HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Statements of Computation of Ratio of Earnings to Fixed Charges⁽¹⁾

	Fiscal years ended October 31

	2012			2011		2010		2009		2008
	In millions, except ratios
(Loss) earnings:
(Loss) earnings before taxes	$	(11,933	)	$	8,982	$	10,974	$	9,415	$	10,473
Adjustments:
Non-controlling interests in the income of subsidiaries with fixed charges		102			75		108		74		17
Undistributed (earnings) loss of equity method investees		(2	)		3		12		2		—
Fixed charges		1,297			1,027		868		1,098		1,147

	$	(10,536	)	$	10,087	$	11,962	$	10,589	$	11,637

Fixed charges:
Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other	$	865		$	551	$	417	$	585	$	467
Interest included in rent		432			476		451		513		680

Total fixed charges	$	1,297		$	1,027	$	868	$	1,098	$	1,147

Ratio of earnings to fixed charges		*			9.8x		13.8x		9.6x		10.1x

⁽¹⁾: HP computed the ratio of earnings to fixed charges by dividing earnings (earnings before cumulative effect of change in accounting principle and taxes, adjusted for fixed charges, non-controlling interests in the income of subsidiaries with fixed charges and undistributed earnings or loss of equity method investees) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings and amortization of debt discount or premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rental expense.
^*: (Loss) earnings do not cover fixed charges by $10.5 billion for the fiscal year ended October 31, 2012 due to the non-cash impairment charge of $18.0 billion (see Note 7 to the Consolidated Financial Statements of Hewlett-Packard Company for further discussion).