp;31, 2008, HP included the long-term portion of the restructuring liability of $440&nbsp;million and $670&nbsp;million, respectively, in Other liabilities, and the short-term portion in Accrued restructuring in the accompanying Consolidated Condensed Balance Sheets. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Workforce Rebalancing </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of HP's ongoing business operations, HP incurred workforce rebalancing charges for severance and related costs within certain business segments during the first nine months of fiscal 2009. Workforce rebalancing activities are considered part of normal operations as HP continues to optimize its cost structure. Workforce rebalancing costs are included in HP's business segment results, and HP expects to incur additional workforce rebalancing costs in the future.&nbsp;</FONT><FONT size=2><B>&nbsp;</B></FONT></P></BODY></HTML> Note&nbsp;7: Restructuring Charges Fiscal 2009 Restructuring Plan &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2009, HP's management false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 9 R10.xml IDEA: Goodwill and Purchased Intangible Assets 1.0.0.3 false Goodwill and Purchased Intangible Assets false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;6: Goodwill and Purchased Intangible Assets </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Goodwill </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill allocated to HP's business segments as of July&nbsp;31, 2009 and changes in the carrying amount of goodwill for the nine months ended July&nbsp;31, 2009 are as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=144></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=26></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=25></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Services </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Enterprise<BR>Storage<BR>and<BR>Servers </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>HP<BR>Software </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Personal<BR>Systems<BR>Group </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Imaging<BR>and<BR>Printing<BR>Group </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>HP<BR>Financial<BR>Services </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Corporate<BR>Investments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,284</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,745</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32,335</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Goodwill acquired during the period</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>273</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>273</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Goodwill adjustments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>669</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,964</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,016</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,154</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,493</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,462</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33,277</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended July&nbsp;31, 2009, HP recorded adjustments of approximately $500&nbsp;million to the estimated fair values of EDS's intangible assets and net liabilities acquired resulting in an increase to EDS's goodwill, which is allocated to the Services segment. These changes in the estimated fair values relate primarily to restructuring liabilities, fixed assets, intangible assets and net deferred tax liabilities. In addition, goodwill increased approximately $180&nbsp;million as a result of currency translation related to certain of EDS's foreign subsidiaries whose functional currency is not the U.S. dollar. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Purchased Intangible Assets </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's purchased intangible assets associated with completed acquisitions are composed of: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=174></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=42></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Accumulated<BR>Amortization </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Net </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Customer contracts, customer lists and distribution agreements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,685</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,806</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,879</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,530</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Developed and core technology and patents</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,151</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,627</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,524</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,189</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product trademarks</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>247</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>77</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>253</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(109</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>144</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total amortizable purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,083</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,480</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,972</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,540</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Compaq trade name</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,422</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,505</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,902</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,394</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,962</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended July&nbsp;31, 2009, HP recorded an increase of $51&nbsp;million to purchased intangibles as a result of currency translation related to certain of EDS's foreign subsidiaries whose financial currency is not the U.S. dollar. HP also recorded a reduction of $35&nbsp;million to the estimated fair value of EDS's intangible assets acquired. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated future amortization expense related to finite lived purchased intangible assets at July&nbsp;31, 2009 is as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=367></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 41pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Fiscal year: <!-- COMMAND=ADD_SCROPPEDRULE,41pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>In millions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009 (remaining 3&nbsp;months)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,320</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,035</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>844</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>707</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Thereafter</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,480</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;6: Goodwill and Purchased Intangible Assets Goodwill &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill allocated to HP's business false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 10 R8.xml IDEA: Balance Sheet Details 1.0.0.3 false Balance Sheet Details false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 hpq_BalanceSheetDetailsDisclosureTextBlock hpq false na duration string This element may be used to disclose required balance sheet captions and inventories. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;4: Balance Sheet Details </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance sheet details were as follows: </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Accounts and Financing Receivables </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=360></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accounts receivable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15,376</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(641</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(553</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,735</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,928</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Financing receivables</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,580</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,355</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,532</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,314</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has revolving trade receivables-based facilities permitting it to sell certain trade receivables to third parties on a non-recourse basis. The aggregate maximum capacity under these programs was $586&nbsp;million as of July&nbsp;31, 2009. HP sold $1,321&nbsp;million of trade receivables during the first nine months of fiscal 2009. As of July&nbsp;31, 2009, HP had $342&nbsp;million available under these programs. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Inventory </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=365></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Finished goods</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,809</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,219</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchased parts and fabricated assemblies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,850</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,879</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Property, Plant and Equipment </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=360></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Land</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>514</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>526</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Buildings and leasehold improvements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,383</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Machinery and equipment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,232</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,121</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20,129</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18,885</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated Depreciation</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8,935</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(8,047</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,194</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,838</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;4: Balance Sheet Details &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance sheet details were as follows: Accounts and Financing false false This element may be used to disclose required balance sheet captions and inventories. 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No authoritative reference available. false false 3 13 false NoRounding NoRounding UnKnown false true XML 12 R18.xml IDEA: Shareholders Equity 1.0.0.3 false Shareholders Equity false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_StockholdersEquityNoteDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;14: Stockholders' Equity </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Share Repurchase Program </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and nine months ended July&nbsp;31, 2009, HP executed share repurchases of 29&nbsp;million shares and 74&nbsp;million shares, respectively. For the three months ended July&nbsp;31, 2009, repurchases of 28&nbsp;million shares were settled for $1.0&nbsp;billion. For the nine months ended July&nbsp;31, 2009, repurchases of approximately 85&nbsp;million shares were settled for $3.0&nbsp;billion, which included 14&nbsp;million shares repurchased in transactions that were executed in fiscal 2008 but settled in the first nine months of fiscal 2009. HP had approximately 3&nbsp;million shares repurchased in the third quarter of fiscal 2009 that will be settled in the fourth quarter of fiscal 2009. HP paid approximately $1.6&nbsp;billion and $7.7&nbsp;billion in connection with repurchases of approximately 34&nbsp;million shares and 171&nbsp;million shares in the three and nine months ended July&nbsp;31, 2008, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;31, 2009, HP had remaining authorization of $6.1&nbsp;billion for future share repurchases under the $8.0&nbsp;billion repurchase authorization approved by HP's Board of Directors on September&nbsp;19, 2008. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Comprehensive Income </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in the components of other comprehensive income ("OCI"), net of taxes, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=328></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on available-for-sale securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized gains, net of tax of $1&nbsp;million in 2009 and with no tax effect in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized (losses) gains, net of tax benefit of $112&nbsp;million in 2009 and net of tax of $1&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (gains) losses reclassified into earnings, net of tax of $48&nbsp;million in 2009 and net of tax benefit of $5&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in cumulative translation adjustment, net of tax of $189&nbsp;million in 2009 and $6&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>423</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized components of defined benefit plans, net of tax benefit of $30&nbsp;million in 2009 and $7&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,772</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,040</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=328></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5> <P>&nbsp;</P> <P>&nbsp;</P></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,217</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on available-for-sale securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized gains (losses), net of tax of $1&nbsp;million in 2009 and with no tax effect in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized gains reclassified into earnings, with no tax effect in 2009 and 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized gains/losses on cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in net unrealized (losses) gains, net of tax benefit of $138&nbsp;million in 2009 and net of tax of $6&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(238</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (gains) losses reclassified into earnings, net of tax of $418&nbsp;million in 2009 and net of tax benefit of $32&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(721</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(959</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in cumulative translation adjustment, net of tax of $180&nbsp;million in 2009 and $7&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net change in unrealized components of defined benefit plans, net of tax of $24&nbsp;million in 2009 and net of tax benefit of $21&nbsp;million in 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(46</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of accumulated other comprehensive loss, net of taxes, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=326></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized losses on available-for-sale securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net unrealized (losses) gains on cash flow hedges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(157</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cumulative translation adjustment</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(585</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(763</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unrealized components of defined benefit plans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(92</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accumulated other comprehensive loss</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(796</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(65</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;14: Stockholders' Equity Share Repurchase Program &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's share repurchase program authorizes false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 13 R12.xml IDEA: Fair Value 1.0.0.3 false Fair Value false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_FairValueDisclosuresTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;8: Fair Value </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;1, 2008, HP adopted the applicable portions of SFAS&nbsp;157 as referenced in Note&nbsp;1. Pursuant to the provisions of SFAS&nbsp;157-2, HP will not apply the provisions of SFAS&nbsp;157 until the first quarter of fiscal 2010 for the following major categories of nonfinancial assets and liabilities from the Consolidated Condensed Balance Sheet: Property, plant and equipment, Goodwill, Purchased intangible assets and the Asset retirement obligations within Other accrued liabilities and Other liabilities. The adoption did not have a material impact on HP's financial statements and did not result in any changes to the opening balance of retained earnings as of November&nbsp;1, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS&nbsp;157 establishes a new framework for measuring fair value and expands related disclosures. The SFAS&nbsp;157 framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The valuation techniques required by SFAS&nbsp;157 are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect HP's assumptions about market participant assumptions based on best information available. Observable inputs are the preferred source of values. In accordance with SFAS&nbsp;157, these two types of inputs create the following fair value hierarchy: </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;1&#151;Quoted prices (unadjusted) for identical instruments in active markets. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;2&#151;Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level&nbsp;3&#151;Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following section describes the valuation methodologies HP uses to measure its financial assets and liabilities at fair value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Equivalents: HP holds money market funds investing mainly in treasury bills, which are classified under level&nbsp;1. HP also invests in time deposits and commercial paper, which are classified under level&nbsp;2. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments: HP holds time deposits, corporate and foreign government notes and bonds, commercial paper, and common stock and equivalents. In general, and where applicable, HP uses quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, HP uses quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, HP uses internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying assets assumptions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative Instruments: As discussed in Note&nbsp;9, HP mainly holds non-speculative forwards, swaps and options to hedge certain foreign currency and interest rate exposures. When active market quotes are not available, HP uses industry standard valuation models. Where applicable, these models project </FONT><FONT size=2>future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, credit risk, foreign exchange rates, and forward and spot prices for currencies. In certain cases, market-based observable inputs are not available and, in those cases, HP uses management judgment to develop assumptions which are used to determine fair value. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents HP's assets and liabilities as of July&nbsp;31, 2009 that are measured at fair value on a recurring basis: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=284></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=21></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8 rowSpan=2><FONT size=1><B>Fair Value Measured Using </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times" rowSpan=2><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2 rowSpan=2><FONT size=1><B>Total<BR>Balance </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;1 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;2 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Level&nbsp;3 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Assets</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Time deposits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,049</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Money market funds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>715</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>715</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>357</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Marketable equity securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>663</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>736</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,996</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>52</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,784</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Liabilities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>705</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>705</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>710</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables present the changes in level&nbsp;3 instruments for the three and nine months ended July&nbsp;31, 2009 that are measured on a recurring basis. The majority of the level&nbsp;3 balances consist of investment securities classified as available-for-sale with changes in fair value recorded in other comprehensive income ("OCI"). </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=275></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=61></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=39></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>Fair Value Measured Using<BR>Significant Unobservable Inputs<BR>(Level&nbsp;3) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left colSpan=3> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 121pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Three Months Ended July&nbsp;31, 2009 <!-- COMMAND=ADD_SCROPPEDRULE,121pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Commercial Paper </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Derivative<BR>Instruments </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Beginning balance at May&nbsp;1, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total losses (realized/unrealized):</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in earnings<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchases, issuances, and settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held as of July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=9> <P style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=1><B><U>Nine Months Ended July&nbsp;31, 2009</U></B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-TOP: 8pt; MARGIN-LEFT: 8pt; TEXT-INDENT: -8pt; FONT-FAMILY: times"><FONT size=1><B></B></FONT><FONT size=2>Beginning balance at November&nbsp;1, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>64</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total losses (realized/unrealized):</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in earnings<SUP>(1)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in other comprehensive income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Purchases, issuances, and settlements</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending balance at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>The amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held as of July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Included in Interest and other, net in the accompanying Consolidated Condensed Statements of Earnings. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP measures certain assets including cost and equity method investments at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. As of July&nbsp;31, 2009, such assets with a total fair value of $2&nbsp;million were included in the level&nbsp;2 hierarchy. In the three and nine months ended July&nbsp;31, 2009, HP recorded an impairment charge of $3&nbsp;million and $37&nbsp;million, respectively. Of the $37&nbsp;million, $33&nbsp;million was charged to goodwill. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP reviews the carrying values of the investments when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary. The fair values of the investments are determined based on valuation techniques using the best information available, which may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value, is determined to be other-than-temporary and is related to credit loss for debt securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;1, 2008, HP also adopted SFAS&nbsp;159, which allows an entity to elect to measure certain financial instruments at fair value on a contract-by-contract basis. Subsequent to the election, any unrealized gains and losses from the fair value measurement of the financial instruments will be recognized in earnings. As of July&nbsp;31, 2009, HP did not elect such option for any eligible financial instruments. </FONT></P></BODY></HTML> Note&nbsp;8: Fair Value &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;1, 2008, HP adopted the applicable portions of SFAS&nbsp;157 false false No definition available. 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No authoritative reference available. false false 2 8 false UnKnown Millions Hundreds false true XML 15 R14.xml IDEA: Financing Receivables and Operating Leases 1.0.0.3 false Financing Receivables and Operating Leases false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_OperatingLeasesOfLessorDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;10: Financing Receivables and Operating Leases </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables represent sales-type and direct-financing leases resulting from the marketing of HP's and third-party products. These receivables typically have terms from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include </FONT><FONT size=2>billed receivables from operating leases. The components of net financing receivables, which are included in financing receivables and long-term financing receivables and other assets, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=361></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Minimum lease payments receivable</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,033</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,338</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Allowance for doubtful accounts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(108</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unguaranteed residual value</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>245</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unearned income</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(466</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Financing receivables, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,618</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,036</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less current portion</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,532</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,314</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amounts due after one year, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,722</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment leased to customers under operating leases was $3.0&nbsp;billion at July&nbsp;31, 2009 and $2.3&nbsp;billion at October&nbsp;31, 2008 and is included in Property, plant and equipment in the Consolidated Condensed Balance Sheets. Accumulated depreciation on these operating leases was $0.9&nbsp;billion at July&nbsp;31, 2009 and $0.5&nbsp;billion at October&nbsp;31, 2008. </FONT></P></BODY></HTML> Note&nbsp;10: Financing Receivables and Operating Leases &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing receivables represent sales-type and false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 16 R15.xml IDEA: Guarantees 1.0.0.3 false Guarantees false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_ScheduleOfGuaranteeObligationsTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;11: Guarantees </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Guarantees and Indemnifications </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, HP may provide certain clients, principally governmental entities, with subsidiary performance guarantees and/or financial performance guarantees, which may be backed by standby letters of credit or surety bonds. In general, HP would be liable for the amounts of these guarantees in the event HP or HP's subsidiaries' nonperformance permits termination of the related contract by the client, the likelihood of which HP believes is remote. HP believes that the company is in compliance with the performance obligations under all material service contracts for which there is a performance guarantee. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the acquisition of EDS, HP acquired certain service contracts supported by client financing or securitization arrangements. Under specific circumstances involving non-performance resulting in service contract termination or failure to comply with terms under the financing arrangement, HP would be required to acquire certain assets. HP considers the possibility of its failure to comply to be remote and the asset amounts involved to be immaterial. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify the third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Warranty </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP provides for the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, product warranty terms offered to customers, ongoing product failure rates, material usage and service delivery costs incurred in correcting a product failure, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. If actual product failure rates, repair rates or any other post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in HP's aggregate product warranty liabilities for the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=367></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>In millions </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product warranty liability at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Accruals for warranties issued</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,915</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Adjustments related to pre-existing warranties (including changes in estimates)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Settlements made (in cash or in kind)</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,003</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Product warranty liability at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,333</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;11: Guarantees Guarantees and Indemnifications &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, HP may false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 17 R20.xml IDEA: Litigation and Contingencies 1.0.0.3 false Litigation and Contingencies false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_ScheduleOfLossContingenciesByContingencyTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;16: Litigation and Contingencies </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. In accordance with SFAS No.&nbsp;5, "Accounting for Contingencies," HP records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. HP believes it has adequate provisions for any such matters. HP reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes that it has valid defenses with respect to legal matters pending against it. Nevertheless, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies or because of the diversion of management's attention and the creation of significant expenses. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Pending Litigation, Proceedings and Investigations </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Copyright levies</U></I></FONT><FONT size=2>. As described below, proceedings are ongoing against HP in certain European Union ("EU") member countries, including litigation in Germany, seeking to impose levies upon equipment (such as multifunction devices ("MFDs"), personal computers ("PCs") and printers) and alleging that these devices enable producing private copies of copyrighted materials. The total levies due, if imposed, would be based upon the number of products sold and the per-product amounts of the levies, which vary. Some EU member countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them to extend existing levy schemes, while some other EU member countries are expected to limit the scope of levy schemes and applicability in the digital hardware environment. HP, other companies and various industry associations are opposing the extension of levies to the digital environment and advocating alternative models of compensation to rights holders. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted non-binding arbitration proceedings against HP in June 2001 in Germany before the arbitration board of the Patent and Trademark Office. The proceedings relate to whether and to what extent copyright levies for photocopiers should be imposed in accordance with copyright laws implemented in Germany on MFDs that allegedly enable the production of copies by private persons. Following unsuccessful arbitration, VG Wort filed a lawsuit against HP in May 2004 in the Stuttgart Civil Court in Stuttgart, Germany seeking levies on certain MFDs sold from 1997 to 2001. On December&nbsp;22, 2004, the court held that HP is liable for payments regarding MFDs sold in Germany, and ordered HP to pay VG Wort an amount equal to 5% of the outstanding levies claimed, plus interest, on MFDs sold in Germany up to December 2001. VG Wort appealed this decision. On July&nbsp;6, 2005, the Stuttgart Court of Appeals ordered HP to pay VG Wort levies based on the published tariffs for photocopiers in Germany (which range from EUR 38.35 to EUR 613.56 per unit), plus interest, on MFDs sold in Germany up to December 2001. HP appealed the Stuttgart Court of Appeals' decision to the Bundesgerichtshof (the German Federal Supreme Court). On January&nbsp;30, 2008, the German Federal Supreme Court held that the MFDs covered by this lawsuit were photocopiers within the meaning of the German copyright law that was in effect until December&nbsp;31, 2007, and, therefore, are </FONT><FONT size=2>subject to the levies on photocopiers established by that law. HP subsequently appealed the decision by filing a claim with the German Federal Constitutional Court challenging that ruling and the application of conventional photocopier levies for MFDs sold in Germany up to December 2001. On June&nbsp;4, 2009, the German Constitutional Court declined to hear HP's appeal. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;26, 2005, VG Wort filed an additional lawsuit against HP in the Stuttgart Civil Court in Stuttgart, Germany seeking assurance of full payment of levies on MFD units sold in Germany between 1997 and 2001, as well as for MFDs sold from 2002 onwards. On July&nbsp;26, 2007, the court issued a decision following the ruling of the Stuttgart Court of Appeals with respect to the initial VG Wort lawsuit as described above. HP appealed the decision. On March&nbsp;25, 2009, the German Association for Information Technology, Telecommunications and New Media e.V. entered into a settlement agreement with VG Wort and Verwertungsgesellschaft Bild-Kunst, another collection agency representing copyright holders ("VG Bild-Kunst"), that provides for the payment of levies on MFDs sold from 2002 through 2007. The levies vary from approximately &#128;13 to &#128;307 per unit depending on the type of device, the date sold and the copy speed and are subject to reduction if VG Wort or VG Bild-Kunst grants more favorable rates in the future to parties within Germany that are not covered by the settlement. HP has acceded to the settlement and paid all amounts due thereunder. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July 2004, VG Wort filed a separate lawsuit against HP in the Stuttgart Civil Court seeking levies on printers. On December&nbsp;22, 2004, the court held that HP is liable for payments regarding all printers using ASCII code sold in Germany but did not determine the amount payable per unit. HP appealed this decision in January 2005 to the Stuttgart Court of Appeals. On May&nbsp;11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June&nbsp;6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December&nbsp;6, 2007, the German Federal Supreme Court issued a judgment that printers are not subject to levies under the existing law. The court issued a written decision on January&nbsp;25, 2008, and VG Wort subsequently filed an application with the German Federal Supreme Court under Section&nbsp;321a of the German Code of Civil Procedure contending that the court did not consider their arguments. On May&nbsp;9, 2008, the German Federal Supreme Court denied VG Wort's application. In addition, VG Wort has appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. HP has been directed by the Constitutional Court to respond to VG Wort's claim by October&nbsp;12, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2003, VG Wort filed a lawsuit against Fujitsu Siemens Computer&nbsp;GmbH ("FSC") in the Munich Civil Court in Munich, Germany seeking levies on PCs. This is an industry test case in Germany, and HP has agreed not to object to the delay if VG Wort sues HP for such levies on PCs following a final decision against FSC. On December&nbsp;23, 2004, the Munich Civil Court held that PCs are subject to a levy and that FSC must pay 12&nbsp;euros plus compound interest for each PC sold in Germany since March 2001. FSC appealed this decision in January 2005 to the Munich Court of Appeals. On December&nbsp;15, 2005, the Munich Court of Appeals affirmed the Munich Civil Court decision. FSC filed an appeal with the German Federal Supreme Court in February 2006. On October&nbsp;2, 2008, the German Federal Supreme Court issued a judgment that PCs were not photocopiers within the meaning of the German copyright law that was in effect until December&nbsp;31, 2007 and, therefore, not subject to the levies on photocopiers established by that law. VG Wort has filed a claim with the German Federal Constitutional Court challenging that ruling. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;29, 2005, ZPU, a joint association of various German collection societies, instituted non-binding arbitration proceedings against HP before the arbitration board of the Patent and Trademark Office demanding reporting of every PC sold by HP in Germany from January 2002 through December 2005 and seeking a levy of 18.42&nbsp;euros plus tax for each PC sold during that period. HP filed a notice of defense in connection with these proceedings in February 2006, and an arbitration hearing was held in December 2006. On July&nbsp;31, 2007, the arbitration board issued a ruling proposing a levy of 15&nbsp;euros plus tax for each PC sold during that period. HP has rejected the ruling of the arbitration board, and the arbitration proceedings have concluded. ZPU has filed a claim with the Munich Court of Appeals to which HP has responded. A hearing date has been set by the court for February&nbsp;18, 2010. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on industry opposition to the extension of levies to digital products, HP's assessments of the merits of various proceedings and HP's estimates of the units impacted and levies, HP has accrued amounts that it believes are adequate to address the matters described above. However, the ultimate resolution of these matters and the associated financial impact on HP, including the number of units impacted, the amount of levies imposed and the ability of HP to recover such amounts through increased prices, remains uncertain. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Sky Subscribers Services Limited and British Sky Broadcasting Limited v. EDS and EDS Limited (UK)</U></I></FONT><FONT size=2> is a lawsuit filed on August&nbsp;17, 2004 by Sky Subscribers Services Limited and British Sky Broadcasting Limited against Electronic Data Systems Corporation ("EDS"), a company that HP acquired in August 2008, and EDS Limited (UK) ("EDS UK"), one of EDS's subsidiaries, alleging deceit, negligent misrepresentation, negligent misstatement and breach of contract. The claims arose out of a customer relationship management project that was awarded to EDS in 2000, the principal objective of which was to develop a customer call center in Scotland. EDS's main role in the project was as systems integrator. On November&nbsp;12, 2004, EDS and EDS UK filed their defense and counterclaim denying the claims and seeking damages for monies owed under the contract. The trial of this action commenced on October&nbsp;15, 2007, and final arguments concluded on July&nbsp;30, 2008. At trial, the plaintiffs claimed damages in excess of &#163;700&nbsp;million, and EDS and EDS UK counterclaimed for damages of approximately &#163;5&nbsp;million. HP is awaiting a decision from the court. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Skold, et al. v. Intel Corporation and Hewlett-Packard Company</U></I></FONT><FONT size=2> is a lawsuit in which HP was joined on June&nbsp;14, 2004 that is pending in state court in Santa Clara County, California. The lawsuit alleges that HP (along with Intel) misled the public by suppressing and concealing the alleged material fact that systems that use the Intel Pentium 4 processor are less powerful and slower than systems using the Intel Pentium III processor and processors made by a competitor of Intel. The plaintiffs seek unspecified damages, restitution, attorneys' fees and costs, and certification of a nationwide class. On February&nbsp;27, 2009, the court denied without prejudice plaintiffs' motion for nationwide class certification for a third time. The plaintiffs have appealed the court's decision. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Inkjet Printer Litigation</U></I></FONT><FONT size=2>. As described below, HP is involved in several lawsuits claiming breach of express and implied warranty, unjust enrichment, deceptive advertising and unfair business practices where the plaintiffs have alleged, among other things, that HP employed a "smart chip" in certain inkjet printing products in order to register ink depletion prematurely and to render the cartridge unusable through a built-in expiration date that is hidden, not documented in marketing materials to consumers, or both. The plaintiffs have also contended that consumers received false ink depletion </FONT><FONT size=2>warnings and that the smart chip limits the ability of consumers to use the cartridge to its full capacity or to choose competitive products. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>A consolidated lawsuit captioned </FONT><FONT size=2><I><U>In re HP Inkjet Printer Litigation</U></I></FONT><FONT size=2> is pending in the United States District Court for the Northern District of California where the plaintiffs are seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees. On January&nbsp;4, 2008, the court heard plaintiffs' motions for class certification and to add a class representative and HP's motion for summary judgment. On July&nbsp;25, 2008, the court denied all three motions. On March&nbsp;30, 2009, the plaintiffs filed a renewed motion for class certification. A hearing on the plaintiffs' motion for class certification is scheduled for November&nbsp;13, 2009. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>A lawsuit captioned </FONT><FONT size=2><I><U>Blennis v. HP</U></I></FONT><FONT size=2> was filed on January&nbsp;17, 2007 in the United States District Court for the Northern District of California where the plaintiffs are seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees. A class certification hearing is scheduled for January&nbsp;8, 2010. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Four class actions against HP and its subsidiary, Hewlett-Packard (Canada)&nbsp;Co., are pending in Canada, one commenced in British Columbia in February 2006, two commenced in Quebec in April 2006 and May 2006, respectively, and one commenced in Ontario in June 2006, where the plaintiffs are seeking class certification, restitution, declaratory relief, injunctive relief and unspecified statutory, compensatory and punitive damages. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Baggett v. HP</U></I></FONT><FONT size=2> is a consumer class action filed against HP on June&nbsp;6, 2007 in the United States District Court for the Central District of California alleging that HP employs a technology in its LaserJet color printers whereby the printing process shuts down prematurely, thus preventing customers from using the toner that is allegedly left in the cartridge. The plaintiffs also allege that HP fails to disclose to consumers that they will be unable to utilize the toner remaining in the cartridge after the printer shuts down. The complaint seeks certification of a nationwide class of purchasers of all HP LaserJet color printers and seeks unspecified damages, restitution, disgorgement, injunctive relief, attorneys' fees and costs. The plaintiffs' motion for class certification and HP's motion for summary judgment are currently pending before the court. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Rich v. HP</U></I></FONT><FONT size=2> is a consumer class action filed against HP on May&nbsp;22, 2006 in the United States District Court for the Northern District of California. The suit alleges that HP designed its color inkjet printers to unnecessarily use color ink in addition to black ink when printing black and white images and text. The plaintiffs are seeking to certify a nationwide injunctive class and a California-only damages class. A class certification hearing is scheduled for January&nbsp;8, 2010. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;27, 2001, </FONT><FONT size=2><I><U>Cornell University</U></I></FONT><FONT size=2> and the </FONT><FONT size=2><I><U>Cornell Research Foundation,&nbsp;Inc.</U></I></FONT><FONT size=2> filed a complaint, amended on September&nbsp;6, 2002, against HP in United States District Court for the Northern District of New York alleging that HP's PA-RISC 8000 family of microprocessors, and servers and workstations incorporating those processors, infringe a patent assigned to Cornell Research Foundation,&nbsp;Inc. that describes a way of executing microprocessor instructions. The complaint sought declaratory and injunctive relief and unspecified damages. The patent at issue in this litigation, United States Patent No.&nbsp;4,807,115, expired on February&nbsp;21, 2006. Therefore, the plaintiffs are no longer entitled to seek injunctive relief against HP. This matter was tried between May&nbsp;19 and May&nbsp;30, 2008, </FONT><FONT size=2>and, on May&nbsp;30, 2008, a jury returned a verdict in favor of the plaintiffs in the amount of $184&nbsp;million. On March&nbsp;30, 2009, the trial court issued four post-trial decisions. The court denied several of HP's post-trial motions, but granted HP's motion to reduce the damages award. The court reduced the award to approximately $53&nbsp;million and subsequently entered judgment in favor of the plaintiffs in that amount. On April&nbsp;10, 2009, HP filed a notice that it will appeal the judgment to the United States Court of Appeals for the Federal Circuit. On May&nbsp;15, 2009, the court awarded approximately $17&nbsp;million in pre-judgment interest and approximately $1&nbsp;million in costs and subsequently entered an amended judgment reflecting those awards. On June&nbsp;2, 2009, the court entered a final amended judgment reflecting the total amount of damages, pre-judgment interest and taxable costs. On June&nbsp;4, 2009, HP filed an amended notice of appeal. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Fair Labor Standards Act Litigation</U></I></FONT><FONT size=2>. As described below, HP is involved in several lawsuits in which the plaintiffs are seeking unpaid overtime compensation and other damages based on allegations that various employees of EDS or HP have been misclassified as exempt employees under the Fair Labor Standards Act and/or in violation of the California Labor Code: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Cunningham and Cunningham, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2> is a purported action filed on May&nbsp;10, 2006 in the U.S. District Court for the Eastern District of New York claiming that current and former EDS employees involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Two other purported class actions, </FONT><FONT size=2><I><U>Steavens, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on October&nbsp;23, 2007, and </FONT><FONT size=2><I><U>Azar&nbsp;v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on February&nbsp;20, 2009, are also pending in the same court alleging similar facts. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Heffelfinger, et&nbsp;al v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2> is a class action filed on November 2006 in California Superior Court claiming that certain EDS information technology workers in California were misclassified exempt employees. The case was subsequently transferred to the U.S. District Court for the Central District of California, which, on January&nbsp;7, 2008, certified a class of information technology workers in California. On June&nbsp;6, 2008, the court granted the defendant's motion for summary judgment. The plaintiffs subsequently filed an appeal with the U.S. Court of Appeals for the Ninth Circuit. Three other purported class actions originally filed in California Superior Court, </FONT><FONT size=2><I><U>Jameson, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on July&nbsp;16, 2008, </FONT><FONT size=2><I><U>Karlbom, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on March&nbsp;16, 2009, and </FONT><FONT size=2><I><U>George, et&nbsp;al. v. Electronic Data Systems Corporation</U></I></FONT><FONT size=2>, which was filed on April&nbsp;2, 2009, are pending in the U.S. District Court for the Central or Southern District of California alleging similar facts. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I><U>Mathias, et al. v. Hewlett-Packard Company</U></I></FONT><FONT size=2> is a purported class action filed on August&nbsp;21, 2009 in the United States District Court for the Northern District of Georgia, Atlanta Division, claiming that certain HP presales technical consulting employees were misclassified as exempt employees. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>The United States of America, ex rel. Norman Rille and Neal Roberts v. Hewlett-Packard Company, et&nbsp;al.</U></I></FONT><FONT size=2> In 2004, two private individuals filed a civil "</FONT><FONT size=2><I>qui tam</I></FONT><FONT size=2>" complaint under the False Claims Act in the United States District Court for the Eastern District of Arkansas containing generalized allegations that HP and several other companies participated in an industry-wide practice of using partnership and alliance programs to make improper payments and cause the submission of false claims in connection </FONT><FONT size=2>with contracts to provide products and services to the federal government. On April&nbsp;12, 2007, the U.S. Department of Justice intervened in the </FONT><FONT size=2><I>qui tam</I></FONT><FONT size=2> action and filed a complaint against HP (and several other companies in separate actions) on behalf of the United States containing allegations that HP violated the False Claims Act and the Anti-Kickback Act of 1986 by providing millions of dollars in kickbacks to its alliance partners, including "influencer fees" and "new business opportunity rebates." The U.S. complaint further alleges that HP violated the False Claims Act and the Anti-Kickback Act, breached its federal government contracts, induced the federal government to make payments to HP that HP was not entitled to receive under those contracts, and was unjustly enriched by expressly or impliedly making false statements, records or certifications to the federal government that it complied with and would continue to comply with the Anti-Kickback Act and by submitting claims to the government that allegedly were inflated because they included the amounts of the influencer fees and new business opportunity rebates. The U.S. complaint seeks treble damages plus civil penalties in connection with the alleged violations of the False Claims Act, double damages plus civil penalties in connection with the alleged violations of the Anti-Kickback Act and disgorgement of profits earned in connection with the breach of contract and unjust enrichment claims. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Leak Investigation Proceedings</U></I></FONT><FONT size=2>. As described below, HP is or has been the subject of various governmental inquiries concerning the processes employed in an investigation into leaks of HP confidential information to members of the media that concluded in May 2006: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In August 2006, HP was informally contacted by the Attorney General of the State of California requesting information concerning the processes employed in the leak investigation. On December&nbsp;7, 2006, HP announced that it entered into an agreement with the California Attorney General to resolve civil claims arising from the leak investigation, including a claim made by the California Attorney General in a Santa Clara County Superior Court action filed on December&nbsp;7, 2006, that HP committed unfair business practices under California law in connection with the leak investigation. As a result of this agreement, which includes an injunction, the California Attorney General will not pursue civil claims against HP or its current and former directors, officers and employees. Under the terms of the agreement, HP paid a total of $14.5&nbsp;million and agreed to implement and maintain for five years a series of measures designed to ensure that HP's corporate investigations are conducted in accordance with California law and the company's high ethical standards. Of the $14.5&nbsp;million, $13.5&nbsp;million has been used to create a Privacy and Piracy Fund to assist California prosecutors in investigating and prosecuting consumer privacy and information piracy violations, $650,000 was used to pay statutory damages and $350,000 reimbursed the California Attorney General's office for its investigation costs. There was no finding of liability against HP as part of the settlement. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Beginning in September 2006, HP received requests from the Committee on Energy and Commerce of the U.S. House of Representatives (the "Committee") for records and information concerning the leak investigation, securities transactions by HP officers and directors, including an August&nbsp;25, 2006, securities transaction by Mark Hurd, HP's Chairman and Chief Executive Officer, and related matters. HP has responded to those requests. In addition, Mr.&nbsp;Hurd voluntarily gave testimony to the Committee regarding the leak investigation on September&nbsp;28, 2006. </FONT></DD></DL></UL> <UL> <UL></UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In September 2006, HP was informally contacted by the U.S. Attorney for the Northern District of California requesting similar information concerning the processes employed in the leak investigation. HP has responded to that request. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Beginning in September 2006, HP has received requests from the Division of Enforcement of the Securities and Exchange Commission for records and information and interviews with current and former HP directors and officers relating to the leak investigation, the resignation of Thomas J. Perkins from HP's Board of Directors, HP's May&nbsp;22, 2006 and September&nbsp;6, 2006 filings with the SEC on Form&nbsp;8-K, stock repurchases by HP and securities transactions by its officers and directors that occurred between May&nbsp;1 and October&nbsp;1, 2006, and HP's policies, practices and approval of securities transactions. In May 2007, HP consented to the entry of an order by the SEC ordering HP to cease and desist from committing or causing violations of the public reporting requirements of the Securities Exchange Act of 1934, as amended. HP has been advised by the staff of the Division of Enforcement that the staff has completed its investigation and does not intend to recommend that any other SEC enforcement action be brought in connection with these matters. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>In September 2006, HP received a request from the U.S. Federal Communications Commission for records and information relating to the processes employed in the leak investigation. HP has responded to that request. </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, four stockholder derivative lawsuits have been filed in California purportedly on behalf of HP stockholders seeking to recover damages for alleged breach of fiduciary duty and to require HP to improve its corporate governance and internal control procedures as a result of the activities of the leak investigation: </FONT><FONT size=2><I><U>Staehr v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;18, 2006; </FONT><FONT size=2><I><U>Worsham v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;14, 2006; </FONT><FONT size=2><I><U>Tansey v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;20, 2006; and </FONT><FONT size=2><I><U>Hall v. Dunn, et al.</U></I></FONT><FONT size=2> was filed in Santa Clara County Superior Court on September&nbsp;25, 2006. On October&nbsp;19, 2006, the Santa Clara County Superior Court consolidated the four California cases under the caption </FONT><FONT size=2><I><U>In re Hewlett-Packard Company Derivative Litigation</U></I></FONT><FONT size=2>. The consolidated complaint filed on November&nbsp;19, 2006, also seeks to recover damages in connection with sales of HP stock alleged to have been made by certain current and former HP officers and directors while in possession of material non-public information. Two additional stockholder derivative lawsuits, </FONT><FONT size=2><I><U>Pifko v. Babbio, et al.</U></I></FONT><FONT size=2>, filed on September&nbsp;19, 2006, and </FONT><FONT size=2><I><U>Gross v. Babbio, et al.</U></I></FONT><FONT size=2>, filed on November&nbsp;21, 2006, were filed in Chancery Court, County of New Castle, Delaware; both seek to recover damages for alleged breaches of fiduciary duty and to obtain an order instructing the defendants to refrain from further breaches of fiduciary duty and to implement corrective measures that will prevent future occurrences of the alleged breaches of fiduciary duty. On January&nbsp;24, 2007, the Delaware court consolidated the two cases under the caption </FONT><FONT size=2><I><U>In re Hewlett-Packard Company Derivative Litigation</U></I></FONT><FONT size=2> and subsequently stayed the proceedings, as the parties had reached a tentative settlement. The HP Board of Directors appointed a Special Litigation Committee consisting of independent Board members authorized to investigate, review and evaluate the facts and circumstances asserted in these derivative matters and to determine how HP should proceed in these matters. On December&nbsp;14, 2007, HP and the plaintiffs in the California and Delaware derivative actions entered into an agreement to settle those lawsuits. Under the terms of the settlement, HP agreed to continue certain corporate governance </FONT><FONT size=2>changes until December&nbsp;31, 2012 and to pay the plaintiffs' attorneys' fees. The California court granted final approval to the settlement on March&nbsp;11, 2008 and subsequently granted plaintiffs' counsel's fee application and dismissed the action. On June&nbsp;12, 2008, the Delaware court granted final approval to the settlement and the plaintiffs' application for attorneys' fees and also dismissed the action. Because neither the dismissal of the California nor the Delaware derivative action was thereafter appealed, both cases are now concluded. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Concluded Litigation </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>Schorsch v. HP</U></I></FONT><FONT size=2> was a consumer class action filed against HP on October&nbsp;28, 2003 in Illinois state court alleging that HP had included an electrically erasable programmable read only memory (EEPROM) chip in certain of its LaserJet printers that prematurely advises the user that the drum kit needs replacing in violation of Illinois state law. The plaintiffs subsequently filed an amended complaint seeking to expand the class from purchasers of drum kits to purchasers of all HP printer consumables that contain EEPROM chips. The plaintiffs sought certification of an Illinois-only class and unspecified damages, attorneys' fees and costs. The action was dismissed by the court with prejudice on December&nbsp;20, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2><I><U>CSIRO Patent Litigation</U>. <U>Microsoft Corporation, Hewlett-Packard Company, et al. v. Commonwealth Scientific and Industrial Research Organisation of Australia</U></I></FONT><FONT size=2> is an action filed by HP and two other plaintiffs on May&nbsp;9, 2005, in the District Court for the Northern District of California seeking a declaratory judgment against Commonwealth Scientific and Industrial Research Organisation of Australia ("CSIRO") that HP's products employing the IEEE 802.11a and 802.11g wireless protocol standards do not infringe CSIRO's United States Patent No.&nbsp;5,487,069 relating to wireless transmission of data at frequencies in excess of 10GHz. On September&nbsp;22, 2005, CSIRO filed an answer and counterclaims alleging that all HP products which employ those wireless protocol standards infringe the CSIRO patent and seeking damages, including enhanced damages and attorneys' fees and costs, and an injunction against sales of infringing products. On December&nbsp;12, 2006, CSIRO successfully moved to have the case transferred to the District Court of the Eastern District of Texas. In March 2009, the parties agreed to settle the matter and dismiss the pending lawsuit. Under the terms of the settlement agreement, HP agreed to pay CSIRO an amount of money that is immaterial to HP in exchange for protection from claims of infringement of the patent at issue, including all United States and worldwide continuations and counterparts of that patent, in the form of a combination of licenses and covenants not to sue. The parties filed a stipulation dismissing the case on March&nbsp;26, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2><I>Environmental </I></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of its products and the recycling, treatment and disposal of its products including batteries. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, the energy consumption associated with those products and product take-back legislation. HP could incur substantial costs, its products could be restricted from entering certain </FONT><FONT size=2>jurisdictions, and it could face other sanctions if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean up costs. The amount and timing of costs under environmental laws are difficult to predict. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or state laws similar to CERCLA. HP is also conducting environmental investigations or remediations at several current or former operating sites pursuant to administrative orders or consent agreements with state environmental agencies. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). For example, the European Union ("EU") adopted the Waste Electrical and Electronic Equipment Directive in January 2003. That directive makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products. The EU member states were obliged to make producers participating in the market financially responsible for implementing these responsibilities. </FONT></P></BODY></HTML> Note&nbsp;16: Litigation and Contingencies &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is involved in lawsuits, claims, investigations and false false No definition available. 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No authoritative reference available. false 39 4 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -3880000000 -3880 false false 2 false true -4778000000 -4778 false false No definition available. No authoritative reference available. true 40 3 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 3368000000 3368 false false 2 false true 3490000000 3490 false false No definition available. No authoritative reference available. true 41 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false true false false 1 false true 10153000000 10153 false false 2 false true 11293000000 11293 false false No definition available. No authoritative reference available. false 42 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false true false 1 false true 13521000000 13521 false false 2 false true 14783000000 14783 false false No definition available. No authoritative reference available. false 43 3 us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 44 4 hpq_OptionsIssued hpq false debit duration monetary The fair value of options issued in noncash financing or investing activities. false false false false false false false false false 1 false true -3000000 -3 false false 2 false true -4000000 -4 false false The fair value of options issued in noncash financing or investing activities. No authoritative reference available. false 45 4 hpq_NoncashOrPartNoncashAcquisitionValueOfAssetsAcquiredDuringPeriod hpq false debit duration monetary The value of an asset or business acquired during the period in a noncash (or part noncash) acquisition. Noncash is defined... false false false false false false false false false 1 false true 283000000 283 false false 2 false true 0 0 false false The value of an asset or business acquired during the period in a noncash (or part noncash) acquisition. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. No authoritative reference available. false 46 4 us-gaap_CapitalLeaseObligationsIncurred us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 74000000 74 false false 2 true true 0 0 false false No definition available. No authoritative reference available. false false 2 42 false Millions UnKnown UnKnown false true XML 19 R16.xml IDEA: Borrowings 1.0.0.3 false Borrowings false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;12: Borrowings </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Notes Payable and Short-Term Borrowings </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=254></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amount<BR>Outstanding </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Interest<BR>Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Amount<BR>Outstanding </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Interest<BR>Rate </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current portion of long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,610</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4.3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notes payable to banks, lines of credit and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>403</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>356</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5.3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,176</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of approximately $311&nbsp;million and $262&nbsp;million at July&nbsp;31, 2009 and October&nbsp;31, 2008, respectively. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Long-Term Debt </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=344></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>U.S. Dollar Global Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2002 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$500 issued at discount to par of 99.505% in June 2002 at 6.5%, due July 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2006 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$600 issued at par in February 2007 at three-month USD LIBOR plus 0.11%, due March 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>600</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>600</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$900 issued at discount to par of 99.938% in February 2007 at 5.25%, due March 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>900</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>900</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$500 issued at discount to par of 99.694% in February 2007 at 5.4%, due March 2017</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at par in June 2007 at three-month USD LIBOR plus 0.01%, due June 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at par in June 2007 at three-month USD LIBOR plus 0.06%, due June 2010</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at par in March 2008 at three-month USD LIBOR plus 0.40%, due September 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,500 issued at discount to par of 99.921% in March 2008 at 4.5%, due March 2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,499</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at discount to par of 99.932% in March 2008 at 5.5%, due March 2018</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$2,000 issued at discount to par of 99.561% in December 2008 at 6.125%, due March 2014</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,992</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$275 issued at par in February 2009 at three-month USD LIBOR plus 1.75%, due February 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>275</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at discount to par of 99.956% in February 2009 at 4.25%, due February 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,500 issued at discount to par of 99.993% in February 2009 at 4.75%, due June 2014</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>2009 Shelf Registration Statement:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$750 issued at par in May 2009 at three-month USD LIBOR plus 1.05%, due May 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>750</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,000 issued at discount to par of 99.967% in May 2009 at 2.25%, due May 2011</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,000</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$250 issued at discount to par of 99.984% in May 2009 at 2.95%, due August 2012</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>250</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,264</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,497</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=353></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=28> <P>&nbsp;</P> <P>&nbsp;</P></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>EDS Senior Notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$700 issued October 1999 at 7.125%, due October 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>702</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>712</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$1,100 issued June 2003 at 6.0%, due August 2013</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,143</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>$300 issued October 1999 at 7.45%, due October 2029</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>316</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>316</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,178</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other, including capital lease obligations, at 3.75%-9.14%, due in calendar year 2009-2029 and at 3.75%-8.63%, due in calendar year 2008-2029</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>784</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>597</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value adjustment related to SFAS No.&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>293</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,502</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Less: current portion</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,610</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,674</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total long-term debt</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,892</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,676</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP may redeem some or all of the Global Notes set forth in the above table at any time at the redemption prices described in the prospectus supplements relating thereto. The Global Notes are senior unsecured debt. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP registered the sale of up to $3.0&nbsp;billion of debt or global securities, common stock, preferred stock, depositary shares and warrants under a shelf registration statement in March 2002 (the "2002 Shelf Registration Statement"). The 2002 Shelf Registration Statement expired on December&nbsp;1, 2008, and, accordingly, HP is no longer able to issue any additional securities under this Registration Statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2009, HP filed a shelf registration statement (the "2009 Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") to enable the Company to offer and sell, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2009 Shelf Registration Statement replaced a similar registration statement filed in May 2006 that expired in May 2009 (the "2006 Shelf Registration Statement"). As of July&nbsp;31, 2009, HP had $10.8&nbsp;billion of global notes issued under the 2006 Shelf Registration Statement and $2.0&nbsp;billion of global notes issued under the 2009 Shelf Registration Statement. On December&nbsp;5, 2008, HP issued $2.0&nbsp;billion of global notes under the 2006 Shelf Registration Statement. The global notes issued in December 2008 are due in March 2014, bear interest at a fixed interest rate of 6.125% per annum and were issued at a discount to par of 99.561%. On February&nbsp;26, 2009, HP issued an additional $2.8&nbsp;billion of global notes under the 2006 Shelf Registration Statement. The global notes include $275&nbsp;million of floating rate notes at three-month USD LIBOR plus 1.75% due February 2011 issued at par, $1.0&nbsp;billion of notes due February 2012 with a fixed rate of 4.25% per annum issued at a discount to par of 99.956% and $1.5&nbsp;billion of notes due June 2014 with a fixed rate of 4.75% per annum issued at a discount to par of 99.993%. On May&nbsp;27, 2009, HP issued $2.0&nbsp;billion of global notes under the 2009 Shelf Registration Statement. The global notes issued in May 2009 include $1.0&nbsp;billion of notes due May 2011 with a fixed rate of 2.25% per annum issued at a discount to par of 99.967%, $750&nbsp;million of floating rate notes due May 2011 at three-month USD LIBOR plus 1.05% issued at par, and $250&nbsp;million of notes due August 2012 with a fixed rate of 2.95% per annum issued at a discount to par of 99.984%. HP used the net proceeds from </FONT><FONT size=2>the December 2008, February 2009 and May 2009 offerings for general corporate purposes and the repayment of short-term commercial paper, some of which was issued in connection with its acquisition of EDS. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2008, HP's Board of Directors approved increasing the capacity of HP's U.S. commercial paper program by $10.0&nbsp;billion to $16.0&nbsp;billion. HP's subsidiaries are authorized to issue up to an additional $1.0&nbsp;billion of commercial paper, of which $500&nbsp;million of capacity is currently available to be used by Hewlett-Packard International Bank&nbsp;PLC, a wholly-owned subsidiary of HP, for its Euro Commercial Paper/Certificate of Deposit Programme. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2008, HP registered for the Commercial Paper Funding Facility ("CPFF") provided by the Federal Reserve Bank of New York. The facility enables HP to issue three-month unsecured commercial paper through a special purpose vehicle of the Federal Reserve at a rate established by the CPFF program, which is currently equal to a spread over the three-month overnight index swap rate. The maximum amount of commercial paper that HP may issue at any time through this program is $10.4&nbsp;billion less the total principal amount of all other outstanding commercial paper that HP has issued. The CPFF program is currently scheduled to expire on February&nbsp;1, 2010. As of July&nbsp;31, 2009, HP had not issued any commercial paper under the CPFF program. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has a $2.9&nbsp;billion five-year credit facility expiring in May 2012. In February and July 2008, HP entered into additional 364-day credit facilities of $3.0&nbsp;billion and $8.0&nbsp;billion, respectively. The February 2008 credit facility expired in February 2009, at which time HP entered into a new $3.5&nbsp;billion 364-day credit facility. HP terminated the July 2008 credit facility in May 2009, which reduced the total amount available under its credit facilities to $6.4&nbsp;billion. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. The credit facilities are senior unsecured committed borrowing arrangements primarily to support the issuance of U.S. commercial paper. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP also maintains uncommitted lines of credit from a number of financial institutions that are available through various foreign subsidiaries. The amount available for use as of July&nbsp;31, 2009 was approximately $1.3&nbsp;billion. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of July&nbsp;31, 2009, the carrying value of the assets approximated the carrying value of the borrowings of $10&nbsp;million. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, HP was able to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2009 Shelf Registration Statement. As of that date, HP also had up to approximately $17.5&nbsp;billion of available borrowing resources, including $16.2&nbsp;billion under its commercial paper programs, $6.4&nbsp;billion of which is supported by its credit facilities, and approximately $1.3&nbsp;billion under other programs. </FONT></P></BODY></HTML> Note&nbsp;12: Borrowings Notes Payable and Short-Term Borrowings &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable and short-term false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 20 R9.xml IDEA: Acquisitions 1.0.0.3 false Acquisitions false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_BusinessCombinationDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;5: Acquisitions </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the first nine months of fiscal 2009, HP completed its acquisition of Lefthand Networks,&nbsp;Inc., a leading provider of storage virtualization and solutions for $347&nbsp;million in cash including direct transaction costs and the assumption of certain liabilities in connection with the transaction. HP recorded $273&nbsp;million to goodwill, $95&nbsp;million to purchased intangibles and $6&nbsp;million to in-process research and development ("IPR&amp;D") charges related to this acquisition. Lefthand Networks is being integrated into HP's Enterprise Storage and Servers segment within the Technology Solutions Group. HP does not expect goodwill recorded with respect to this acquisition to be deductible for tax purposes. HP has not presented pro forma results of operations because this acquisition is not material to HP's consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Subsequent Acquisition </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2009, HP completed its acquisition of IBRIX, Inc. a leading provider of enterprise-class file serving software. IBRIX will be integrated into the Enterprise Storage&nbsp;and Servers segment. This acquisition is not material to HP's consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Acquisition of Electronic Data Systems Corporation ("EDS") </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed in its Consolidated Financial Statements for the fiscal year ended October&nbsp;31, 2008, HP completed its acquisition of EDS on August&nbsp;26, 2008. The purchase price for EDS was $13.0&nbsp;billion, comprised of $12.7&nbsp;billion cash paid for outstanding common stock, $328&nbsp;million for the estimated fair value of stock options and restricted stock units assumed, and $36&nbsp;million for direct transaction costs. Of the total purchase price, a preliminary estimate of $10.5&nbsp;billion has been allocated to goodwill, $4.5&nbsp;billion has been allocated to amortizable intangible assets acquired and $2.0&nbsp;billion has been allocated to net tangible liabilities assumed in connection with the acquisition. HP also expensed $30&nbsp;million for IPR&amp;D charges. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase price allocation as of the date of the acquisition reflects various preliminary estimates and analyses, including preliminary work performed by third-party valuation specialists, and is subject to change during the purchase price allocation period (generally one year from the acquisition date) as valuations are finalized. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has evaluated and continues to evaluate certain pre-acquisition contingencies related to EDS that existed as of the acquisition date. Additional information, which existed as of the acquisition date but was at that time unknown to HP, may become known to HP during the remainder of the purchase price allocation period, and may result in goodwill adjustments. If these pre-acquisition contingencies become probable in nature and estimable after the end of the purchase price allocation period, amounts would be recorded for such matters in HP's results of operations. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Pro forma results for EDS acquisition </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the unaudited results of HP (including EDS) for the three and nine months ended July&nbsp;31, 2009 and the unaudited pro forma results for the three and nine months ended July&nbsp;31, 2008. The unaudited pro forma financial information for the three and nine months ended July&nbsp;31, 2008 combines the results of operations of HP and EDS as though the companies had been combined as of the beginning of fiscal 2008. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place at the beginning of fiscal 2008. The unaudited pro forma results presented include amortization charges for acquired intangible assets, eliminations of intercompany transactions, restructuring charges, IPR&amp;D charges, adjustments for incremental stock-based compensation expense related to the unearned portion of EDS stock options and restricted stock units assumed, adjustments for depreciation expense for property, plant and equipment, adjustments to interest expense and related tax effects. </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=266></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=34></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 120pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>In millions, except per share data <!-- COMMAND=ADD_SCROPPEDRULE,120pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Unaudited</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Unaudited</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33,681</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>101,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,090</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,529</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic net earnings per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted net earnings per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;5: Acquisitions &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the first nine months of fiscal 2009, HP completed its acquisition of Lefthand false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 21 R6.xml IDEA: Stock-Based Compensation 1.0.0.3 false Stock-Based Compensation false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;2: Stock-Based Compensation </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's stock-based compensation plans include incentive compensation plans and an employee stock purchase plan. Incentive compensation plans include principal option plans as well as various stock option plans assumed through acquisitions. Principal option plans include performance-based restricted units ("PRU"), stock options and restricted stock awards. HP accounts for its stock-based compensation plans under SFAS No.&nbsp;123(R), "Share-Based Payment." </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense for the three and nine months ended July&nbsp;31, 2009 and 2008 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=20></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In&nbsp;millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In&nbsp;millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cost of sales</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>141</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Research and development</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>55</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Selling, general and administrative</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisition-related charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Stock-based compensation expense before income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>150</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>501</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>449</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Income tax benefit</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(158</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(130</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total stock-based compensation expense after income taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>99</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>102</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>343</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>319</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Performance-based Restricted Units </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal 2008, HP implemented a program that provides for the issuance of PRUs representing hypothetical shares of HP common stock that may be issued under the Hewlett-Packard Company 2004 Stock Incentive Plan. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the PRU program, a target number of units are awarded at the beginning of each three-year performance period. The number of shares released at the end of the performance period will range from zero to two times the target number depending on performance during the period. The performance metrics of the PRU program are (a)&nbsp;annual targets based on cash flow from operations as a percentage of revenue, and (b)&nbsp;an overall "modifier" based on Total Shareholder Return ("TSR") relative to the S&amp;P&nbsp;500 over the three-year performance period. TSR is calculated using the quarterly average performance of the S&amp;P&nbsp;500 during the three-year performance period. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the cash flow goals are considered performance conditions, the expense for these awards, net of estimated forfeitures, will be recorded over the three-year performance period based on the number of shares that are expected to be earned based on the achievement of the cash flow goals during the performance period. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP estimates the fair value of a target PRU share using the Monte Carlo simulation model, as the TSR modifier contains a market condition. The following weighted-average assumptions were used to determine the weighted-average fair value of the PRU awards: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=287></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average fair value of grants per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35.47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40.56</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40.21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected volatility<SUP>(3)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>35</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Risk-free interest rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.15</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dividend yield</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.88</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.70</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected life in months</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in the three months ended July&nbsp;31, 2009. The estimated fair value of a target share for the second and third years for PRUs granted in the three months ended July&nbsp;31, 2009 will be determined when the annual cash flow goals are approved, and the expense will be amortized over the remainder of the applicable three-year performance period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2008 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2009. The estimated fair value of a target share for the third year for PRUs granted in fiscal 2008 and for the second and third years for PRUs granted in fiscal 2009 will be determined when the annual cash flow goals are approved, and the expense will be amortized over the remainder of the applicable three-year performance period. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>HP uses historic volatility for PRU awards as implied volatility cannot be used when simulating multivariate prices for companies in the S&amp;P&nbsp;500. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding PRUs as of July&nbsp;31, 2009 and October&nbsp;31, 2008 and changes during the nine months ended July&nbsp;31, 2009 and twelve months ended October&nbsp;31, 2008 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=322></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=56></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine months<BR>ended<BR>July&nbsp;31, 2009<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Twelve months<BR>ended<BR>October&nbsp;31, 2008<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Beginning units outstanding</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,965</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,949</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,783</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Change in units due to performance and market conditions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>979</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,492</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,021</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(310</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Ending units outstanding</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>24,872</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,965</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>PRUs assigned a fair value</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,338</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,292</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $248&nbsp;million of unrecognized pre-tax stock-based compensation expense related to PRUs with an assigned fair value, which HP expects to recognize over the remaining weighted-average vesting period of 1.7&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Stock Options </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP estimated the weighted-average fair value of stock options using the Black-Scholes option pricing model with the following weighted-average assumptions: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=287></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=18></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average fair value of grants per share</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11.57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14.20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12.89</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>15.34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Implied volatility</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>36</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>45</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Risk-free interest rate</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.01</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3.16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dividend yield</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.71</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.68</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Expected life in months</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>61</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option activity as of July&nbsp;31, 2009 and changes during the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=214></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=55></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=38></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=40></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Exercise<BR>Price&nbsp;Per&nbsp;Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average<BR>Remaining<BR>Contractual<BR>Term<BR>(in years) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Aggregate<BR>Intrinsic<BR>Value<BR>(in&nbsp;millions) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>307,728</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted and assumed through acquisitions</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,933</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Exercised</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(27,103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited/cancelled/expired</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(18,803</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>57</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Outstanding at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>263,755</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,231</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested and expected to vest at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>261,931</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Exercisable at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>237,135</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,073</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have received had all option holders exercised their options on July&nbsp;31, 2009. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the third quarter of fiscal 2009 and the exercise price, multiplied by the number of in-the-money options. Total intrinsic value of options exercised for the three and nine months ended July&nbsp;31, 2009 was $188&nbsp;million and $326&nbsp;million, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $244&nbsp;million of unrecognized pre-tax stock-based compensation expense related to stock options, which HP expects to recognize over the remaining weighted-average vesting period of 1.3&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Restricted Stock Awards </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-vested restricted stock awards as of July&nbsp;31, 2009 and changes during the nine months ended July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=327></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=48></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=51></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Shares<BR>(in thousands) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Weighted-<BR>Average Grant<BR>Date Fair Value<BR>Per Share </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-vested at October&nbsp;31, 2008</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,930</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Granted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>743</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Vested</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,066</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Forfeited</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(941</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>42</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Non-vested at July&nbsp;31, 2009</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,666</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times" align=right>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At July&nbsp;31, 2009, there was $155&nbsp;million of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expects to recognize over the remaining weighted-average vesting period of 0.9&nbsp;years. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Changes to the Employee Stock Purchase Plan </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP sponsors the Hewlett-Packard Company 2000 Employee Stock Purchase Plan, also known as the Share Ownership Plan (the "ESPP"), pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of HP's common stock. Employees purchase stock pursuant to the ESPP semi-annually at a price equal to 85% of the fair market value on the purchase date. HP recognized expense based on a 15% discount from fair market value for purchases made under the ESPP on or before April&nbsp;30, 2009. Effective May&nbsp;1, 2009, HP modified the ESPP to eliminate the 15% discount applicable to purchases made under the ESPP. </FONT></P></BODY></HTML> Note&nbsp;2: Stock-Based Compensation &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's stock-based compensation plans include incentive compensation false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 22 R5.xml IDEA: Basis of Presentation and Significant Accounting Policies 1.0.0.3 false Basis of Presentation and Significant Accounting Policies false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 hpq_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlock hpq false na duration string Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure.... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;1: Basis of Presentation and Significant Accounting Policies </B></FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of management, the accompanying Consolidated Condensed Financial Statements of Hewlett-Packard Company and its consolidated subsidiaries ("HP") contain all adjustments, including normal recurring adjustments, necessary to present fairly HP's financial position as of July&nbsp;31, 2009, its results of operations for the three and nine months ended July&nbsp;31, 2009 and 2008 and its cash flows for the nine months ended July&nbsp;31, 2009 and 2008. The Consolidated Condensed Balance Sheet as of October&nbsp;31, 2008 is derived from the October&nbsp;31, 2008 audited consolidated financial statements. Certain reclassifications have been made to prior-year amounts in order to conform to the current year presentation. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of operations for the three and nine months ended July&nbsp;31, 2009 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form&nbsp;10-Q should be read in conjunction with "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items&nbsp;1A, 3, 7, 7A and 8, respectively, of the Hewlett-Packard Company Annual Report on Form&nbsp;10-K for the fiscal year ended October&nbsp;31, 2008. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. In accordance with Statement of Financial Accounting Standards ("SFAS") No.&nbsp;5, "Accounting for Contingencies," HP records a provision for a liability when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. HP reviews these provisions at least quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond HP's control. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP evaluated all subsequent events that occurred after the balance sheet date and through the date and time its financial statements were issued on September&nbsp;4, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Accounting Pronouncements </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously reported in HP's 2008 Annual Report on Form&nbsp;10-K, HP recognized the funded status of its benefit plans at October&nbsp;31, 2007 in accordance with the recognition provisions of SFAS No.&nbsp;158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans&#151;An Amendment of Financial Accounting Standards Board ("FASB") Statements No.&nbsp;87, 88, 106 and 132(R)" ("SFAS&nbsp;158"). In addition to the recognition provisions, SFAS&nbsp;158 also requires companies to measure the funded status of the plan as of the date of their fiscal year end, effective for fiscal years ending after December&nbsp;15, 2008. HP will adopt the measurement provisions of SFAS&nbsp;158 effective October&nbsp;31, 2009 for the HP pension and post retirement plans. HP does not expect the adoption of the measurement provisions of SFAS&nbsp;158 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2008, the FASB issued FASB Staff Position ("FSP") SFAS&nbsp;157-2, "Effective Date of FASB Statement No.&nbsp;157" ("FSP SFAS&nbsp;157-2"). FSP SFAS&nbsp;157-2 delays the effective date of SFAS No.&nbsp;157, "Fair Value Measurements" ("SFAS&nbsp;157") to fiscal years beginning after November&nbsp;15, 2008 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). As a result of adoption of FSP SFAS&nbsp;157-2, HP will adopt SFAS&nbsp;157 for all nonfinancial assets and nonfinancial liabilities in the first quarter of fiscal 2010. Although HP will continue to evaluate the application of SFAS&nbsp;157 to nonfinancial assets and nonfinancial liabilities, HP does not expect the adoption of SFAS&nbsp;157 with respect to nonfinancial assets and nonfinancial liabilities will have a material impact on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141 (revised 2007), "Business Combinations" ("SFAS&nbsp;141(R)"). SFAS&nbsp;141(R) expands the definition of a business and a business combination; requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an intangible asset; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. SFAS&nbsp;141(R) also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. SFAS&nbsp;141(R) is effective for fiscal years beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is currently evaluating the potential impact of the adoption of SFAS&nbsp;141(R) on its consolidated financial statements, which will be largely dependent on the size and nature of the business combinations completed after the adoption of this statement. Among other potential impacts, the adoption of SFAS&nbsp;141(R) will result in the recognition of certain types of expenses in its results of operations that are currently capitalized pursuant to existing accounting standards. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, "Noncontrolling Interests in Consolidated Financial Statements&#151;an amendment of Accounting Research Bulletin No.&nbsp;51" ("SFAS&nbsp;160"). SFAS&nbsp;160 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent's ownership interest, and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS&nbsp;160 also establishes disclosure requirements that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS&nbsp;160 is effective for fiscal years beginning after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP does not expect the adoption of SFAS&nbsp;160 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2008, the FASB issued FSP&nbsp;Accounting Principles Board ("APB")&nbsp;14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" ("FSP APB&nbsp;14-1"). FSP APB&nbsp;14-1 requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. FSP APB&nbsp;14-1 is effective for fiscal years beginning after December&nbsp;15, 2008 on a retrospective basis and will be adopted by HP in the first quarter of </FONT><FONT size=2>fiscal 2010. HP currently does not have any outstanding convertible debt instruments that are subject to the provisions of FSP APB&nbsp;14-1. However, HP's U.S. dollar zero-coupon convertible notes that were redeemed in full in March&nbsp;2008 are subject to the provisions of FSP APB&nbsp;14-1. As a result, upon adoption of FSP APB&nbsp;14-1 in the first quarter of fiscal 2010, HP's fiscal 2008 consolidated results of operations and financial condition will be affected on a retrospective basis. HP does not expect the adoption of FSP APB&nbsp;14-1 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2008, the FASB issued FSP&nbsp;Emerging Issues Task Force ("EITF")&nbsp;03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" ("FSP EITF&nbsp;03-6-1"). FSP EITF&nbsp;03-6-1 clarifies that share-based payment awards that entitle their holders to receive nonforfeitable dividends or dividend equivalents before vesting should be considered participating securities. HP has granted and is expected to continue to grant restricted stock that contain non-forfeitable rights to dividends and such restricted stock will be considered participating securities upon adoption of FSP EITF&nbsp;03-6-1. As participating securities, HP will be required to include these instruments in the calculation of HP's basic earnings per share ("EPS"), and it will need to calculate basic EPS using the "two-class method." Restricted stock is currently included in HP's dilutive EPS calculation using the treasury stock method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. FSP EITF&nbsp;03-6-1 is effective for fiscal years beginning after December&nbsp;15, 2008 on a retrospective basis and will be adopted by HP in the first quarter of fiscal 2010. HP does not expect the adoption of FSP EITF&nbsp;03-6-1 will have a material effect on its calculation of basic EPS. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2008, the FASB ratified EITF Issue No.&nbsp;08-7, "Accounting for Defensive Intangible Assets" ("EITF&nbsp;08-7"). EITF&nbsp;08-7 applies to defensive intangible assets, which are acquired intangible assets that the acquirer does not intend to actively use but intends to hold to prevent its competitors from obtaining access to them. As these assets are separately identifiable, EITF&nbsp;08-7 requires an acquiring entity to account for defensive intangible assets as a separate unit of accounting. Defensive intangible assets must be recognized initially at fair value in accordance with SFAS&nbsp;141(R) and SFAS&nbsp;157 and amortized over the benefit period. EITF&nbsp;08-7 is effective for defensive intangible assets acquired in fiscal years beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is currently evaluating the potential impact of the adoption of EITF&nbsp;08-7 on its consolidated financial statements, which will be largely dependent on the nature of the business combinations completed after the adoption of this statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the FASB issued FSP SFAS&nbsp;132(R)-1, "Employer's Disclosures about Postretirement Benefit Plan Assets" ("FSP SFAS&nbsp;132(R)-1"). FSP SFAS&nbsp;132(R)-1 requires additional disclosures about assets held in an employer's defined benefit pension or other postretirement plan. FSP SFAS&nbsp;132(R)-1 is effective for fiscal years ending after December&nbsp;15, 2009 and will be adopted by HP in the first quarter of fiscal 2010. HP will present the required disclosures in the prescribed format on a prospective basis upon adoption. FSP SFAS&nbsp;132(R)-1 will only affect the notes to HP's consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2009, the FASB issued FSP SFAS&nbsp;141(R)-1, "Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies" ("FSP SFAS&nbsp;141(R)-1"). FSP SFAS&nbsp;141(R)-1 addresses application issues on initial recognition and </FONT><FONT size=2>measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. FSP SFAS&nbsp;141(R)-1 is effective for assets or liabilities arising from contingencies in business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008 and will be adopted by HP in the first quarter of fiscal 2010. HP is evaluating the impact the adoption of FSP SFAS&nbsp;141(R)-1 will have on its consolidated financial statements, which will be largely dependent on the size and nature of the business combinations completed after the adoption of this statement. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;166, "Accounting for Transfers of Financial Assets&#151;an amendment of FASB Statement No.&nbsp;140" ("SFAS&nbsp;166"). The most significant amendments resulting from SFAS&nbsp;166 consist of the removal of the concept of a qualifying special-purpose entity from FASB Statement No.&nbsp;140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," and, for qualifying special-purpose entities, the removal of the exception from applying FASB Interpretation No.&nbsp;46 (revised December&nbsp;2003), "Consolidation of Variable Interest Entities&#151;an interpretation of Accounting Research Bulletin No.&nbsp;51" ("FIN&nbsp;46(R)"). SFAS&nbsp;166 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November&nbsp;15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. SFAS&nbsp;166 will be adopted by HP in the first quarter of fiscal 2011. HP does not expect the adoption of SFAS&nbsp;166 will have a material effect on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;167, "Amendments to FASB Interpretation No.&nbsp;46(R)" ("SFAS&nbsp;167"). SFAS&nbsp;167 amends FIN&nbsp;46(R) to eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity and to require ongoing qualitative reassessments of whether an enterprise is the primary beneficiary of a variable interest entity. SFAS&nbsp;167 also amends FIN&nbsp;46(R) to require additional disclosures about an enterprise's involvement in variable interest entities. SFAS&nbsp;167 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November&nbsp;15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. Earlier application is prohibited. SFAS&nbsp;167 will be adopted by HP in the first quarter of fiscal 2011. HP is currently evaluating the impact the adoption of SFAS&nbsp;167 will have on its consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2009, the FASB issued SFAS No.&nbsp;168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles&#151;a replacement of FASB Statement No.&nbsp;162" ("SFAS&nbsp;168"). SFAS&nbsp;168 establishes the FASB Accounting Standards Codification ("ASC") as the source of authoritative accounting principles recognized by the FASB. Following this statement, the FASB will issue new standards in the form of Accounting Standards Updates ("ASUs"). SFAS&nbsp;168 is effective for financial statements issued for interim and annual periods ending after September&nbsp;15, 2009 and therefore is effective for HP in the fourth quarter of fiscal 2009. The issuance of SFAS&nbsp;168 will not change GAAP and therefore the adoption of SFAS&nbsp;168 will only affect the specific references to GAAP literature in the notes to HP's consolidated financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2009, the FASB issued Accounting Standards Update No.&nbsp;2009-05, "Measuring Liabilities at Fair Value" ("ASU 2009-05"). This update provides amendments to ASC Topic 820, "Fair Value Measurements and Disclosure" for the fair value measurement of liabilities. HP will adopt ASU 2009-05 for all financial liabilities in the fourth quarter of fiscal 2009. HP will adopt ASU 2009-05 for </FONT><FONT size=2>all non-financial liabilities in the first quarter of fiscal 2010 when HP fully adopts SFAS&nbsp;157. Although HP will continue to evaluate the application of SFAS&nbsp;157 and this update for its non-financial liabilities, HP does not expect the adoption of ASU 2009-05 will have a material effect on its consolidated financial statements. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Recently Adopted Accounting Pronouncements </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the first nine months of fiscal 2009, HP adopted the following accounting standards, none of which had a material effect on its consolidated financial statements during the period or at the end of the period: </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;115-2 and SFAS&nbsp;124-2, "Recognition and Presentation of Other-Than-Temporary Impairments"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;107-1 and APB&nbsp;28-1, "Interim Disclosures about Fair Value of Financial Instruments"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;165, "Subsequent Events"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS&nbsp;157; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-1, "Application of FASB Statement No.&nbsp;157 to FASB Statement No.&nbsp;13 and Other Accounting Pronouncements that Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement&nbsp;13" ("FSP SFAS&nbsp;157-1"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-2; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>FSP SFAS&nbsp;157-3, "Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active" ("FSP SFAS&nbsp;157-3"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;159, "The Fair Value Option for Financial Assets and Financial Liabilities&#151;Including an amendment of FASB Statement No.&nbsp;115" ("SFAS&nbsp;159"); </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>EITF&nbsp;07-3, "Accounting for Nonrefundable Advance Payments for Goods or Services Received for Use in Future Research and Development Activities"; </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>SFAS No.&nbsp;161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No.&nbsp;133" ("SFAS&nbsp;161"); and </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2>EITF&nbsp;06-11, "Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards." </FONT></DD></DL></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;8 for additional information pertaining to SFAS&nbsp;157, FSP SFAS&nbsp;157-1, FSP SFAS&nbsp;157-2, FSP SFAS&nbsp;157-3, FSP SFAS&nbsp;157-4 and SFAS&nbsp;159. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note&nbsp;9 for additional information pertaining to SFAS&nbsp;161. </FONT></P> <P style="FONT-FAMILY: times" align=center><FONT size=2>10</FONT></P></BODY></HTML> Note&nbsp;1: Basis of Presentation and Significant Accounting Policies &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of management, the false false Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. 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The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. This element may be used to disclose required balance sheet captions and inventories. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Sum of operating profit, nonoperating income, minority interest, and income (loss) from equity method investments (expense) before income taxes. No authoritative reference available. The value of an asset or business acquired during the period in a noncash (or part noncash) acquisition. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. No authoritative reference available. The fair value of options issued in noncash financing or investing activities. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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In theory, the sum represents amounts due to tax jurisdictions based on tax returns as if they were ready and available for filing on and as of the balance sheet date, plus accrued interest and penalties pertaining to amounts of tax uncertainties plus includes the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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This element represents acquisition-related costs incurred to effect a business combination which costs have been expensed during the period. Such costs include consulting fees, bonus costs, stock based compensation and moving costs. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Also describes all siginficant accounting policies of the reporti ng entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected). Plus, the charge against earnings that represents the reduction of the currently-stated financial value of inventory items based on a determination that future worth is less than the acquisition cost due to obsolescence or market changes. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Financing related Interest expense. No authoritative reference available. No authoritative reference available. 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XML 24 R21.xml IDEA: Segment Information 1.0.0.3 false Segment Information false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_SegmentReportingDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;17: Segment Information </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Description of Segments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small and medium sized businesses ("SMBs"), and large enterprises including the public and education sectors. HP's offerings span personal computing and other access devices; imaging and printing-related products and services; enterprise information technology ("IT") infrastructure, including enterprise storage and server technology; software that optimizes business technology investments; financial services including leasing; and multi-vendor customer services, including technology support and maintenance, consulting and integration, information technology and business process outsourcing services and application services. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP and its operations are organized into seven business segments for financial reporting purposes: Services, Enterprise Storage and Servers ("ESS"), HP Software, the Personal Systems Group ("PSG"), the Imaging and Printing Group ("IPG"), HP Financial Services ("HPFS"), and Corporate Investments. HP's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology. The business segments disclosed in the accompanying Consolidated Condensed Financial Statements are based on this organizational structure and information reviewed by HP's management to evaluate the business segment results. Services, ESS and HP Software are reported collectively as a broader Technology Solutions Group ("TSG"). In order to provide a supplementary view of HP's business, aggregated financial data for TSG is presented herein. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP has reclassified segment operating results for fiscal 2008 to conform to certain fiscal 2009 organizational realignments. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. Future changes to this organizational structure may result in changes to the business segments disclosed. A description of the types of products and services provided by each business segment follows. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Technology Solutions Group. </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the business segments within TSG is described in detail below. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Services,</I></FONT><FONT size=2> formerly HP Services, was renamed after the reorganization of the business units subsequent to the acquisition of EDS. Services provides consulting, outsourcing, and technology services across infrastructure, applications, and business process domains. Services delivers to its clients by leveraging investments in consulting and support professionals, infrastructure technology, applications, standardized methodologies, and global supply and delivery. It is divided into four main business units: applications services ("AS"), infrastructure technology outsourcing ("ITO"), business process outsourcing ("BPO") and technology services ("TS"). AS provides a full lifecycle of service offerings to support diverse client requirements, including transformation and modernization services, applications development and applications management. ITO offers five service lines: data center services, workplace services, security compliance and continuity services, networking services, and managed services. BPO is powered by a platform of underlying infrastructure technology, applications and standardized methodologies. It includes four main service lines: enterprise shared services, customer relationship management, financial process management services and administrative services. TS provides services and warranty support across HP's product lines. TS also provides multivendor support to products and environments that are consistent with HP's stated growth strategy. TS specializes in proactive mission-critical support, datacenter transformation and infrastructure services for storage and server environments, as well as unified communication environments and networks. TS offers product support in the form of installation and startup services, hardware and software support, education and training, warranty extensions and replacement parts. Service and support offerings from TS are available in the form of service contracts, pre-packaged offerings or on an individual basis and are available from HP directly or through HP authorized channel partners. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Enterprise Storage and Servers</I></FONT><FONT size=2> provides storage and server products. The various server offerings range from entry-level servers to high-end scalable servers, including Superdome servers. Industry standard servers include primarily entry-level and mid-range ProLiant servers, which run primarily Windows&#174;<SUP>(1)</SUP>, Linux and Novell operating systems and leverage Intel Corporation ("Intel") and Advanced Micro Devices ("AMD") processors. The business spans a range of product lines, including pedestal-tower servers, density-optimized rack servers and HP's BladeSystem family of server blades. Business critical systems include Itanium&#174;<SUP>(2)</SUP>-based Integrity servers running on HP-UX, Windows&#174;, Linux, OpenVMS and NonStop operating systems, including the high-end Superdome servers and fault-tolerant Integrity NonStop servers. Business critical systems also include the Reduced Instruction Set Computing ("RISC")-based servers with the HP 9000 line running on the HP-UX operating system, HP AlphaServers running on </FONT><FONT size=2>both Tru64 UNIX&#174;<SUP>(3)</SUP> and OpenVMS, and MIPs-based NonStop servers. HP's StorageWorks offerings include entry-level, mid-range and high-end arrays, storage area networks ("SANs"), network attached storage ("NAS"), storage management software, and virtualization technologies, as well as tape drives, tape libraries and optical archival storage. </FONT> <DD style="FONT-FAMILY: times"><FONT size=2></FONT>&nbsp; <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>HP Software</I></FONT><FONT size=2> provides enterprise IT management software solutions, including professional services and support, that allow customers to manage and automate their IT infrastructure, operations, applications, IT services and business processes under the HP Business Technology Optimization ("BTO") brand. The portfolio of BTO solutions also includes tools to automate data center operations and IT processes. These solutions are reported as BTO Software. HP Software also provides a comprehensive suite of solutions that enables communication service providers to deploy revenue generating infrastructure and applications, customer intelligence and billing systems, and operational support systems. In addition, for media companies and distributors, HP Software provides solutions that address content management and streamlining of digital media workflows. HP Software further provides information management and business intelligence solutions, which include enterprise data warehousing, business continuity, data availability, records management, compliance and e-discovery products and services that enable our customers to extract more value from their structured and unstructured data and information. These solutions are reported as Other Software. </FONT></DD></DL></UL><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Windows&#174; is a registered trademark of Microsoft Corporation. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Itanium&#174; is a registered trademark of Intel Corporation. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(3)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>UNIX&#174; is a registered trademark of The Open Group. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's other business segments are described below. </FONT></P> <UL> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Personal Systems Group</I></FONT><FONT size=2> provides commercial PCs, consumer PCs, workstations, handheld computing devices, calculators and other related accessories, software and services for the commercial and consumer markets. Commercial PCs are optimized for commercial uses, including enterprise and SMB customers, and for connectivity and manageability in networked environments. Commercial PCs include the HP Compaq business desktops and notebooks, HP EliteBook Tablet Pcs, the HP EliteBook and ProBook lines of professional notebooks, as well as the HP Mini-Note&nbsp;PC, HP Blade PCs, Retail POS systems, and the HP Compaq and Neoware Thin Clients. Consumer PCs are targeted at the home user and include the HP Pavilion and Compaq Presario series of multi media consumer desktops and notebooks, as well as the HP Pavilion Elite desktops, HP HDX Premium notebooks, Touchsmart PCs, HP and Compaq Mini notebooks, Voodoo Gaming PCs and the Media Smart Home Server. HP's Z series desktop workstations and HP Elitebook Mobile Workstations provide advanced graphics, computing, and large modeling capabilities, certified with applications in a wide range of industries and running both Windows&#174; and Linux operating systems. PSG provides a series of HP iPAQ Pocket PC handheld computing devices that run on Windows&#174; Mobile software. These products range from basic PDAs to advanced devices with voice and data capability. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Imaging and Printing Group</I></FONT><FONT size=2> provides consumer and commercial printer hardware, printing supplies, printing media and scanning devices. IPG is also focused on imaging solutions in the </FONT><FONT size=2>commercial markets, from managed print services solutions to addressing new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP's consumer and SMB inkjet solutions (hardware, ink, media) and develops HP's retail and web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs as well as retail publishing solutions, Snapfish, and Logoworks. LaserJet and Enterprise Solutions delivers products and services to the enterprise segment. It includes LaserJet printers and supplies, multi-function printers, scanners, enterprise software solutions such as Exstream Software and Web Jetadmin, managed print services products and solutions, and Halo telepresence. Graphics solutions include large format printing (Designjet, Scitex, ColorSpan and NUR), large format supplies, WebPress supplies, Indigo printing, specialty printing systems, inkjet high-speed production solutions and light production solutions. Printer supplies include LaserJet toner and inkjet printer cartridges and other printing-related media. </FONT> <DD style="FONT-FAMILY: times">&nbsp; <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>HP Financial Services</I></FONT><FONT size=2> supports and enhances HP's global product and services solutions, providing a broad range of value-added financial life-cycle management services. HPFS enables HP's worldwide customers to acquire complete IT solutions, including hardware, software and services. HPFS offers leasing, financing, utility programs, and asset recovery services, as well as financial asset management services, for large global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and governmental entities. HPFS offers innovative, customized and flexible alternatives to balance unique customer cash flow, technology obsolescence and capacity needs. </FONT><FONT size=2><BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2>&#149;</FONT> <DD style="FONT-FAMILY: times"><FONT size=2><I>Corporate Investments</I></FONT><FONT size=2> includes HP Labs and certain business incubation projects. Revenue in this segment is attributable to the sale of certain network infrastructure products, including Ethernet switch products that enhance computing and enterprise solutions sold under the brand "ProCurve Networking." </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2><I>Segment Data </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP derives the results of the business segments directly from its internal management reporting system. The accounting policies&nbsp;HP uses to derive business segment results are substantially the same as those the consolidated company uses. Management measures the performance of each business segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. HP does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, stock-based compensation expense related to HP-granted employee stock options, PRUs and the employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&amp;D, as well as certain corporate governance costs. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP does not allocate to its business segments restructuring charges and any associated adjustments related to restructuring actions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected operating results information for each business segment was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Three months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Net Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Earnings (Loss)<BR>from Operations </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,470</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,289</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>567</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,741</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>356</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>544</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>847</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>153</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>135</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,798</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,246</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>587</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>960</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>670</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>53</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>51</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>271</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(10</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,187</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,952</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2><BR></FONT>&nbsp;</P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=289></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>Nine months ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Net Revenue </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Earnings (Loss)<BR>from Operations </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,704</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,700</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,584</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,573</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,064</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,341</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,011</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,872</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,605</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>450</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>288</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,373</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30,113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,045</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,733</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31,116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,195</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,759</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,139</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,404</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,947</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,007</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>141</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>719</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(48</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,471</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,077</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes the results of EDS, which was acquired on August&nbsp;26, 2008. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation of segment operating results information to HP consolidated totals was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=279></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=29></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Segment total</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Elimination of inter-segment net revenue and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(427</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,236</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,761</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Earnings before taxes:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total segment earnings from operations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,187</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,952</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,471</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,077</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate and unallocated costs and eliminations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(81</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(85</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Unallocated costs related to stock-based compensation expense</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(132</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(120</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(436</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(375</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Amortization of purchased intangible assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(379</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,171</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(630</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>In-process research and development charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Restructuring charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(362</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Acquisition-related charges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(59</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(182</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(177</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(589</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>98</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated earnings before taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,552</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,366</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,830</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP allocates its assets to its business segments based on the primary segments benefiting from the assets. The total assets of PSG decreased 16% to $13.9&nbsp;billion as of July&nbsp;31, 2009 from $16.4&nbsp;billion as of October&nbsp;31, 2008 due primarily to a decline in accounts and other receivables and inventory related to the current economic slowdown. The total assets of IPG decreased 19% to $11.5&nbsp;billion as of July&nbsp;31, 2009 from $14.2&nbsp;billion as of October&nbsp;31, 2008 due primarily to declines in inventory and other receivables. The total assets of HPFS increased 10% to $10.1&nbsp;billion as of July&nbsp;31, 2009 from $9.2&nbsp;billion as of October&nbsp;31, 2008 due primarily to an increase in financing receivables and assets under operating leases. There have been no material changes in the total assets of HP's other segments. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Net revenue by segment and business unit </I></FONT></P></UL><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=256></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=27></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months<BR>ended July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=5><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=5> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net revenue:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-TOP: 9pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Infrastructure technology outsourcing</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>3,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>1,393</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>11,620</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>3,957</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,404</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,614</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,640</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Application services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,384</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>336</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,478</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>984</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business process outsourcing</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>711</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>147</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Services<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,470</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,386</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,704</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,700</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Industry standard servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,874</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,572</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Storage</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>820</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,038</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,551</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,058</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business critical systems</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>578</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>829</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,941</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,603</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Enterprise Storage and Servers</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,741</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11,064</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,341</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Business technology optimization</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>563</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,725</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,006</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>284</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>368</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>880</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,066</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Software</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>847</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,086</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,605</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,072</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Technology Solutions Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,977</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,373</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>30,113</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Notebooks</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,350</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,406</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,387</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Desktops</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,090</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,163</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>9,360</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,494</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Workstations</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>299</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>463</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>919</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,415</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Handhelds</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>32</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>90</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>281</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>209</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>188</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>589</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>539</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Personal Systems Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8,432</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>10,254</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25,410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>31,116</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Supplies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,949</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,527</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>12,102</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>13,664</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial hardware</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,085</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,718</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,517</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,576</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Consumer hardware</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>626</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>796</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,938</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,802</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Imaging and Printing Group</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,660</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7,041</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17,557</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,042</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>HP Financial Services</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>670</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>680</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,947</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,007</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=4> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Corporate Investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>271</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>719</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total segments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,932</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,864</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>85,997</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Eliminations of inter-segment net revenue and other</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(481</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(427</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,262</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,236</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total HP consolidated net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>27,451</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>28,032</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83,602</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>84,761</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=5>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Includes the results of EDS, which was acquired on August&nbsp;26, 2008. The businesses included in the former consulting and integration business unit were divided among the application services and technology services business units and the HP Software segment. The businesses included in the former outsourcing services business unit were divided among the infrastructure technology outsourcing and business process outsourcing business units. The infrastructure technology outsourcing, application services and business process outsourcing business units were added with the technology services business unit, and these four business units now comprise the Services segment. </FONT></DD></DL></BODY></HTML> Note&nbsp;17: Segment Information Description of Segments &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is a leading global provider of false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 25 R13.xml IDEA: Financial Instruments 1.0.0.3 false Financial Instruments false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_ScheduleOfDerivativeInstrumentsTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;9: Financial Instruments </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Investments in Debt and Equity Securities </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in short-term and long-term available-for-sale debt and equity securities at fair value as of July&nbsp;31, 2009 and October&nbsp;31, 2008 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=146></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=35></TD> <TD style="FONT-FAMILY: times" width=5></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=33></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>As of October&nbsp;31, 2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Gain </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Loss </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Gain </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Unrealized<BR>Loss </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Available-for-Sale Securities</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Debt securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Time deposits</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>103</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Commercial paper</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>83</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>63</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Other debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>207</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>188</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity securities in public companies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>173</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(30</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>146</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>210</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits consist of certificate of deposits with maturity dates greater than three months. Other debt securities consist primarily of fixed-interest securities invested for early retirement purposes and also a fixed income fund. Equity securities in public companies are primarily common stock. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;8, HP estimated the fair values based on quoted market prices or pricing models using current market rates. These estimated fair values may not be representative of actual values that could have been realized as of the reporting period or that will be realized in the future. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gross unrealized loss as of July&nbsp;31, 2009 was due primarily to declines in commercial paper that had been in a continuous loss position for less than twelve months. HP intends to hold the commercial paper and believes that it is unlikely that HP will be required to sell the commercial paper before recovery of the amortized cost. In the three months ended July&nbsp;31, 2009, HP did not recognize </FONT><FONT size=2>any impairment charge associated with the commercial paper. In the nine months ended July&nbsp;31, 2009, HP recognized an impairment charge of $2&nbsp;million associated with its commercial paper. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual maturities of available-for-sale debt securities at July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=377></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=16></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Available-for-Sale<BR>Securities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Cost </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Estimated<BR>Fair Value </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in less than one year</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in 1-5&nbsp;years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Due in more than five years</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>79</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>170</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>140</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no sales or maturities of available-for-sale and other securities for the three months ended July&nbsp;31, 2009. Proceeds from sales or maturities of available-for-sale and other securities were $103&nbsp;million for the nine months ended July&nbsp;31, 2009. There were no realized gains or losses on available-for-sale and other securities for the three and nine months ended July&nbsp;31, 2009. The specific identification method is used to account for gains and losses on available-for-sale securities. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the carrying values and balance sheet classification of all short-term and long-term investments in debt and equity securities as of July&nbsp;31, 2009 and October&nbsp;31, 2008 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=356></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=23></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Short-term investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>66</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>93</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale debt securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>95</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Available-for-sale equity securities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Equity securities in privately-held companies</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>145</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Marketable trading securities and other investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>280</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Included in long-term financing receivables and other assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>242</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>525</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total investments</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>308</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>618</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities in privately-held companies include cost basis and equity method investments. Marketable trading securities and other investments consist primarily of marketable trading securities held to generate returns that HP expects to offset changes in certain liabilities related to deferred compensation arrangements. HP includes gains or losses from changes in fair value of these securities, offset by losses or gains on the related liabilities, in Interest and other, net, in HP's Consolidated Condensed Statements of Earnings. The net losses associated with these securities were $5&nbsp;million and $11&nbsp;million, respectively, for the three and nine months ended July&nbsp;31, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Derivative Financial Instruments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;1, 2009, HP adopted SFAS&nbsp;161 as referenced in Note&nbsp;1. The adoption of SFAS&nbsp;161 requires additional disclosures about HP's objectives and strategies for using derivative instruments, the accounting for the derivative instruments and related hedged items under SFAS No.&nbsp;133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS&nbsp;133"), and the effect of derivative instruments and related hedged items on the financial statements. The adoption had no financial impact on the consolidated condensed financial statements. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is a global company that is exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps, and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. HP does not have any leveraged derivatives. HP does not use derivative contracts for speculative purposes. HP applies hedge accounting based upon the criteria established by SFAS&nbsp;133, whereby HP designates its derivatives as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments under SFAS&nbsp;133, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives in the Consolidated Condensed Balance Sheets at fair value and reports them in Other current assets, Long-term financing receivables and other assets, Other accrued liabilities, or Other liabilities. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Condensed Statement of Cash Flows. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the use of derivative instruments, HP is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, HP has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and HP maintains dollar and term limits that correspond to each institution's credit rating. HP's established policies and procedures for mitigating credit risk on principal transactions and short-term cash include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. Master agreements with counterparties include master netting arrangements as further mitigation of credit exposure to counterparties. These arrangements permit HP to net amounts due from HP to a counterparty with amounts due to HP from a counterparty, which reduces the maximum loss from credit risk in the event of counterparty default. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of HP's derivative instruments contain credit-risk-related contingent features, such as a provision whereby the counterparties to the derivative instruments could request collateralization on derivative instruments in net liability positions if HP's credit rating falls below investment grade. As of July&nbsp;31, 2009, HP was not required to post any collateral and HP did not have any derivative instruments with credit-risk-related contingent features that were in a significant net liability position. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fair Value Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP enters into fair value hedges to reduce the exposure of its debt portfolio to interest rate risk. HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP uses interest rate swaps to modify the market risk exposures in connection with the debt to achieve primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest returns into variable interest returns and would classify these swaps as fair value hedges. For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the current period. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Cash Flow Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP uses a combination of forward contracts and options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expense, and intercompany lease loan denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within six months. However, certain leasing revenue-related forward contracts and intercompany lease loan forward contracts extend for the duration of the lease term, which can be up to five years. For derivative instruments that are designated and qualify as cash flow hedges, HP initially records the effective portion of the gain or loss on the derivative instrument in accumulated other comprehensive loss as a separate component of stockholders' equity and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of cash flow hedges in the same financial statement line item as the changes in value of the hedged item. During the nine months ended July&nbsp;31, 2009, HP did not discontinue any cash flow hedge for which it was probable that a forecasted transaction would not occur. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Net Investment Hedges </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. For derivative instruments that are designated as net investment hedges, HP records the effective portion of the gain or loss on the derivative instrument together with changes in the hedged items in cumulative translation adjustment as a separate component of stockholders' equity. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Other Derivatives </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other derivatives not designated as hedging instruments under SFAS&nbsp;133 consist primarily of forward contracts HP uses to hedge foreign currency balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on the equity and fixed income indices, to hedge its executive deferred compensation plan liability. For derivative instruments not designated as hedging instruments under SFAS&nbsp;133, HP recognizes changes in the fair values in earnings in the </FONT><FONT size=2>period of change. HP recognizes the gain or loss on foreign currency forward contracts used to hedge balance sheet exposures in Interest and other, net in the same period as the remeasurement gain and loss of the related foreign currency denominated assets and liabilities. HP recognizes the gain or loss on the total return swaps and interest rate swaps in Interest and other, net in the same period as the gain or loss from the change in market value of the executive deferred compensation plan liability. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Hedge Effectiveness </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For interest rate swaps designated as fair value hedges, HP measures effectiveness by offsetting the change in fair value of the hedged debt with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures effectiveness by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Condensed Statements of Earnings. As of July&nbsp;31, 2009, the portion of hedging instruments' gain or loss excluded from the assessment of effectiveness was not material for fair value, cash flow or net investment hedges. Hedge ineffectiveness for fair value, cash flow and net investment hedges was not material for the three and nine months ended July&nbsp;31, 2009. </FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheet </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;8, HP estimates the fair values of derivatives based on quoted market prices or pricing models using current market rates and records all derivatives on the balance sheet at fair </FONT><FONT size=2>value. The gross notional and fair value of derivative financial instruments in the Consolidated Condensed Balance Sheet as of July&nbsp;31, 2009 were as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=194></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=36></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=52></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=31></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>As of July&nbsp;31, 2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Gross<BR>Notional<SUP>(1)</SUP> </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Current<BR>Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Long-term<BR>Financing<BR>Receivables and<BR>Other Assets </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Accrued<BR>Liabilities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Other<BR>Liabilities </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=2><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=14><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Fair value hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,575</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,397</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>119</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>354</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>23</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net investment hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,296</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>17</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>37</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>26</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>22,268</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>136</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>330</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>391</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Derivatives not designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14,553</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>44</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts<SUP>(2)</SUP></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,213</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>34</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total return contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>223</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>21</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives not designated as hedging instruments under SFAS&nbsp;133</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16,989</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>117</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>159</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>78</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total derivatives</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>39,257</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>253</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>410</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>550</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>160</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represents the face amounts of contracts that were outstanding as of July&nbsp;31, 2009. <BR><BR></FONT> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Represents offsetting swaps acquired through previous business combination that were not designated as hedging instruments under SFAS&nbsp;133. </FONT></DD></DL> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of a derivative instrument and related hedged item in a fair value hedging relationship for the three and nine months ended July&nbsp;31, 2009 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=100></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=49></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" width=75></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=49></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=14></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>Gain (Loss) Recognized in Income on Derivative and Related Hedged Item </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" noWrap align=left> <DIV style="MARGIN-BOTTOM: 0pt; WIDTH: 78pt; BORDER-BOTTOM: #000000 1pt solid"><FONT size=1><B>Derivative Instrument <!-- COMMAND=ADD_SCROPPEDRULE,78pt --></B></FONT></DIV></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Hedged Item </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(94</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>155</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>Fixed-rate Debt</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times" vAlign=bottom><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>91</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(161</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and nine months ended July&nbsp;31, 2009 was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=9></TD> <TD style="FONT-FAMILY: times" width=65></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" width=83></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" width=83></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=6></TD> <TD style="FONT-FAMILY: times" align=right width=4></TD> <TD style="FONT-FAMILY: times" width=24></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Gain (Loss)<BR>Recognized in<BR>OCI on Derivative<BR>(Effective Portion) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain (Loss) Reclassified from<BR>Accumulated OCI Into Income<BR>(Effective Portion) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain Recognized in<BR>Income on Derivative<SUP>(1)</SUP><BR>(Ineffective portion<BR>and Amount Excluded<BR>from Effectiveness Testing) </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Cash flow hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(612</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(743</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>713</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>38</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>72</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Cost of products</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>43</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>124</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Cost of products</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Other operating expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(1</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Other operating expenses</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(5</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(6</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>14</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>19</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Net revenue</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>7</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total cash flow hedges</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(560</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(662</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(120</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>835</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-TOP: 10pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net investment hedges:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(96</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(127</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times" align=left><FONT size=2></FONT><FONT size=2>Interest and other, net</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <HR align=left width="26%" color=#000000 noShade SIZE=1> <DL compact> <DT style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT> <DD style="FONT-FAMILY: times"><FONT size=2>Amount of gain recognized in income on derivative represents a $2&nbsp;million gain and a $4&nbsp;million gain related to the amount excluded from the assessment of hedge effectiveness in the three and nine months ended July&nbsp;31, 2009, respectively. </FONT></DD></DL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP expects to reclassify net accumulated other comprehensive gain of $154&nbsp;million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions in association with cash flow hedges. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The before-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=229></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" width=100></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=45></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=41></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=7><FONT size=1><B>Gain (Loss) Recognized in Income on Derivative </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle><FONT size=1><B>Location </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Three<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>Nine<BR>months<BR>ended<BR>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Foreign exchange contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(452</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(663</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total return contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>11</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Interest rate contracts</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>Interest and other, net</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>8</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>16</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2><B>Total</B></FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(433</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(627</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Other Financial Instruments </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For certain of HP's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, financing receivables, notes payable and short-term borrowings, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. The estimated fair value of HP's short- and long-term debt was approximately $17.3&nbsp;billion at July&nbsp;31, 2009, compared to a carrying value of $17.2&nbsp;billion at that date. The estimated fair value of the debt is based primarily on quoted market prices, as well as borrowing rates currently available to HP for bank loans with similar terms and maturities. </FONT></P></BODY></HTML> Note&nbsp;9: Financial Instruments Investments in Debt and Equity Securities &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in short-term false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 26 R1.xml IDEA: Consolidated Condensed Statements of Earnings 1.0.0.3 false Consolidated Condensed Statements of Earnings (USD $) In Millions, except Per Share data false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 4 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 5 3 us-gaap_RevenuesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 6 4 us-gaap_SalesRevenueGoodsNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 17606000000 17606 false false 2 true true 22180000000 22180 false false 3 true true 53627000000 53627 false false 4 true true 67866000000 67866 false false No definition available. No authoritative reference available. false 7 4 us-gaap_SalesRevenueServicesNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 9749000000 9749 false false 2 false true 5757000000 5757 false false 3 false true 29700000000 29700 false false 4 false true 16619000000 16619 false false No definition available. No authoritative reference available. false 8 4 hpq_FinancingRevenue hpq false credit duration monetary Interest Income from finance leases. false false false false false false false false false 1 false true 96000000 96 false false 2 false true 95000000 95 false false 3 false true 275000000 275 false false 4 false true 276000000 276 false false Interest Income from finance leases. No authoritative reference available. false 9 4 us-gaap_Revenues us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 27451000000 27451 false false 2 false true 28032000000 28032 false false 3 false true 83602000000 83602 false false 4 false true 84761000000 84761 false false No definition available. No authoritative reference available. true 10 3 us-gaap_CostsAndExpensesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 11 4 us-gaap_CostOfGoodsSold us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 13538000000 13538 false false 2 false true 16821000000 16821 false false 3 false true 41047000000 41047 false false 4 false true 51091000000 51091 false false No definition available. No authoritative reference available. false 12 4 us-gaap_CostOfServices us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 7317000000 7317 false false 2 false true 4297000000 4297 [1] false false 3 false true 22626000000 22626 false false 4 false true 12511000000 12511 [1] false false No definition available. No authoritative reference available. false 13 4 hpq_FinancingInterest hpq false debit duration monetary Financing related Interest expense. false false false false false false false false false 1 false true 81000000 81 false false 2 false true 79000000 79 false false 3 false true 251000000 251 false false 4 false true 244000000 244 false false Financing related Interest expense. No authoritative reference available. false 14 4 hpq_ExpenseForResearchAndDevelopment hpq false debit duration monetary The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the... false false false false false false false false false 1 false true 667000000 667 false false 2 false true 895000000 895 false false 3 false true 2115000000 2115 false false 4 false true 2701000000 2701 false false The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility. No authoritative reference available. false 15 4 us-gaap_SellingGeneralAndAdministrativeExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 2874000000 2874 false false 2 false true 3193000000 3193 [1] false false 3 false true 8647000000 8647 false false 4 false true 9820000000 9820 [1] false false No definition available. No authoritative reference available. false 16 4 us-gaap_AmortizationOfIntangibleAssets us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 379000000 379 false false 2 false true 213000000 213 false false 3 false true 1171000000 1171 false false 4 false true 630000000 630 false false No definition available. No authoritative reference available. false 17 4 us-gaap_ResearchAndDevelopmentInProcess us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false 3 false true 6000000 6 false false 4 false true 13000000 13 false false No definition available. No authoritative reference available. false 18 4 us-gaap_RestructuringCharges us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 362000000 362 false false 2 false true 5000000 5 false false 3 false true 602000000 602 false false 4 false true 19000000 19 false false No definition available. No authoritative reference available. false 19 4 hpq_BusinessCombinationAcquisitionRelatedCharges hpq false debit duration monetary This element represents acquisition-related costs incurred to effect a business combination which costs have been expensed... false false false false false false false false false 1 false true 59000000 59 false false 2 false true 0 0 false false 3 false true 182000000 182 false false 4 false true 0 0 false false This element represents acquisition-related costs incurred to effect a business combination which costs have been expensed during the period. Such costs include consulting fees, bonus costs, stock based compensation and moving costs. No authoritative reference available. false 20 4 us-gaap_CostsAndExpenses us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 25277000000 25277 false false 2 false true 25503000000 25503 false false 3 false true 76647000000 76647 false false 4 false true 77029000000 77029 false false No definition available. No authoritative reference available. true 21 3 us-gaap_OperatingIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 2174000000 2174 false false 2 false true 2529000000 2529 false false 3 false true 6955000000 6955 false false 4 false true 7732000000 7732 false false No definition available. No authoritative reference available. true 22 3 us-gaap_OtherNonoperatingIncomeExpense us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -177000000 -177 false false 2 false true 23000000 23 false false 3 false true -589000000 -589 false false 4 false true 98000000 98 false false No definition available. No authoritative reference available. false 23 3 hpq_IncomeLossBeforeIncomeTax hpq false credit duration monetary Sum of operating profit, nonoperating income, minority interest, and income (loss) from equity method investments (expense)... false false false false false false false false false 1 false true 1997000000 1997 false false 2 false true 2552000000 2552 false false 3 false true 6366000000 6366 false false 4 false true 7830000000 7830 false false Sum of operating profit, nonoperating income, minority interest, and income (loss) from equity method investments (expense) before income taxes. No authoritative reference available. true 24 3 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 355000000 355 false false 2 false true 525000000 525 false false 3 false true 1154000000 1154 false false 4 false true 1613000000 1613 false false No definition available. No authoritative reference available. false 25 3 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 1642000000 1642 false false 2 true true 2027000000 2027 false false 3 true true 5212000000 5212 false false 4 true true 6217000000 6217 false false No definition available. No authoritative reference available. true 26 3 us-gaap_EarningsPerShareAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 27 4 us-gaap_EarningsPerShareBasic us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true 0.69 0.69 false false 2 true true 0.82 0.82 false false 3 true true 2.18 2.18 false false 4 true true 2.49 2.49 false false No definition available. No authoritative reference available. false 28 4 us-gaap_EarningsPerShareDiluted us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true 0.67 0.67 false false 2 true true 0.80 0.80 false false 3 true true 2.13 2.13 false false 4 true true 2.41 2.41 false false No definition available. No authoritative reference available. false 29 3 us-gaap_CommonStockDividendsPerShareDeclared us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true 0.16 0.16 false false 2 true true 0.16 0.16 false false 3 true true 0.32 0.32 false false 4 true true 0.32 0.32 false false No definition available. No authoritative reference available. false 30 3 us-gaap_WeightedAverageNumberOfSharesOutstandingAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 31 4 us-gaap_WeightedAverageNumberOfSharesOutstandingBasic us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 2382000000 2382 false false 2 false true 2459000000 2459 false false 3 false true 2395000000 2395 false false 4 false true 2497000000 2497 false false No definition available. No authoritative reference available. false 32 4 us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 2436000000 2436 false false 2 false true 2533000000 2533 false false 3 false true 2442000000 2442 false false 4 false true 2577000000 2577 false false No definition available. No authoritative reference available. false 1 For the prior year reporting periods presented, certain pursuit-related costs previously reported as Cost of services have been realigned retroactively to Selling, general and administrative expenses due to organizational realignments. false 4 28 false Millions Millions Hundreds false true XML 27 R2.xml IDEA: Consolidated Condensed Balance Sheets 1.0.0.3 false Consolidated Condensed Balance Sheets (USD $) In Millions false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 6 4 us-gaap_AssetsCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 7 5 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 true true 13521000000 13521 false false 2 true true 10153000000 10153 false false No definition available. No authoritative reference available. false 8 5 us-gaap_ShortTermInvestments us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 66000000 66 false false 2 false true 93000000 93 false false No definition available. No authoritative reference available. false 9 5 us-gaap_AccountsReceivableNetCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 14735000000 14735 false false 2 false true 16928000000 16928 false false No definition available. No authoritative reference available. false 10 5 us-gaap_LoansAndLeasesReceivableNetReportedAmount us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 2532000000 2532 false false 2 false true 2314000000 2314 false false No definition available. No authoritative reference available. false 11 5 us-gaap_InventoryNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 5850000000 5850 false false 2 false true 7879000000 7879 false false No definition available. No authoritative reference available. false 12 5 us-gaap_OtherAssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 12138000000 12138 false false 2 false true 14361000000 14361 false false No definition available. No authoritative reference available. false 13 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 48842000000 48842 false false 2 false true 51728000000 51728 false false No definition available. No authoritative reference available. true 14 4 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 11194000000 11194 false false 2 false true 10838000000 10838 false false No definition available. No authoritative reference available. false 15 4 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 10857000000 10857 false false 2 false true 10468000000 10468 false false No definition available. No authoritative reference available. false 16 4 us-gaap_Goodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 33277000000 33277 false false 2 false true 32335000000 32335 false false No definition available. No authoritative reference available. false 17 4 us-gaap_IntangibleAssetsNetExcludingGoodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 6902000000 6902 false false 2 false true 7962000000 7962 false false No definition available. No authoritative reference available. false 18 4 us-gaap_Assets us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 111072000000 111072 false false 2 false true 113331000000 113331 false false No definition available. No authoritative reference available. true 20 4 us-gaap_LiabilitiesCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 21 5 us-gaap_DebtCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 3288000000 3288 false false 2 false true 10176000000 10176 false false No definition available. No authoritative reference available. false 22 5 us-gaap_AccountsPayableCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 12778000000 12778 false false 2 false true 14917000000 14917 false false No definition available. No authoritative reference available. false 23 5 us-gaap_EmployeeRelatedLiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 3596000000 3596 false false 2 false true 4159000000 4159 false false No definition available. No authoritative reference available. false 24 5 hpq_TaxesOnEarnings hpq false credit instant monetary Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all... false false false false false false false false false 1 false true 786000000 786 false false 2 false true 869000000 869 false false Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all currently due domestic and foreign income tax obligations. In theory, the sum represents amounts due to tax jurisdictions based on tax returns as if they were ready and available for filing on and as of the balance sheet date, plus accrued interest and penalties pertaining to amounts of tax uncertainties plus includes the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities an d assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. No authoritative reference available. false 25 5 us-gaap_DeferredRevenueCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 6458000000 6458 false false 2 false true 6287000000 6287 false false No definition available. 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Diluted EPS includes any dilutive effect of outstanding stock options, PRUs, restricted stock units, restricted stock and convertible debt. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation of the numerators and denominators of the basic and diluted EPS calculations was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=10></TD> <TD style="FONT-FAMILY: times" width=249></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=32></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=30></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Three months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>Nine months ended<BR>July&nbsp;31 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left colSpan=3><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>In millions, except per share amounts</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Numerator:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,217</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings, adjusted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,642</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,027</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>5,212</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>6,220</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Denominator:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average shares used to compute basic EPS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,382</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,459</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,395</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,497</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Effect of dilutive securities:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dilution from employee stock plans</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>54</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>76</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Zero-coupon subordinated convertible notes</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>&#151;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Dilutive potential common shares</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>54</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>74</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Weighted-average shares used to compute diluted EPS</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,436</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,533</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,442</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2,577</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times" colSpan=3>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times" colSpan=3> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Net earnings per share:</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Basic</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.69</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.82</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.18</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.49</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=bottom bgColor=white> <TD style="FONT-FAMILY: times"><FONT size=0>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" colSpan=2> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Diluted</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.67</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>0.80</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.13</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>2.41</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted EPS because their effect would be anti-dilutive. For the three and nine months ended July&nbsp;31, 2009, HP excluded from the calculation of diluted EPS options to purchase 96&nbsp;million shares and 100&nbsp;million shares, respectively, as compared to 57&nbsp;million shares and 55&nbsp;million shares, respectively, in the prior-year comparable periods. Also, in accordance with SFAS&nbsp;123R, HP excluded from the calculation of diluted EPS options to purchase an additional 2&nbsp;million shares in the third quarter and the first nine months of fiscal 2009 compared to an additional 28&nbsp;million shares and 29&nbsp;million shares, respectively, in the prior-year comparable periods whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's common stock because their effect would be anti-dilutive. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As disclosed in Note&nbsp;2, during the nine months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, HP granted PRU awards representing at target approximately 14&nbsp;million shares and 9&nbsp;million shares, respectively. HP includes the shares underlying PRU awards in the calculation of diluted EPS when they become contingently issuable per SFAS No.&nbsp;128, "Earnings per Share," and excludes such shares when they are not contingently issuable. Accordingly, for the three and nine months ended July&nbsp;31, 2009, HP has included 4&nbsp;million shares and 3&nbsp;million shares, respectively, underlying the PRU awards granted in fiscal 2008 when calculating diluted EPS as those shares became contingently issuable upon the satisfaction of the cash flow from operations condition with respect to the first year of the performance period applicable to those awards. HP has excluded all other shares underlying the fiscal 2008 awards </FONT><FONT size=2>and all shares underlying the fiscal 2009 awards when calculating diluted EPS as those shares are not contingently issuable. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October and November 1997, HP issued U.S. dollar zero-coupon subordinated convertible notes due 2017 (the "LYONs"), the outstanding principal amount of which was redeemed in March 2008. The LYONs were convertible at the option of the holders at any time prior to maturity, unless previously redeemed or otherwise purchased. For purposes of calculating diluted earnings per share for the nine months ended July&nbsp;31, 2008, the interest expense (net of tax) associated with the LYONs was added back to net earnings, and the shares issuable upon conversion of the LYONs were included in the weighted-average shares used to compute diluted earnings per share for periods that the LYONs were outstanding. </FONT></P></BODY></HTML> Note&nbsp;3: Net Earnings Per Share &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP calculates basic earnings per share using net earnings and the false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 31 R17.xml IDEA: Income Taxes 1.0.0.3 false Income Taxes false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hpq_NotesToConsolidatedFinancialStatementsAbstract hpq false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16850" name=GENERATOR></HEAD> <BODY> <P style="FONT-FAMILY: times"><FONT size=2><B>Note&nbsp;13: Income Taxes </B></FONT></P> <UL> <P style="FONT-FAMILY: times"><FONT size=2><I>Provision for Taxes </I></FONT></P></UL> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's effective tax rate was 17.8% and 20.6% for the three months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, respectively, and 18.1% and 20.6% for the nine months ended July&nbsp;31, 2009 and July&nbsp;31, 2008, respectively. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% </FONT><FONT size=2>due to favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world. HP has not provided U.S. taxes for all of such earnings because HP plans to reinvest some of those earnings indefinitely outside the United States. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three and nine months ended July&nbsp;31, 2009, HP recorded discrete items with a net tax benefit of $145&nbsp;million and $163&nbsp;million, respectively, decreasing the effective tax rate. These amounts include a net tax benefit of $141&nbsp;million for the adjustment to estimated fiscal 2008 tax accruals upon filing the 2008 U.S. federal income tax return and other miscellaneous discrete items that resulted in a net tax benefit of $4&nbsp;million and $22&nbsp;million for the three and nine months ended July&nbsp;31, 2009, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three and nine months ended July&nbsp;31, 2008, HP recorded discrete items with a net tax benefit of $5&nbsp;million and $52&nbsp;million, respectively, decreasing the effective tax rate. These amounts include reductions to net income tax accruals of $72&nbsp;million and $296&nbsp;million for the three and nine months ended July&nbsp;31, 2008, respectively, as a result of settlements with tax authorities regarding certain transfer pricing issues for fiscal years 1993 through 2005. These favorable adjustments in the three and nine months ended July&nbsp;31, 2008 were offset in part by a tax charge of $44&nbsp;million for the adjustment to estimated fiscal 2007 tax accruals upon filing the 2007 U.S. federal income tax return, and by net increases of $30&nbsp;million and $235&nbsp;million, respectively, to deferred tax liabilities related to earnings outside the United States. HP recorded other miscellaneous discrete items that resulted in a net tax benefit of $7&nbsp;million and $35&nbsp;million for the three and nine months ended July&nbsp;31, 2008, respectively. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of fiscal 2009, the amounts of gross unrecognized tax benefits determined in accordance with Financial Interpretation No.&nbsp;48, "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement No.&nbsp;109" ("FIN&nbsp;48") decreased by $160&nbsp;million to $2.1&nbsp;billion as of July&nbsp;31, 2009, of which up to $775&nbsp;million would affect HP's effective tax rate if realized. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP recognizes interest expense and penalties on unrecognized tax benefits and interest income from favorable settlements and income tax receivables within income tax expense. As of July&nbsp;31, 2009 HP had accrued a net $158&nbsp;million income tax payable for interest and penalties. There were no material amounts of net interest income on tax overpayments recorded during the three and nine months ended July&nbsp;31, 2009. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP engages in continuous discussion and negotiation with tax authorities regarding tax matters in the various jurisdictions. HP does not expect complete resolution of any Internal Revenue Service ("IRS") audit cycle within the next 12&nbsp;months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12&nbsp;months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $170&nbsp;million within the next twelve months. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;30, 2009, HP received a Notice of Deficiency from the IRS for its fiscal 2004 and 2005 tax years. The Notice of Deficiency asserted that HP owes additional tax of $92&nbsp;million and penalties of $5&nbsp;million. In addition to the proposed deficiency for fiscal 2004 and 2005, the IRS's adjustments for both years, if sustained, would reduce the tax benefits of net operating loss and tax credit carryforwards to subsequent years by approximately $563&nbsp;million. HP plans to contest certain of the adjustments </FONT><FONT size=2>proposed in the Notice of Deficiency. HP believes that it has provided adequate reserves for any tax deficiencies or reductions in tax benefits that could result from the IRS actions. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP is subject to income tax in the United States and over sixty foreign countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by state and foreign tax authorities. HP has received from the IRS Notices of Deficiency for its fiscal 1999, 2000, 2004 and 2005 tax years, and Revenue Agent's Reports for its fiscal 2001 and 2002 tax years. The IRS began an audit of HP's 2006 and 2007 income tax returns in 2009. With respect to major foreign and state tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 1999. HP believes that adequate reserves have been provided for all open tax years. </FONT></P> <P style="FONT-FAMILY: times"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The breakdown between current and long-term deferred tax assets and deferred tax liabilities was as follows: </FONT></P><!-- User-specified TAGGED TABLE --> <DIV align=center> <TABLE cellSpacing=0 cellPadding=0 border=0> <TBODY> <TR><!-- TABLE COLUMN WIDTHS SET --> <TD style="FONT-FAMILY: times" width=361></TD> <TD style="FONT-FAMILY: times" width=12></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=28></TD> <TD style="FONT-FAMILY: times" width=15></TD> <TD style="FONT-FAMILY: times" align=right width=5></TD> <TD style="FONT-FAMILY: times" width=37></TD> <TD style="FONT-FAMILY: times" width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=2>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>July&nbsp;31,<BR>2009 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=middle colSpan=2><FONT size=1><B>October&nbsp;31,<BR>2008 </B></FONT></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=bottom> <TH style="FONT-FAMILY: times" align=left><FONT size=1>&nbsp;</FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH> <TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>In millions</B></FONT><BR></TH> <TH style="FONT-FAMILY: times"><FONT size=1>&nbsp;</FONT></TH></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current deferred tax assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>4,297</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>3,920</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Current deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(87</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(97</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Long-term deferred tax assets</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,017</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>792</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR vAlign=top bgColor=white> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Long-term deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,657</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,162</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR> <TR vAlign=top bgColor=#cceeff> <TD style="FONT-FAMILY: times"> <P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT size=2></FONT><FONT size=2>Total deferred tax assets net of deferred tax liabilities</FONT></P></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,570</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD> <TD style="FONT-FAMILY: times" align=right><FONT size=2>1,453</FONT></TD> <TD style="FONT-FAMILY: times"><FONT size=2>&nbsp;</FONT></TD></TR> <TR style="FONT-SIZE: 1.5pt" vAlign=top> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD> <TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" align=right colSpan=2>&nbsp;</TD> <TD style="FONT-FAMILY: times">&nbsp;</TD></TR></TBODY></TABLE></DIV></BODY></HTML> Note&nbsp;13: Income Taxes Provision for Taxes &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HP's effective tax rate was 17.8% and 20.6% for the false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true
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