10-Q

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TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: April 30, 2013
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 May 31, 2013 was 1,928,551,688 shares.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
INDEX

			Page No.
Part I.	Financial Information
	Item 1.	Financial Statements		4
		Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2013 and 2012 (Unaudited)		4
		Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 30, 2013 and 2012 (Unaudited)		5
		Consolidated Condensed Balance Sheets as of April 30, 2013 (Unaudited) and as of October 31, 2012 (Audited)		6
		Consolidated Condensed Statements of Cash Flows for the six months ended April 30, 2013 and 2012 (Unaudited)		7
		Notes to Consolidated Condensed Financial Statements (Unaudited)		8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		59
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		98
	Item 4.	Controls and Procedures		98
Part II.	Other Information
	Item 1.	Legal Proceedings		99
	Item 1A.	Risk Factors		99
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		99
	Item 6.	Exhibits		99
Signature				100
Exhibit Index				101

Forward-Looking Statements

This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I of this report, contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett-Packard Company and its consolidated subsidiaries ("HP") may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, earnings per share, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and

2

services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described herein, including but not limited to the items discussed in "Factors that Could Affect Future Results" set forth in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I of this report, and that are otherwise described from time to time in HP's Securities and Exchange Commission ("SEC") reports, including HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2012. HP assumes no obligation and does not intend to update these forward-looking statements.

3

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Earnings

(Unaudited)

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions, except per share amounts
Net revenue:
Products	$	17,458		$	19,962		$	35,728		$	39,473
Services		10,010			10,614			19,981			21,023
Financing income		114			117			232			233
Total net revenue		27,582			30,693			55,941			60,729
Costs and expenses:
Cost of products		13,241			15,181			27,272			30,230
Cost of services		7,733			8,280			15,651			16,466
Financing interest		81			80			161			158
Research and development		815			850			1,609			1,636
Selling, general and administrative		3,342			3,540			6,642			6,907
Amortization of purchased intangible assets		350			470			700			936
Restructuring charges		408			53			538			93
Acquisition-related charges		11			17			15			39
Total operating expenses		25,981			28,471			52,588			56,465
Earnings from operations		1,601			2,222			3,353			4,264
Interest and other, net		(193	)		(243	)		(372	)		(464	)
Earnings before taxes		1,408			1,979			2,981			3,800
Provision for taxes		(331	)		(386	)		(672	)		(739	)
Net earnings	$	1,077		$	1,593		$	2,309		$	3,061
Net earnings per share:
Basic	$	0.56		$	0.80		$	1.19		$	1.55
Diluted	$	0.55		$	0.80		$	1.18		$	1.53
Cash dividends declared per share	$	—		$	—		$	0.26		$	0.24
Weighted-average shares used to compute net earnings per share:
Basic		1,935			1,979			1,944			1,980
Diluted		1,947			1,987			1,952			1,995

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

4

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

(Unaudited)

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net earnings	$	1,077		$	1,593		$	2,309		$	3,061
Other comprehensive income before tax:
Change in unrealized gains (losses) on available-for-sale securities		19			43			22			(19	)
Change in unrealized gains / losses on cash flow hedges:
Unrealized gains (losses) arising during the period		154			(191	)		(160	)		216
(Gains) losses reclassified into earnings		(24	)		11			40			(87	)
		130			(180	)		(120	)		129
Change in unrealized components of defined benefit plans:
Gains (losses) arising during the period		1			—			1			(59	)
Amortization of actuarial loss and prior service (benefit)		81			41			164			84
Curtailments, settlements and other		—			(8	)		13			165
		82			33			178			190
Change in cumulative translation adjustment		(32	)		523			(58	)		276
Other comprehensive income before taxes		199			419			22			576
(Provision) benefit for taxes		(49	)		22			15			(144	)
Other comprehensive income, net of tax		150			441			37			432
Comprehensive income	$	1,227		$	2,034		$	2,346		$	3,493

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

5

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

	April 30, 2013			October 31, 2012
	In millions, except par value
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,240		$	11,301
Accounts receivable, net		14,606			16,407
Financing receivables, net		3,212			3,252
Inventory		5,999			6,317
Other current assets		12,514			13,360
Total current assets		49,571			50,637
Property, plant and equipment, net		11,476			11,954
Long-term financing receivables and other assets		10,205			10,593
Goodwill		31,133			31,069
Purchased intangible assets		3,869			4,515
Total assets	$	106,254		$	108,768
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	6,928		$	6,647
Accounts payable		12,313			13,350
Employee compensation and benefits		3,836			4,058
Taxes on earnings		1,015			846
Deferred revenue		6,757			7,494
Accrued restructuring		1,063			771
Other accrued liabilities		12,746			13,500
Total current liabilities		44,658			46,666
Long-term debt		19,863			21,789
Other liabilities		17,801			17,480
Commitments and contingencies
Stockholders' equity:
HP stockholders' equity
Preferred stock, $0.01 par value (300 shares authorized; none issued)		—			—
Common stock, $0.01 par value (9,600 shares authorized; 1,925 and 1,963 shares issued and outstanding, respectively)		19			20
Additional paid-in capital		5,717			6,454
Retained earnings		23,319			21,521
Accumulated other comprehensive loss		(5,522	)		(5,559	)
Total HP stockholders' equity		23,533			22,436
Non-controlling interests		399			397
Total stockholders' equity		23,932			22,833
Total liabilities and stockholders' equity	$	106,254		$	108,768

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flows

(Unaudited)

	Six months ended April 30
	2013			2012
	In millions
Cash flows from operating activities:
Net earnings	$	2,309		$	3,061
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		2,333			2,588
Stock-based compensation expense		291			344
Provision for doubtful accounts—accounts and financing receivables		39			57
Provision for inventory		178			90
Restructuring charges		538			93
Deferred taxes on earnings		472			(155	)
Excess tax benefit from stock-based compensation		—			(12	)
Other, net		226			240
Changes in operating assets and liabilities:
Accounts and financing receivables		2,148			1,479
Inventory		140			89
Accounts payable		(1,050	)		(1,851	)
Taxes on earnings		(426	)		(54	)
Restructuring		(402	)		(274	)
Other assets and liabilities		(678	)		(2,029	)
Net cash provided by operating activities		6,118			3,666
Cash flows from investing activities:
Investment in property, plant and equipment		(1,400	)		(1,963	)
Proceeds from sale of property, plant and equipment		274			224
Purchases of available-for-sale securities and other investments		(497	)		(565	)
Maturities and sales of available-for-sale securities and other investments		592			346
Payments in connection with business acquisitions, net of cash acquired		(167	)		(141	)
Proceeds from business divestiture, net		—			81
Net cash used in investing activities		(1,198	)		(2,018	)
Cash flows from financing activities:
Repayment of commercial paper and notes payable, net		(133	)		(2,792	)
Issuance of long-term debt		199			5,052
Repayment of long-term debt		(1,668	)		(2,661	)
Issuance of common stock under employee stock plans		212			634
Repurchase of common stock		(1,050	)		(1,130	)
Excess tax benefit from stock-based compensation		—			12
Cash dividends paid		(541	)		(495	)
Net cash used in financing activities		(2,981	)		(1,380	)
Increase in cash and cash equivalents		1,939			268
Cash and cash equivalents at beginning of period		11,301			8,043
Cash and cash equivalents at end of period	$	13,240		$	8,311

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

7

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements

(Unaudited)

Note 1: Basis of Presentation

        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 April 30, 2013, its results of operations for the three and six months ended April 30, 2013 and 2012 and its cash flows for the six months ended April 30, 2013 and 2012.

        The results of operations for the three and six months ended April 30, 2013 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 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 1A, 3, 7, 7A and 8, respectively, of the Hewlett Packard Company Annual Report on Form 10-K for the fiscal year ended October 31, 2012.

        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.

        HP consolidates the financial results of its subsidiaries for all periods presented. Non-controlling interests in these subsidiaries are presented as a separate component from HP's equity in the Consolidated Condensed Balance Sheets. Net earnings attributable to the non-controlling interests are included in the Consolidated Condensed Statements of Earnings within Interest and other, net and are not presented separately as they were not material for any of the periods presented.

Segment Reorganization and Reclassifications

        HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of prior year financial information have been made to conform to the current year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. See Note 16 for a further discussion of HP's segment reorganization.

Note 2: Stock-Based Compensation

        HP's stock-based compensation plans include HP's principal equity plans as well as various equity plans assumed through acquisitions. HP's principal equity plans permit the issuance of restricted stock awards, stock options and performance-based restricted units ("PRUs").

8

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Stock-Based Compensation (Continued)

        Stock-based compensation expense and the resulting tax benefits were as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Stock-based compensation expense	$	107		$	169		$	291		$	344
Income tax benefit		(32	)		(54	)		(89	)		(111	)
Stock-based compensation expense, net of tax	$	75		$	115		$	202		$	233

Restricted Stock Awards

        Restricted stock awards are non-vested stock awards that include grants of restricted stock and restricted stock units.

        Non-vested restricted stock awards outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at October 31, 2012		25,532		$	31
Granted		18,550		$	14
Vested		(9,730	)	$	33
Forfeited		(1,723	)	$	27
Outstanding at April 30, 2013		32,629		$	21

        At April 30, 2013, there was $448 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 1.4 years.

Stock Options

        HP utilizes the Black-Scholes option pricing model to value the service-based stock options granted under its principal equity plans. HP estimates the fair value of the performance-contingent stock options using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions.

9

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Stock-Based Compensation (Continued)

        The weighted-average fair value and the assumptions used to measure fair value were as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Weighted-average fair value of grants per share(1)	$	4.89		$	5.82		$	4.03		$	9.46
Implied volatility		35	%		32	%		42	%		43	%
Risk-free interest rate		0.78	%		0.91	%		0.98	%		1.20	%
Expected dividend yield		2.90	%		2.14	%		3.75	%		1.73	%
Expected term in months		62			61			70			67

⁽¹⁾

The fair value calculation was based on stock options granted during the period.

        Option awards outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at October 31, 2012		87,296		$	29
Granted		23,470		$	14
Exercised		(8,015	)	$	20
Forfeited/cancelled/expired		(15,696	)	$	24
Outstanding at April 30, 2013		87,055		$	27		4.3	$	203
Vested and expected to vest at April 30, 2013		82,313		$	27		4.1	$	182
Exercisable at April 30, 2013		50,002		$	33		2.1	$	40

        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 April 30, 2013. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the second quarter of fiscal 2013 and the exercise price, multiplied by the number of in-the-money options. Total intrinsic value of options exercised for the three and six months ended April 30, 2013 was $15 million and $17 million, respectively.

        At April 30, 2013, there was $148 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 2.4 years.

Performance-based Restricted Units

        HP's PRU program provides for the issuance of PRUs representing hypothetical shares of HP common stock. Each PRU award reflects a target number of shares ("Target Shares") that may be issued to the award recipient before adjusting for performance and market conditions. The actual

10

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Stock-Based Compensation (Continued)

number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus company performance goals and may range from 0% to 200% of the Target Shares granted. The performance goals for PRUs granted in fiscal year 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on HP's adjusted annual revenue growth. The performance goals for PRUs granted prior to fiscal year 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on a market condition based on total shareholder return ("TSR") relative to the S&P 500 over the three-year performance period.

        For PRU awards granted in fiscal year 2012, HP estimates the fair value of the Target Shares using HP's closing stock price on the measurement date. The weighted-average fair value for these PRUs was as follows:

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	13.14	(1)	$	27.00	(2)

⁽¹⁾

Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period.

⁽²⁾

Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in fiscal 2012.

        For PRU awards granted prior to fiscal year 2012, HP estimates the fair value of the Target Shares subject to those awards using a Monte Carlo simulation model, as the TSR modifier represents a market condition. The weighted-average fair values of these PRU awards and the following weighted-average assumptions, in addition to projections of market conditions, used to measure the weighted-average fair values were as follows:

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	0.00	(1)	$	3.35	(2)
Expected volatility(3)		33	%		41	%
Risk-free interest rate		0.18	%		0.14	%
Expected dividend yield		3.94	%		1.78	%
Expected term in months		12			15

⁽¹⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011.

11

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Stock-Based Compensation (Continued)

⁽²⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011.

⁽³⁾

HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500.

        Non-vested PRUs outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares
	In thousands
Outstanding Target Shares at October 31, 2012		5,688
Forfeited		(236	)
Outstanding Target Shares at April 30, 2013		5,452
Outstanding Target Shares assigned a fair value at April 30, 2013		5,100	(1)

⁽¹⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date has not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual performance goals are approved.

        At April 30, 2013, there was $9 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 0.7 years.

Note 3: Net Earnings Per Share

        HP calculates basic earnings per share ("EPS") 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, and restricted stock.

12

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 3: Net Earnings Per Share (Continued)

        The reconciliation of the numerators and denominators of the basic and diluted EPS calculations was as follows:

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,077	$	1,593	$	2,309	$	3,061
Denominator:
Weighted-average shares used to compute basic EPS		1,935		1,979		1,944		1,980
Dilutive effect of employee stock plans		12		8		8		15
Weighted-average shares used to compute diluted EPS		1,947		1,987		1,952		1,995
Net earnings per share:
Basic	$	0.56	$	0.80	$	1.19	$	1.55
Diluted	$	0.55	$	0.80	$	1.18	$	1.53

⁽¹⁾

Net earnings available to participating securities were not significant for the three and six months ended April 30, 2013 and 2012. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

        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. As such, for both the three and six months ended April 30, 2013, HP excluded from the calculation of diluted EPS options to purchase 53 million shares compared to 50 million shares for both the three and six months ended April 30, 2012. Further, during the same time periods, HP also excluded from the calculation of diluted EPS options to purchase an additional 2 million shares and 6 million shares, respectively, for the three and six months ended April 30, 2013, compared to an additional 10 million shares for both the three and six months ended April 30, 2012, as their 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.

Note 4: Balance Sheet Details

        Balance sheet details were as follows:

Accounts Receivable, Net

	April 30, 2013			October 31, 2012
	In millions
Accounts receivable	$	15,013		$	16,871
Allowance for doubtful accounts		(407	)		(464	)
	$	14,606		$	16,407

13

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 4: Balance Sheet Details (Continued)

        HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain circumstances may provide for partial recourse, result in a transfer of HP's receivables and risk to the third party. As these transfers qualify as true sales, the receivables are derecognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of April 30, 2013 and October 31, 2012 were not material. The maximum program capacity and available program capacity under these arrangements were as follows:

	As of April 30, 2013		As of October 31, 2012
	In millions
Non-recourse arrangements
Aggregate maximum program capacity	$	743	$	636
Aggregate available capacity	$	376	$	434
Partial-recourse arrangement
Maximum program capacity	$	899	$	876
Available capacity	$	507	$	413

        For the three and six months ended April 30, 2013, trade receivables sold under these facilities were $1.2 billion and $2.7 billion, respectively. For the comparable periods of fiscal 2012, trade receivables sold under these facilities were $1.0 billion and $2.1 billion, respectively. The amount of trade receivables sold approximates the amount of cash received. The resulting costs associated with the sales of trade accounts receivable for three and six months ended April 30, 2013 and April 30, 2012 were not material.

Inventory

	April 30, 2013		October 31, 2012
	In millions
Finished goods	$	3,778	$	4,094
Purchased parts and fabricated assemblies		2,221		2,223
	$	5,999	$	6,317

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 4: Balance Sheet Details (Continued)

Property, Plant and Equipment, Net

	April 30, 2013			October 31, 2012
	In millions
Land	$	634		$	636
Buildings and leasehold improvements		8,768			8,744
Machinery and equipment		16,516			16,503
		25,918			25,883
Accumulated depreciation		(14,442	)		(13,929	)
	$	11,476		$	11,954

        For the six months ended April 30, 2013, the increase in gross property, plant and equipment was due primarily to investments of $1.4 billion, the effect of which was partially offset by sales and retirements totaling $1.1 billion. Accumulated depreciation associated with the assets sold and retired was $0.9 billion.

Note 5: Goodwill and Purchased Intangible Assets

Goodwill

        Goodwill allocated to HP's reportable segments as of April 30, 2013 and changes in the carrying amount of goodwill for the six months ended April 30, 2013 are as follows:

	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software			HP Financial Services		Corporate Investments		Total
	In millions
Net balance at October 31, 2012(1)	$	2,498	$	2,487	$	17,041	$	—	$	8,899		$	144	$	—	$	31,069
Goodwill acquired during the period		—		—		—		107		—			—		—		107
Goodwill adjustments/reclassifications		—		—		17		—		(60	)		—		—		(43	)
Net balance at April 30, 2013(1)	$	2,498	$	2,487	$	17,058	$	107	$	8,839		$	144	$	—	$	31,133

⁽¹⁾

Goodwill at October 31, 2012 and April 30, 2013 is net of accumulated impairment losses of $14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software, and the remaining $813 million relates to Corporate Investments.

        In the first quarter of fiscal 2013, HP implemented certain organizational realignments. As a result of these realignments, HP has re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013, created two new financial reporting segments, the Enterprise Group segment ("EG") and the Enterprise Services segment ("ES"), and eliminated two other financial reporting segments, the Enterprise Servers, Storage and Networking ("ESSN") segment and the

15

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 5: Goodwill and Purchased Intangible Assets (Continued)

Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the Technology Services ("TS") business unit, which was previously a part of the former Services segment. The ES segment consists of the Applications and Business Services ("ABS") and Infrastructure Technology Outsourcing ("ITO") business units primarily from the former Services segment. As a result of the reporting segment changes described above, the net goodwill balance at October 31, 2012 includes the reclassification of $9.3 billion of goodwill related to the realignment of the TS business unit from the former Services segment to the EG segment. See Note 16 for a full description of the segment realignments.

        In the second quarter of fiscal 2013, MphasiS Limited, a majority-owned subsidiary of HP, acquired Digital Risk LLC for $174 million. HP recorded $107 million of goodwill related to this acquisition.

        HP reviews goodwill for impairment annually at the beginning of its fourth fiscal quarter and whenever events or changes in circumstances, such as significant adverse changes in business climate or operating results, changes in management's business strategy or significant declines in HP's stock price, indicate the carrying amount of goodwill may not be recoverable. Based on its last annual goodwill impairment test, the excess of fair value over carrying value for each of HP's reporting units as of August 1, 2012, the annual testing date, ranged from approximately 9% to approximately 330% of carrying value. Based on that same test, the Autonomy and legacy HP software reporting units, both of which were included in the Software segment, had the lowest excess of fair value over carrying value at 10% and 9%, respectively.

16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 5: Goodwill and Purchased Intangible Assets (Continued)

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

	April 30, 2013										October 31, 2012
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,800	$	(2,859	)	$	(856	)	$	2,085	$	5,807	$	(2,625	)	$	(856	)	$	2,326
Developed and core technology and patents		6,497		(2,795	)		(2,138	)		1,564		6,580		(2,501	)		(2,138	)		1,941
"Compaq" trade name		1,422		(37	)		(1,227	)		158		1,422		(18	)		(1,227	)		177
Other product trademarks		312		(144	)		(109	)		59		310		(137	)		(109	)		64
In-process research and development ("IPR&D")		3		—			—			3		7		—			—			7
Total purchased intangible assets	$	14,034	$	(5,835	)	$	(4,330	)	$	3,869	$	14,126	$	(5,281	)	$	(4,330	)	$	4,515

        For the first six months of fiscal 2013, the majority of the decrease in gross intangibles was related to $118 million of fully amortized intangible assets which have been eliminated from both the gross and accumulated amortization amounts.

        Estimated future amortization expense related to finite-lived purchased intangible assets at April 30, 2013 is as follows:

Fiscal year:	In millions
2013 (remaining 6 months)	$	667
2014		1,035
2015		845
2016		688
2017		262
2018		150
Thereafter		219
Total	$	3,866

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Restructuring Charges

        HP records restructuring charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with one or more business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. HP records the short-term portion of the restructuring liability in Accrued restructuring and the long-term portion in Other liabilities in the Consolidated Condensed Balance Sheets.

Fiscal 2012 Restructuring Plan

        On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP estimates that it will eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. The majority of the U.S. EER program will be funded through HP's U.S. pension plan. In connection with the 2012 Plan, HP expects to record aggregate charges of approximately $3.6 billion through the end of HP's 2014 fiscal year as accounting recognition criteria are met. Of that amount, HP expects approximately $3.0 billion to relate to the workforce reductions and the EER programs and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation and other items. Due to uncertainties associated with attrition and the acceptance rates of future international EER programs, the total expected headcount reductions could vary as much as 15% from HP's original estimates. HP could also experience similar variations in the total expense of the 2012 Plan.

        HP recorded a charge of approximately $723 million for the six months ended April 30, 2013 relating to the 2012 Plan, of which $58 million related to data center and real estate consolidations. As of April 30, 2013, HP had eliminated approximately 18,800 positions as part of the 2012 Plan. The cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2015.

Fiscal 2010 Acquisitions

        In connection with the acquisitions of Palm, Inc. ("Palm") and 3Com Corporation ("3Com") in fiscal 2010, HP's management approved and initiated plans to restructure the operations of the acquired companies, including severance for employees, contract cancellation costs, costs to vacate duplicative facilities and other items. The total combined cost of the plans was $91 million. As of October 31, 2011, HP had recorded all of the costs of the plans based upon the anticipated timing of planned terminations and facility closure costs. In the second quarter of fiscal 2013, $10 million was credited to restructuring expense to close the Palm and 3Com plans as no further restructuring costs or payments are anticipated.

18

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Restructuring Charges (Continued)

Fiscal 2010 Enterprise Services Business Restructuring Plan

        On June 1, 2010, HP's management announced a plan to restructure its ES business, which included the ITO and ABS business units. The multi-year restructuring program included plans to consolidate commercial data centers, tools and applications. The total expected cost of the plan is approximately $821 million, which includes severance costs to eliminate approximately 8,200 positions and infrastructure charges. As of October 31, 2012 all 8,200 positions under the plan had been eliminated. As the restructuring plan was implemented, certain components and their related cost estimates were revised. For the six months ended April 30, 2013, HP reversed $171 million of the restructuring accrual to reflect an updated estimate of expected cash payments for severance. The majority of the infrastructure charges were paid out during fiscal 2012 with the remaining charges expected to be paid out through the first half of fiscal 2015. This plan is now closed with no further restructuring charges anticipated. HP expects the majority of the remaining severance for the plan to be paid out through fiscal year 2013.

Fiscal 2008 HP/EDS Restructuring Plan

        In connection with the acquisition of Electronic Data Systems Corporation ("EDS") on August 26, 2008, HP's management approved and initiated a restructuring plan to combine and align HP's services businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented at a total expected cost of $3.3 billion. Approximately $1.5 billion of the expected costs were associated with pre-acquisition EDS and were reflected in the purchase price of EDS. The remaining costs were primarily associated with HP and were recorded as a restructuring charge.

        The restructuring plan included severance costs related to eliminating approximately 25,000 positions. As of October 31, 2011, all actions had occurred and the associated severance costs had been paid out. The infrastructure charges in the restructuring plan included facility closure and consolidation costs and the costs associated with early termination of certain related contractual obligations. HP has recorded the majority of these costs based upon the anticipated execution of site closure and consolidation plans. The associated cash payments are expected to be paid out through fiscal 2016.

19

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Restructuring Charges (Continued)

Summary of Restructuring Plans

        The adjustments to the accrued restructuring expenses related to all of HP's restructuring plans described above for the six months ended April 30, 2013 were as follows:

			Three months ended April 30, 2013 charges			Six months ended April 30, 2013 charges											As of April 30, 2013
	Balance, October 31, 2012								Cash payments			Other adjustments and non-cash settlements			Balance, April 30, 2013		Total costs and adjustments to date		Total expected costs and adjustments
Fiscal 2012 Plan
Severance and EER	$	597	$	409		$	665		$	(300	)	$	3		$	965	$	2,650	$	3,027
Infrastructure and other		11		24			58			(42	)		—			27		163		582
Total 2012 Plan		608		433			723			(342	)		3			992		2,813		3,609
Fiscal 2010 acquisitions		10		(10	)		(10	)		—			—			—		91		91
Fiscal 2010 ES Plan:
Severance		227		(14	)		(171	)		(31	)		2			27		452		452
Infrastructure		1		—			—			—			—			1		369		369
Total ES Plan		228		(14	)		(171	)		(31	)		2			28		821		821
Fiscal 2008 HP/EDS Plan:
Severance		—		—			—			—			—			—		2,195		2,195
Infrastructure		181		(1	)		(4	)		(29	)		(1	)		147		1,071		1,080
Total HP/EDS Plan		181		(1	)		(4	)		(29	)		(1	)		147		3,266		3,275
Total restructuring plans	$	1,027	$	408		$	538		$	(402	)	$	4		$	1,167	$	6,991	$	7,796

        At April 30, 2013 and October 31, 2012, HP included the short-term portion of $1,063 million and $771 million, respectively, in Accrued restructuring and the long-term portion of the restructuring liability of $104 million and $256 million, respectively, in Other liabilities, in the accompanying Consolidated Condensed Balance Sheets.

Note 7: Fair Value

        HP determines fair value 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.

Fair Value Hierarchy

        Valuation techniques used by HP 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 the best information available.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 7: Fair Value (Continued)

Observable inputs are the preferred basis of valuation. These two types of inputs create the following fair value hierarchy:

        Level 1—Quoted prices (unadjusted) for identical instruments in active markets.

        Level 2—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.

        Level 3—Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

        The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis:

	As of April 30, 2013								As of October 31, 2012
	Fair Value Measured Using								Fair Value Measured Using
							Total Balance								Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	In millions
Assets
Time deposits	$	—	$	2,886	$	—	$	2,886	$	—	$	3,641	$	—	$	3,641
Money market funds		7,169		—		—		7,169		4,630		—		—		4,630
Mutual funds		—		371		—		371		—		469		—		469
Marketable equity securities		72		4		—		76		60		3		—		63
Foreign bonds		8		384		—		392		8		377		—		385
Other debt securities		—		2		38		40		1		—		44		45
Derivatives:
Interest rate contracts		—		257		—		257		—		344		—		344
Foreign exchange contracts		—		297		13		310		—		291		—		291
Other derivatives		—		8		—		8		—		1		—		1
Total Assets	$	7,249	$	4,209	$	51	$	11,509	$	4,699	$	5,126	$	44	$	9,869
Liabilities
Derivatives:
Interest rate contracts	$	—	$	10	$	—	$	10	$	—	$	29	$	—	$	29
Foreign exchange contracts		—		556		—		556		—		485		1		486
Other derivatives		—		—		—		—		—		3		—		3
Total Liabilities	$	—	$	566	$	—	$	566	$	—	$	517	$	1	$	518

Valuation Techniques

        Cash Equivalents and Investments:    HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. Where applicable, HP uses quoted prices in active markets for identical

21

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 7: Fair Value (Continued)

assets to determine fair value. If quoted prices in active markets for identical assets 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 for which inputs include bid prices, and third-party valuations utilizing underlying assets assumptions.

        Derivative Instruments:    As discussed in Note 8, 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 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.

Other Fair Value Disclosures

        Short- and Long-Term Debt:    The estimated fair value of HP's debt is primarily calculated using an expected present value technique based upon observable market inputs. The portion of HP's fixed-rate debt obligations that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying value, which includes a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was approximately $27.1 billion at April 30, 2013, compared to its carrying value of $26.8 billion at that date. The estimated fair value of HP's short- and long-term debt approximated its carrying value of $28.4 billion at October 31, 2012. If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified as Level 2 in the fair value hierarchy.

        Other Financial Instruments:    For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.

22

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments

Cash Equivalents and Available-for-Sale Investments

        Cash equivalents and available-for-sale investments at fair value as of April 30, 2013 and October 31, 2012 were as follows:

	April 30, 2013									October 31, 2012
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	In millions
Cash Equivalents
Time deposits	$	2,873	$	—	$	—		$	2,873	$	3,633	$	—	$	—		$	3,633
Money market funds		7,169		—		—			7,169		4,630		—		—			4,630
Mutual funds		39		—		—			39		69		—		—			69
Total cash equivalents		10,081		—		—			10,081		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		300		92		—			392		303		82		—			385
Other debt securities		58		—		(18	)		40		62		—		(17	)		45
Total debt securities		371		92		(18	)		445		373		82		(17	)		438
Equity securities:
Mutual funds		332		—		—			332		400		—		—			400
Equity securities in public companies		50		24		(2	)		72		50		9		—			59
Total equity securities		382		24		(2	)		404		450		9		—			459
Total available-for-sale investments		753		116		(20	)		849		823		91		(17	)		897
Total cash equivalents and available-for-sale investments	$	10,834	$	116	$	(20	)	$	10,930	$	9,155	$	91	$	(17	)	$	9,229

        All highly liquid investments with original maturities of three months or less at the date of acquisition are considered to be cash equivalents. Time deposits were primarily issued by institutions outside the United States as of April 30, 2013 and October 31, 2012. Investments in debt and marketable equity securities are generally considered available-for-sale. The estimated fair values of the available-for-sale investments may not be representative of actual values that will be realized in the future.

        The gross unrealized loss as of April 30, 2013 and October 31, 2012 was due primarily to decline in the fair value of a debt security of $18 million and $17 million, respectively, that has been in a continuous loss position for more than twelve months. HP does not intend to sell this debt security, and it is not likely that HP will be required to sell this debt security prior to the recovery of the amortized cost. HP has evaluated the near-term prospects of its debt and equity investments in a gross unrealized loss positions in relation to the severity and duration of the impairment and considers the decline in market value of these investments to be temporary in nature.

23

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

        Contractual maturities of short-term and long-term investments in available-for-sale debt securities were as follows:

	April 30, 2013
	Cost		Estimated Fair Value
	In millions
Due in one to five years	$	14	$	14
Due in more than five years		357		431
	$	371	$	445

        Equity securities in privately held companies include cost basis and equity method investments. These amounted to $52 million and $51 million for the periods ended April 30, 2013 and October 31, 2012 and are included in long-term financing receivables and other assets.

Derivative Financial Instruments

        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 and does not use derivative contracts for speculative purposes. 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, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives, on a gross basis, in the Consolidated Condensed Balance Sheets at fair value. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of the use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate 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 risk limits that correspond to each institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-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 the same counterparty.

        To further mitigate credit exposure to counterparties, HP has collateral security arrangements with substantially all of its counterparties. These arrangements require HP to post collateral or to hold collateral from counterparties when the derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. Such funds are

24

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

generally transferred within two business days of the due date. As of April 30, 2013, HP held $266 million of collateral and posted $137 million through re-use of counterparty cash collateral under these collateralized arrangements. As of October 31, 2012, HP held $198 million of collateral and posted $72 million under these collateralized arrangements, of which $49 million was through re-use of counterparty cash collateral and $23 million in cash.

Fair Value Hedges

        HP enters into derivatives 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 mitigate the market risk exposures in connection with the debt to achieve a 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 payments into variable interest payments 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 period of change.

Cash Flow Hedges

        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 expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months. However, certain leasing revenue-related forward contracts and intercompany 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 income or 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 three and six months ended April 30, 2013 there was no significant impact to results of operations as a result of discontinued cash flow hedges. During the three and six months ended April 30, 2012, HP did not discontinue any cash flow hedge for which it was probable that a forecasted transaction would not occur.

Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. These derivative instruments are

25

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

designated as net investment hedges and, as such, 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.

Other Derivatives

        Other derivatives not designated as hedging instruments 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, HP recognizes changes in the fair values in earnings in the 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.

Hedge Effectiveness

        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.

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

        As discussed in Note 7, HP estimates the fair values of derivatives primarily based on pricing models using current market rates and records all derivatives on the balance sheet at fair value. The

26

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

gross notional and fair value of derivative financial instruments in the Consolidated Condensed Balance Sheets were as follows:

	As of April 30, 2013										As of October 31, 2012
	Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities		Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	8,900	$	38	$	210	$	—	$	—	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		17,230		123		49		332		70		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,901		12		22		29		25		1,683		14		15		36		24
Total derivatives designated as hedging instruments		28,031		173		281		361		95		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,246		90		14		85		15		18,687		61		17		51		19
Interest rate contracts(2)		2,200		9		—		10		—		2,200		25		—		29		—
Other derivatives		350		7		1		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		18,796		106		15		95		15		21,270		87		17		83		19
Total derivatives	$	46,827	$	279	$	296	$	456	$	110	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of April 30, 2013 and October 31, 2012, respectively.

⁽²⁾

Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments.

Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

        The before-tax effect of derivative instruments and related hedged items in fair value hedging relationships for the three and six months ended April 30, 2013 and 2012 were as follows:

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2013		Six months ended April 30, 2013			Hedged Item	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions							In millions
Interest rate contracts	Interest and other, net	$	28	$	(71	)	Fixed-rate debt	Interest and other, net	$	(28	)	$	70

27

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2012			Six months ended April 30, 2012			Hedged Item	Location	Three months ended April 30, 2012		Six months ended April 30, 2012
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(80	)	$	(76	)	Fixed-rate debt	Interest and other, net	$	80	$	80

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2013 was as follows:

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2013			Six months ended April 30, 2013			Location	Three months ended April 30, 2013			Six months ended April 30, 2013
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	206		$	7		Net revenue		$46			$(11	)
Foreign exchange contracts		(44	)		(169	)	Cost of products		(27	)		(30	)
Foreign exchange contracts		3			11		Other operating expenses		4			5
Foreign exchange contracts		(11	)		(9	)	Interest and other, net		1			(4	)
Total cash flow hedges	$	154		$	(160	)			$24			$(40	)
Net investment hedges:
Foreign exchange contracts	$	(2	)	$	(17	)	Interest and other, net		$ —			$ —

28

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2012 was as follows:

	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2012			Six months ended April 30, 2012			Location	Three months ended April 30, 2012			Six months ended April 30, 2012
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	(120	)	$	298		Net revenue	$	3		$	86
Foreign exchange contracts		(53	)		(61	)	Cost of products		2			18
Foreign exchange contracts		(1	)		(4	)	Other operating expenses		(1	)		(2	)
Foreign exchange contracts		(17	)		(17	)	Interest and other, net		(15	)		(15	)
Total cash flow hedges	$	(191	)	$	216			$	(11	)	$	87
Net investment hedges:
Foreign exchange contracts	$	13		$	38		Interest and other, net	$	—		$	—

        As of April 30, 2013 and 2012, 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 in the three and six months ended April 30, 2013 and 2012.

        As of April 30, 2013, HP expects to reclassify an estimated net accumulated other comprehensive loss of approximately $158 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.

        The before-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2013 and 2012 was as follows:

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	(15	)	$	(55	)
Other derivatives	Interest and other, net		3			10
Interest rate contracts	Interest and other, net		1			3
Total		$	(11	)	$	(42	)

29

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financial Instruments (Continued)

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2012			Six months ended April 30, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	74		$	156
Other derivatives	Interest and other, net		(6	)		(16	)
Interest rate contracts	Interest and other, net		1			11
Total		$	69		$	151

Note 9: Financing Receivables and Operating Leases

        Financing receivables represent sales-type and direct-financing leases resulting from the placement of HP 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 billed receivables from operating leases. The components of financing receivables, which are included in Financing receivables, net and Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets, were as follows:

	April 30, 2013			October 31, 2012
	In millions
Minimum lease payments receivable		$7,725			$8,133
Unguaranteed residual value		255			248
Unearned income		(651	)		(688	)
Financing receivables, gross		7,329			7,693
Allowance for doubtful accounts		(149	)		(149	)
Financing receivables, net		7,180			7,544
Less current portion		(3,212	)		(3,252	)
Amounts due after one year, net		$3,968			$4,292

        Equipment leased to customers under operating leases was $3.7 billion and $3.9 billion at April 30, 2013 and October 31, 2012, respectively, and is included in machinery and equipment. Accumulated depreciation on equipment under lease was $1.4 billion and $1.5 billion at April 30, 2013 and at October 31, 2012, respectively.

        Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographical regions. The credit quality of an obligor is evaluated at lease inception and monitored over the term of a transaction. Risk ratings are assigned to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the

30

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 9: Financing Receivables and Operating Leases (Continued)

essential use of the equipment, the term of the lease, and the inclusion of guarantees, letters of credit, security deposits or other credit enhancements.

        The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows:

	April 30, 2013		October 31, 2012
	In millions
Risk Rating
Low	$	4,128	$	4,461
Moderate		3,100		3,151
High		101		81
Total	$	7,329	$	7,693

        Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB- or higher, while accounts rated moderate risk would generally be the equivalent of BB+ or lower. Based upon impairment analyses performed periodically, HP identifies and monitors accounts rated high risk and may establish a specific reserve against a portion of these receivables.

        The allowance for doubtful accounts balance is comprised of a general reserve, which is determined based on a percentage of the financing receivables balance, and a specific reserve, which is established for certain leases with identified exposures, such as customer default, bankruptcy or other events, that make it unlikely that HP will recover its investment in the lease. The general reserve percentages are maintained on a regional basis and are based on several factors, which include consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking.

        The allowance for doubtful accounts and the related financing receivables were as follows:

	Six months ended April 30, 2013
	In millions
Allowance for doubtful accounts
Balance, beginning of period	$	149
Change in estimates		14
Deductions, net of recoveries		(14	)
Balance, end of period	$	149

31

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 9: Financing Receivables and Operating Leases (Continued)

	April 30, 2013		October 31, 2012
	In millions
Allowance for financing receivables collectively evaluated for loss	$	100	$	104
Allowance for financing receivables individually evaluated for loss		49		45
Total	$	149	$	149
Gross financing receivables collectively evaluated for loss	$	6,956	$	7,355
Gross financing receivables individually evaluated for loss		373		338
Total	$	7,329	$	7,693
Gross financing receivables on non-accrual status	$	208	$	225
Gross financing receivables 90 days past due and still accruing interest		165		113
Total	$	373	$	338

        Accounts are generally put on non-accrual status (cessation of interest accrual) when they reach 90 days past due. In certain circumstances, such as when the delinquency is deemed to be of an administrative nature, accounts may still accrue interest when they reach 90 days past due. The non-accrual status may not impact a customer's risk rating. A write-off or specific reserve is generally recorded when an account reaches 180 days past due.

Note 10: Guarantees

Guarantees and Indemnifications

        In the ordinary course of business, HP may provide certain clients 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 it is in compliance with the performance obligations under all material service contracts for which there is a performance guarantee.

        HP has certain service contracts supported by client financing or securitization arrangements. Under specific circumstances involving nonperformance 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.

        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.

32

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 10: Guarantees (Continued)

Warranty

        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.

        The changes in HP's aggregate product warranty liabilities for the six months ended April 30, 2013 were as follows:

	In millions
Product warranty liability at October 31, 2012		$2,170
Accruals for warranties issued		1,013
Adjustments related to pre-existing warranties (including changes in estimates)		(3	)
Settlements made (in cash or in kind)		(1,110	)
Product warranty liability at April 30, 2013		$2,070

Note 11: Borrowings

Notes Payable and Short-Term Borrowings

        Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows:

	April 30, 2013					October 31, 2012
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	6,162		2.3	%	$	5,744		1.6	%
Commercial paper		310		0.3	%		365		0.9	%
Notes payable to banks, lines of credit and other		456		2.1	%		538		2.8	%
	$	6,928				$	6,647

        Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of $340 million and $369 million at April 30, 2013 and October 31, 2012, respectively.

33

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings (Continued)

Long-Term Debt

        Long-term debt was as follows:

	April 30, 2013		October 31, 2012
	In millions
U.S. Dollar Global Notes
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	499	$	499
$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013		—		1,500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750		750
$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014		1,999		1,998
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014		1,500		1,500
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, due September 2013		1,100		1,100
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,099		1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650		650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,348		1,348
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013		1,750		1,750
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500		500
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500		500
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000		1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248		1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750		750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298		1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		998		998

34

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings (Continued)

	April 30, 2013			October 31, 2012
	In millions
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,198			1,198
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014		350			350
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014		650			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,497			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
		23,532			25,031
EDS Senior Notes
$1,100 issued June 2003 at 6.0%, due August 2013		1,103			1,109
$300 issued October 1999 at 7.45%, due October 2029		314			314
		1,417			1,423
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024		713			680
Fair value adjustment related to hedged debt		363			399
Less: current portion		(6,162	)		(5,744	)
Total long-term debt	$	19,863		$	21,789

        As disclosed in Note 8, HP uses interest rate swaps to mitigate the interest rate risk exposures in connection with certain fixed-rate global notes to achieve primarily U.S. dollar LIBOR-based floating interest expense. The interest rates in the table above have not been adjusted to reflect the impact of any interest rate swaps.

        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.

        In May 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the SEC to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2012 Shelf Registration Statement replaced the registration statement filed in May 2009.

35

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings (Continued)

        HP's Board of Directors has authorized the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper. HP maintains two commercial paper programs, and a wholly-owned subsidiary maintains a third program. HP's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $16.0 billion. HP's euro commercial paper program, which was established in September 2012, provides for the issuance of commercial paper outside of the United States denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $16.0 billion authorized by HP's Board of Directors. The HP subsidiary's Euro Commercial Paper/Certificate of Deposit Programme provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $500 million.

        HP maintains senior unsecured committed credit facilities primarily to support the issuance of commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a $4.5 billion four-year credit facility that expires in February 2015. Both facilities support the U.S. commercial paper program and the euro commercial paper program. In addition, to better support the euro commercial paper program, the five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. HP's ability to have a U.S. commercial paper outstanding balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance.

        Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of April 30, 2013, the carrying value of the assets approximated the carrying value of the borrowings of $219 million.

        As of April 30, 2013, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement. As of that date, HP also had up to $17.7 billion of available borrowing resources, including $16.2 billion in available capacity under its commercial paper programs and $1.5 billion relating to uncommitted lines of credit. The extent to which HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as sources of liquidity at any given time is subject to a number of factors, including market demand for HP securities and commercial paper, HP's financial performance, HP's credit ratings and market conditions generally.

36

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings (Continued)

        Interest expense on borrowings was as follows:

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions
Financing interest	$	81	$	80	$	161	$	158
Interest expense		103		116		225		238
Total Interest	$	184	$	196	$	386	$	396

Note 12: Income Taxes

Provision for taxes

        HP's effective tax rate was 23.5% and 19.5% for the three months ended April 30, 2013 and 2012, respectively, and 22.5% and 19.5% for the six months ended April 30, 2013 and 2012, respectively. HP's effective tax rate increased in the three and six months ended April 30, 2013, in part due to the lower tax rates of the discrete items described below. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% 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.

        In the three and six months ended April 30, 2013, HP recorded discrete items resulting in a net tax benefit of $108 million and $103 million, respectively. These amounts included tax benefits of $47 million and $63 million on restructuring and acquisition-related charges for the three and six months ended April 30, 2013, respectively. Other discrete items for the three and six months ended April 30, 2013 included tax benefits of $81 million and $131 million, respectively, for various adjustments to estimated tax provisions of foreign jurisdictions and miscellaneous tax charges of $20 million and tax benefits of $9 million, respectively. In addition, in January 2013, the American Taxpayer Relief Act of 2012 was signed into law. In the first quarter of fiscal 2013, HP recorded a tax benefit of $50 million arising from the retroactive research and development credit provided by that legislation. HP also recorded a tax charge of $150 million related to a past uncertain tax position in the first quarter of fiscal 2013, increasing the effective tax rate.

        In the three and six months ended April 30, 2012, HP recorded discrete items with a net tax benefit of $25 million and $74 million, respectively, decreasing the effective tax rate. These amounts included net tax benefits of $22 million and $50 million, respectively, from restructuring and acquisition charges.

        As of April 30, 2013, the amount of gross unrecognized tax benefits was $2.8 billion, of which up to $1.5 billion would affect HP's effective tax rate if realized. HP recognizes interest income from favorable settlements and income tax receivables and interest expense and penalties accrued on unrecognized tax benefits within income tax expense. As of April 30, 2013, HP had accrued a net payable of $207 million for interest and penalties.

37

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 12: Income Taxes (Continued)

        HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any Internal Revenue Service audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be decreased by an amount up to $205 million within the next 12 months.

        In the Consolidated Condensed Financial Statements, current and long-term deferred tax assets and deferred tax liabilities are presented as follows:

	April 30, 2013			October 31, 2012
	In millions
Current deferred tax assets	$	4,107		$	3,783
Current deferred tax liabilities		(300	)		(230	)
Long-term deferred tax assets		1,567			1,581
Long-term deferred tax liabilities		(3,790	)		(2,948	)
Net deferred tax position	$	1,584		$	2,186

Note 13: Stockholders' Equity

Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and six months ended April 30, 2013, HP executed share repurchases of 36 million shares and 56 million shares, respectively. Such repurchased shares were settled for $797 million and $1.1 billion, respectively. HP paid approximately $350 million in connection with repurchases of 13 million shares during the three months ended April 30, 2012 and paid $1.1 billion in connection with repurchases of approximately 43 million shares in the first six months of fiscal 2012. As of April 30, 2013, HP had remaining authorization of $8.1 billion for future share repurchases.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 13: Stockholders' Equity (Continued)

Taxes related to Items of Other Comprehensive Loss/Income

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions						In millions
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities	$	(5	)	$	—		$	(38	)	$	5
Tax (expense) benefit on change in unrealized gains/losses on cash flow hedges:
Tax (expense) benefit on unrealized gains/losses arising during the period		(42	)		60			60			(92	)
Tax expense (benefit) on gains/losses reclassified into earnings		10			—			(7	)		37
		(32	)		60			53			(55	)
Tax (expense) benefit on change in unrealized components of defined benefit plans:
Tax benefit (expense) on net losses arising during the period		—			—			—			24
Tax (benefit) expense on amortization of actuarial loss and prior service benefit		(16	)		(6	)		(21	)		(16	)
Tax benefit (expense) on curtailments, settlements and other		—			20			(1	)		(64	)
		(16	)		14			(22	)		(56	)
Tax benefit (expense) on change in cumulative translation adjustment		4			(52	)		22			(38	)
Tax (expense) benefit on other comprehensive income	$	(49	)	$	22		$	15		$	(144	)

        The components of accumulated other comprehensive loss, net of taxes, were as follows:

	April 30, 2013			October 31, 2012
	In millions
Net unrealized gain on available-for-sale securities	$	71		$	87
Net unrealized loss on cash flow hedges		(166	)		(99	)
Unrealized components of defined benefit plans		(4,934	)		(5,090	)
Cumulative translation adjustment		(493	)		(457	)
Accumulated other comprehensive loss	$	(5,522	)	$	(5,559	)

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 14: Retirement and Post-Retirement Benefit Plans

        HP's net pension and post-retirement benefit costs were as follows:

	Three months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	84		$	74		$	2		$	2
Interest cost		140			141			168			174			8			8
Expected return on plan assets		(211	)		(198	)		(250	)		(206	)		(8	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		19			11			85			59			—			(1	)
Prior service benefit		—			—			(6	)		(6	)		(17	)		(22	)
Net periodic benefit (credit) cost		(52	)		(46	)		81			95			(15	)		(22	)
Curtailment gain		—			—			—			—			(4	)		—
Settlement loss		3			—			—			8			—			—
Special termination benefits		—			—			2			1			—			—
Net benefit (credit) cost	$	(49	)	$	(46	)	$	83		$	104		$	(19	)	$	(22	)

	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	170		$	148		$	3		$	4
Interest cost		280			283			341			349			15			17
Expected return on plan assets		(423	)		(396	)		(507	)		(413	)		(17	)		(18	)
Amortization and deferrals:
Actuarial loss (gain)		39			22			172			119			—			(2	)
Prior service benefit		—			—			(13	)		(12	)		(34	)		(43	)
Net periodic benefit (credit) cost		(104	)		(91	)		163			191			(33	)		(42	)
Curtailment gain		—			—			—			—			(7	)		—
Settlement loss (gain)		8			—			—			(20	)		—			—
Special termination benefits		—			—			5			2			—			—
Net benefit (credit) cost	$	(96	)	$	(91	)	$	168		$	173		$	(40	)	$	(42	)

Employer Contributions and Funding Policy

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2012 that it expected to contribute in fiscal 2013 approximately $674 million to its non-US pension plans and approximately $33 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $124 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 makes at least the minimum contribution required by local government, funding and taxing authorities.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 14: Retirement and Post-Retirement Benefit Plans (Continued)

        During the six months ended April 30, 2013, HP made $363 million of contributions to its non-US pension plans, paid $35 million to cover benefit payments to U.S. non-qualified plan participants, and paid $47 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2013, HP anticipates making additional contributions of approximately $293 million to its non-U.S. pension plans and approximately $16 million to its U.S. non-qualified plan participants and expects to pay approximately $77 million to cover benefit claims under HP's post-retirement benefit plans.

        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 invested assets 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.

Note 15: Litigation and Contingencies

        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. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has adequate provisions for any such matters, and, as of April 30, 2013, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the amounts already recognized in HP's financial statements. 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, 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.

Litigation, Proceedings and Investigations

        Copyright Levies.    As described below, proceedings are ongoing or have been concluded involving HP in certain European Union ("EU") member countries, including litigation in Germany, Belgium and Austria, seeking to impose or modify 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. Descriptions of some of the ongoing proceedings are included below. The levies are generally 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 have opposed the

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

extension of levies to the digital environment and have advocated alternative models of compensation to rights holders.

        VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted legal proceedings against HP in the Stuttgart Civil Court seeking levies on printers. On December 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 11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June 6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December 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 25, 2008, and VG Wort subsequently filed an application with the German Federal Supreme Court under Section 321a of the German Code of Civil Procedure contending that the court did not consider their arguments. On May 9, 2008, the German Federal Supreme Court denied VG Wort's application. VG Wort appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. On September 21, 2010, the Constitutional Court published a decision holding that the German Federal Supreme Court erred by not referring questions on interpretation of German copyright law to the Court of Justice of the European Union ("CJEU") and therefore revoked the German Federal Supreme Court decision and remitted the matter to it.

        On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. The CJEU conducted an oral hearing in October 2012 and is expected to issue a decision in June 2013, after which the matter will be remitted back to the German Federal Supreme Court.

        In September 2003, VG Wort filed a lawsuit against Fujitsu Siemens Computer 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 23, 2004, the Munich Civil Court held that PCs are subject to a levy and that FSC must pay €12 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 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 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 31, 2007 and, therefore, not subject to the levies on photocopiers established by that law. VG Wort subsequently filed a claim with the German Federal Constitutional Court challenging that ruling. In January 2011, the Constitutional Court published a decision holding that the German Federal Supreme Court decision was inconsistent with the German Constitution and revoking the German Federal Supreme Court decision. The Constitutional Court remitted the matter to the German Federal Supreme Court for further action. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. The CJEU conducted an oral hearing in October 2012 and is expected to issue a decision in June 2013, after which the matter will be remitted back to the German Federal Supreme Court.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

        Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested HP by extra-judicial means to amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated based on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with EU law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. Hearings on the appeal are scheduled to be held in September 2013.

        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 number of units impacted and the amounts of the 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.

Skold, et al. v. Intel Corporation and Hewlett-Packard Company is a lawsuit filed against HP on June 14, 2004 that is pending in state court in Santa Clara County, California. The lawsuit alleges that Intel Corporation ("Intel") concealed performance problems related to the Intel Pentium 4 processor by, among others things, the manipulation of performance benchmarks. The lawsuit alleges that HP aided and abetted Intel's allegedly unlawful conduct. The plaintiffs seek unspecified damages, restitution, attorneys' fees and costs. On April 19, 2012, the court issued an order granting in part and denying in part the plaintiffs' motion to certify a nationwide class asserting claims under the California Unfair Competition Law. As to Intel, the court certified a nationwide class excluding residents of Illinois. As to HP, the court certified a class limited to California residents who purchased their computers "from HP" for "personal, family or household use." As required by the same order, the plaintiffs filed an amended complaint that limits their claims against HP to a California class while reserving the right to seek additional state-specific subclasses as to HP.

        Inkjet Printer Litigation.    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

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

warnings and that the smart chip limits the ability of consumers to use the cartridge to its full capacity or to choose competitive products.

•

A consolidated lawsuit captioned In re HP Inkjet Printer Litigation was filed in the United States District Court for the Northern District of California seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees.

•

A lawsuit captioned Blennis v. HP was filed on January 17, 2007 in the United States District Court for the Northern District of California seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees.

•

A lawsuit captioned Rich v. HP was filed against HP on May 22, 2006 in the United States District Court for the Northern District of California alleging 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 and seeking to certify a nationwide injunctive class and a California-only damages class.

•

Two class actions against HP and its subsidiary, Hewlett-Packard (Canada) Co., are pending in Canada, one commenced in British Columbia in February 2006 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.

        On August 25, 2010, HP and the plaintiffs in In re HP Inkjet Printer Litigation, Blennis v. HP and Rich v. HP entered into an agreement to settle those lawsuits on behalf of the proposed classes. Under the terms of the settlement, the lawsuits were consolidated, and eligible class members each have the right to obtain e-credits not to exceed $5 million in the aggregate for use in purchasing printers or printer supplies through HP's website. As part of the settlement, HP also agreed to provide class members with additional information regarding HP inkjet printer functionality and to change the content of certain software and user guide messaging provided to users regarding the life of inkjet printer cartridges. In addition, the settlement provides for class counsel and the class representatives to be paid attorneys' fees and expenses and stipends. On March 29, 2011, the court granted final approval of the settlement. On April 27, 2011, certain class members who objected to the settlement filed an appeal in the United States Court of Appeals for the Ninth Circuit of the court's order granting final approval of the settlement. On May 15, 2013, the United States Court of Appeals for the Ninth Circuit reversed the District Court's grant of final approval of the settlement on the grounds that the District Court did not properly calculate attorneys' fees.

        Fair Labor Standards Act Litigation.    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 or other state laws. Those matters include the following:

•

Cunningham and Cunningham, et al. v. Electronic Data Systems Corporation is a purported collective action filed on May 10, 2006 in the United States District Court for the Southern District of New York claiming that current and former EDS employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Another purported collective action, Steavens, et al. v. Electronic Data Systems

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

Corporation, which was filed on October 23, 2007, is also now pending in the same court alleging similar facts. The Steavens case has been consolidated for pretrial purposes with the Cunningham case. On December 14, 2010, the court granted conditional certification of a class consisting of employees in 20 legacy EDS job codes in the consolidated Cunningham and Steavens matter. Approximately 2,600 current and former EDS employees have filed consents to opt in to the litigation. Plaintiffs had alleged separate "opt-out" classes based on the overtime laws of the states of California, Washington, Massachusetts and New York, but plaintiffs have dismissed those claims.

•

Salva v. Hewlett-Packard Company is a purported collective action filed on June 15, 2012 in the United States District Court for the Western District of New York alleging that certain information technology employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees under the Fair Labor Standards Act. On August 31, 2012, HP filed its answer to plaintiffs' complaint and counterclaims against two of the three named plaintiffs. Also on August 31, 2012, HP filed a motion to transfer venue to the United States District Court for the Eastern District of Texas. A hearing on HP's motion to transfer venue was scheduled for November 21, 2012, but was postponed by the court.

•

Heffelfinger, et al. v. Electronic Data Systems Corporation is a class action filed in November 2006 in California Superior Court claiming that certain EDS information technology workers in California were misclassified as exempt employees. The case was subsequently transferred to the United States District Court for the Central District of California, which, on January 7, 2008, certified a class of information technology workers in California. On June 6, 2008, the court granted the defendant's motion for summary judgment. The plaintiffs subsequently filed an appeal with the United States Court of Appeals for the Ninth Circuit. On June 7, 2012, the Court of Appeals affirmed summary judgment for two of the named plaintiffs, but reversed summary judgment on the third named plaintiff, remanding the case back to the trial court and inviting the trial court to revisit its prior certification order. On February 26, 2013, the trial court issued a final order and opinion granting the defendant's motion to decertify the class. Another purported class action originally filed in California Superior Court, Karlbom, et al. v. Electronic Data Systems Corporation, which was filed on March 16, 2009, alleges similar facts and is pending in San Diego County Superior Court.

•

Blake, et al. v. Hewlett-Packard Company is a purported nationwide collective action filed on February 17, 2011 in the United States District Court for the Southern District of Texas claiming that a class of information technology support personnel were misclassified as exempt employees under the Fair Labor Standards Act. On February 10, 2012, plaintiffs filed a motion requesting that the court conditionally certify the case as a collective action. HP has opposed plaintiffs' motion for conditional certification, and the court has taken the motion under advisement. Only one opt-in plaintiff had joined the named plaintiff in the lawsuit at the time that the motion was filed.

•

Benedict v. Hewlett-Packard Company is a purported collective action filed on January 10, 2013 in the United States District Court for the Northern District of California alleging that certain technical support employees allegedly involved in installing, maintaining and/or supporting computer software and/or hardware for HP were misclassified as exempt employees under the

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

Fair Labor Standards Act. The plaintiff has also alleged that HP violated California law by, among other things, allegedly improperly classifying these employees as exempt.

        India Directorate of Revenue Intelligence Proceedings.    On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HPI"), a subsidiary of HP, seven current HP employees and one former HP employee alleging that HP underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP products and spare parts and to not interrupt the transaction of business by HP in India.

        On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million, of which HPI had already deposited $9 million. On December 11, 2012, HPI voluntarily deposited an additional $10 million in connection with the products show cause notice.

        On April 20, 2012, the Commissioner issued an order on the parts show cause notice affirming certain duties and penalties against HPI and certain of the named individuals of approximately $17 million, of which HPI had already deposited $7 million. After the order, HPI deposited an additional $3 million in connection with the parts show cause notice so as to avoid certain penalties.

        HPI filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The customs department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HPI to deposit an additional $24 million against the products order, which HP deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order.

        Russia GPO and Related Investigations.    The German Public Prosecutor's Office ("German PPO") has been conducting an investigation into allegations that current and former employees of HP engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary of HP, and the General Prosecutor's Office of the Russian Federation. The approximately €35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO has issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO has also asked that HP be made an associated party to the case, and, if the German PPO's request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees.

        The U.S. Department of Justice and the SEC have also been conducting an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). Under the FCPA, a person or an entity could be subject to fines, civil penalties of up to $500,000 per violation and equitable remedies, including disgorgement and other injunctive relief. In addition, criminal

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

penalties could range from the greater of $2 million per violation or twice the gross pecuniary gain or loss from the violation.

        In addition to information about the Russia GPO deal, the U.S. enforcement authorities have requested information from HP relating to certain transactions in Russia, the Commonwealth of Independent States, Poland and Mexico dating back to 2000.

        HP is cooperating with these investigating agencies.

        ECT Proceedings.    In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified HP that it had initiated administrative proceedings against an HP subsidiary in Brazil ("HP Brazil") to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies coordinated their bids for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP it had decided to apply the penalties against HP Brazil, suspending HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP filed petitions with ECT requesting that the decision be revoked and seeking injunctive relief to have the application of the penalties suspended until a final, non-appealable decision is made on the merits of the case. In April 2013, ECT rejected HP's position that the penalties be revoked. HP is currently awaiting a decision from ECT on the injunctive relief petition. Because ECT did not rule on the substance of HP's petitions in a timely manner, HP filed a lawsuit seeking similar relief from the court. The court of first instance has not decided the merits of HP's lawsuit, but has denied HP's request for injunctive relief suspending application of the penalties pending a final, non-appealable decision on the merits of the case. HP appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until HP can be heard on the full merits of the case. HP expects the court of first instance to issue a decision on the merits of the case during 2013 and any appeal on the merits to last several years.

        Stockholder Litigation.    As described below, HP is involved in various stockholder litigation commenced against certain current and former HP executive officers and/or certain current and former members of the HP Board of Directors in which the plaintiffs are seeking to recover certain compensation paid by HP to the defendants, other damages and/or injunctive relief:

•

Saginaw Police & Fire Pension Fund v. Marc L. Andreessen, et al. is a lawsuit filed on October 19, 2010 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and were unjustly enriched by consciously disregarding HP's alleged violations of the FCPA. On August 15, 2011, the defendants filed a motion to dismiss the lawsuit. On March 21, 2012, the court granted the defendants' motion to dismiss, and the court entered judgment in the defendants' favor and closed the case on May 29, 2012. On June 28, 2012, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

•

A.J. Copeland v. Raymond J. Lane, et al. is a lawsuit filed on March 7, 2011 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's alleged violations of the FCPA, HP's severance payments made to Mr. Hurd, and HP's acquisition of 3PAR Inc. The lawsuit also alleges violations of Section 14(a) of the Exchange Act in connection with HP's 2010 and 2011 proxy statements. On February 8, 2012, the defendants filed a motion to dismiss the lawsuit. On October 10, 2012, the Court granted the defendants' motion to dismiss with leave to file an amended complaint. On November 1, 2012, plaintiff filed an amended complaint adding an unjust enrichment claim and claims that the defendants violated Section 14(a) of the Exchange Act and breached their fiduciary duties in connection with HP's 2012 proxy statement. On December 13, 14 and 17, 2012, the defendants moved to dismiss the amended complaint. On May 6, 2013, the court granted the motions to dismiss with prejudice and entered judgment in the defendants' favor.

•

Richard Gammel v. Hewlett-Packard Company, et al. is a putative securities class action filed on September 13, 2011 in the United States District Court for the Central District of California alleging, among other things, that from November 22, 2010 to August 18, 2011, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model, the future of the webOS operating system, and HP's commitment to developing and integrating webOS products, including the TouchPad tablet PC. On April 11, 2012, the defendants filed a motion to dismiss the lawsuit. On September 4, 2012, the court granted the defendants' motion to dismiss and gave plaintiff 30 days to file an amended complaint. On October 19, 2012, plaintiff filed an amended complaint that asserts the same causes of action but drops one of the defendants and shortens the period that the alleged violations of the Exchange Act occurred to February 9, 2011 to August 18, 2011. On December 3, 2012, the defendants moved to dismiss the amended complaint. On May 8, 2013, the court granted the defendants' motion to dismiss in part and denied it in part. As a result of the court's ruling, the alleged class period in the action runs from June 1, 2011 to August 18, 2011.

•

Ernesto Espinoza v. Léo Apotheker, et al. and Larry Salat v. Léo Apotheker, et al. are consolidated lawsuits filed on September 21, 2011 in the United States District Court for the Central District of California alleging, among other things, that the defendants violated Section 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched when they authorized HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending developments in the Gammel matter.

•

Luis Gonzalez v. Léo Apotheker, et al. and Richard Tyner v. Léo Apotheker, et al. are consolidated lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business and by authorizing HP's repurchase of its own stock on August 29, 2010 and July 21,

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

2011. The lawsuits are currently stayed pending resolution of the Espinoza/Salat consolidated action in federal court.

•

Cement & Concrete Workers District Council Pension Fund v. Hewlett-Packard Company, et al. is a putative securities class action filed on August 3, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 13, 2007 to August 6, 2010 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by making statements regarding HP's Standards of Business Conduct ("SBC") that were false and misleading because Mr. Hurd, who was serving as HP's Chairman and Chief Executive Officer during that period, had been violating the SBC and concealing his misbehavior in a manner that jeopardized his continued employment with HP. On February 7, 2013, the defendants moved to dismiss the amended complaint. The Court has not yet ruled on the motion.

Autonomy-Related Legal Matters

        Investigations.    As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy. On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy. On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy. HP is cooperating with the three investigating agencies.

        Litigation.    As described below, HP is involved in various stockholder litigation relating to, among other things, its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP's statements that, based on HP's findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of the HP Board of Directors, and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. These matters include the following:

•

In re HP Securities Litigation consists of two consolidated putative class actions filed on November 26 and 30, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 19, 2011 to November 20, 2012, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's Enterprise Services business. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging that, during that same period, all of the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5(b) by concealing

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

material information and making false statements related to HP's acquisition of Autonomy and that certain defendants violated SEC Rule 10b-5(a) and (c) by engaging in a "scheme" to defraud investors.

•

In re Hewlett-Packard Shareholder Derivative Litigation consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's Enterprise Services business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP's acquisition of Autonomy and Autonomy's IDOL technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in "abuse of control" over HP and corporate waste and were unjustly enriched. On May 10, 2013, HP moved to stay the litigation until HP's Board of Directors decides whether to pursue any of the claims asserted in the litigation or the court resolves HP's anticipated motion to dismiss the consolidated complaint in In re HP Securities Litigation. The court has not yet ruled on the motion.

•

In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 18, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP's 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP's Enterprise Services business and by failing to restrict participants from investing in HP stock.

•

Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. On April 22, 2013, the court stayed the lawsuit pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation in federal court.

Environmental

        HP's operations and products are 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 HP's products and the recycling, treatment and disposal of those

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

products. 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, and the energy consumption associated with those products, including requirements relating to climate change. 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"). HP could incur substantial costs, its products could be restricted from entering certain 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.

        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 and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. 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.

Note 16: Segment Information

Description of Segments

        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 customers in the government, health and education sectors. HP's offerings span personal computing and other access devices; imaging and printing-related products and services; multi-vendor customer services, including infrastructure technology and business process outsourcing, application development and support services, and consulting and integration services; enterprise information technology ("IT") infrastructure, including enterprise storage and server technology, networking products and solutions, and technology support and maintenance; and IT management software, information management solutions and security intelligence/risk management solutions.

        HP's operations are organized into seven reportable business segments for financial reporting purposes: Personal Systems, Printing, the Enterprise Group, Enterprise Services, Software, 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 reportable business segments are based on this organizational structure and information reviewed by HP's management to evaluate the business segment results.

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). While PPS is not a financial reporting segment, HP sometimes

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

provides financial data aggregating the segments within it in order to provide a supplementary view of its business.

        HP has implemented certain organizational realignments. As a result of these realignments, HP re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013, created two new financial reporting segments, the EG segment and the ES segment, and eliminated two other financial reporting segments, the ESSN segment and the Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the TS business unit, which was previously a part of the former Services segment. The ES segment consists of the ABS and ITO business units from the former Services segment, along with the end-user workplace support services business that was previously a part of the TS business unit.

        Also as a result of these realignments, the financial results of the Personal Systems commercial products support business, which were previously reported as part of the TS business unit, are now reported as part of the Other business unit within the Personal Systems segment, and the financial results of the portion of the business intelligence services business that had continued to be reported as part of the Corporate Investments segment following the implementation of prior realignment actions are now reported as part of the ABS business unit. In addition, the end-user workplace support business, which, as noted above, was previously a part of the TS business unit and is now a part of the ES segment, is reported as part of the ITO business unit within that segment.

        A description of the types of products and services provided by each business segment follows.

        The Printing and Personal Systems Group's mission is to leverage the respective strengths of the Personal Systems business and the Printing business in creating a single, unified business that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the business segments within PPS is described in detail below.

Personal Systems provides commercial PCs, consumer PCs, workstations, thin clients, tablets, retail POS systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops and workstations into commercial PC's and consumer notebooks and consumer desktops into consumer PC's when describing its performance in these markets. Described below are HP's global business capabilities within Personal Systems.

•

Commercial PCs are optimized for commercial uses, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments. Commercial PCs include the HP ProBook and HP EliteBook lines of notebooks; the HP Compaq Pro, HP Compaq Elite, HP Pro and HP Elite lines of business desktops and all-in-ones, retail POS systems, HP Thin Clients and HP ElitePad Tablet PCs.

•

Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion and Compaq Presario series of multi-media consumer notebooks, desktops, including the TouchSmart line of touch-enabled notebooks and all-in-one desktops.

•

Workstations are designed and optimized to reliably operate in high performance and demanding application environments, such as computer animation, graphic design, video and audio production, software development, financial trading, engineering design and analysis, architectural engineering, image analysis and energy exploration. HP offers Z desktop workstations, Z all-in-ones and EliteBook mobile workstations.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

Printing provides consumer and commercial printer hardware, supplies, media, software and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial markets. HP groups laserjet, large format and Indigo printers into commercial hardware and inkjet printers into consumer hardware when describing our performance in these markets. Described below are HP's global business capabilities within Printing.

•

Inkjet and Printing Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). It includes single-function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as ePrintCenter.

•

LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices, scanners, web-connected hardware and services, and enterprise software solutions, such as Exstream Software and Web Jetadmin. HP Managed Solutions include managed service products, support and solutions delivered to enterprise customers partnering with third-party software providers to offer workflow solutions in the enterprise environment.

•

Graphics Solutions include large format printing (Designjet and Scitex) and supplies, Indigo digital presses and supplies, inkjet high-speed production solutions and supplies, specialty printing systems and graphics services. Graphic Solutions targets print service providers, architects, engineers, designers, photofinishers and industrial solution providers.

•

Software and Web Services delivers a robust platform and a suite of offerings, including photo-storage and printing offerings, such as Snapfish, document storage, entertainment services, web-connected printing, and PC back-up and related services.

        The Enterprise Group provides servers, storage, networking, technology services and, when combined with HP's Cloud Service Automation software suite, the HP CloudSystem. The CloudSystem enables infrastructure, platform and software-as-a-service in private, public or hybrid environments. Described below are HP's business units and capabilities within EG.

•

Industry Standard Servers offers ProLiant servers, running primarily Windows, Linux and virtualization platforms from software providers, such as Microsoft Corporation and VMware, Inc., and open sourced software from other major vendors while leveraging Intel Corporation and Advanced Micro Devices, Inc. x86 processors. The business spans a range of server product lines, including pedestal-tower, traditional rack, density-optimized rack, blades and solutions for large, distributed computing companies (Hyperscale class) who buy and deploy compute nodes at a massive scale. HP recently launched its new HP Moonshot servers that deliver reductions in cost, space, energy and complexity.

•

Business Critical Systems offers HP Integrity servers based on the Intel Itanium-based processor, HP Integrity NonStop solutions and scale-up x86 ProLiant Servers.

•

Storage offers traditional storage and converged storage solutions. Traditional storage includes tape, storage networking and legacy external disk products such as EVA and XP. Converged storage solutions include 3PAR, StoreOnce, StoreVirtual and StoreAll products.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

•

Networking offers switches and routers that span the data center, campus and branch environments and deliver network management and unified communications. HP's wireless networking offerings include wireless LAN access points and controllers/switches.

•

Technology Services differentiates the HP product experience for customers with consulting and support services focused on the data center. Support services includes Datacenter Care, Foundation Care, Proactive Care and Lifecycle Event services that help align support service levels to business needs, as well as warranty support across EG's product lines. Consulting services, which are tightly aligned and optimized for HP's enterprise product portfolio, include data center, network and storage consulting, and education services, as well as converged cloud, mobility and big data consulting services.

Enterprise Services provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. ES is divided into Infrastructure Technology Outsourcing and Application and Business Services.

•

Infrastructure Technology Outsourcing delivers comprehensive services that encompass the data center, IT security, cloud-based computing, workplace technology, network, unified communications, and enterprise service management.

•

Application and Business Services helps clients develop, revitalize and manage their applications and information assets. This full application life cycle approach encompasses application development, testing, modernization, system integration, maintenance and management for both packaged and custom-built applications. The ABS portfolio also includes intellectual property-based industry solutions, services and technologies to help clients better manage critical business processes. HP also offers services for customer relationship management, finance and administration, human resources, payroll and document processing.

Software provides IT management, information management and security solutions for businesses and enterprises of all sizes. HP's IT management solutions help customers around the world deliver applications and services that perform to defined standards and automate and assure the underlying infrastructure, be it traditional, cloud or hybrid. HP's information management solutions include its Autonomy platform, which is designed to help customers get faster answers from all of their structured and unstructured information. HP's security solutions provide customers with security at all levels of the enterprise—from the infrastructure through applications and information. HP's Software offerings include licenses, support, professional services, and software-as-a-service in order to provide an end-to-end solution to customers.

HP Financial Services 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.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

Corporate Investments includes HP Labs, the webOS business and certain business incubation projects.

Segment Data

        HP derives the results of the business segments directly from its internal management reporting system. The accounting policies 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 restructuring charges and any associated adjustments related to restructuring actions, amortization of purchased intangible assets, stock-based compensation expense related to HP-granted employee stock options, PRUs, restricted stock awards and the employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&D, as well as certain corporate governance costs.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments that are carried out at an arm's-length transfer price. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are classified as operating leases within HPFS. HP's Consolidated Net Revenue is derived and reported after elimination of intersegment revenues for such arrangements in accordance with U.S. GAAP.

        To provide improved visibility and comparability, HP has reflected the 2013 changes to its reporting structure in prior financial reporting periods on an as-if basis, which has resulted in the transfer of revenue and operating profit among the Personal Systems, EG, ES and Corporate Investments segments. These changes had no impact on the previously reported financial results for the Printing, Software or HPFS segments. In addition, none of these changes impacted HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

        Selected operating results information for each business segment was as follows for the three months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	7,325	$	6,033	$	6,591	$	5,889	$	868	$	866	$	10		$	27,582
Intersegment net revenue and other		259		48		228		110		73		15		—			733
Total segment net revenue	$	7,584	$	6,081	$	6,819	$	5,999	$	941	$	881	$	10		$	28,315
Earnings (loss) from operations	$	239	$	958	$	1,082	$	156	$	180	$	97	$	(56	)	$	2,656
2012
Net revenue	$	9,231	$	6,068	$	7,171	$	6,362	$	892	$	962	$	7		$	30,693
Intersegment net revenue and other		239		64		375		127		78		6		—			889
Total segment net revenue	$	9,470	$	6,132	$	7,546	$	6,489	$	970	$	968	$	7		$	31,582
Earnings (loss) from operations	$	516	$	808	$	1,352	$	237	$	172	$	96	$	(48	)	$	3,133

        Selected operating results information for each business segment was as follows for the six months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	15,365	$	11,917	$	13,412	$	11,681	$	1,740	$	1,812	$	14		$	55,941
Intersegment net revenue and other		423		90		391		237		127		26		—			1,294
Total segment net revenue	$	15,788	$	12,007	$	13,803	$	11,918	$	1,867	$	1,838	$	14		$	57,235
Earnings (loss) from operations	$	462	$	1,911	$	2,166	$	232	$	337	$	198	$	(121	)	$	5,185
2012
Net revenue	$	17,883	$	12,294	$	14,201	$	12,634	$	1,779	$	1,902	$	36		$	60,729
Intersegment net revenue and other		479		96		627		226		137		16		1			1,582
Total segment net revenue	$	18,362	$	12,390	$	14,828	$	12,860	$	1,916	$	1,918	$	37		$	62,311
Earnings (loss) from operations	$	975	$	1,569	$	2,681	$	382	$	334	$	187	$	(98	)	$	6,030

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

        The reconciliation of segment operating results information to HP consolidated totals was as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Segment total	$	28,315		$	31,582		$	57,235		$	62,311
Elimination of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729
Earnings before taxes:
Total segment earnings from operations	$	2,656		$	3,133		$	5,185		$	6,030
Corporate and unallocated costs and eliminations		(179	)		(203	)		(288	)		(356	)
Unallocated costs related to stock-based compensation expense		(107	)		(168	)		(291	)		(342	)
Amortization of purchased intangible assets		(350	)		(470	)		(700	)		(936	)
Restructuring charges		(408	)		(53	)		(538	)		(93	)
Acquisition-related charges		(11	)		(17	)		(15	)		(39	)
Interest and other, net		(193	)		(243	)		(372	)		(464	)
Total HP consolidated earnings before taxes	$	1,408		$	1,979		$	2,981		$	3,800

        In connection with certain fiscal 2013 organizational realignments, HP reclassified total assets between its EG and ES financial reporting segments. Following the realignments, the total assets of EG and ES were $32.9 billion and $18.8 billion, respectively, as of October 31, 2012. There have been no material changes to the total assets of HP's individual segments since October 31, 2012.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 16: Segment Information (Continued)

Net revenue by segment and business unit

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Notebooks	$	3,718		$	4,900		$	7,846		$	9,842
Desktops		3,103			3,827			6,424			7,033
Workstations		521			537			1,056			1,072
Other		242			206			462			415
Personal Systems		7,584			9,470			15,788			18,362
Supplies		4,122			4,060			8,015			8,139
Commercial Hardware		1,398			1,479			2,752			2,968
Consumer Hardware		561			593			1,240			1,283
Printing		6,081			6,132			12,007			12,390
Printing and Personal Systems Group		13,665			15,602			27,795			30,752
Industry Standard Servers		2,806			3,186			5,800			6,258
Technology Services		2,272			2,335			4,515			4,599
Storage		857			990			1,690			1,945
Networking		618			614			1,226			1,200
Business Critical Systems		266			421			572			826
Enterprise Group		6,819			7,546			13,803			14,828
Infrastructure Technology Outsourcing		3,721			3,954			7,457			7,934
Application and Business Services		2,278			2,535			4,461			4,926
Enterprise Services		5,999			6,489			11,918			12,860
Software		941			970			1,867			1,916
HP Financial Services		881			968			1,838			1,918
Corporate Investments		10			7			14			37
Total segments		28,315			31,582			57,235			62,311
Eliminations of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729

58

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of
Financial Condition and Results of Operations

The following discussion should be read in conjunction with the Consolidated Condensed Financial Statements and the related notes that appear elsewhere in this document.

OVERVIEW

        We are a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses ("SMBs"), and large enterprises, including customers in the government, health and education sectors. Our offerings span:

•

personal computing and other access devices;

•

imaging and printing-related products and services;

•

multi-vendor customer services, including infrastructure technology and business process outsourcing, application development and support services, and consulting and integration services;

•

enterprise information technology infrastructure, including enterprise server and storage technology, networking products and solutions, technology support and maintenance; and

•

IT management software, information management solutions and security intelligence/risk management solutions.

        HP's operations are organized into seven reportable business segments for financial reporting purposes: Personal Systems, Printing, the Enterprise Group ("EG"), Enterprise Services ("ES"), Software, HP Financial Services ("HPFS") and Corporate Investments.

        Our strategy and operations are currently focused on the following initiatives:

Strategic Focus

        The core of our business is our hardware and infrastructure products, which include our personal computer, imaging and printing, server, storage, and networking products. Our software business provides enterprise IT management software, information management solutions and security intelligence/risk management solutions delivered in the form of traditional software licenses or as software-as-a-service that allow us to differentiate our hardware products and deploy them in a manner that helps our customers solve problems and meets our customers' needs to manage their infrastructure, operations, application life cycles, application quality and security, business processes, and structured and unstructured data. Our Converged Infrastructure portfolio of servers, storage and networking combined with our Cloud Service Automation software suite enables enterprise and service provider clients to deliver infrastructure, platform and software-as-a-service in a private, public or hybrid cloud environment. Layered on top of our hardware and software businesses is our services business, which provides opportunities to drive usage of HP products and solutions, enables us to implement and manage all the technologies upon which our customers rely, and gives us a platform to be more solution-oriented, particularly in our focus areas of cloud, security, big data and mobility, and to be a better strategic partner with our customers.

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Leveraging Our Portfolio and Scale

        We offer one of the IT industry's broadest portfolios of products and services, and we are leveraging that portfolio to our strategic advantage. For example, we are able to provide servers, storage and networking products packaged with services that can be delivered to customers in the manner of their choosing, be it in-house, outsourced as a service via the Internet, or via a hybrid environment. Our portfolio of management software completes the package by allowing our customers to manage their IT operations in an efficient and cost-effective manner. In addition, we are working to optimize our supply chain by eliminating complexity, reducing fixed costs, and leveraging our scale to ensure the availability of components at favorable prices even during shortages. We are also expanding our use of industry standard components in our enterprise products to further leverage our scale.

Addressing the Challenges Facing Our Business

        Our business has experienced a multi-quarter decline in revenue and operating margins. This decline in financial performance reflects a series of challenges facing our business, which we are addressing through consistency of leadership, focus, execution, operational improvements, the implementation of cost reduction and efficiency initiatives, and, most importantly, superior products, services and solutions. Many of those challenges relate to structural and execution issues. For example, we are working to align our costs with our revenue trajectory; we are addressing our underinvestment in research and development ("R&D") and in our internal IT systems in recent years, which has made us less competitive, effective and efficient; we are implementing the data gathering and reporting tools and systems needed to track and report on all key business performance metrics so as to most effectively manage a company of our size, scale and diversity; and we are rebuilding our business relationships with our channel partners. We are also working to restore growth to all of our businesses and to do so profitably. In addition, we are facing dynamic market trends, such as the growth of mobility, the increasing demand for hyperscale computing infrastructure, the shift to software-as-a-service, the transition towards cloud computing and aggressive pricing conditions, and we are developing products and services that position us to win in a very competitive marketplace. Furthermore, we are facing a series of significant macroeconomic challenges, including broad-based weakness in consumer spending, weak demand in the SMB and enterprise sectors in Europe, and declining growth in some emerging markets.

Investing in Our Business

        The cost-reduction and operational efficiency initiatives discussed above are also intended to facilitate increased investment in our business. We expect to invest savings from these efforts across our businesses, including investing to respond to market trends and customer expectations, strengthen our position in our core markets, accelerate growth in adjacent markets, and drive leadership in the four strategic areas of cloud computing, security, big data and mobility. Over time, we expect these investments to allow us to expand in higher margin and higher growth industry segments and further strengthen our portfolio of hardware, software and services to solve customer problems. However, the rate at which we are able to invest in our business and the returns that we are able to achieve from these investments will be affected by many factors, including the efforts to improve our execution and address the industry and macroeconomic challenges facing our business as discussed above.

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        The following provides an overview of our key second quarter and first half of fiscal 2013 financial metrics:

				Printing and Personal Systems Group
	HP(1) Consolidated			Personal Systems			Printing			Total			Enterprise Group			Enterprise Services			Software			HPFS
	In millions, except per share amounts
Three Months Ended April 30
Net revenue	$	27,582		$	7,584		$	6,081		$	13,665		$	6,819		$	5,999		$	941		$	881
Year-over-year net revenue % (decrease) increase		(10.1	)%		(19.9	)%		(0.8	)%		(12.4	)%		(9.6	)%		(7.6	)%		(3.0	)%		(9.0	)%
Earnings from operations	$	1,601		$	239		$	958		$	1,197		$	1,082		$	156		$	180		$	97
Earnings from operations as a % of net revenue		5.8	%		3.2	%		15.8	%		8.8	%		15.9	%		2.6	%		19.1	%		11.0	%
Net earnings	$	1,077
Net earnings per share
Basic	$	0.56
Diluted	$	0.55

				Printing and Personal Systems Group
	HP(1) Consolidated			Personal Systems			Printing			Total			Enterprise Group			Enterprise Services			Software			HPFS
	In millions, except per share amounts
Six Months Ended April 30
Net revenue	$	55,941		$	15,788		$	12,007		$	27,795		$	13,803		$	11,918		$	1,867		$	1,838
Year-over-year net revenue % (decrease) increase		(7.9	)%		(14.0	)%		(3.1	)%		(9.6	)%		(6.9	)%		(7.3	)%		(2.6	)%		(4.2	)%
Earnings from operations	$	3,353		$	462		$	1,911		$	2,373		$	2,166		$	232		$	337		$	198
Earnings from operations as a % of net revenue		6.0	%		2.9	%		15.9	%		8.5	%		15.7	%		1.9	%		18.1	%		10.8	%
Net earnings	$	2,309
Net earnings per share
Basic	$	1.19
Diluted	$	1.18

⁽¹⁾

For the three and six months ended April 30, 2013, HP consolidated net revenue includes a reduction of approximately $0.7 billion and $1.3 billion, respectively, primarily related to the elimination of intersegment net revenue and revenue from our Corporate Investments segment. HP consolidated earnings from operations includes amounts related to the amortization of purchased intangible assets, unallocated costs related to certain stock-based compensation expenses, restructuring charges, corporate and unallocated costs and eliminations, a loss from the Corporate Investments segment, and acquisition-related charges.

        Cash and cash equivalents at April 30, 2013 totaled $13.2 billion, an increase of $1.9 billion from the October 31, 2012 balance of $11.3 billion. The increase for the first six months of fiscal 2013 was due primarily to $6.1 billion of cash provided from operations, the effect of which was partially offset by $1.7 billion in debt repayments, $1.1 billion net investment in property, plant and equipment and $1.6 billion of cash used to repurchase common stock and to pay dividends.

        We intend the discussion of our financial condition and results of operations that follows to provide information that will assist in understanding our Consolidated Condensed Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Consolidated Condensed Financial Statements.

        The discussion of results of operations at the consolidated level is followed by a more detailed discussion of results of operations by segment.

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        For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled "Factors That Could Affect Future Results."

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

        Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our Consolidated Condensed Financial Statements, which we have prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenue and expenses, and disclosure of contingent assets and liabilities. Management believes that there have been no significant changes during the six months ended April 30, 2013 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012.

RESULTS OF OPERATIONS

        Set forth below is an analysis of our financial results comparing the three and six months ended April 30, 2013 to the three and six months ended April 30, 2012. Unless otherwise noted, all comparative performance data included in the results of operations section reflect year-over-year comparisons.

        Results of operations in dollars and as a percentage of net revenue were as follows:

	Three months ended April 30												Six months ended April 30
	2013						2012						2013						2012
	Dollars			% of Revenue			Dollars			% of Revenue			Dollars			% of Revenue			Dollars			% of Revenue
	In millions
Net revenue	$	27,582			100.0	%	$	30,693			100.0	%	$	55,941			100.0	%	$	60,729			100.0	%
Cost of sales(1)		21,055			76.3	%		23,541			76.7	%		43,084			77.0	%		46,854			77.2	%
Gross profit		6,527			23.7	%		7,152			23.3	%		12,857			23.0	%		13,875			22.8	%
Research and development		815			3.0	%		850			2.8	%		1,609			2.9	%		1,636			2.7	%
Selling, general and administrative		3,342			12.1	%		3,540			11.5	%		6,642			11.9	%		6,907			11.4	%
Amortization of purchased intangible assets		350			1.3	%		470			1.5	%		700			1.2	%		936			1.4	%
Restructuring charges		408			1.5	%		53			0.2	%		538			1.0	%		93			0.2	%
Acquisition-related charges		11			0.0	%		17			0.1	%		15			0.0	%		39			0.1	%
Earnings from operations		1,601			5.8	%		2,222			7.2	%		3,353			6.0	%		4,264			7.0	%
Interest and other, net		(193	)		(0.7	)%		(243	)		(0.8	)%		(372	)		(0.6	)%		(464	)		(0.7	)%
Earnings before taxes		1,408			5.1	%		1,979			6.4	%		2,981			5.4	%		3,800			6.3	%
Provision for taxes		(331	)		(1.2	)%		(386	)		(1.2	)%		(672	)		(1.3	)%		(739	)		(1.3	)%
Net earnings	$	1,077			3.9	%	$	1,593			5.2	%	$	2,309			4.1	%	$	3,061			5.0	%

⁽¹⁾

Cost of products, cost of services and financing interest.

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Net Revenue

        The components of the weighted net revenue change were as follows:

	Three months ended April 30, 2013			Six months ended April 30, 2012
	Percentage Points
Personal Systems		(6.1	)		(4.2	)
Enterprise Group		(2.4	)		(1.7	)
Enterprise Services		(1.6	)		(1.6	)
HP Financial Services		(0.3	)		(0.1	)
Printing		(0.2	)		(0.6	)
Software		(0.1	)		(0.1	)
Corporate Investments/Other		0.6			0.4
Total HP		(10.1	)		(7.9	)

        For the three and six months ended April 30, 2013, total HP net revenue decreased 10% and 8%, respectively (decreased 9% and 7%, respectively, on a constant currency basis). U.S. net revenue decreased 9% to $9.8 billion for the three months ended April 30, 2013, while net revenue from outside of the United States decreased 11% to $17.8 billion. For the six months ended April 30, 2013, U.S. net revenue decreased 5% to $19.9 billion, while net revenue from outside of the United States decreased 9% to $36.1 billion.

        The decline in HP revenue for the three and six months ended April 30, 2013 was the result of a continuation of the factors we identified in the first quarter of fiscal 2013: a continued deterioration in our Personal Systems business, particularly in notebooks, due to the accelerating market contraction taking place; and weak global macroeconomic demand, particularly in Europe, the Middle East, and Africa ("EMEA"), a large customer market for us, with several key countries experiencing double-digit revenue declines. For the three months ended April 30, 2013 we also experienced incremental market pressures as IT spending softened and competitive pricing pressures increased.

        For the three and six months ended April 30, 2013, from a segment perspective, as mentioned above, in Personal Systems, we experienced, and are continuing to experience, the impact of a broad market decline, particularly with respect to notebook and consumer products and competitive pricing pressures. The net revenue decline in EG was due to several factors: continued global macroeconomic demand challenges, particularly in EMEA; new product and technology transitions in Storage and Industry Standard Servers ("ISS"); a continued decline in our Business Critical Systems ("BCS") business due in part to demand declines in UNIX; and a competitive pricing environment. The net revenue decrease in ES was driven primarily by net service revenue runoff, unfavorable currency impacts and contractual price declines in ongoing contracts. Net revenue in Printing declined due to unit volume declines in low-end printers as we continued our focus on higher value printers as part of our Ink Advantage initiative. For the three months ended April 30, 2013, net revenue in printing was negatively impacted by currency. An analysis of the change in net revenue for each business segment is included under "Segment Information" below.

Gross Margin

        Total HP gross margin increased by 0.4 percentage points and 0.2 percentage points for the three and six months ended April 30, 2013, respectively.

Three months ended April 30, 2013 compared with three months ended April 30, 2012

        From a segment perspective, the small increase in gross margin was primarily due to a gross margin increase in Printing and, to a lesser extent, in HPFS. Personal Systems, ES, EG and Software

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all experienced gross margin declines. The primary factors impacting gross margin performance in each of our segments are summarized as follows:

•

Printing gross margin increased due to higher average selling prices in higher-value consumer printers, improvements in toner as a result of lower discounting, and a higher mix of supplies;

•

HPFS gross margin increased due primarily to lower bad debt expense and a lower mix of operating leases;

•

Software gross margin decreased due primarily to higher development costs in IT/cloud management products and higher supply chain costs in security products.

•

Personal Systems experienced a gross margin decline due primarily to competitive pricing pressures and higher component costs;

•

EG experienced a gross margin decline due primarily to competitive pricing pressures in ISS and, to a lesser extent, in Storage; and

•

ES gross margin decreased due primarily to net service revenue runoff and contractual price declines partially offset by improvements in resource management, productivity and underperforming contracts.

Six months ended April 30, 2013 compared with six months ended April 30, 2012

        From a segment perspective, the small increase in gross margin was primarily due to a gross margin increase in Printing and, to a lesser extent, in HPFS. Personal Systems, ES, EG and Software all experienced gross margin declines. The primary factors impacting gross margin performance in each of our segments are summarized as follows:

•

Printing gross margin increased due to higher average selling prices in higher-value consumer printers, improvements in toner as a result of lower discounting, and a higher mix of supplies, including ink supplies;

•

HPFS gross margin increased due primarily to a lower mix of operating leases and lower bad debt expense;

•

Software gross margin decreased due primarily to higher development costs in IT/cloud management products and higher supply chain costs in security products;

•

Personal Systems experienced a gross margin decline due primarily to competitive pricing pressures;

•

EG experienced a gross margin decline due to declines in the support component of Technology Services ("TS") as a result of eroding hardware sales in our BCS business unit and competitive pricing pressures in ISS; and

•

ES gross margin decreased due primarily to net service revenue runoff and contractual price declines, the effect of which was partially offset by improved resource management.

A more detailed discussion of segment gross margins is included under "Segment Information" below.

Operating Expenses

        Research and Development

        R&D expense decreased in the three and six months ended April 30, 2013 due to cost savings from restructuring, vendor rebates and the elimination of R&D expense associated with the webOS device business. Absent the impact of these items, R&D expense increased due to innovation-focused spending for Storage and HP Converged Cloud. For the three months ended April 30, 2013, R&D

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expense increased for ES and Software, and decreased for EG, Printing, Corporate Investments and Personal Systems. For the six months ended April 30, 2013, R&D expense increased for EG, ES and Personal Systems, and decreased for Corporate Investments, Printing and Software. As a percentage of revenue, R&D expense increased due to the decline in total HP net revenue.

        Selling, General and Administrative

        Selling, general and administrative ("SG&A") expense decreased in the three and six months ended April 30, 2013 due primarily to cost savings associated with our ongoing restructuring efforts. For the three and six months ended April 30, 2013, SG&A expense as a percentage of net revenue increased for Personal Systems, EG, ES and HPFS due to the revenue declines taking place in these segments. Software and Printing experienced a decrease in SG&A expense as a percentage of revenue.

        Amortization of Purchased Intangible Assets

        The decrease in amortization expense for the three and six months ended April 30, 2013 was due primarily to lower levels of amortization expense as a result of the purchased intangible asset impairment taken in the second half of fiscal 2012 related to Autonomy.

        Restructuring Charges

        The increase in restructuring costs for the three and six months ended April 30, 2013 was due primarily to higher charges related to data center and real estate consolidations under our fiscal 2012 restructuring plan, the effect of which was partially offset by the reversal of severance charges for the fiscal 2010 ES restructuring plan due to an updated estimate of future expected cash payments. Restructuring charges for the three months ended April 30, 2013 were $408 million. These charges included $433 million of severance and infrastructure costs related to our fiscal 2012 restructuring plan partially offset by a reversal of $14 million of severance charges related to our fiscal 2010 ES restructuring plan. Restructuring charges for the six months ended April 30, 2013 were $538 million. These charges included $723 million of severance and infrastructure costs related to our fiscal 2012 restructuring plan, which was partially offset by a $171 million of the severance accrual reversal related to our fiscal 2010 ES restructuring plan.

        As part of our ongoing business operations, we incur workforce rebalancing charges for severance and related costs. Workforce rebalancing activities are considered part of normal operations as we continue to optimize our cost structure. Workforce rebalancing costs are included in our business segment results, and we expect to incur additional workforce rebalancing costs in the future.

        Acquisition-Related Charges

        The decrease in acquisitions-related charges for the three and six months ended April 30, 2013 was due primarily to lower retention bonuses associated with acquisitions completed in fiscal 2010 and 2011. For the three and six months ended April 30, 2013, we recorded acquisition-related charges of $11 million and $15 million, respectively.

Interest and Other, Net

        For the three and six months ended April 30, 2013, interest and other, net expense decreased by $50 million and $92 million, respectively. For the three months ended April 30, 2013, the decrease was driven by lower losses on investments and lower interest expense. For the six months ended April 30, 2013, the decrease was driven by lower losses on investments, lower interest expense and lower currency losses.

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Provision for Taxes

        Our effective tax rate was 23.5% and 19.5% for the three months ended April 30, 2013 and April 30, 2012, respectively, and 22.5% and 19.5% for the six months ended April 30, 2013 and April 30, 2012, respectively. Our effective tax rate increased in the three and six months ended April 30, 2013 in part due to the lower tax rates of the discrete items discussed below. Our effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world. We have not provided U.S. taxes for all of such earnings because we plan to reinvest some of those earnings indefinitely outside the United States.

        In the three and six months ended April 30, 2013, we recorded discrete items resulting in a net tax benefit of $108 million and $103 million, respectively. These amounts included tax benefits of $47 million and $63 million on restructuring and acquisition-related charges for the three and six months ended April 30, 2013, respectively. Other discrete items for the three and six months ended April 30, 2013 included tax benefits of $81 million and $131 million for various adjustments to estimated tax provisions of foreign jurisdictions and miscellaneous tax charges of $20 million and tax benefits of $9 million, respectively. In addition, in January 2013, the American Taxpayer Relief Act of 2012 was signed into law. In the first quarter of fiscal 2013, we recorded a tax benefit of $50 million arising from the retroactive research and development credit provided by that legislation. We also recorded a tax charge of $150 million related to a past uncertain tax position in the first quarter of fiscal 2013, increasing the effective tax rate.

        In the three and six months ended April 30, 2012, we recorded discrete items with a net tax benefit of $25 million and $74 million, respectively, decreasing the effective tax rate. These amounts included net tax benefits of $22 million and $50 million, respectively, from restructuring and acquisition charges.

Segment Information

        A description of the products and services for each segment can be found in Note 16 to the Consolidated Condensed Financial Statements. Future changes to this organizational structure may result in changes to the business segments disclosed.

        HP has implemented certain organizational realignments. As a result of these realignments, HP re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013:

•

HP created a new EG segment consisting of its TS business unit, which was previously a part of its former Services segment, and its former Enterprise Servers, Storage and Networking ("ESSN") segment;

•

HP created a new ES segment consisting of its Application and Business Services ("ABS") business unit and its Infrastructure Technology Outsourcing ("ITO") business unit, both of which were previously a part of its former Services segment;

•

HP transferred its Personal Systems commercial products support business from its TS business unit to the Other business unit within its Personal Systems segment;

•

HP transferred its end-user workplace support business from its TS business unit to its ITO business unit within its new ES segment; and

•

HP transferred the portion of its business intelligence services business that was a part of its Corporate Investments segment to its ABS business unit within its new ES segment.

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As noted above, as a result of these changes, HP created two new financial reporting segments, the EG segment and the ES segment. Also as noted above, HP eliminated two existing financial reporting segments, the ESSN segment and the Services segment. Taking into account these changes, effective at the beginning of HP's first quarter of fiscal 2013, HP's seven financial reporting segments are Personal Systems, Printing, the Enterprise Group, Enterprise Services, Software, HP Financial Services and Corporate Investments.

Printing and Personal Systems Group

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group. We describe the results of the business segments within the Printing and Personal Systems Group below.

Personal Systems

	Three months ended April 30
	2013			2012			% Decrease
	In millions
Net revenue	$	7,584		$	9,470			(19.9	)%
Earnings from operations	$	239		$	516			(53.7	)%
Earnings from operations as a % of net revenue		3.2	%		5.4	%

	Six months ended April 30
	2013			2012			% Decrease
	In millions
Net revenue	$	15,788		$	18,362			(14.0	)%
Earnings from operations	$	462		$	975			(52.6	)%
Earnings from operations as a % of net revenue		2.9	%		5.3	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended April 30, 2013			Six months ended April 30, 2013
	Percentage Points
Notebook PCs		(12.5	)		(10.9	)
Desktop PCs		(7.6	)		(3.3	)
Workstations		(0.2	)		(0.1	)
Other		0.4			0.3
Total Personal Systems		(19.9	)		(14.0	)

Three and six months ended April 30, 2013 compared with three and six months ended April 30, 2012

        Personal Systems net revenue decreased 19.9% (decreased 19.2% on a constant currency basis) and decreased 14.0% (decreased 12.7% on a constant currency basis) for the three and six months ended April 30, 2013, respectively. The Personal Systems business continues to experience significant challenges due to the overall market shift towards tablet products. The current year comparison is impacted by revenue in the prior-year period benefitting from a recovery from hard disk drive supply constraints. The decline in Personal Systems revenue for the three months ended April 30, 2013 was driven by a 21% decline in unit volume, the effect of which was partially offset by 1% increase in average selling prices ("ASPs"). The revenue decline for the six months ended April 30, 2013 was driven by a 13% decline in unit volume along with a 1% decline in ASPs. The unit volume decrease for both periods was led by declines in consumer and notebook products as a result of the market shift towards tablet products. The increase in ASPs for the three months ended April 30, 2013 was driven by

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a favorable mix of commercial products, the effect of which was partially offset by a competitive pricing environment. The decline in ASPs for the six months ended April 30, 2013 was due primarily to a competitive pricing environment. Net revenue for consumer clients decreased 29% and 21% while net revenue for commercial clients decreased 14% and 9% for the three and six months ended April 30, 2013, respectively. Notebook PCs net revenue decreased 24% and 20% while Desktop PCs net revenue decreased 19% and 9% for the three and six months ended April 30, 2013, respectively. Workstations net revenue decreased 3% and 1% while Other net revenue increased 17% and 11%, respectively. The net revenue increase for both periods in Other was related to increased sales of extended warranties and third-party branded options.

        Personal Systems earnings from operations as a percentage of net revenue decreased 2.2 and 2.4 percentage points for the three and six months ended April 30, 2013, respectively. The decrease was driven by a decline in gross margin combined with an increase in operating expenses as a percentage of net revenue. The decline in gross margin for both periods was due to competitive pricing pressures. In addition, for the three months ended April 30, 2013, we experienced higher component costs. These unfavorable impacts to gross margin were partially offset by lower warranty and logistics costs and a favorable mix of higher-margin commercial products. Operating expenses as a percentage of net revenue increased due primarily to the size of the revenue decline. However, operating expenses declined across most of the expense categories as a result of our ongoing restructuring efforts.

Printing

	Three months ended April 30
	2013			2012			% (Decrease) Increase
	In millions
Net revenue	$	6,081		$	6,132			(0.8	)%
Earnings from operations	$	958		$	808			18.6	%
Earnings from operations as a % of net revenue		15.8	%		13.2	%

	Six months ended April 30
	2013			2012			% (Decrease) Increase
	In millions
Net revenue	$	12,007		$	12,390			(3.1	)%
Earnings from operations	$	1,911		$	1,569			21.8	%
Earnings from operations as a % of net revenue		15.9	%		12.7	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended April 30, 2013			Six months ended April 30, 2013
	Percentage Points
Supplies		1.0			(1.0	)
Consumer Hardware		(0.5	)		(0.4	)
Commercial Hardware		(1.3	)		(1.7	)
Total Printing		(0.8	)		(3.1	)

Three months ended April 30, 2013 compared with three months ended April 30, 2012

        Printing net revenue decreased 0.8% (increased 0.7% on a constant currency basis) for the three months ended April 30, 2013 driven by unfavorable currency impacts, in particular, weakness in the euro. Net revenue for Supplies increased by 2% for the three months ended April 30, 2013, driven by growth in toner and large format printing supplies, the effect of which was partially offset by a decline

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in ink supplies. We are experiencing progress in gaining market acceptance with our higher-value Ink Advantage products. Printer unit volumes declined by 11% largely driven by declines in low-end consumer printers as we continue our focus on high-end printers. Partially offsetting the unit decline was a 6% increase in average revenue per unit. Net revenue for Commercial Hardware decreased 5% driven by volume reductions of 5% combined with a 1% decrease in average revenue per unit. These effects were partially offset by net revenue growth in the graphics services and managed print services businesses. Net revenue for Consumer Hardware decreased 5% driven by volume reductions of 13%, the effect of which was partially offset by a 9% increase in average revenue per unit. The unit decline was due to a volume decline in low-end printers, the effect of which was partially offset by a volume increase in high-end printers. The increase in average revenue per unit was due to our focus on higher-value printers.

        Printing earnings from operations as a percentage of net revenue increased by 2.6 percentage points for the three months ended April 30, 2013, due to an increase in gross margin combined with lower operating expenses as a percentage of net revenue. Gross margin increased driven by higher average selling prices in higher-value consumer printers, improvements in toner as a result of lower discounting and a higher mix of supplies. These effects were partially offset by an unfavorable currency impact and a mix shift away from higher-margin ink supplies. Operating expenses as a percentage of net revenue decreased due to lower administrative, R&D and field selling costs as a result of our ongoing restructuring efforts. These effects were partially offset by higher marketing expenses to support our product innovation.

Six months ended April 30, 2013 compared with six months ended April 30, 2012

        Printing net revenue decreased 3.1% (decreased 2.0% on a constant currency basis) for the six months ended April 30, 2013, due to our shift in focus to high-end printers from low-end printers. Printer unit volumes declined by 11% while average revenue per unit increased by 4%. Net revenue for Supplies decreased 2% for the six months ended April 30, 2013, due to weak demand in all regions. These effects were partially offset by growth in large format printing supplies. Net revenue for Commercial Hardware decreased 7% driven by volume reductions of 5% along with a 4% decline in average revenue per unit. These effects were partially offset by net revenue growth in the graphics services and managed print services businesses. Net revenue for Consumer Hardware decreased 3% driven by volume reductions of 13%, the effect of which was partially offset by a 12% increase in average revenue per unit. Unit volume and average revenue per unit increased within high-end printers as a result of our continued focus on more profitable higher-value printers. Additionally, the introduction of our new inkjet SMB printers has favorably impacted revenues and average revenue per unit.

        Printing earnings from operations as a percentage of net revenue increased by 3.2 percentage points for the six months ended April 30, 2013, due to an increase in gross margin combined with lower operating expenses as a percentage of net revenue. Gross margin increased due to higher average selling prices in higher-value consumer printers, improvement in toner due to lower discounting as well as a higher mix of supplies including ink supplies. These effects were partially offset by an unfavorable currency impact driven primarily by weakness in the euro. Operating expenses as a percentage of net revenue decreased due to lower administrative, R&D and field selling costs as a result of our ongoing restructuring efforts. These effects were partially offset by higher marketing expenses to support our product innovation.

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Enterprise Group

	Three months ended April 30
	2013			2012			% Decrease
	In millions
Net revenue	$	6,819		$	7,546			(9.6	)%
Earnings from operations	$	1,082		$	1,352			(20.0	)%
Earnings from operations as a % of net revenue		15.9	%		17.9	%

	Six months ended April 30
	2013			2012			% Decrease
	In millions
Net revenue	$	13,803		$	14,828			(6.9	)%
Earnings from operations	$	2,166		$	2,681			(19.2	)%
Earnings from operations as a % of net revenue		15.7	%		18.1	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended April 30, 2013			Six months ended April 30, 2013
	Percentage Points
Industry Standard Servers		(5.0	)		(3.1	)
Business Critical Systems		(2.1	)		(1.7	)
Storage		(1.8	)		(1.7	)
Technology Services		(0.8	)		(0.6	)
Networking		0.1			0.2
Total EG		(9.6	)		(6.9	)

Three and six months ended April 30, 2013 compared with three and six months ended April 30, 2012

        EG net revenue decreased 9.6% (decreased 8.8% on a constant currency basis) and decreased 6.9% (decreased 5.8% on a constant currency basis) for the three and six months ended April 30, 2013, respectively. The decrease for both periods was due primarily to continued macroeconomic demand challenges, new product and technology transitions in Storage and ISS, and a competitive pricing environment. For both periods, each of the business units within EG experienced year-over-year revenue declines, except Networking. ISS net revenue decreased by 12% and 7% for the three and six months ended April 30, 2013, respectively, with declines across all regions due to continued macro-economic demand challenges and strong competitive pressures resulting in unit volume declines. BCS net revenue decreased by 37% and 31% for the three and six months ended April 30, 2013, respectively, as a result of an ongoing pressure from a declining UNIX market and lower demand for our Itanium-based servers. For both the three and six months ended April 30, 2013, Storage net revenue decreased by 13% due to product transitions with declines in traditional storage products, which include our tape, storage networking, and legacy external disk products partially offset by strong growth in converged storage solutions, which include our 3PAR, StoreOnce, StoreVirtual and StoreAll products. TS net revenue decreased by 3% and 2% for the three and six months ended April 30, 2013, respectively. The revenue declines for both periods were due to revenue declines in the support and consulting businesses. Support revenue for both periods experienced unfavorable currency impacts and a reduction in support for BCS products. The revenue decline in consulting for both periods was as a result of our decision to focus on more profitable services offerings. Networking net revenue increased by 1% and 2% for the three and six months ended April 30, 2013, respectively, due to higher market demand for our core data center products, primarily switching, the effect of which was partially offset by the impact of the divestiture of our video surveillance business in the first quarter of fiscal 2012.

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        EG earnings from operations as a percentage of net revenue decreased by 2.0 percentage points and 2.4 percentage points for the three and six months ended April 30, 2013, respectively. The decrease in earnings from operations as a percentage of net revenue for both periods was driven by a decrease in gross margin coupled with an increase in operating expenses as a percentage of net revenue. The gross margin decrease for the three months ended April 30, 2013 was due primarily to competitive pricing pressures in ISS and, to a lesser extent, in Storage. The gross margin decrease for the six months ended April 30, 2013, was due primarily to a gross margin decline in TS, and to a lesser extent, in ISS. The gross margin decline in TS was driven by the impact of a shift from traditionally higher-margin hardware break-fix support such as support associated with BCS and ISS products, to lower-margin service offerings such as offerings associated with networking and certain storage products. The increase in operating expenses as a percentage of net revenue for both periods was driven by an increase in field selling costs, R&D, and administrative costs as a percentage of revenue. This increase was partially offset by cost savings associated with our ongoing restructuring efforts.

Enterprise Services

	Three months ended April 30
	2013			2012			% Decrease
	In millions
Net revenue	$	5,999		$	6,489			(7.6	)%
Earnings from operations	$	156		$	237			(34.2	)%
Earnings from operations as a % of net revenue		2.6	%		3.7	%

	Six months ended April 30
	2013			2012			% (Decrease)
	In millions
Net revenue	$	11,918		$	12,860			(7.3	)%
Earnings from operations	$	232		$	382			(39.3	)%
Earnings from operations as a % of net revenue		1.9	%		3.0	%

        The components of the weighted net revenue increase by business unit were as follows:

	Three months ended April 30, 2013			Six months ended April 30, 2013
	Percentage Points
Application and Business Services		(4.0	)		(3.6	)
Infrastructure Technology Outsourcing		(3.6	)		(3.7	)
Total ES		(7.6	)		(7.3	)

Three and six months ended April 30, 2013 compared with three and six months ended April 30, 2012

        ES net revenue decreased 7.6% (decreased 6.1% on a constant currency basis) and decreased 7.3% (decreased 6.3% on a constant currency basis) for the three and six months ended April 30, 2013, respectively. The net revenue decrease in ES was driven primarily by net service revenue runoff, unfavorable currency impacts and contractual price declines in ongoing contracts. ABS net revenue declined 10% and 9% for the three and six months ended April 30, 2013, respectively. The net revenue decline was due primarily to net service revenue runoff, softness in contract signing, and unfavorable currency impacts, the effect of which was partially offset by revenue growth in cloud and information and analytics offerings. ITO net revenue decreased by 6% for both the three and six months ended April 30, 2013, respectively, due to net service revenue runoff, contractual price declines in ongoing

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contracts and unfavorable currency impacts, the effects of which were partially offset by net revenue growth in security and cloud offerings.

        ES earnings from operations as a percentage of net revenue decreased by 1.1 percentage points for both the three and six months ended April 30, 2013, due to a decrease in gross margin combined with an increase in operating expenses as a percentage of net revenue. Gross margin declined due primarily to net service revenue runoff and contractual price declines, the effects of which were partially offset by our continued focus on improving resource management, profit improvements on under-performing contracts and delayed account run-off. Operating expenses as a percentage of net revenue increased as the revenue decline outpaced operating expense reduction. Operating expense declined due primarily to reduced field selling costs related to lower headcount as a result of our ongoing restructuring efforts.

Software

	Three months ended April 30
	2013			2012			% (Decrease) Increase
	In millions
Net revenue	$	941		$	970			(3.0	)%
Earnings from operations	$	180		$	172			4.7	%
Earnings from operations as a % of net revenue		19.1	%		17.7	%

	Six months ended April 30
	2013			2012			% (Decrease) Increase
	In millions
Net revenue	$	1,867		$	1,916			(2.6	)%
Earnings from operations	$	337		$	334			0.9	%
Earnings from operations as a % of net revenue		18.1	%		17.4	%

Three and six months ended April 30, 2013 compared with three and six months ended April 30, 2012

        Software net revenue decreased 3.0% (decreased 2.0% on a constant currency basis) and decreased 2.6% (decreased 1.4% on a constant currency basis) for the three and six months ended April 30, 2013, respectively. The net revenue decrease for both periods was due primarily to a decline in license and professional services revenue from information management products and IT/cloud management products. These declines were partially offset by support revenue growth from our information management and security products and software-as-a-service ("SaaS") revenue growth from our information management products. For the three months ended April 30, 2013, net revenue from licenses and professional services decreased by 23% and 16%, respectively, while net revenue from support and SaaS increased by 12% and 18%, respectively. For the six months ended April 30, 2013, net revenue from licenses and professional services decreased by 20% and 15%, respectively, while net revenue from support and SaaS increased by 11% and 10%, respectively.

        For the three and six months ended April 30, 2013, Software earnings from operations as a percentage of net revenue increased by 1.4 percentage points and 0.7 percentage points, respectively, due to a decrease in operating expense as a percentage of net revenue, the effect of which was partially offset by a decrease in gross margin. The decrease in gross margin for both periods was due primarily to higher development costs in IT/cloud management products and higher supply chain costs in security products. The decrease in operating expense as a percentage of revenue was driven by cost savings associated with our ongoing restructuring efforts which resulted in lower field selling and administrative costs as a percentage of revenue.

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HP Financial Services

	Three months ended April 30
	2013			2012			% Increase
	In millions
Net revenue	$	881		$	968			(9.0	)%
Earnings from operations	$	97		$	96			1.0	%
Earnings from operations as a % of net revenue		11.0	%		9.9	%

	Six months ended April 30
	2013			2012			% Increase
	In millions
Net revenue	$	1,838		$	1,918			(4.2	)%
Earnings from operations	$	198		$	187			5.9	%
Earnings from operations as a % of net revenue		10.8	%		9.7	%

Three months ended April 30, 2013 compared with three months ended April 30, 2012

        HPFS net revenue decreased by 9.0% for the three months ended April 30, 2013, due primarily to lower rental revenue from a decrease in operating lease assets, lower revenue from early customer buyouts, lower asset recovery services revenue and unfavorable currency impacts. These effects were partially offset by higher finance income from an increase in finance lease assets.

        HPFS earnings from operations as a percentage of net revenue increased by 1.1 percentage points for the three months ended April 30, 2013. The increase was due primarily to an increase in gross margin, the effect of which was partially offset by an increase in operating expenses as a percentage of net revenue resulting from lower capitalization of initial direct costs. The increase in gross margin was the result of lower bad debt expense, higher portfolio margin from a lower mix of operating leases and higher margins on customer buyouts, coupled with lower transaction taxes.

Six months ended April 30, 2013 compared with six months ended April 30, 2012

        HPFS net revenue decreased by 4.2% for the six months ended April 30, 2013, due primarily to lower rental revenue from a decrease in operating lease assets, lower asset recovery services revenue, and unfavorable currency impacts. These effects were partially offset by higher finance income from an increase in finance lease assets and higher revenue from early customer buyouts.

        HPFS earnings from operations as a percentage of net revenue increased by 1.1 percentage points for the six months ended April 30, 2013. The increase was due primarily to an increase in gross margin, the effect of which was partially offset by an increase in operating expenses as a percentage of net revenue resulting from lower capitalization of initial direct costs. The increase in gross margin was the result of lower bad debt expense and higher portfolio margin from a lower mix of operating leases, coupled with lower transaction taxes.

Financing Originations

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions
Total financing originations	$	1,302	$	1,721	$	2,464	$	3,264

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        New financing originations, which represent the amount of financing provided to customers for equipment and related software and services, including intercompany activity, decreased 24.3% and 24.5% for the three and six months ended April 30, 2013, respectively. The decrease was driven by lower financing associated with HP product sales and services offerings, an increase in financing costs due to previous rating downgrades, along with unfavorable currency impacts.

Portfolio Assets and Ratios

        HPFS maintains a strategy to generate a competitive return on equity by effectively leveraging its portfolio against the risks associated with interest rates and credit. The HPFS business model is asset-intensive and uses certain internal metrics to measure its performance against other financial services companies, including a segment balance sheet that is derived from our internal management reporting system. The accounting policies used to derive these amounts are substantially the same as those used by the consolidated company. However, certain intercompany loans and accounts that are reflected in the segment balances are eliminated in our Consolidated Condensed Financial Statements.

        The portfolio assets and ratios derived from the segment balance sheet for HPFS were as follows:

	April 30, 2013			October 31, 2012
	In millions
Portfolio assets(1)	$	12,524		$	13,054
Allowance for doubtful accounts(2)		149			149
Operating lease equipment reserve		79			81
Total reserves		228			230
Net portfolio assets	$	12,296		$	12,824
Reserve coverage		1.8	%		1.8	%
Debt to equity ratio(3)		7.0x			7.0x

⁽¹⁾

Portfolio assets include gross financing receivables of approximately $7.3 billion at April 30, 2013 and $7.7 billion at October 31, 2012 and net equipment under operating leases of $2.3 billion and $2.4 billion at April 30, 2013 and October 31, 2012, respectively, as disclosed in Note 9 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference. Portfolio assets also include capitalized profit on intercompany equipment transactions of approximately $0.8 billion at April 30, 2013 and $0.9 billion at October 31, 2012, and intercompany leases of approximately $2.1 billion at April 30, 2013 and at October 31, 2012, both of which are eliminated in consolidation.

⁽²⁾

Allowance for doubtful accounts includes both the short-term and the long-term portions of the allowance on financing receivables.

⁽³⁾

HPFS debt consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt and $0.9 billion of debt issued directly by HPFS. At April 30, 2013 and October 31, 2012, debt allocated to HPFS totaled $10.7 billion and $11.3 billion, respectively. We believe the allocated intercompany debt to equity ratio above is comparable to that of other similar financing companies.

        At April 30, 2013 and October 31, 2012, HPFS cash balances were approximately $0.7 billion.

        Net portfolio assets at April 30, 2013 decreased 4.1% from October 31, 2012. The decrease resulted from lower levels of new financing originations, early customer buyouts and unfavorable currency impacts. The overall percentage of portfolio asset reserves remained flat as a percentage of the portfolio assets.

        For the three and six months ended April 30, 2013, HPFS recorded net bad debt expenses of $12 million and $27 million, respectively. For the comparable periods of fiscal 2012, net bad debt expenses were $13 million and $32 million, respectively.

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Corporate Investments

	Three months ended April 30
	2013			2012			% Increase
	In millions
Net revenue	$	10		$	7			42.9	%
Loss from operations	$	(56	)	$	(48	)		16.7	%
Loss from operations as a % of net revenue		(560.0	)%		(685.7	)%

	Six months ended April 30
	2013			2012			% (Decrease) Increase
	In millions
Net revenue	$	14		$	37			(62.2	)%
Loss from operations	$	(121	)	$	(98	)		23.5	%
Loss from operations as a % of net revenue		(864.3	)%		(264.9	)%

        Net revenue in Corporate Investments increased for the three months ended April 30, 2013 due to revenue increases from intellectual property licensing, the effect of which was partially offset by a decline in residual activity from the webOS device business. The revenue decrease in Corporate Investments for the six months ended April 30, 2013 was due primarily to the decline in residual activity from the webOS device business.

        Corporate Investments reported a larger loss from operations for both the three and six months ended April 30, 2013, due to a favorable adjustment to supplier-related liabilities recorded in the first half of fiscal 2012, coupled with the current period decline in residual activity related to the webOS device business. The loss from operations in Corporate Investments was also due to expenses associated with corporate strategy, global alliances and HP Labs.

LIQUIDITY AND CAPITAL RESOURCES

        Our cash balances are held in numerous locations throughout the world, with substantially all of those amounts held outside of the United States. Amounts held outside of the United States are generally utilized to support non-U.S. liquidity needs, although a portion of those amounts may from time to time be subject to short-term intercompany loans into the United States. Most of the amounts held outside of the United States could be repatriated to the United States but, under current law, would be subject to U.S. federal income taxes, less applicable foreign tax credits. Repatriation of some foreign balances is restricted by local laws. Except for foreign earnings that are considered indefinitely reinvested outside of the United States, we have provided for the U.S. federal tax liability on these earnings for financial statement purposes. Repatriation could result in additional income tax payments in future years. Where local restrictions prevent an efficient intercompany transfer of funds, our intent is that cash balances would remain outside of the United States and we would meet liquidity needs through ongoing cash flows, external borrowings, or both. We utilize a variety of tax planning and financing strategies in an effort to ensure that our worldwide cash is available in the locations in which it is needed. We do not expect restrictions or potential taxes on repatriation of amounts held outside of the United States to have a material effect on HP's overall liquidity, financial condition or results of operations.

LIQUIDITY

        Our cash position remains strong, and we expect that our cash balances, anticipated cash flow generated from operations and access to capital markets will be sufficient to cover our expected near-term cash outlays.

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FINANCIAL CONDITION (Sources and Uses of Cash)

	Six months ended April 30
	2013			2012
	In millions
Net cash provided by operating activities	$	6,118		$	3,666
Net cash used in investing activities		(1,198	)		(2,018	)
Net cash used in financing activities		(2,981	)		(1,380	)
Net increase in cash and cash equivalents	$	1,939		$	268

Operating Activities

        Compared to the corresponding period in 2012, net cash provided by operating activities increased by $2.5 billion for the six months ended April 30, 2013. The increase was due primarily to efficient utilization of cash resources for payment of accounts payable, higher cash generated through the utilization of operating assets, primarily accounts and financing receivables, and a reduction in payments associated with webOS contract cancellations.

        Our key working capital metrics are as follows:

	Three months ended April 30
	2013			2012
Days of sales outstanding in accounts receivable		48			49
Days of supply in inventory		26			28
Days of purchases outstanding in accounts payable		(53	)		(49	)
Cash conversion cycle		21			28

        Days of sales outstanding in accounts receivable ("DSO") measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for doubtful accounts, by a 90-day average net revenue. Our accounts receivable balance was $14.6 billion as of April 30, 2013.

        Days of supply in inventory ("DOS") measures the average number of days from procurement to sale of our product. DOS is calculated by dividing ending inventory by a 90-day average cost of goods sold. Our inventory balance was $6.0 billion as of April 30, 2013.

        Days of purchases outstanding in accounts payable ("DPO") measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average cost of goods sold. Our accounts payable balance was $12.3 billion as of April 30, 2013.

        Our working capital requirements depend upon our effective management of the cash conversion cycle, which represents effectively the number of days that elapse from the day we pay for the purchase of raw materials to the collection of cash from our customers. The cash conversion cycle is the sum of DSO and DOS less DPO.

        The cash conversion cycle for the second quarter of fiscal 2013 decreased by seven days compared to the corresponding period in fiscal 2012. The decrease in DSO was due primarily to an increase in cash discounts usage, a decline in extended payment terms volume and improved collections, the effects of which were partially offset by unfavorable revenue linearity. The decrease in DOS was due to lower

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inventory balances, relative to the rate of decline in cost of goods sold, in most segments as of April 30, 2013. The increase in DPO was primarily due to favorable purchasing linearity.

Investing Activities

        Compared to the corresponding period in fiscal 2012, net cash used in investing activities decreased by $0.8 billion for the six months ended April 30, 2013 due primarily to lower investment in property, plant and equipment and an increase in cash generated from sales of available-for-sale securities and other investments.

Financing Activities

        Compared to the corresponding period in fiscal 2012, net cash used in financing activities increased by $1.6 billion for the six months ended April 30, 2013. The increase was due primarily to lower net proceeds from the issuance of U.S. Dollar Global Notes, the effect of which was partially offset by lower net repayments of commercial paper and lower repayments of debt.

CAPITAL RESOURCES

Debt Levels

        We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, overall cost of capital and targeted capital structure. Outstanding borrowings decreased to $26.8 billion as of April 30, 2013, as compared to $28.4 billion at October 31, 2012, bearing weighted-average interest rates of 2.79% and 2.95%, respectively. During the first six months of fiscal 2013, we issued $1.4 billion and repaid $1.4 billion of commercial paper. We also repaid $1.5 billion of Global Notes that matured in March 2013.

        During the next four fiscal quarters, $6.0 billion of Global Notes is scheduled to mature. We expect to have sufficient cash, cash from operations and access to capital markets to repay those maturing Global Notes. For more information on our borrowings, see Note 11 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference.

        Our weighted-average interest rate reflects the average effective rate on our borrowings prevailing during the period; and factors in the impact of interest rate swaps used to convert hedged fixed-rate debt instruments into variable-rate instruments. For more information on our interest rate swaps, see Note 8 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference.

Available Borrowing Resources

        At April 30, 2013, we had the following resources available to obtain short-term or long-term financings if we need additional liquidity:

	At April 30, 2013
	In millions
2012 Shelf Registration Statement(1)		Unspecified
Commercial paper programs(1)	$	16,190
Uncommitted lines of credit(1)	$	1,461

⁽¹⁾

For more information on our available borrowings resources, see Note 11 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference.

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Credit Ratings

        Our credit risk is evaluated by major independent rating agencies based upon publicly available information as well as information obtained in our ongoing discussions with them. Moody's Investors Service downgraded our long-term debt from A3 to Baa1 in November 2012. Accordingly, our ratings as of April 30, 2013 were:

	Standard & Poor's Ratings Services		Moody's Investors Service		Fitch Ratings Services
Short-term debt ratings		A-2		Prime-2		F2
Long-term debt ratings		BBB+		Baa1		A-

        Our credit ratings remain under negative outlook by Moody's Investors Service. While we do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, previous downgrades have increased the cost of borrowing under our credit facilities, have reduced market capacity for our commercial paper and have required the posting of additional collateral under some of our derivative contracts. In addition, any further downgrade in our credit ratings by any of the three rating agencies may further impact us in a similar manner, and, depending on the extent of the downgrade, could have a negative impact on our liquidity and capital position. We will rely on alternative sources of funding, including drawdowns under our credit facilities or the issuance of debt or other securities under our existing shelf registration statement, if necessary to offset reductions in the market capacity for our commercial paper.

CONTRACTUAL AND OTHER OBLIGATIONS

Income Tax Obligations

        At April 30, 2013 we had approximately $2.3 billion of recorded liabilities and related interest and penalties pertaining to uncertainty in income tax positions, which will be partially offset by $351 million of deferred tax assets and interest receivable. These liabilities and related interest and penalties include $142 million expected to be paid within one year. For the remaining amount, we are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. See Note 12 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference, for additional information on taxes.

Restructuring Funding Commitments

        As a result of our approved restructuring plans, we expect future cash expenditures of approximately $2.0 billion. We expect to make cash payments of approximately $0.8 billion during the remainder of fiscal 2013 with remaining cash payments through fiscal 2016. See Note 6 to the Consolidated Condensed Financial Statements in Item 1, which are incorporated herein by reference, for additional information on restructuring activities.

Off-Balance Sheet Arrangements

        HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain partners. The total aggregate capacity of the facilities was $1.6 billion as of April 30, 2013, including a $0.9 billion partial recourse facility entered into in May 2011 and an aggregate capacity of $0.7 billion in non-recourse facilities. For more information on our third-party financing arrangements, see Note 4 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference.

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CONSTANT CURRENCY PRESENTATION

        Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue. As a result, our revenue growth has been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. In order to provide a framework for assessing how each of our business segments performed excluding the impact of foreign currency fluctuations, we present the year-over-year percentage change in revenue performance on a constant currency basis, which assumes no change in the exchange rate from the prior-year period. This constant currency disclosure is provided in addition to, and not as a substitute for, the year-over-year percentage change in revenue on a GAAP basis.

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FACTORS THAT COULD AFFECT FUTURE RESULTS

        Because of the following factors, as well as other variables affecting our operating results, past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods.

If we are unsuccessful at addressing our business challenges, our business and results of operations may be adversely affected and our ability to invest in and grow our business could be limited.

        We are in the process of addressing many challenges facing our business. For example, we are aligning our costs with our revenue trajectory; we are addressing our underinvestment in R&D and in our internal IT systems in recent years, which has made us less competitive, effective and efficient; we are implementing the data gathering and reporting tools and systems needed to track and report on all key business performance metrics so as to most effectively manage a company of our size, scale and diversity; and we are rebuilding our business relationships with our channel partners. We are also working to restore growth to all of our businesses and to do so profitably. In addition, we are working to address dynamic market trends, such as the growth of mobility, the increasing demand for hyperscale computing infrastructure, the shift to software-as-a-service, the transition towards cloud computing and aggressive pricing conditions, and we are developing products and services that position us to win in a very competitive marketplace. Furthermore, we are facing a series of significant macroeconomic challenges, including broad-based weakness in consumer spending, weak demand in the SMB and enterprise sectors in Europe, and declining growth in some emerging markets. We may experience delays in the anticipated timing of activities related to these efforts and higher than expected or unanticipated execution costs. In addition, we are vulnerable to increased risks associated with these efforts given our large portfolio of businesses, the broad range of geographic regions in which we and our customers and partners operate, and the number of acquisitions that we have completed in recent years. If we do not succeed in these efforts, or if these efforts are more costly or time-consuming than expected, our business and results of operations may be adversely affected, which could limit our ability to invest in and grow our business.

        In May 2012, we announced a company-wide restructuring plan expected to be implemented through the end of fiscal 2014. The restructuring plan includes both voluntary early retirement programs and non-voluntary workforce reductions and is expected to result in approximately 29,000 employees exiting the company by the end of that period. Significant risks associated with these actions and other workforce management issues that may impair our ability to achieve anticipated cost reductions or that may otherwise harm our business include delays in implementation of anticipated workforce reductions in highly regulated locations outside of the United States, particularly in Europe and Asia, decreases in employee morale and the failure to meet operational targets due to the loss of employees. In addition, our ability to achieve the anticipated cost savings and other benefits from these actions within the expected time frame is subject to many estimates and assumptions. These estimates and assumptions are subject to significant economic, competitive and other uncertainties, some of which are beyond our control. If these estimates and assumptions are incorrect, if we experience delays, or if other unforeseen events occur, our business and results of operations could be adversely affected.

Competitive pressures could harm our revenue, gross margin and prospects.

        We encounter aggressive competition from numerous and varied competitors in all areas of our business, and our competitors may target our key market segments. We compete primarily on the basis of technology, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use of our products, account relationships, customer training, service and support, security, availability of application software, and Internet infrastructure offerings. If our products, services, support and cost structure do not enable us to compete successfully based on any of those criteria, our operations, results and prospects could be harmed.

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        We have a large portfolio of businesses and must allocate resources across all of those businesses while competing with companies that have much smaller portfolios or specialize in one or more of these product lines. As a result, we may invest less in certain areas of our businesses than our competitors do, and these competitors may have greater financial, technical and marketing resources available to them than our businesses that compete against them. Industry consolidation also may affect competition by creating larger, more homogeneous and potentially stronger competitors in the markets in which we compete, and our competitors also may affect our business by entering into exclusive arrangements with existing or potential customers or suppliers.

        Companies with whom we have alliances in some areas may be competitors in other areas. For example, in the second quarter of fiscal 2011, an alliance partner that also markets a line of competing servers announced that it intended to cease software development for our Itanium-based servers, which has resulted in orders for our servers being canceled or delayed. While we have obtained a court ruling finding that the alliance partner has an obligation to continue developing software for our Itanium-based servers, we may continue to experience reduced demand. In addition, companies with whom we have alliances also may acquire or form alliances with our competitors, thereby reducing their business with us. Any inability to effectively manage these complicated relationships with alliance partners could have an adverse effect on our results of operations.

        We may have to continue lowering the prices of many of our products and services to stay competitive, while at the same time trying to maintain or improve revenue and gross margin. The markets in which we do business are highly competitive, and we encounter aggressive price competition for all of our products and services from numerous companies globally. In addition, competitors in some of the markets in which we compete who have a greater presence in lower-cost jurisdictions may be able to offer lower prices than we are able to offer. Our results of operations and financial condition may be adversely affected by these and other industry-wide pricing pressures.

        Because our business model is based on providing innovative and high-quality products, we may spend a proportionately greater amount on research and development than some of our competitors. If we cannot proportionately decrease our cost structure on a timely basis in response to competitive price pressures, our gross margin and, therefore, our profitability could be adversely affected. In addition, if our pricing and other factors are not sufficiently competitive, or if there is an adverse reaction to our product decisions, we may lose market share in certain areas, which could adversely affect our revenue and prospects.

        Even if we are able to maintain or increase market share for a particular product, revenue could decline because the product is in a maturing industry. Revenue and margins also could decline due to increased competition from other types of products. For example, growing demand for an increasing array of mobile computing devices and the development of cloud-based solutions may reduce demand for some of our existing hardware products. In addition, refill and remanufactured alternatives for some of HP's LaserJet toner and inkjet cartridges compete with HP's supplies business. Other companies have also developed and marketed new compatible cartridges for HP's LaserJet and inkjet products, particularly in jurisdictions outside of the United States where adequate intellectual property protection may not exist.

If we cannot successfully execute on our strategy and continue to develop, manufacture and market products, services and solutions that meet customer requirements for innovation and quality, our revenue and gross margin may suffer.

        Our long-term strategy is focused on leveraging our portfolio of hardware, software and services as we adapt to a changing/hybrid model of IT delivery and consumption driven by the growing adoption of cloud computing and increased demand for integrated IT solutions. To successfully execute on this strategy, we need to continue to further evolve the focus of our organization towards the delivery of integrated IT solutions for our customers and to invest and expand into cloud computing, security, and

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information management and analytics. Any failure to successfully execute this strategy could adversely affect our operating results.

        The process of developing new high-technology products, software services and solutions and enhancing existing hardware and software products, services and solutions is complex, costly and uncertain, and any failure by us to anticipate customers' changing needs and emerging technological trends accurately could significantly harm our market share and results of operations. For example, as we transition to an environment characterized by cloud-based computing and software being delivered as a service, we must continue to successfully develop and deploy cloud-based solutions for our customers. We must make long-term investments, develop or obtain, and protect appropriate intellectual property and commit significant resources before knowing whether our predictions will accurately reflect customer demand for our products, services and solutions. In addition, after we develop a product, we must be able to manufacture appropriate volumes quickly and at low costs. To accomplish this, we must accurately forecast volumes, mixes of products and configurations that meet customer requirements, and we may not succeed at doing so within a given product's life cycle or at all. Any delay in the development, production or marketing of a new product, service or solution could result in us not being among the first to market, which could further harm our competitive position.

        In the course of conducting our business, we must adequately address quality issues associated with our products, services and solutions, including defects in our engineering, design and manufacturing processes and unsatisfactory performance under service contracts, as well as defects in third-party components included in our products and unsatisfactory performance by third-party contractors. In order to address quality issues, we work extensively with our customers and suppliers and engage in product testing to determine the causes of problems and to determine appropriate solutions. However, the products, services and solutions that we offer are complex, and our regular testing and quality control efforts may not be effective in controlling or detecting all quality issues or errata, particularly with respect to faulty components manufactured by third parties. If we are unable to determine the cause, find an appropriate solution or offer a temporary fix (or "patch") to address quality issues with our products, we may delay shipment to customers, which would delay revenue recognition and could adversely affect our revenue and reported results. Addressing quality issues can be expensive and may result in additional warranty, replacement and other costs, adversely affecting our profits. If new or existing customers have difficulty operating our products or are dissatisfied with our services or solutions, our operating margins could be adversely affected, and we could face possible claims if we fail to meet our customers' expectations. In addition, quality issues can impair our relationships with new or existing customers and adversely affect our brand and reputation, which could, in turn, adversely affect our operating results.

Economic weakness and uncertainty could adversely affect our revenue, gross margin and expenses.

        Our revenue and gross margin depend significantly on worldwide economic conditions and the demand for technology hardware, software and services in the markets in which we compete. Economic weakness and uncertainty have resulted, and may result in the future, in decreased revenue, gross margin, earnings or growth rates and in increased difficulty in managing inventory levels. For example, in recent periods we have experienced macroeconomic challenges across many geographic regions, particularly in the United States and Western Europe, broad-based weakness in consumer demand, the impact of the continuing uncertainties associated with the debt crisis in certain countries in the European Union and austerity measures being implemented or contemplated by various countries in the EMEA region. The U.S. federal government spending cuts that went into effect on March 1, 2013 might reduce demand for our products, services and solutions from organizations that receive funding from the U.S. government and could negatively affect macroeconomic conditions in the United States, which could further reduce demand for our products, services and solutions. In addition, sustained uncertainty about current global economic conditions may adversely affect demand for our products,

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services and solutions. Economic weakness and uncertainty also make it more difficult for us to make accurate forecasts of revenue, gross margin and expenses.

        We also have experienced, and may experience in the future, gross margin declines in certain businesses, reflecting the effect of items such as competitive pricing pressures, inventory write-downs and increases in component and manufacturing costs resulting from higher labor and material costs borne by our manufacturers and suppliers that, as a result of competitive pricing pressures or other factors, we are unable to pass on to our customers. In addition, our business may be disrupted if we are unable to obtain equipment, parts or components from our suppliers—and our suppliers from their suppliers—due to the insolvency of key suppliers or the inability of key suppliers to obtain credit.

        Economic weakness and uncertainty could cause our expenses to vary materially from our expectations. Any financial turmoil affecting the banking system and financial markets or any significant financial services institution failures could negatively impact our treasury operations, as the financial condition of such parties may deteriorate rapidly and without notice in times of market volatility and disruption. Poor financial performance of asset markets combined with lower interest rates and the adverse effects of fluctuating currency exchange rates could lead to higher pension and post-retirement benefit expenses. Other income and expense could vary materially from expectations depending on changes in interest rates, borrowing costs, currency exchange rates, hedging expenses and the fair value of derivative instruments. Economic downturns also may lead to restructuring actions and associated expenses.

We depend on third-party suppliers, and our revenue and gross margin could suffer if we fail to manage suppliers properly.

        Our operations depend on our ability to anticipate our needs for components, products and services, as well as our suppliers' ability to deliver sufficient quantities of quality components, products and services at reasonable prices in time for us to meet critical schedules. Given the wide variety of systems, products and services that we offer, the large number of our suppliers and contract manufacturers that are located around the world, and the long lead times required to manufacture, assemble and deliver certain components and products, problems could arise in production, planning, and inventory management that could seriously harm us. In addition, our ongoing efforts to optimize the efficiency of our supply chain could cause supply disruptions and be more expensive, time-consuming and resource intensive than expected. Other supplier problems that we could face include component shortages, excess supply, risks related to the terms of our contracts with suppliers, risks associated with contingent workers, and risks related to our relationships with single source suppliers, as described below.

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Shortages.  Occasionally we may experience a shortage of, or a delay in receiving, certain components as a result of strong demand, capacity constraints, supplier financial weaknesses, inability of suppliers to borrow funds in the credit markets, disputes with suppliers (some of whom are also customers), disruptions in the operations of component suppliers, other problems experienced by suppliers or problems faced during the transition to new suppliers. For example, our PC business relies heavily upon Outsourced Manufacturers ("OMs") to manufacture its products and is therefore dependent upon the continuing operations of those OMs to fulfill demand for our PC products. HP represents a substantial portion of the business of some of these OMs, and any changes to the nature or volume of business transacted by HP with a particular OM could adversely affect the operations and financial condition of the OM and lead to shortages or delays in receiving products from that OM. If shortages or delays persist, the price of certain components may increase, and we may be exposed to quality issues or the components may not be available at all. We may not be able to secure enough components at reasonable prices or of acceptable quality to build products or provide services in a timely manner in the quantities or according to the specifications needed. Accordingly, our revenue and gross margin could suffer as we could lose time-sensitive sales, incur additional freight costs or

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be unable to pass on price increases to our customers. If we cannot adequately address supply issues, we might have to reengineer some products or services offerings, resulting in further costs and delays.

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Oversupply.  In order to secure components for the provision of products or services, at times we may make advance payments to suppliers or enter into non-cancelable commitments with vendors. In addition, we may purchase components strategically in advance of demand to take advantage of favorable pricing or to address concerns about the availability of future components. If we fail to anticipate customer demand properly, a temporary oversupply could result in excess or obsolete components, which could adversely affect our gross margin.

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Contractual terms.  As a result of binding price or purchase commitments with vendors, we may be obligated to purchase components or services at prices that are higher than those available in the current market and be limited in our ability to respond to changing market conditions. In the event that we become committed to purchase components or services for prices in excess of the then-current market price, we may be at a disadvantage to competitors who have access to components or services at lower prices, and our gross margin could suffer. In addition, many of our competitors obtain products or components from the same OMs and suppliers that we utilize. Our competitors may obtain better pricing, more favorable contractual terms and conditions, and more favorable allocations of products and components during periods of limited supply, and our ability to engage in relationships with certain OMs and suppliers could be limited. The practice employed by our PC business of purchasing product components and transferring those components to its OMs may create large supplier receivables with the OMs that, depending on the financial condition of the OMs, may create collectibility risks. In addition, certain of our OMs and suppliers may decide in the future to discontinue conducting business with us. Any of these actions by our competitors, OMs or suppliers could adversely affect our future operating results and financial condition.

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Contingent workers.  We also rely on third-party suppliers for the provision of contingent workers, and our failure to manage our use of such workers effectively could adversely affect our results of operations. We have been exposed to various legal claims relating to the status of contingent workers in the past and could face similar claims in the future. We may be subject to shortages, oversupply or fixed contractual terms relating to contingent workers. Our ability to manage the size of, and costs associated with, the contingent workforce may be subject to additional constraints imposed by local laws.

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Single source suppliers.  Our use of single source suppliers for certain components could exacerbate any supplier issues. We obtain a significant number of components from single sources due to technology, availability, price, quality or other considerations. For example, we rely on Intel to provide us with a sufficient supply of processors for many of our PCs, workstations and servers, and some of those processors are customized for our products. New products that we introduce may utilize custom components obtained from only one source initially until we have evaluated whether there is a need for additional suppliers. Replacing a single source supplier could delay production of some products as replacement suppliers may be subject to capacity constraints or other output limitations. For some components, such as customized components and some of the processors that we obtain from Intel, alternative sources either may not exist or may be unable to produce the quantities of those components necessary to satisfy our production requirements. In addition, we sometimes purchase components from single source suppliers under short-term agreements that contain favorable pricing and other terms but that may be unilaterally modified or terminated by the supplier with limited notice and with little or no penalty. The performance of such single source suppliers under those agreements (and the renewal or extension of those agreements upon similar terms) may affect the quality, quantity and price of components to HP. The loss of a single source supplier, the deterioration of our relationship with a single source supplier, or any unilateral

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modification to the contractual terms under which we are supplied components by a single source supplier could adversely affect our revenue and gross margins.

Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses.

        Our worldwide operations could be disrupted by earthquakes, telecommunications failures, power or water shortages, tsunamis, floods, hurricanes, typhoons, fires, extreme weather conditions, medical epidemics or pandemics and other natural or manmade disasters or catastrophic events, for which we are predominantly self-insured. The occurrence of any of these business disruptions could result in significant losses, seriously harm our revenue, profitability and financial condition, adversely affect our competitive position, increase our costs and expenses, and require substantial expenditures and recovery time in order to fully resume operations. Our corporate headquarters and a portion of our research and development activities are located in California, and other critical business operations and some of our suppliers are located in California and Asia, near major earthquake faults known for seismic activity. In addition, six of our principal worldwide IT data centers are located in the southern United States, making our operations more vulnerable to natural disasters or other business disruptions occurring in that geographical area. The manufacture of product components, the final assembly of our products and other critical operations are concentrated in certain geographic locations, including Shanghai, Singapore and India. We also rely on major logistics hubs primarily in Asia to manufacture and distribute our products and in the southwestern United States to import products into the Americas region. Our operations could be adversely affected if manufacturing, logistics or other operations in these locations are disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, regulatory or political issues. The ultimate impact on us, our significant suppliers and our general infrastructure of being located near locations more vulnerable to the occurrence of the aforementioned business disruptions, such as near major earthquake faults, and being consolidated in certain geographical areas is unknown and remains uncertain.

System security risks, data protection breaches, cyber attacks and systems integration issues could disrupt our internal operations or information technology services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.

        Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of third parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and deploy viruses, worms, and other malicious software programs that attack our products or otherwise exploit any security vulnerabilities of our products. In addition, sophisticated hardware and operating system software and applications that we produce or procure from third parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the system. The costs to us to eliminate or alleviate cyber or other security problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing or potential customers that may impede our sales, manufacturing, distribution or other critical functions.

        We manage and store various proprietary information and sensitive or confidential data relating to our business. In addition, our outsourcing services business routinely processes, stores and transmits large amounts of data for our clients, including sensitive and personally identifiable information. Breaches of our security measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us, our clients or customers, including the potential loss or disclosure of such information or data as a result of fraud,

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trickery or other forms of deception, could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation and potential liability for us, damage our brand and reputation or otherwise harm our business. We also could lose existing or potential customers of outsourcing services or other IT solutions or incur significant expenses in connection with our customers' system failures or any actual or perceived security vulnerabilities in our products. In addition, the cost and operational consequences of implementing further data protection measures could be significant.

        Portions of our IT infrastructure also may experience interruptions, delays or cessations of service or produce errors in connection with systems integration or migration work that takes place from time to time. We may not be successful in implementing new systems and transitioning data, which could cause business disruptions and be more expensive, time-consuming, disruptive and resource intensive. Such disruptions could adversely impact our ability to fulfill orders and respond to customer requests and interrupt other processes. Delayed sales, lower margins or lost customers resulting from these disruptions have adversely affected, and in the future could adversely affect, our financial results, stock price and reputation.

The revenue and profitability of our operations have historically varied, which makes our future financial results less predictable.

        Our revenue, gross margin and profit vary among our products and services, customer groups and geographic markets and therefore will likely be different in future periods than our current results. Our revenue depends on the overall demand for our products and services. Delays or reductions in IT spending could materially adversely affect demand for our products and services, which could result in a significant decline in revenues. Overall gross margins and profitability in any given period are dependent partially on the product, service, customer and geographic mix reflected in that period's net revenue. Competition, lawsuits, investigations and other risks affecting those businesses therefore may have a significant impact on our overall gross margin and profitability. Certain segments have a higher fixed cost structure and more variation in gross margins across their business units and product portfolios than others and may therefore experience significant operating profit volatility on a quarterly basis. In addition, newer geographic markets may be relatively less profitable due to investments associated with entering those markets and local pricing pressures, and we may have difficulty establishing and maintaining the operating infrastructure necessary to support the high growth rate associated with some of those markets. Market trends, industry shifts, competitive pressures, commoditization of products, seasonal rebates, increased component or shipping costs, regulatory impacts and other factors may result in reductions in revenue or pressure on gross margins of certain segments in a given period, which may necessitate adjustments to our operations. Moreover, the execution of our efforts to address the challenges facing our business could increase the level of variability in our financial results, as the rate at which we are able to realize the benefits from those efforts may vary from period to period.

HP's stock price has historically fluctuated and may continue to fluctuate, which may make future prices of HP's stock difficult to predict.

        HP's stock price, like that of other technology companies, can be volatile. Some of the factors that could affect our stock price are:

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speculation in the media or investment community about, or actual changes in, our business, strategic position, market share, organizational structure, operations, financial condition, financial reporting and results, effectiveness of cost-cutting efforts, value or liquidity of our investments, exposure to market volatility, prospects, business combination or investment transactions, stock price performance, board of directors or executive team;

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the announcement of new, planned or contemplated products, services, technological innovations, acquisitions, divestitures or other significant transactions by HP or its competitors;

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quarterly increases or decreases in revenue, gross margin, earnings or cash flow from operations, changes in estimates by the investment community or guidance provided by HP and variations between actual and estimated financial results;

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announcements of actual and anticipated financial results by HP's competitors and other companies in the IT industry;

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investor sentiment with respect to our company, competitors, business partners or industry in general;

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media coverage of our business and financial performance;

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any developments relating to pending investigations, claims and disputes; and

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the timing and amount of share repurchases by HP.

        General or industry specific market conditions or stock market performance or domestic or international macroeconomic and geopolitical factors unrelated to HP's performance also may affect the price of HP stock. For these reasons, investors should not rely on recent or historical trends to predict future stock prices, financial condition, results of operations or cash flows. In addition, as discussed in Note 15 to the Consolidated Condensed Financial Statements, we are involved in several securities class action litigation matters. Additional volatility in the price of our securities could result in the filing of additional securities class action litigation matters, which could result in substantial costs and the diversion of management time and resources.

Our revenue, cost of sales, and expenses may suffer if we cannot continue to license or enforce the intellectual property rights on which our businesses depend or if third parties assert that we violate their intellectual property rights.

        We rely upon patent, copyright, trademark and trade secret laws in the United States, similar laws in other countries, and agreements with our employees, customers, suppliers and other parties, to establish and maintain intellectual property rights in the products and services we sell, provide or otherwise use in our operations. However, any of our intellectual property rights could be challenged, invalidated, infringed or circumvented, or such intellectual property rights may not be sufficient to permit us to take advantage of current market trends or to otherwise provide competitive advantages, either of which could result in costly product redesign efforts, discontinuance of certain product offerings or other harm to our competitive position. Further, the laws of certain countries do not protect proprietary rights to the same extent as the laws of the United States. Therefore, in certain jurisdictions we may be unable to protect our proprietary technology adequately against unauthorized third-party copying or use; this, too, could adversely affect our competitive position.

        Because of the rapid pace of technological change in the information technology industry, much of our business and many of our products rely on key technologies developed or licensed by third parties. We may not be able to obtain or continue to obtain licenses and technologies from these third parties at all or on reasonable terms, or such third parties may demand cross-licenses to our intellectual property. In addition, it is possible that as a consequence of a merger or acquisition, third parties may obtain licenses to some of our intellectual property rights or our business may be subject to certain restrictions that were not in place prior to the transaction. Consequently, we may lose a competitive advantage with respect to these intellectual property rights or we may be required to enter into costly arrangements in order to terminate or limit these rights.

        Third parties also may claim that we or customers indemnified by us are infringing upon their intellectual property rights. For example, individuals and groups frequently purchase intellectual property assets for the purpose of asserting claims of infringement and attempting to extract settlements from companies such as HP and their customers. The number of these claims has increased

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significantly in recent periods and may continue to increase in the future. If we cannot or do not license infringed intellectual property at all or on reasonable terms, or if we are required to substitute similar technology from another source, our operations could be adversely affected. Even if we believe that intellectual property claims are without merit, they can be time-consuming and costly to defend against and may divert management's attention and resources away from our business. Claims of intellectual property infringement also might require us to redesign affected products, enter into costly settlement or license agreements, pay costly damage awards, or face a temporary or permanent injunction prohibiting us from importing, marketing or selling certain of our products. Even if we have an agreement to indemnify us against such costs, the indemnifying party may be unable or unwilling to uphold its contractual obligations to us.

        Finally, our results of operations and cash flows have been and could continue to be affected in certain periods and on an ongoing basis by the imposition, accrual and payment of copyright levies or similar fees. In certain countries (primarily in Europe), proceedings are ongoing or have been concluded involving HP in which groups representing copyright owners have sought to impose upon and collect from HP levies upon equipment (such as PCs, MFDs and printers) alleged to be copying devices under applicable laws. Other such groups have also sought to modify existing levy schemes to increase the amount of the levies that can be collected from HP. Other countries that have not imposed levies on these types of devices are expected to extend existing levy schemes, and countries that do not currently have levy schemes may decide to impose copyright levies on these types of devices. The total amount of the copyright levies will depend on the types of products determined to be subject to the levy, the number of units of those products sold during the period covered by the levy, and the per unit fee for each type of product, all of which are affected by several factors, including the outcome of ongoing litigation involving HP and other industry participants and possible action by the legislative bodies in the applicable countries, and could be substantial. Consequently, the ultimate impact of these copyright levies or similar fees, and the ability of HP to recover such amounts through increased prices, remains uncertain.

Due to the international nature of our business, political or economic changes or other factors could harm our future revenue, costs and expenses and financial condition.

        Sales outside the United States make up approximately 65% of our net revenue. In addition, an increasing portion of our business activity is being conducted in emerging markets, including Brazil, Russia, India and China. Our future revenue, gross margin, expenses and financial condition could suffer due to a variety of international factors, including:

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ongoing instability or changes in a country's or region's economic or political conditions, including inflation, recession, interest rate fluctuations and actual or anticipated military or political conflicts;

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longer collection cycles and financial instability among customers;

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trade regulations and procedures and actions affecting production, pricing and marketing of products;

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local labor conditions and regulations, including local labor issues faced by specific HP suppliers and OMs;

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managing a geographically dispersed workforce;

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changes in the regulatory or legal environment;

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differing technology standards or customer requirements;

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import, export or other business licensing requirements or requirements relating to making foreign direct investments, which could increase our cost of doing business in certain

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jurisdictions, prevent us from shipping products to particular countries or markets, affect our ability to obtain favorable terms for components, increase our operating costs or lead to penalties or restrictions;

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difficulties associated with repatriating cash generated or held abroad in a tax-efficient manner and changes in tax laws; and

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fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points of exit and entry for our products and shipments.

        The factors described above also could disrupt our product and component manufacturing and key suppliers located outside of the United States. For example, we rely on manufacturers in Taiwan for the production of notebook computers and other suppliers in Asia for product assembly and manufacture.

        As approximately 65% of our sales are from countries outside of the United States, other currencies, including the euro, the British pound, Chinese yuan renminbi and the Japanese yen, can have an impact on HP's results (expressed in U.S. dollars). In particular, the uncertainty with respect to the ability of certain European countries to continue to service their sovereign debt obligations and the related European financial restructuring efforts may cause the value of the euro to fluctuate. Currency variations also contribute to variations in sales of products and services in impacted jurisdictions. For example, in the event that one or more European countries were to replace the euro with another currency, HP sales into such countries, or into Europe generally, would likely be adversely affected until stable exchange rates are established. Accordingly, fluctuations in foreign currency rates, most notably the strengthening of the dollar against the euro, could adversely affect our revenue growth in future periods. In addition, currency variations can adversely affect margins on sales of our products in countries outside of the United States and margins on sales of products that include components obtained from suppliers located outside of the United States. We use a combination of forward contracts and options designated as cash flow hedges to protect against foreign currency exchange rate risks. The effectiveness of our hedges depends on our ability to accurately forecast future cash flows, which is particularly difficult during periods of uncertain demand for our products and services and highly volatile exchange rates. As a result, we could incur significant losses from our hedging activities if our forecasts are incorrect. In addition, our hedging activities may be ineffective or may not offset any or more than a portion of the adverse financial impact resulting from currency variations. Gains or losses associated with hedging activities also may impact our revenue and to a lesser extent our cost of sales and financial condition.

        In many foreign countries, particularly in those with developing economies, it is common to engage in business practices that are prohibited by laws and regulations applicable to us, such as the Foreign Corrupt Practices Act. For example, as discussed in Note 15 to the Consolidated Condensed Financial Statements, the German Public Prosecutor's Office, the U.S. Department of Justice and the SEC have been investigating allegations that certain current and former employees of HP engaged in bribery, embezzlement and tax evasion or were involved in kickbacks or other improper payments, and the U.S. enforcement authorities have requested information from HP relating to certain transactions in Russia, the Commonwealth of Independent States, Poland and Mexico. Although we implement policies and procedures designed to facilitate compliance with these laws, our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, may take actions in violation of our policies. Any such violation could have an adverse effect on our business and reputation.

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If we fail to manage the distribution of our products and services properly, our revenue, gross margin and profitability could suffer.

        We use a variety of distribution methods to sell our products and services, including third-party resellers and distributors and both direct and indirect sales to enterprise accounts and consumers. Successfully managing the interaction of our direct and indirect channel efforts to reach various potential customer segments for our products and services is a complex process. Moreover, since each distribution method has distinct risks and gross margins, our failure to implement the most advantageous balance in the delivery model for our products and services could adversely affect our revenue and gross margins and therefore our profitability. Other distribution risks are described below.

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Our financial results could be materially adversely affected due to channel conflicts or if the financial conditions of our channel partners were to weaken.

Our operating results may be adversely affected by any conflicts that might arise between our various sales channels, the loss or deterioration of any alliance or distribution arrangement or the loss of retail shelf space. Moreover, some of our wholesale and retail distributors may have insufficient financial resources and may not be able to withstand changes in business conditions, including economic weakness and industry consolidation. Many of our significant distributors operate on narrow product margins and have been negatively affected by business pressures. Considerable trade receivables that are not covered by collateral or credit insurance are outstanding with our distribution and retail channel partners. Revenue from indirect sales could suffer, and we could experience disruptions in distribution if our distributors' financial conditions, abilities to borrow funds in the credit markets or operations weaken.

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Our inventory management is complex as we continue to sell a significant mix of products through distributors.

We must manage inventory effectively, particularly with respect to sales to distributors, which involves forecasting demand and pricing issues. Distributors may increase orders during periods of product shortages, cancel orders if their inventory is too high or delay orders in anticipation of new products. Distributors also may adjust their orders in response to the supply of our products and the products of our competitors and seasonal fluctuations in end-user demand. Our reliance upon indirect distribution methods may reduce visibility to demand and pricing issues, and therefore make forecasting more difficult. If we have excess or obsolete inventory, we may have to reduce our prices and write down inventory. Moreover, our use of indirect distribution channels may limit our willingness or ability to adjust prices quickly and otherwise to respond to pricing changes by competitors. We also may have limited ability to estimate future product rebate redemptions in order to price our products effectively.

If we do not effectively manage our product and services transitions, our revenue may suffer.

        Many of the markets in which we compete are characterized by rapid technological advances in hardware performance and software features and functionality, frequent introduction of new products, short product life cycles, and continual improvement in product price characteristics relative to product performance. To maintain our competitive position in these markets, we must successfully develop and introduce new products and services. Among the risks associated with the introduction of new products and services are: delays in development or manufacturing, variations in costs, delays in customer purchases or reductions in the price of existing products in anticipation of new introductions, difficulty in predicting customer demand for the new offerings and challenges of effectively managing inventory levels so that they are in line with anticipated demand; risks associated with customer qualification and evaluation of new products; and the risk that new products may have quality or other defects or may not be supported adequately by application software. If we do not make an effective transition from existing products and services to future offerings, our revenue may decline.

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        Our revenue and gross margin also may suffer as a result of the timing of product or service introductions by our suppliers and competitors. This is especially challenging when a product has a short life cycle or a competitor introduces a new product just before our own product introduction. Furthermore, sales of our new products and services may replace sales or result in discounting of some of our current offerings, offsetting the benefit of even a successful introduction. There also may be overlaps in the current products and services of HP and portfolios acquired through mergers and acquisitions that we must manage. In addition, it may be difficult to ensure performance of new customer contracts in accordance with our revenue, margin and cost estimates and to achieve operational efficiencies embedded in our estimates. Given the competitive nature of our industry, if any of these risks materializes, future demand for our products and services and our results of operations may suffer.

Our revenue and profitability could suffer if we do not manage the risks associated with our services business properly.

        The risks that accompany our services business differ from those of our other businesses and include the following:

•

The success of our services business is to a significant degree dependent on our ability to retain our significant services clients and maintain or increase the level of revenues from these clients. We may lose clients due to their merger or acquisition, business failure, contract expiration or their conversion to a competing service provider or decision to in-source services. In addition, we may not be able to retain or renew relationships with our significant clients in the future. As a result of business downturns or for other business reasons, we are also vulnerable to reduced processing volumes from our clients, which can reduce the scope of services provided and the prices for those services. We may not be able to replace the revenue and earnings from any such lost clients or reductions in services in the short- or long-term. In addition, our contracts may allow a client to terminate the contract for convenience, and we may not be able to fully recover our investments in such circumstances.

•

The pricing and other terms of some of our IT services agreements, particularly our long-term IT outsourcing services agreements, require us to make estimates and assumptions at the time we enter into these contracts that could differ from actual results. Any increased or unexpected costs or unanticipated delays in connection with the performance of these engagements, including delays caused by factors outside our control, could make these agreements less profitable or unprofitable, which would have an adverse affect on the profit margin of our IT services business.

•

Some of our IT services agreements require significant investment in the early stages that is expected to be recovered through billings over the life of the agreement. These agreements often involve the construction of new IT systems and communications networks and the development and deployment of new technologies. Substantial performance risk exists in each agreement with these characteristics, and some or all elements of service delivery under these agreements are dependent upon successful completion of the development, construction and deployment phases. Any failure to perform satisfactorily under these agreements may expose us to legal liability, result in the loss of customers and harm our reputation, which could decrease the revenues and profitability of our IT services business.

•

Some of our outsourcing services agreements contain pricing provisions that permit a client to request a benchmark study by a mutually acceptable third party. The benchmarking process typically compares the contractual price of our services against the price of similar services offered by other specified providers in a peer comparison group, subject to agreed upon adjustment and normalization factors. Generally, if the benchmarking study shows that our

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pricing has a difference outside a specified range, and the difference is not due to the unique requirements of the client, then the parties will negotiate in good faith any appropriate adjustments to the pricing. This may result in the reduction of our rates for the benchmarked services performed after the implementation of those pricing adjustments, which could decrease the revenues and profitability of our IT services business.

•

If we do not hire, train, motivate and effectively utilize employees with the right mix of skills and experience in the right geographic regions to meet the needs of our services clients, our profitably could suffer. For example, if our employee utilization rate is too low, our profitability and the level of engagement of our employees could suffer. If that utilization rate is too high, it could have an adverse effect on employee engagement and attrition and the quality of the work performed, as well as our ability to staff projects. If we are unable to hire and retain a sufficient number of employees with the skills or backgrounds to meet current demand, we might need to redeploy existing personnel, increase our reliance on subcontractors or increase employee compensation levels, all of which could also negatively affect our profitability. In addition, if we have more employees than we need with certain skill sets or in certain geographies, we may incur increased costs as we work to rebalance our supply of skills and resources with client demand in those geographies.

If we fail to comply with our customer contracts or government contracting regulations, our revenue could suffer.

        Our contracts with our customers may include unique and specialized performance requirements. In particular, our contracts with federal, state, provincial and local governmental customers are subject to various procurement regulations, contract provisions and other requirements relating to their formation, administration and performance. Any failure by us to comply with the specific provisions in our customer contracts or any violation of government contracting regulations could result in the imposition of various civil and criminal penalties, which may include termination of contracts, forfeiture of profits, suspension of payments and, in the case of our government contracts, fines and suspension from future government contracting. In addition, we have in the past been, and may in the future be, subject to qui tam litigation brought by private individuals on behalf of the government relating to our government contracts, which could include claims for up to treble damages. Further, any negative publicity related to our customer contracts or any proceedings surrounding them, regardless of its accuracy, may damage our business by affecting our ability to compete for new contracts. If our customer contracts are terminated, if we are suspended or disbarred from government work, or if our ability to compete for new contracts is adversely affected, we could suffer a reduction in expected revenue.

Failure to maintain our credit ratings could adversely affect our liquidity, capital position, borrowing costs and access to capital markets.

        Our credit risk is evaluated by three independent rating agencies. Those rating agencies, Standard & Poor's Ratings Services, Fitch Ratings Services and Moody's Investors Service, downgraded our ratings on November 30, 2011, December 2, 2011 and January 20, 2012, respectively. In addition, Fitch Ratings Services and Moody's Investors Service downgraded our ratings a second time on October 5, 2012 and November 27, 2012, respectively. Our credit ratings remain under negative outlook by Moody's Investors Service. These downgrades have increased the cost of borrowing under our credit facilities, have reduced market capacity for our commercial paper, and may require the posting of additional collateral under some of our derivative contracts. There can be no assurance that we will be able to maintain our current credit ratings, and any additional actual or anticipated changes or downgrades in our credit ratings, including any announcement that our ratings are under further review

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for a downgrade, may further impact us in a similar manner and may have a negative impact on our liquidity, capital position and access to capital markets.

We make estimates and assumptions in connection with the preparation of HP's Consolidated Condensed Financial Statements, and any changes to those estimates and assumptions could adversely affect our results of operations.

        In connection with the preparation of HP's Consolidated Condensed Financial Statements, we use certain estimates and assumptions based on historical experience and other factors. Our most critical accounting estimates are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this report. In addition, as discussed in Note 15 to the Consolidated Condensed Financial Statements, we make certain estimates, including decisions related to provisions for legal proceedings and other contingencies. While we believe that these estimates and assumptions are reasonable under the circumstances, they are subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could adversely affect our results of operations.

Unanticipated changes in HP's tax provisions, the adoption of new tax legislation or exposure to additional tax liabilities could affect our profitability.

        We are subject to income and other taxes in the United States and numerous foreign jurisdictions. Our tax liabilities are affected by the amounts we charge for inventory, services, licenses, funding and other items in intercompany transactions. We are subject to ongoing tax audits in various jurisdictions. Tax authorities may disagree with our intercompany charges, cross-jurisdictional transfer pricing or other matters and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits, and the amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax expense and therefore could have a material impact on our tax provision, net income and cash flows. In addition, our effective tax rate in the future could be adversely affected by changes to our operating structure, changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, changes in tax laws and the discovery of new information in the course of our tax return preparation process. In particular, the carrying value of deferred tax assets, which are predominantly in the United States, is dependent on our ability to generate future taxable income in the United States. In addition, President Obama's administration has announced proposals for other U.S. tax legislation that, if adopted, could adversely affect our tax rate. There are also other tax proposals that have been introduced, that are being considered, or that have been enacted by the United States Congress or the legislative bodies in foreign jurisdictions that could affect our tax rate, the carrying value of deferred tax assets, or our other tax liabilities. Any of these changes could affect our profitability.

Our sales cycle makes planning and inventory management difficult and future financial results less predictable.

        In some of our segments, our quarterly sales often have reflected a pattern in which a disproportionate percentage of each quarter's total sales occurs towards the end of such quarter. This uneven sales pattern makes prediction of revenue, earnings, cash flow from operations and working capital for each financial period difficult, increases the risk of unanticipated variations in quarterly results and financial condition and places pressure on our inventory management and logistics systems. If predicted demand is substantially greater than orders, there will be excess inventory. Alternatively, if orders substantially exceed predicted demand, we may not be able to fulfill all of the orders received in the last few weeks of each quarter. Other developments late in a quarter, such as a systems failure,

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component pricing movements, component shortages or global logistics disruptions, could adversely impact inventory levels and results of operations in a manner that is disproportionate to the number of days in the quarter affected.

        We experience some seasonal trends in the sale of our products that also may produce variations in quarterly results and financial condition. For example, sales to governments (particularly sales to the U.S. government) are often stronger in the third calendar quarter, consumer sales are often stronger in the fourth calendar quarter, and many customers whose fiscal and calendar years are the same spend their remaining capital budget authorizations in the fourth calendar quarter prior to new budget constraints in the first calendar quarter of the following year. European sales are often weaker during the summer months. Demand during the spring and early summer also may be adversely impacted by market anticipation of seasonal trends. Moreover, to the extent that we introduce new products in anticipation of seasonal demand trends, our discounting of existing products may adversely affect our gross margin prior to or shortly after such product launches. Typically, our third fiscal quarter is our weakest and our fourth fiscal quarter is our strongest. Many of the factors that create and affect seasonal trends are beyond our control.

In order to be successful, we must attract, retain, train, motivate, develop and transition key employees, and failure to do so could seriously harm us.

        In order to be successful, we must attract, retain, train, motivate, develop and transition qualified executives and other key employees, including those in managerial, technical, sales, marketing and IT support positions. Identifying, developing internally or hiring externally, training and retaining qualified executives, engineers, skilled solutions providers in the IT support business and qualified sales representatives are critical to our future, and competition for experienced employees in the IT industry can be intense. In order to attract and retain executives and other key employees in a competitive marketplace, we must provide a competitive compensation package, including cash- and share-based compensation. Our share-based incentive awards include stock options, restricted stock units and performance-based restricted units, some of which contain conditions relating to HP's stock price performance and HP's long-term financial performance that make the future value of those awards uncertain. If the anticipated value of such share-based incentive awards does not materialize, if our share-based compensation otherwise ceases to be viewed as a valuable benefit, if our total compensation package is not viewed as being competitive, or if we do not obtain the shareholder approval needed to continue granting share-based incentive awards in the amounts we believe are necessary, our ability to attract, retain, and motivate executives and key employees could be weakened. The failure to successfully hire executives and key employees or the loss of any executives and key employees could have a significant impact on our operations. Further, changes in our management team may be disruptive to our business, and any failure to successfully transition and assimilate key new hires or promoted employees could adversely affect our business and results of operations.

Terrorist acts, conflicts, wars and geopolitical uncertainties may seriously harm our business and revenue, costs and expenses and financial condition and stock price.

        Terrorist acts, conflicts or wars (wherever located around the world) may cause damage or disruption to HP, our employees, facilities, partners, suppliers, distributors, resellers or customers or adversely affect our ability to manage logistics, operate our transportation and communication systems or conduct certain other critical business operations. The potential for future attacks, the national and international responses to attacks or perceived threats to national security, and other actual or potential conflicts or wars, including the ongoing military operations in Afghanistan, have created many economic and political uncertainties. In addition, as a major multinational company with headquarters and significant operations located in the United States, actions against or by the United States may impact our business or employees. Although it is impossible to predict the occurrences or consequences

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of any such events, if they occur, they could result in a decrease in demand for our products, make it difficult or impossible to provide services or deliver products to our customers or to receive components from our suppliers, create delays and inefficiencies in our supply chain and result in the need to impose employee travel restrictions. We are predominantly uninsured for losses and interruptions caused by terrorist acts, conflicts and wars.

Any failure by us to identify, manage, complete and integrate acquisitions, divestitures and other significant transactions successfully could harm our financial results, business and prospects, and the costs, expenses and other financial and operational effects associated with managing, completing and integrating acquisitions may result in financial results that are different than expected.

        As part of our business strategy, we frequently acquire companies or businesses, divest businesses or assets, enter into strategic alliances and joint ventures and make investments to further our business (collectively, "business combination and investment transactions"). In order to pursue this strategy successfully, we must identify candidates for and successfully complete business combination and investment transactions, some of which may be large or complex, and manage post-closing issues such as the integration of acquired businesses, products, services or employees. Risks associated with business combination and investment transactions include the following, any of which could adversely affect our revenue, gross margin and profitability:

•

Managing business combination and investment transactions requires varying levels of management resources, which may divert our attention from other business operations.

•

We may not fully realize all of the anticipated benefits of any business combination and investment transaction, and the timeframe for realizing benefits of a business combination and investment transaction may depend partially upon the actions of employees, advisors, suppliers or other third parties.

•

Business combination and investment transactions have resulted, and in the future may result, in significant costs and expenses and charges to earnings, including those related to severance pay, early retirement costs, employee benefit costs, goodwill and asset impairment charges, charges from the elimination of duplicative facilities and contracts, in-process research and development charges, inventory adjustments, assumed litigation and other liabilities, legal, accounting and financial advisory fees, and required payments to executive officers and key employees under retention plans.

•

Any increased or unexpected costs, unanticipated delays or failure to meet contractual obligations could make business combination and investment transactions less profitable or unprofitable.

•

Our ability to conduct due diligence with respect to business combination and investment transactions, and our ability to evaluate the results of such due diligence, is dependent upon the veracity and completeness of statements and disclosures made or actions taken by third parties or their representatives.

•

Our due diligence process may fail to identify significant issues with the acquired company's product quality, financial disclosures, accounting practices or internal control deficiencies.

•

The pricing and other terms of our contracts for business combination and investment transactions require us to make estimates and assumptions at the time we enter into these contracts, and, during the course of our due diligence, we may not identify all of the factors necessary to estimate accurately our costs, timing and other matters.

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•

In order to complete a business combination and investment transaction, we may issue common stock, potentially creating dilution for existing stockholders.

•

We may borrow to finance business combination and investment transactions, and the amount and terms of any potential future acquisition-related or other borrowings, as well as other factors, could affect our liquidity and financial condition.

•

HP's effective tax rate on an ongoing basis is uncertain, and business combination and investment transactions could adversely impact our effective tax rate.

•

An announced business combination and investment transaction may not close timely or at all, which may cause our financial results to differ from expectations in a given quarter.

•

Business combination and investment transactions may lead to litigation.

•

If we fail to identify and successfully complete and integrate business combination and investment transactions that further our strategic objectives, we may be required to expend resources to develop products, services and technology internally, which may put us at a competitive disadvantage.

        HP has incurred and will incur additional depreciation and amortization expense over the useful lives of certain assets acquired in connection with business combination and investment transactions, and, to the extent that the value of goodwill or intangible assets with indefinite lives acquired in connection with a business combination and investment transaction becomes impaired, we may be required to incur additional material charges relating to the impairment of those assets. For example, in our third fiscal quarter of 2012, we recorded an $8.0 billion impairment charge relating to the goodwill associated with our enterprise services reporting unit within our former Services segment and a $1.2 billion impairment charge as a result of an asset impairment analysis of the "Compaq" trade name acquired in 2002. In addition, in our fourth fiscal quarter of 2012, we recorded an $8.8 billion impairment charge relating to the goodwill and intangible assets associated with Autonomy. If there are future changes in our stock price or significant changes in the business climate or operating results of our reporting units, we may incur additional goodwill impairment charges.

        Integration issues are often complex, time-consuming and expensive and, without proper planning and implementation, could significantly disrupt our business, including the business acquired as a result of any business combination and investment transaction. The challenges involved in integration include:

•

combining product and service offerings and entering or expanding into markets in which we are not experienced or are developing expertise;

•

convincing customers and distributors that the transaction will not diminish client service standards or business focus, persuading customers and distributors to not defer purchasing decisions or switch to other suppliers (which could result in our incurring additional obligations in order to address customer uncertainty), minimizing sales force attrition and expanding and coordinating sales, marketing and distribution efforts;

•

consolidating and rationalizing corporate IT infrastructure, which may include multiple legacy systems from various acquisitions and integrating software code and business processes;

•

minimizing the diversion of management attention from ongoing business concerns;

•

persuading employees that business cultures are compatible, maintaining employee morale and retaining key employees, engaging with employee works councils representing an acquired company's non-U.S. employees, integrating employees into HP, correctly estimating employee benefit costs and implementing restructuring programs;

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•

coordinating and combining administrative, manufacturing, research and development and other operations, subsidiaries, facilities and relationships with third parties in accordance with local laws and other obligations while maintaining adequate standards, controls and procedures;

•

achieving savings from supply chain integration; and

•

managing integration issues shortly after or pending the completion of other independent transactions.

        While we do not currently plan to divest any of our major businesses, we do regularly evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives. When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives. We may also dispose of a business at a price or on terms that are less desirable than we had anticipated. In addition, we may experience greater dis-synergies than expected, and the impact of the divestiture on our revenue growth may be larger than projected. After reaching an agreement with a buyer or seller for the acquisition or disposition of a business, we are subject to satisfaction of pre-closing conditions as well as to necessary regulatory and governmental approvals on acceptable terms, which may prevent us from completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions outside of our control could affect our future financial results.

Unforeseen environmental costs could impact our future net earnings.

        We are 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 our products and the recycling, treatment and disposal of our products, including batteries. In particular, we face increasing complexity in our product design and procurement operations as we adjust to new and future requirements relating to the chemical and materials composition of our products, their safe use, the energy consumption associated with those products, climate change laws and regulations, and product take-back legislation. We could incur substantial costs, our products could be restricted from entering certain jurisdictions, and we could face other sanctions, if we were to violate or become liable under environmental laws or if our products become non-compliant with environmental laws. Our potential exposure includes fines and civil or criminal sanctions, third-party property damage, personal injury claims and clean up costs. Further, liability under some environmental laws relating to contaminated sites can be imposed retroactively, on a joint and several basis, and without any finding of noncompliance or fault. The amount and timing of costs under environmental laws are difficult to predict.

Some anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.

        We have provisions in our certificate of incorporation and bylaws, each of which could have the effect of rendering more difficult or discouraging an acquisition of HP deemed undesirable by our Board of Directors. These include provisions:

•

authorizing blank check preferred stock, which HP could issue with voting, liquidation, dividend and other rights superior to our common stock;

•

limiting the liability of, and providing indemnification to, HP's directors and officers;

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•

specifying that HP stockholders may take action only at a duly called annual or special meeting of stockholders and otherwise in accordance with our bylaws and limiting the ability of our stockholders to call special meetings;

•

requiring advance notice of proposals by HP stockholders for business to be conducted at stockholder meetings and for nominations of candidates for election to our Board of Directors;

•

requiring a vote by the holders of two-thirds of HP's outstanding shares to amend certain bylaws relating to HP stockholder meetings, the Board of Directors and indemnification; and

•

controlling the procedures for conduct of HP's Board and stockholder meetings and election, appointment and removal of HP directors.

        These provisions, alone or together, could deter or delay hostile takeovers, proxy contests and changes in control or management of HP. As a Delaware corporation, HP also is subject to provisions of Delaware law, including Section 203 of the Delaware General Corporation Law, which prevents some stockholders from engaging in certain business combinations without approval of the holders of substantially all of HP's outstanding common stock.

        Any provision of our certificate of incorporation or bylaws or Delaware law that has the effect of delaying or deterring a change in control of HP could limit the opportunity for our stockholders to receive a premium for their shares of HP common stock and also could affect the price that some investors are willing to pay for HP common stock.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

        For quantitative and qualitative disclosures about market risk affecting HP, see "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2012, which is incorporated herein by reference. Our exposure to market risk has not changed materially since October 31, 2012.

Item 4.    Controls and Procedures.

        Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of the end of the period covered by this report (the "Evaluation Date"). Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information relating to HP, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to HP's management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

        Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recently completed fiscal quarter. Based on that evaluation, our principal executive officer and principal financial officer concluded that there has not been any change in our internal control over financial reporting during that quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.    Legal Proceedings.

        The information set forth above under Note 15 contained in the "Notes to Consolidated Condensed Financial Statements" is incorporated herein by reference.

Item 1A.    Risk Factors.

        A description of factors that could materially affect our business, financial condition or operating results is included under "Factors that Could Affect Future Results" in "Management's Discussion and Analysis of Financial Condition and Results of Operations," contained in Item 2 of Part I of this report. This description includes any material changes to the risk factor disclosure in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended October 31, 2012 and is incorporated herein by reference.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Securities

        There were no unregistered sales of equity securities during the period covered by this report.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs
	In thousands, except per share amounts
Month #1
(February 2013)		3,185	$	18.38		3,185	$	8,864,931
Month #2
(March 2013)		20,152	$	21.59		20,152	$	8,429,749
Month #3
(April 2013)		12,944	$	23.40		12,944	$	8,126,919
Total		36,281	$	21.96		36,281

        HP repurchases shares under an ongoing program to return cash to stockholders when sufficient liquidity exists, the shares are trading at a discount relative to estimated intrinsic value, and there is no alternative investment opportunity expected to generate a higher risk-adjusted return on investment. This program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions. All shares repurchased in the second quarter of fiscal 2013 were purchased in open market transactions. As of April 30, 2013, HP had remaining authorization of $8.1 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on July 21, 2011.

Item 6.    Exhibits.

        The Exhibit Index beginning on page 101 of this report sets forth a list of exhibits.

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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: June 6, 2013

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
EXHIBIT INDEX

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
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 Bylaws effective May 24, 2013.	8-K	001-04423	3.1	May 29, 2013
4(a)	Senior Indenture between HP and The Bank of New York Mellon Trust Company, National Association, as successor in interest to J.P. Morgan Trust Company, National Association (formerly known as Chase Manhattan Bank and Trust Company, National Association), as Trustee, dated June 1, 2000.	S-3	333-134327	4.9	June 7, 2006
4(b)	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(c)	Form of Registrant's Floating Rate Global Note due March 1, 2012, 5.25% Global Note due March 1, 2012 and 5.40% Global Note due March 1, 2017.	8-K	001-04423	4.1, 4.2 and 4.3	February 28, 2007
4(d)	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(e)	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(f)	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(g)	Form of Registrant's Floating Rate Global Note due September 13, 2012, 1.250% Global Note due September 13, 2013 and 2.125% Global Note due September 13, 2015 and form of related Officers' Certificate.	8-K	001-04423	4.1, 4.2, 4.3 and 4.4	September 13, 2010

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		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
4(h)	Form of Registrant's 2.200% Global Note due December 1, 2015 and 3.750% Global Note due December 1, 2020 and form of related Officers' Certificate.	8-K	001-04423	4.1, 4.2 and 4.3	December 2, 2010
4(i)	Form of Registrant's Floating Rate Global Note due May 24, 2013, Floating Rate Global Note due May 30, 2014, 1.550% Global Note due May 30, 2014, 2.650% Global Note due June 1, 2016 and 4.300% Global Note due June 1, 2021 and form of related Officers' Certificate.	8-K	001-04423	4.1, 4.2, 4.3, 4.4, 4.5 and 4.6	June 1, 2011
4(j)	Form of Registrant's Floating Rate Global Note due September 19, 2014, 2.350% Global Note due March 15, 2015, 3.000% Global Note due September 15, 2016, 4.375% Global Note due September 15, 2021 and 6.000% Global Note due September 15, 2041 and form of related Officers' Certificate.	8-K	001-04423	4.1, 4.2, 4.3, 4.4, 4.5 and 4.6	September 19, 2011
4(k)	Form of Registrant's 2.625% Global Note due December 9, 2014, 3.300% Global Note due December 9, 2016, 4.650% Global Note due December 9, 2021 and related Officers' Certificate.	8-K	001-04423	4.1, 4.2, 4.3 and 4.4	December 12, 2011
4(l)	Form of Registrant's 2.600% Global Note due September 15, 2017 and 4.050% Global Note due September 15, 2022 and related Officers' Certificate.	8-K	001-04423	4.1, 4.2 and 4.3	March 12, 2012
4(m)	Specimen 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 Excess Benefit Retirement Plan, amended and restated as of January 1, 2006.*	8-K	001-04423	10.2	September 21, 2006
10(d)	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(e)	Registrant's 2005 Pay-for-Results Plan, as amended.*	10-K	001-04423	10(h)	December 14, 2011
10(f)	Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	8-K	001-04423	10.1	September 21, 2006

102

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(g)	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(h)	Employment Agreement, dated June 9, 2005, between Registrant and R. Todd Bradley.*	10-Q	001-04423	10(x)	September 8, 2005
10(i)	Registrant's Executive Severance Agreement.*	10-Q	001-04423	10(u)(u)	June 13, 2002
10(j)	Registrant's Executive Officers Severance Agreement.*	10-Q	001-04423	10(v)(v)	June 13, 2002
10(k)	Form letter regarding severance offset for restricted stock and restricted units.*	8-K	001-04423	10.2	March 22, 2005
10(l)	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(m)	Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(c)(c)	June 8, 2007
10(n)	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(o)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California).*	8-K	001-04423	10.2	January 24, 2008
10(p)	Form of Agreement Regarding Confidential Information and Proprietary Developments (Texas).*	10-Q	001-04423	10(o)(o)	March 10, 2008
10(q)	Form of Restricted Stock Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(p)(p)	March 10, 2008
10(r)	Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(q)(q)	March 10, 2008
10(s)	Form of Stock Option Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(r)(r)	March 10, 2008
10(t)	Form of Option Agreement for Registrant's 2000 Stock Plan.*	10-Q	001-04423	10(t)(t)	June 6, 2008
10(u)	Form of Common Stock Payment Agreement for Registrant's 2000 Stock Plan.*	10-Q	001-04423	10(u)(u)	June 6, 2008

103

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(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
10(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)	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(y)	Form of Stock Notification and Award Agreement for awards of restricted stock.*	10-K	001-04423	10(z)(z)	December 18, 2008
10(z)	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(a)(a)	First Amendment to the Hewlett-Packard Company Excess Benefit Retirement Plan.*	10-Q	001-04423	10(b)(b)(b)	March 10, 2009
10(b)(b)	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(c)(c)	Fifth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(d)(d)(d)	September 4, 2009
10(d)(d)	Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan.*	8-K	001-04423	10.2	March 23, 2010
10(e)(e)	Form of Stock Notification and Award Agreement for awards of restricted stock units.*	10-K	001-04423	10(f)(f)(f)	December 15, 2010
10(f)(f)	Form of Stock Notification and Award Agreement for awards of performance-based restricted units.*	10-K	001-04423	10(g)(g)(g)	December 15, 2010
10(g)(g)	Form of Stock Notification and Award Agreement for awards of restricted stock.*	10-K	001-04423	10(h)(h)(h)	December 15, 2010
10(h)(h)	Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*	10-K	001-04423	10(i)(i)(i)	December 15, 2010
10(i)(i)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California—new hires).*	10-K	001-04423	10(j)(j)(j)	December 15, 2010
10(j)(j)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California—current employees).*	10-K	001-04423	10(k)(k)(k)	December 15, 2010

104

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(k)(k)	Letter Agreement, dated December 15, 2010, between the Registrant and Catherine A. Lesjak.*	10-K	001-04423	10(l)(l)(l)	December 15, 2010
10(l)(l)	First Amendment to the Registrant's Executive Deferred Compensation Plan, as amended and restated effective October 1, 2004.*	10-Q	001-04423	10(o)(o)(o)	September 9, 2011
10(m)(m)	Sixth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(p)(p)(p)	September 9, 2011
10(n)(n)	Employment offer letter, dated September 27, 2011, between the Registrant and Margaret C. Whitman.*	8-K	001-04423	10.2	September 29, 2011
10(o)(o)	Letter Agreement, dated November 17, 2011, among the Registrant, Relational Investors LLC and the other parties named therein.*	8-K	001-04423	99.1	November 17, 2011
10(p)(p)	Seventh Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-K	001-04423	10(e)(e)(e)	December 14, 2011
10(q)(q)	Registrant's Severance Plan for Executive Officers, as amended and restated.*	10-K	001-04423	10(f)(f)(f)	December 14, 2011
10(r)(r)	Aircraft Time Sharing Agreement, dated March 16, 2012, between the Registrant and Margaret C. Whitman.*	10-Q	001-04423	10(h)(h)(h)	June 8, 2012
10(s)(s)	Second Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan, as amended effective February 28, 2013.*	8-K	001-04423	10.2	March 21, 2013
10(t)(t)	Aircraft Time Sharing Agreement, dated April 22, 2013, between the Registrant and John M. Hinshaw.*‡
10(u)(u)	Aircraft Time Sharing Agreement, dated April 22, 2013, between the Registrant and R. Todd Bradley.*‡
11	None.
12	Statement of Computation of Ratio of Earnings to Fixed Charges.‡
15	None.
18-19	None.
22-24	None.

105

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
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.‡
101.SCH	XBRL Taxonomy Extension Schema Document.‡
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.‡
101.DEF	XBRL Taxonomy Extension Definition 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.

‡

Filed herewith.

†

Furnished herewith.

        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% 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.

106

EX-10.(T)(T)

Exhibit 10.(t)(t)

AIRCRAFT TIME SHARING AGREEMENT

This Aircraft Time Sharing Agreement (“Agreement”) is entered into between Hewlett-Packard Company, whose principal address is 3000 Hanover St., Palo Alto, CA 94034 (“Operator”) and John M. Hinshaw, whose principal address is [address] (“Lessee”), and shall become effective as of the date the last party executes this Agreement.

WHEREAS, Operator has operational control of certain aircraft listed on Exhibit A (“Aircraft”) and employs flight crews that are fully qualified to operate each of the Aircraft; and

WHEREAS, Lessee wishes to lease certain of the Aircraft and flight crew from time to time; and

WHEREAS, Operator and Lessee wish to enter into an arrangement for Operator to lease the Aircraft and flight crew to Lessee on a Time Sharing basis (as defined in FAR 91.501(c)(1)) under certain terms and conditions;

NOW THEREFORE, Operator and Lessee agree as follows:

1.Use of Aircraft and Provision of Flight Crew.  Lessee may lease the Aircraft according to the terms of its Agreement, so long as such use is for Lessee’s own account.  Lessee’s use shall be subject to the use limitations set forth in Sections 91.501 and 91.321 of the Federal Aviation Regulations (“FAR”).  Operator shall employ, pay for and provide to Lessee a qualified flight crew for each flight undertaken under this Agreement.

During the term of this Agreement, Lessee will abide by and conform to all applicable laws, governmental and airport orders, rules and regulations.  Lessee shall not use the Aircraft for the transportation of passengers or cargo for compensation or hire.  Lessee shall refrain from incurring any mechanics or other lien in connection with inspection, preventive maintenance, maintenance or storage of aircraft, whether permissible or impermissible under this Agreement, nor shall Lessee make any attempt to mortgage, assign or create any kind of security interest involving the Aircraft.

2.Scheduling.  Lessee shall provide Operator with requests for flight time and proposed flight schedules as far in advance of any given flight as possible, and in any case, no less than 24 hours before Lessee’s expected departure.  Requests for flights shall be in a form agreed to by the parties.  Lessee shall provide Operator with the following information for each proposed flight:  (a) proposed date and time of departure flight; (b) destination; (c) number of anticipated passengers; (d) the nature and extent of luggage; (e) the date and time of a return flight, and (f) any other information concerning the proposed flight that may be requested by Operator or Operator’s flight crew.

Operator shall have final authority over the scheduling of the Aircraft, provided, however, that Operator will use its best efforts to accommodate the request of Lessee, to the extent of available flight crews, Aircraft and other conditions permitting.  The parties agree that Operator shall not be liable for delay or failure to furnish the Aircraft and crew pursuant to this Lease for any reason.

3.Operational Control.  At all times during which a flight is made by or on behalf of Lessee under this Agreement, Operator (including, without limitation, through its Pilots and flight crew), shall have sole possession, command and control of the Aircraft.  Operator shall have complete and exclusive responsibility for (a) scheduling, dispatching and flight of the Aircraft on all flights conducted pursuant to this Lease, (b) the physical and technical operation of the Aircraft and (c) the safe performance of all flights.  Operator shall have operational control of the Aircraft for all purposes of the Federal Aviation Regulations.  In addition, the pilot-in-command of each flight shall have the final authority with respect to

1

(a) the initiation or termination of any flight, (b) selection of the routing of any flight, (c) determination of the load to be carried, and (d) all decisions relating to the safety of any flight.

4.Maintenance.  Operator shall be solely responsible for securing maintenance, preventive maintenance and required or otherwise necessary inspections of the Aircraft.  The Aircraft shall be inspected in and maintained in accordance with applicable rules and regulations of FAR Part 91 during the term of this Lease.  No period of maintenance, preventive maintenance or inspection shall be delayed or postponed for the purpose of scheduling the Aircraft for Lessee.  The pilot in command shall have final and complete authority to cancel any flight for any reason or condition, which in his judgment would compromise the safety of the flight.

5.Insurance.  During the term of this Lease, Operator shall maintain in effect insurance covering the Aircraft with respect to such risks, in such amounts and with such deductibles and other terms as determined by Operator in its sole discretion.  In addition, Operator shall maintain comprehensive public liability and property damage insurance with such terms as determined by Operator in its sole discretion. Such insurance shall be primary as to Operator with Lessee being an additional insured (as evidenced by a certificate of insurance) and shall waive all right of subrogation as to Lessee and his agents.  Notwithstanding the foregoing and subject to the limitations of FAR Section 91.501(d), Lessee shall reimburse Operator for the cost and expense of insurance obtained at Lessee’s request for any specific flight.

6.Charges for Lease of Aircraft.  For each flight conducted under this Agreement, Lessee shall pay Operator amounts specified under (a) and (b) below, within the time specified in (c).

(a)  Expenses.  Expenses to be charged Lessee for each flight under this Agreement shall consist of those permitted or required to be charged under FAR 91.501(d), including, without limitation, the following item:

1)Fuel, oil, lubricants and other additives

2)Travel expenses of the crew, including food, lodging and ground transportation.

3)Hangar and tie down costs away from the Aircraft’s base of operation.

4)Insurance obtained for the specific flight.

5)Landing fees, airport taxes and similar assessments.

6)Customs, foreign permit, and similar fees directly related to the flight.

7)In-flight food and beverages.

8)Passenger ground transportation.

9)Flight planning and weather contract services.

10)An additional charge equal to 100% of the expenses listed in (1) of this subsection.

(b)  Taxes.  Lessee shall also pay to Operator the federal excise tax imposed on the transportation of persons for flights conducted under this Agreement.  This tax currently consists of a 7.5 percent tax imposed on the amounts paid and a $3.90 per leg segment fee (which segment fee is subject to change on January 1 of every year).  Amounts due for taxes shall be included on the monthly invoices submitted to Lessee.

(c)  Invoicing.  Operator shall pay all expenses related to the operation of the Aircraft and will provide an invoice and bill to Lessee for the expenses detailed in (a) and (b) above, as of the last day of the month in which any flight(s) for Lessee have occurred.  Lessee shall pay Operator for the billed amount within 30 days of receipt of the invoice.

2

7.Warranties.  Operator makes no representations or warranties, whether expressed or implied, other than those set forth in this Agreement, including, but not limited to, any warranty of merchantability or fitness for a particular purpose with respect to the services to be performed hereunder or the use of the Aircraft.  Operator shall not be liable for any special, incidental, indirect or consequential damages or for the lost profits or revenues in connection with the furnishing, performance or use of the services to be performed hereunder.  Operator shall not be liable for any act or omission occurring in the course of or in connections with the use of the Aircraft by Lessee, or the performance of the services hereunder by Operator or its employees or agents, or for any loss or damage which Lessee may sustain or suffer as the result of or in the course of the discharge by Operator of its duties hereunder.  Operator’s liability for any damages, claims, actions or causes of action arising, directly or indirectly, in connection with this Agreement, the use of the Aircraft by Lessee, or otherwise is specifically limited to an amount not to exceed six months’ average billing in the most recent 12-month period by Lessee under this Agreement.

8.Regulatory Requirements.  Operator understands that it is required to, and represents that it will, mail a copy of this Agreement to the Federal Aviation Administration (“FAA”) within 24 hours of its execution to the following address via certified mail, return receipt requested:  Federal Aviation Administration; Aircraft Registration Branch; ATTN: Technical Section; POB 25724; Oklahoma City, OK   73125.

Lessee understands and agrees that it is required to, and represents that it will, provide notification (or cause such notification to be provided) to the FAA at least 48 hours prior to the first flight of the Aircraft under this Agreement.  This notification must be made to the flight standards district office, general aviation district office, air carrier district office or international field office nearest the airport where the lease or contract flight will originate, and may be made in person or by telephone.

9.Truth-in-Leasing.  In accordance with FAR Section 91.23, the parties state as follows:

a.OPERATOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED WITHIN THE 12-MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT (OR SUCH SHORTER PERIOD TO THE EXTENT THE AIRCRAFT IS LESS THAN 12 MONTHS OLD), AND WILL CONTINUE TO BE MAINTAINED AND INSPECTED, IN ACCORDANCE WITH THE PROVISIONS OF FAR PARTS 91 AND 135, IF APPLICABLE, AND ALL APPLICABLE REQUIREMENTS FOR MAINTENANCE AND INSPECTION THEREUNDER HAVE BEEN COMPLIED WITH.

b.LESSEE AGREES, CERTIFIES AND KNOWINGLY ACKNOWLEDGES THAT WHEN LESSEE OPERATES THE AIRCRAFT UNDER THIS AGREEMENT, IT SHALL BE KNOWN AS, CONSIDERED, AND IN FACT WILL BE THE OPERATOR OF THE AIRCRAFT AS PROVIDED HEREIN.

c.AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FARs CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE OR AIR CARRIER DISTRICT OFFICE.  LESSEE ACKNOWLEDGES SHE UNDERSTANDS AND AGREES TO ABIDE BY THESE REGULATIONS.

d.THE PARTIES HERETO CERTIFY THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON THE AIRCRAFT AT ALL TIMES, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY CONSTITUTED IDENTIFIED REPRESENTATIVE OF THE ADMINISTRATOR OF THE FAA.

3

10.General Provisions.  This Agreement and all rights of the parties hereunder shall be construed and enforced in accordance with the laws of the State of Delaware, without giving effect to its conflicts of laws.  This Agreement supersedes all prior written understandings between the parties with respect to the subject matter hereof, and no modification or termination shall be valid unless in writing and signed by both parties below.  Either party may terminate this Agreement upon 30 days written notice to the other.  The Aircraft is and all times shall remain the property of the Operator, and Lessee and shall have no right, title or interest therein or in the proceeds thereof except as expressly permitted hereunder.  Any controversy or claims arising out of or relating to this Agreement shall be settled by arbitration in accordance with the then-prevailing commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction.  In any disputes, each party shall bear its own costs and attorney’s fees.  If any clause or provision herein shall be found to be invalid or unenforceable by an arbitrator or court of competent jurisdiction, such finding shall not affect the validity of any other clause or provision, which shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above, by their duly authorized representatives.

OPERATOR: Hewlett-Packard Company

/s/ John F. Schultz

By: John F. Schultz

Executive Vice President, General Counsel

and Secretary

April 16, 2013

Date

LESSEE:

/s/ John M. Hinshaw

John M. Hinshaw

April 22, 2013

Date

4

EX-10.(U)(U)

Exhibit 10.(u)(u)

AIRCRAFT TIME SHARING AGREEMENT

This Aircraft Time Sharing Agreement (“Agreement”) is entered into between Hewlett-Packard Company, whose principal address is 3000 Hanover St., Palo Alto, CA 94034 (“Operator”) and R. Todd Bradley, whose principal address is [address] (“Lessee”), and shall become effective as of the date the last party executes this agreement.

WHEREAS, Operator has operational control of certain aircraft listed on Exhibit A (“Aircraft”) and employs flight crews that are fully qualified to operate each of the Aircraft; and

WHEREAS, Lessee wishes to lease certain of the Aircraft and flight crew from time to time; and

WHEREAS, Operator and Lessee wish to enter into an arrangement for Operator to lease the Aircraft and flight crew to Lessee on a Time Sharing basis (as defined in FAR 91.501(c)(1)) under certain terms and conditions;

NOW THEREFORE, Operator and Lessee agree as follows:

1.Use of Aircraft and Provision of Flight Crew.  Lessee may lease the Aircraft according to the terms of its Agreement, so long as such use is for Lessee’s own account.  Lessee’s use shall be subject to the use limitations set forth in Sections 91.501 and 91.321 of the Federal Aviation Regulations (“FAR”).  Operator shall employ, pay for and provide to Lessee a qualified flight crew for each flight undertaken under this Agreement.

During the term of this Agreement, Lessee will abide by and conform to all applicable laws, governmental and airport orders, rules and regulations.  Lessee shall not use the Aircraft for the transportation of passengers or cargo for compensation or hire.  Lessee shall refrain from incurring any mechanics or other lien in connection with inspection, preventive maintenance, maintenance or storage of aircraft, whether permissible or impermissible under this Agreement, nor shall Lessee make any attempt to mortgage, assign or create any kind of security interest involving the Aircraft.

2.Scheduling.  Lessee shall provide Operator with requests for flight time and proposed flight schedules as far in advance of any given flight as possible, and in any case, no less than 24 hours before Lessee’s expected departure.  Requests for flights shall be in a form agreed to by the parties.  Lessee shall provide Operator with the following information for each proposed flight:  (a) proposed date and time of departure flight; (b) destination; (c) number of anticipated passengers; (d) the nature and extent of luggage; (e) the date and time of a return flight, and (f) any other information concerning the proposed flight that may be requested by Operator or Operator’s flight crew.

Operator shall have final authority over the scheduling of the Aircraft, provided, however, that Operator will use its best efforts to accommodate the request of Lessee, to the extent of available flight crews, Aircraft and other conditions permitting.  The parties agree that Operator shall not be liable for delay or failure to furnish the Aircraft and crew pursuant to this Lease for any reason.

3.Operational Control.  At all times during which a flight is made by or on behalf of Lessee under this Agreement, Operator (including, without limitation, through its Pilots and flight crew), shall have sole possession, command and control of the Aircraft.  Operator shall have complete and exclusive responsibility for (a) scheduling, dispatching and flight of the Aircraft on all flights conducted pursuant to this Lease, (b) the physical and technical operation of the Aircraft and (c) the safe performance of all flights.  Operator shall have operational control of the Aircraft for all purposes of the Federal Aviation Regulations.  In addition, the pilot-in-command of each flight shall have the final authority with respect to

1

(a) the initiation or termination of any flight, (b) selection of the routing of any flight, (c) determination of the load to be carried, and (d) all decisions relating to the safety of any flight.

4.Maintenance.  Operator shall be solely responsible for securing maintenance, preventive maintenance and required or otherwise necessary inspections of the Aircraft.  The Aircraft shall be inspected in and maintained in accordance with applicable rules and regulations of FAR Part 91 during the term of this Lease.  No period of maintenance, preventive maintenance or inspection shall be delayed or postponed for the purpose of scheduling the Aircraft for Lessee.  The pilot in command shall have final and complete authority to cancel any flight for any reason or condition, which in his judgment would compromise the safety of the flight.

5.Insurance.  During the term of this Lease, Operator shall maintain in effect insurance covering the Aircraft with respect to such risks, in such amounts and with such deductibles and other terms as determined by Operator in its sole discretion.  In addition, Operator shall maintain comprehensive public liability and property damage insurance with such terms as determined by Operator in its sole discretion. Such insurance shall be primary as to Operator with Lessee being an additional insured (as evidenced by a certificate of insurance) and shall waive all right of subrogation as to Lessee and his agents.  Notwithstanding the foregoing and subject to the limitations of FAR Section 91.501(d), Lessee shall reimburse Operator for the cost and expense of insurance obtained at Lessee’s request for any specific flight.

6.Charges for Lease of Aircraft.  For each flight conducted under this Agreement, Lessee shall pay Operator amounts specified under (a) and (b) below, within the time specified in (c).

(a)  Expenses.  Expenses to be charged Lessee for each flight under this Agreement shall consist of those permitted or required to be charged under FAR 91.501(d), including, without limitation, the following item:

1)	Fuel, oil, lubricants and other additives
2)	Travel expenses of the crew, including food, lodging and ground transportation.
3)	Hangar and tie down costs away from the Aircraft’s base of operation.
4)	Insurance obtained for the specific flight.
5)	Landing fees, airport taxes and similar assessments.
6)	Customs, foreign permit, and similar fees directly related to the flight.
7)	In-flight food and beverages.
8)	Passenger ground transportation.
9)	Flight planning and weather contract services.
10)	An additional charge equal to 100% of the expenses listed in (1) of this subsection.

(b)  Taxes.  Lessee shall also pay to Operator the federal excise tax imposed on the transportation of persons for flights conducted under this Agreement.  This tax currently consists of a 7.5 percent tax imposed on the amounts paid and a $3.90 per leg segment fee (which segment fee is subject to change on January 1 of every year).  Amounts due for taxes shall be included on the monthly invoices submitted to Lessee.

(c)  Invoicing.  Operator shall pay all expenses related to the operation of the Aircraft and will provide an invoice and bill to Lessee for the expenses detailed in (a) and (b) above, as of the last day of the month in which any flight(s) for Lessee have occurred.  Lessee shall pay Operator for the billed amount within 30 days of receipt of the invoice.

2

7.Warranties.  Operator makes no representations or warranties, whether expressed or implied, other than those set forth in this Agreement, including, but not limited to, any warranty of merchantability or fitness for a particular purpose with respect to the services to be performed hereunder or the use of the Aircraft.  Operator shall not be liable for any special, incidental, indirect or consequential damages or for the lost profits or revenues in connection with the furnishing, performance or use of the services to be performed hereunder.  Operator shall not be liable for any act or omission occurring in the course of or in connections with the use of the Aircraft by Lessee, or the performance of the services hereunder by Operator or its employees or agents, or for any loss or damage which Lessee may sustain or suffer as the result of or in the course of the discharge by Operator of its duties hereunder.  Operator’s liability for any damages, claims, actions or causes of action arising, directly or indirectly, in connection with this Agreement, the use of the Aircraft by Lessee, or otherwise is specifically limited to an amount not to exceed six months’ average billing in the most recent 12-month period by Lessee under this Agreement.

8.Regulatory Requirements.   Operator understands that it is required to, and represents that it will, mail a copy of this Agreement to the Federal Aviation Administration (“FAA”) within 24 hours of its execution to the following address via certified mail, return receipt requested:  Federal Aviation Administration; Aircraft Registration Branch; ATTN: Technical Section; POB 25724; Oklahoma City, OK   73125.

Lessee understands and agrees that it is required to, and represents that it will, provide notification (or cause such notification to be provided) to the FAA at least 48 hours prior to the first flight of the Aircraft under this Agreement.  This notification must be made to the flight standards district office, general aviation district office, air carrier district office or international field office nearest the airport where the lease or contract flight will originate, and may be made in person or by telephone.

9.Truth-in-Leasing.  In accordance with FAR Section 91.23, the parties state as follows:

a.OPERATOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED WITHIN THE 12-MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT (OR SUCH SHORTER PERIOD TO THE EXTENT THE AIRCRAFT IS LESS THAN 12 MONTHS OLD), AND WILL CONTINUE TO BE MAINTAINED AND INSPECTED, IN ACCORDANCE WITH THE PROVISIONS OF FAR PARTS 91 AND 135, IF APPLICABLE, AND ALL APPLICABLE REQUIREMENTS FOR MAINTENANCE AND INSPECTION THEREUNDER HAVE BEEN COMPLIED WITH.

b.LESSEE AGREES, CERTIFIES AND KNOWINGLY ACKNOWLEDGES THAT WHEN LESSEE OPERATES THE AIRCRAFT UNDER THIS AGREEMENT, IT SHALL BE KNOWN AS, CONSIDERED, AND IN FACT WILL BE THE OPERATOR OF THE AIRCRAFT AS PROVIDED HEREIN.

c.AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FARs CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE OR AIR CARRIER DISTRICT OFFICE.  LESSEE ACKNOWLEDGES SHE UNDERSTANDS AND AGREES TO ABIDE BY THESE REGULATIONS.

d.THE PARTIES HERETO CERTIFY THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON THE AIRCRAFT AT ALL TIMES, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY CONSTITUTED IDENTIFIED REPRESENTATIVE OF THE ADMINISTRATOR OF THE FAA.

3

10.General Provisions.  This Agreement and all rights of the parties hereunder shall be construed and enforced in accordance with the laws of the State of Delaware, without giving effect to its conflicts of laws.  This Agreement supersedes all prior written understandings between the parties with respect to the subject matter hereof, and no modification or termination shall be valid unless in writing and signed by both parties below.  Either party may terminate this Agreement upon 30 days written notice to the other.  The Aircraft is and all times shall remain the property of the Operator, and Lessee and shall have no right, title or interest therein or in the proceeds thereof except as expressly permitted hereunder.  Any controversy or claims arising out of or relating to this Agreement shall be settled by arbitration in accordance with the then-prevailing commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction.  In any disputes, each party shall bear its own costs and attorney’s fees.  If any clause or provision herein shall be found to be invalid or unenforceable by an arbitrator or court of competent jurisdiction, such finding shall not affect the validity of any other clause or provision, which shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above, by their duly authorized representatives.

OPERATOR: Hewlett-Packard Company

/s/ John F. Schultz

By: John F. Schultz

Executive Vice President, General Counsel

and Secretary

April 16, 2013

Date

LESSEE:

s/ R. Todd Bradley

R. Todd Bradley

April 22, 2013

Date

4

EX-12

Exhibit 12

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

	Six months ended April 30, 2013			Fiscal years ended October 31
				2012			2011		2010		2009		2008
	In millions, except ratios
Earnings (loss):
Earnings (loss) before taxes	$	2,981		$	(11,933	)	$	8,982	$	10,974	$	9,415	$	10,473
Adjustments:
Non-controlling interests in the income of subsidiaries with fixed charges		35			102			75		108		74		17
Undistributed (earnings) loss of equity method investees		(3	)		(2	)		3		12		2		—
Fixed charges		612			1,297			1,027		868		1,098		1,147
	$	3,625		$	(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	$	397		$	865		$	551	$	417	$	585	$	467
Interest included in rent		215			432			476		451		513		680
Total fixed charges	$	612		$	1,297		$	1,027	$	868	$	1,098	$	1,147
Ratio of earnings to fixed charges		5.9x			*			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.

EX-31.1

Exhibit 31.1

CERTIFICATION

        I, Margaret C. Whitman, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Hewlett-Packard Company;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 6, 2013

/s/ MARGARET C. WHITMAN
Margaret C. Whitman
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

        I, Catherine A. Lesjak, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Hewlett-Packard Company;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 6, 2013

/s/ CATHERINE A. LESJAK
Catherine A. Lesjak
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-32

Exhibit 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

        I, Margaret C. Whitman, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett-Packard Company for the second quarter ended April 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett-Packard Company.

June 6, 2013

By: /s/ MARGARET C. WHITMAN
Margaret C. Whitman
President and Chief Executive Officer

        I, Catherine A. Lesjak, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett-Packard Company for the second quarter ended April 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett-Packard Company.

June 6, 2013

By: /s/ CATHERINE A. LESJAK
Catherine A. Lesjak
Executive Vice President
and Chief Financial Officer

        A signed original of this written statement required by Section 906 has been provided to Hewlett-Packard Company and will be retained by Hewlett-Packard Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Borrowings

6 Months Ended

Apr. 30, 2013

Borrowings

Borrowings

Note 11: Borrowings

• Notes Payable and Short-Term Borrowings

        Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows:

	April 30, 2013					October 31, 2012
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	6,162		2.3	%	$	5,744		1.6	%
Commercial paper		310		0.3	%		365		0.9	%
Notes payable to banks, lines of credit and other		456		2.1	%		538		2.8	%
	$	6,928				$	6,647

        Notes payable to banks, lines of credit and other includes deposits associated with HP's banking-related activities of $340 million and $369 million at April 30, 2013 and October 31, 2012, respectively.

• Long-Term Debt

        Long-term debt was as follows:

	April 30, 2013			October 31, 2012
	In millions
U.S. Dollar Global Notes
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	499		$	499
$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013		—			1,500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014		1,999			1,998
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014		1,500			1,500
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, due September 2013		1,100			1,100
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,099			1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,348			1,348
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013		1,750			1,750
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500			500
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500			500
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		998			998
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,198			1,198
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014		350			350
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014		650			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,497			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
		23,532			25,031
EDS Senior Notes
$1,100 issued June 2003 at 6.0%, due August 2013		1,103			1,109
$300 issued October 1999 at 7.45%, due October 2029		314			314
		1,417			1,423
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024		713			680
Fair value adjustment related to hedged debt		363			399
Less: current portion		(6,162	)		(5,744	)
Total long-term debt	$	19,863		$	21,789

        As disclosed in Note 8, HP uses interest rate swaps to mitigate the interest rate risk exposures in connection with certain fixed-rate global notes to achieve primarily U.S. dollar LIBOR-based floating interest expense. The interest rates in the table above have not been adjusted to reflect the impact of any interest rate swaps.

        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.

        In May 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the SEC to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2012 Shelf Registration Statement replaced the registration statement filed in May 2009.

        HP's Board of Directors has authorized the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper. HP maintains two commercial paper programs, and a wholly-owned subsidiary maintains a third program. HP's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $16.0 billion. HP's euro commercial paper program, which was established in September 2012, provides for the issuance of commercial paper outside of the United States denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $16.0 billion authorized by HP's Board of Directors. The HP subsidiary's Euro Commercial Paper/Certificate of Deposit Programme provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $500 million.

        HP maintains senior unsecured committed credit facilities primarily to support the issuance of commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a $4.5 billion four-year credit facility that expires in February 2015. Both facilities support the U.S. commercial paper program and the euro commercial paper program. In addition, to better support the euro commercial paper program, the five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. HP's ability to have a U.S. commercial paper outstanding balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance.

        Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of April 30, 2013, the carrying value of the assets approximated the carrying value of the borrowings of $219 million.

        As of April 30, 2013, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement. As of that date, HP also had up to $17.7 billion of available borrowing resources, including $16.2 billion in available capacity under its commercial paper programs and $1.5 billion relating to uncommitted lines of credit. The extent to which HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as sources of liquidity at any given time is subject to a number of factors, including market demand for HP securities and commercial paper, HP's financial performance, HP's credit ratings and market conditions generally.

        Interest expense on borrowings was as follows:

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions
Financing interest	$	81	$	80	$	161	$	158
Interest expense		103		116		225		238
Total Interest	$	184	$	196	$	386	$	396

XML

Guarantees (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013
Changes in aggregated product warranty liabilities
Product warranty liability at the beginning of the period	$ 2,170
Accruals for warranties issued	1,013
Adjustments related to pre-existing warranties (including changes in estimates)	(3)
Settlements made (in cash or in kind)	(1,110)
Product warranty liability at the end of the period	$ 2,070

XML

Consolidated Condensed Balance Sheets (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Current assets:
Cash and cash equivalents	$ 13,240	$ 11,301
Accounts receivable, net	14,606	16,407
Financing receivables, net	3,212	3,252
Inventory	5,999	6,317
Other current assets	12,514	13,360
Total current assets	49,571	50,637
Property, plant and equipment, net	11,476	11,954
Long-term financing receivables and other assets	10,205	10,593
Goodwill	31,133	31,069
Purchased intangible assets	3,869	4,515
Total assets	106,254	108,768
Current liabilities:
Notes payable and short-term borrowings	6,928	6,647
Accounts payable	12,313	13,350
Employee compensation and benefits	3,836	4,058
Taxes on earnings	1,015	846
Deferred revenue	6,757	7,494
Accrued restructuring	1,063	771
Other accrued liabilities	12,746	13,500
Total current liabilities	44,658	46,666
Long-term debt	19,863	21,789
Other liabilities	17,801	17,480
Commitments and contingencies
HP stockholders' equity
Preferred stock, $0.01 par value (300 shares authorized; none issued)
Common stock, $0.01 par value (9,600 shares authorized; 1,925 and 1,963 shares issued and outstanding, respectively)	19	20
Additional paid-in capital	5,717	6,454
Retained earnings	23,319	21,521
Accumulated other comprehensive loss	(5,522)	(5,559)
Total HP stockholders' equity	23,533	22,436
Non-controlling interests	399	397
Total stockholders' equity	23,932	22,833
Total liabilities and stockholders' equity	$ 106,254	$ 108,768

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Balance Sheet Details

6 Months Ended

Apr. 30, 2013

Balance Sheet Details

Balance Sheet Details

Note 4: Balance Sheet Details

        Balance sheet details were as follows:

• Accounts Receivable, Net

	April 30, 2013			October 31, 2012
	In millions
Accounts receivable	$	15,013		$	16,871
Allowance for doubtful accounts		(407	)		(464	)
	$	14,606		$	16,407

        HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain circumstances may provide for partial recourse, result in a transfer of HP's receivables and risk to the third party. As these transfers qualify as true sales, the receivables are derecognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of April 30, 2013 and October 31, 2012 were not material. The maximum program capacity and available program capacity under these arrangements were as follows:

	As of April 30, 2013		As of October 31, 2012
	In millions
Non-recourse arrangements
Aggregate maximum program capacity	$	743	$	636
Aggregate available capacity	$	376	$	434
Partial-recourse arrangement
Maximum program capacity	$	899	$	876
Available capacity	$	507	$	413

        For the three and six months ended April 30, 2013, trade receivables sold under these facilities were $1.2 billion and $2.7 billion, respectively. For the comparable periods of fiscal 2012, trade receivables sold under these facilities were $1.0 billion and $2.1 billion, respectively. The amount of trade receivables sold approximates the amount of cash received. The resulting costs associated with the sales of trade accounts receivable for three and six months ended April 30, 2013 and April 30, 2012 were not material.

• Inventory

	April 30, 2013		October 31, 2012
	In millions
Finished goods	$	3,778	$	4,094
Purchased parts and fabricated assemblies		2,221		2,223
	$	5,999	$	6,317

• Property, Plant and Equipment, Net

	April 30, 2013			October 31, 2012
	In millions
Land	$	634		$	636
Buildings and leasehold improvements		8,768			8,744
Machinery and equipment		16,516			16,503
		25,918			25,883
Accumulated depreciation		(14,442	)		(13,929	)
	$	11,476		$	11,954

        For the six months ended April 30, 2013, the increase in gross property, plant and equipment was due primarily to investments of $1.4 billion, the effect of which was partially offset by sales and retirements totaling $1.1 billion. Accumulated depreciation associated with the assets sold and retired was $0.9 billion.

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Stock-Based Compensation (Tables)

6 Months Ended

Apr. 30, 2013

Share-based compensation arrangements by share-based payment award

Schedule of stock based compensation expense and the resulting tax benefits

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Stock-based compensation expense	$	107		$	169		$	291		$	344
Income tax benefit		(32	)		(54	)		(89	)		(111	)
Stock-based compensation expense, net of tax	$	75		$	115		$	202		$	233

Restricted Stock Awards Activity

	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at October 31, 2012		25,532		$	31
Granted		18,550		$	14
Vested		(9,730	)	$	33
Forfeited		(1,723	)	$	27
Outstanding at April 30, 2013		32,629		$	21

Stock Options Awards Outstanding

	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at October 31, 2012		87,296		$	29
Granted		23,470		$	14
Exercised		(8,015	)	$	20
Forfeited/cancelled/expired		(15,696	)	$	24
Outstanding at April 30, 2013		87,055		$	27		4.3	$	203
Vested and expected to vest at April 30, 2013		82,313		$	27		4.1	$	182
Exercisable at April 30, 2013		50,002		$	33		2.1	$	40

Schedule of weighted-average fair value for PRUs awards granted in fiscal year 2012

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	13.14	(1)	$	27.00	(2)

⁽¹⁾

Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period.

⁽²⁾

Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in fiscal 2012.

Performance Based Restricted Units (PRUs) Activity

	Shares
	In thousands
Outstanding Target Shares at October 31, 2012		5,688
Forfeited		(236	)
Outstanding Target Shares at April 30, 2013		5,452
Outstanding Target Shares assigned a fair value at April 30, 2013		5,100	(1)

⁽¹⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date has not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual performance goals are approved.

Stock Options

Share-based compensation arrangements by share-based payment award

Schedule of weighted average assumptions, in addition to projections of market conditions

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Weighted-average fair value of grants per share(1)	$	4.89		$	5.82		$	4.03		$	9.46
Implied volatility		35	%		32	%		42	%		43	%
Risk-free interest rate		0.78	%		0.91	%		0.98	%		1.20	%
Expected dividend yield		2.90	%		2.14	%		3.75	%		1.73	%
Expected term in months		62			61			70			67

⁽¹⁾

The fair value calculation was based on stock options granted during the period.

Performance-Based Restricted Units (PRUs)

Share-based compensation arrangements by share-based payment award

Schedule of weighted average assumptions, in addition to projections of market conditions

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	0.00	(1)	$	3.35	(2)
Expected volatility(3)		33	%		41	%
Risk-free interest rate		0.18	%		0.14	%
Expected dividend yield		3.94	%		1.78	%
Expected term in months		12			15

⁽¹⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011.

⁽²⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011.

⁽³⁾

HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500.

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Income Taxes (Details) (USD $)	3 Months Ended			6 Months Ended
	Apr. 30, 2013	Jan. 31, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012
Income Taxes
Effective tax rate (as a percent)	23.50%		19.50%	22.50%	19.50%
U.S. federal statutory income tax rate (as a percent)				35.00%
Net tax (charge) benefit	$ 108,000,000		$ 25,000,000	$ 103,000,000	$ 74,000,000
Tax benefits from restructuring and acquisition charges	47,000,000		22,000,000	63,000,000	50,000,000
Tax benefits from adjustments to foreign tax provisions	81,000,000			131,000,000
Tax benefits (charges) from miscellaneous discrete items	(20,000,000)			9,000,000
Tax charges related to a past uncertain tax position		150,000,000
Tax benefit arising from the retroactive research and development credit		50,000,000
Unrecognized tax benefits	2,800,000,000			2,800,000,000
Unrecognized tax benefits that would affect effective tax rate if realized	1,500,000,000			1,500,000,000
Accrued income tax payable for interest and penalties	207,000,000			207,000,000
Income tax examination, likelihood of no resolution period				12 months
Income tax examination, likelihood of conclusion period				12 months
Reasonably possible, reduction in existing unrecognized tax benefits within the next 12 months	205,000,000			205,000,000
Classification of current and long-term deferred tax assets and liabilities
Current deferred tax assets	4,107,000,000			4,107,000,000		3,783,000,000
Current deferred tax liabilities	(300,000,000)			(300,000,000)		(230,000,000)
Long-term deferred tax assets	1,567,000,000			1,567,000,000		1,581,000,000
Long-term deferred tax liabilities	(3,790,000,000)			(3,790,000,000)		(2,948,000,000)
Net deferred tax position	$ 1,584,000,000			$ 1,584,000,000		$ 2,186,000,000

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Income Taxes

6 Months Ended

Apr. 30, 2013

Income Taxes

Income Taxes

Note 12: Income Taxes

• Provision for taxes

        HP's effective tax rate was 23.5% and 19.5% for the three months ended April 30, 2013 and 2012, respectively, and 22.5% and 19.5% for the six months ended April 30, 2013 and 2012, respectively. HP's effective tax rate increased in the three and six months ended April 30, 2013, in part due to the lower tax rates of the discrete items described below. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% 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.

        In the three and six months ended April 30, 2013, HP recorded discrete items resulting in a net tax benefit of $108 million and $103 million, respectively. These amounts included tax benefits of $47 million and $63 million on restructuring and acquisition-related charges for the three and six months ended April 30, 2013, respectively. Other discrete items for the three and six months ended April 30, 2013 included tax benefits of $81 million and $131 million, respectively, for various adjustments to estimated tax provisions of foreign jurisdictions and miscellaneous tax charges of $20 million and tax benefits of $9 million, respectively. In addition, in January 2013, the American Taxpayer Relief Act of 2012 was signed into law. In the first quarter of fiscal 2013, HP recorded a tax benefit of $50 million arising from the retroactive research and development credit provided by that legislation. HP also recorded a tax charge of $150 million related to a past uncertain tax position in the first quarter of fiscal 2013, increasing the effective tax rate.

        In the three and six months ended April 30, 2012, HP recorded discrete items with a net tax benefit of $25 million and $74 million, respectively, decreasing the effective tax rate. These amounts included net tax benefits of $22 million and $50 million, respectively, from restructuring and acquisition charges.

        As of April 30, 2013, the amount of gross unrecognized tax benefits was $2.8 billion, of which up to $1.5 billion would affect HP's effective tax rate if realized. HP recognizes interest income from favorable settlements and income tax receivables and interest expense and penalties accrued on unrecognized tax benefits within income tax expense. As of April 30, 2013, HP had accrued a net payable of $207 million for interest and penalties.

        HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any Internal Revenue Service audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be decreased by an amount up to $205 million within the next 12 months.

        In the Consolidated Condensed Financial Statements, current and long-term deferred tax assets and deferred tax liabilities are presented as follows:

	April 30, 2013			October 31, 2012
	In millions
Current deferred tax assets	$	4,107		$	3,783
Current deferred tax liabilities		(300	)		(230	)
Long-term deferred tax assets		1,567			1,581
Long-term deferred tax liabilities		(3,790	)		(2,948	)
Net deferred tax position	$	1,584		$	2,186

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Financial Instruments (Details 2) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Contractual maturities of short-term and long-term investments in available-for-sale debt securities, Cost
Due in one to five years	$ 14
Due in more than five years	357
Total debt securities, at cost	371
Contractual maturities of short-term and long-term investments in available-for-sale debt securities, Fair value
Due in one to five years	14
Due in more than five years	431
Total debt securities, at estimated fair value	445
Equity securities in privately held companies
Investment Holdings
Included in long-term financing receivables and other assets	$ 52	$ 51

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Stockholders' Equity (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012
Stockholders' Equity
Repurchases of common stock (in shares)	36	13	56	43
Share repurchases settled	$ 797,000,000	$ 350,000,000	$ 1,050,000,000	$ 1,130,000,000
Share repurchase authorization remaining			8,100,000,000
Tax (expense) benefit on change in unrealized gains/ losses on available-for-sale securities
Tax (expense) benefit on change in unrealized gains/ losses on available-for-sale securities	(5,000,000)		(38,000,000)	5,000,000
Tax (expense) benefit on change in unrealized gains/ losses on cash flow hedges:
Tax (expense) benefit on unrealized gains/losses arising during the period	(42,000,000)	60,000,000	60,000,000	(92,000,000)
Tax expense (benefit) on gains/losses reclassified into earnings	10,000,000		(7,000,000)	37,000,000
Tax (expense) benefit on change in unrealized gains/ losses on cash flow hedges	(32,000,000)	60,000,000	53,000,000	(55,000,000)
Tax (expense) benefit on change in unrealized components of defined benefit plans:
Tax benefit (expense) on net losses arising during the period				24,000,000
Tax (benefit) expense on amortization of actuarial loss and prior service benefit	(16,000,000)	(6,000,000)	(21,000,000)	(16,000,000)
Tax benefit (expense) on curtailments, settlements and other		20,000,000	(1,000,000)	(64,000,000)
Tax (expense) benefit on change in unrealized components of defined benefit plans	(16,000,000)	14,000,000	(22,000,000)	(56,000,000)
Tax benefit (expense) on change in cumulative translation adjustment	4,000,000	(52,000,000)	22,000,000	(38,000,000)
Tax (expense) benefit on other comprehensive income	(49,000,000)	22,000,000	15,000,000	(144,000,000)
Accumulated Other Comprehensive Loss, net of taxes
Net unrealized gain on available-for-sale securities	71,000,000		71,000,000		87,000,000
Net unrealized loss on cash flow hedges	(166,000,000)		(166,000,000)		(99,000,000)
Unrealized components of defined benefit plans	(4,934,000,000)		(4,934,000,000)		(5,090,000,000)
Cumulative translation adjustment	(493,000,000)		(493,000,000)		(457,000,000)
Accumulated other comprehensive loss	$ (5,522,000,000)		$ (5,522,000,000)		$ (5,559,000,000)

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Stock-Based Compensation (Details) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Stock Based Compensation Expense
Stock-based compensation expense	$ 107	$ 169	$ 291	$ 344
Income tax benefit	(32)	(54)	(89)	(111)
Stock based compensation expense, net of tax	75	115	202	233
Restricted Stock Awards
Stock Based Compensation Expense
Unrecognized pre-tax stock-based compensation expense	448		448
Remaining weighted-average vesting period			1 year 4 months 24 days
Activity
Outstanding Target Shares at the beginning of the period			25,532
Granted (in shares)			18,550
Vested (in shares)			(9,730)
Forfeited (in shares)			(1,723)
Outstanding Target Shares at the end of the period	32,629		32,629
Weighted-average grant date fair value, beginning of period (in dollars per share)			$ 31
Weighted-average grant date fair value of shares granted (in dollars per unit)			$ 14
Weighted-average grant date fair value of shares vested (in dollars per share)			$ 33
Weighted-average grant date fair value of shares forfeited (in dollars per share)			$ 27
Weighted-average grant date fair value, end of period (in dollars per share)	$ 21		$ 21
Stock Options
Stock Based Compensation Expense
Unrecognized pre-tax stock-based compensation expense	148		148
Remaining weighted-average vesting period			2 years 4 months 24 days
Weighted average fair value of grants per share and weighted average assumptions used to measure fair values
Weighted average fair value of grants per share	$ 4.89	$ 5.82	$ 4.03	$ 9.46
Expected or implied volatility (as a percent)	35.00%	32.00%	42.00%	43.00%
Risk-free interest rate (as a percent)	0.78%	0.91%	0.98%	1.20%
Expected dividend yield (as a percent)	2.90%	2.14%	3.75%	1.73%
Expected term	62 months	61 months	70 months	67 months
Options awards outstanding:
Outstanding at the beginning of the period (in shares)			87,296
Granted (in shares)			23,470
Exercised (in shares)			(8,015)
Forfeited/cancelled/expired (in shares)			(15,696)
Outstanding at the end of the period (in shares)	87,055		87,055
Vested and expected to vest (in shares)	82,313		82,313
Shares exercisable	50,002		50,002
Weighted-average exercise price of shares outstanding, at the beginning of the period (in dollars per share)			$ 29
Weighted-average exercise price of shares granted (in dollars per share)			$ 14
Weighted-average exercise price of shares exercised (in dollars per share)			$ 20
Weighted-average exercise price of shares forfeited, cancelled or expired (in dollars per share)			$ 24
Weighted-average exercise price of shares outstanding, at the end of the period (in dollars per share)	$ 27		$ 27
Weighted-average exercise price of shares vested and expected to vest (in dollars per share)	$ 27		$ 27
Weighted-average exercise price of exercisable options (in dollars per share)	$ 33		$ 33
Weighted-average remaining contractual term of shares outstanding			4 years 3 months 18 days
Weighted-average remaining contractual term of shares vested and expected to vest			4 years 1 month 6 days
Weighted-average remaining contractual term of exercisable options			2 years 1 month 6 days
Aggregate intrinsic value of shares outstanding	203		203
Aggregate intrinsic value of shares vested and expected to vest	182		182
Aggregate intrinsic value of exercisable options	40		40
Aggregate intrinsic value of options exercised	15		17
Performance-Based Restricted Units (PRUs)
Stock Based Compensation Expense
Unrecognized pre-tax stock-based compensation expense	$ 9		$ 9
Remaining weighted-average vesting period			8 months 12 days
Activity
Outstanding Target Shares at the beginning of the period			5,688
Forfeited (in shares)			(236)
Outstanding Target Shares at the end of the period	5,452		5,452
Outstanding Target shares assigned a fair value	5,100		5,100
Performance-based Restricted Units (PRUs)
Performance period to determine share based awards			3 years
Performance-Based Restricted Units (PRUs) | Minimum
Performance-based Restricted Units (PRUs)
Percentage of performance target			0.00%
Performance-Based Restricted Units (PRUs) | Maximum
Performance-based Restricted Units (PRUs)
Percentage of performance target			200.00%
Performance-based Restricted Units (PRUs) granted in fiscal year 2012
Activity
Weighted-average grant date fair value of shares granted (in dollars per unit)			$ 13.14	$ 27.00
Performance-based Restricted Units (PRUs) granted prior to fiscal year 2012
Activity
Weighted-average grant date fair value of shares granted (in dollars per unit)			$ 0.00	$ 3.35
Weighted average fair value of grants per share and weighted average assumptions used to measure fair values
Expected or implied volatility (as a percent)			33.00%	41.00%
Risk-free interest rate (as a percent)			0.18%	0.14%
Expected dividend yield (as a percent)			3.94%	1.78%
Expected term			12 months	15 months

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Goodwill and Purchased Intangible Assets (Tables)

6 Months Ended

Apr. 30, 2013

Goodwill and Purchased Intangible Assets

Goodwill

	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software			HP Financial Services		Corporate Investments		Total
	In millions
Net balance at October 31, 2012(1)	$	2,498	$	2,487	$	17,041	$	—	$	8,899		$	144	$	—	$	31,069
Goodwill acquired during the period		—		—		—		107		—			—		—		107
Goodwill adjustments/reclassifications		—		—		17		—		(60	)		—		—		(43	)
Net balance at April 30, 2013(1)	$	2,498	$	2,487	$	17,058	$	107	$	8,839		$	144	$	—	$	31,133

⁽¹⁾

Goodwill at October 31, 2012 and April 30, 2013 is net of accumulated impairment losses of $14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software, and the remaining $813 million relates to Corporate Investments.

Purchased Intangible Assets

	April 30, 2013										October 31, 2012
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,800	$	(2,859	)	$	(856	)	$	2,085	$	5,807	$	(2,625	)	$	(856	)	$	2,326
Developed and core technology and patents		6,497		(2,795	)		(2,138	)		1,564		6,580		(2,501	)		(2,138	)		1,941
"Compaq" trade name		1,422		(37	)		(1,227	)		158		1,422		(18	)		(1,227	)		177
Other product trademarks		312		(144	)		(109	)		59		310		(137	)		(109	)		64
In-process research and development ("IPR&D")		3		—			—			3		7		—			—			7
Total purchased intangible assets	$	14,034	$	(5,835	)	$	(4,330	)	$	3,869	$	14,126	$	(5,281	)	$	(4,330	)	$	4,515

Finite-lived purchased intangible assets

Estimated future amortization expense related to finite-lived purchased intangible assets at April 30, 2013 is as follows:

Fiscal year:	In millions
2013 (remaining 6 months)	$	667
2014		1,035
2015		845
2016		688
2017		262
2018		150
Thereafter		219
Total	$	3,866

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Balance Sheet Details (Tables)

6 Months Ended

Apr. 30, 2013

Balance Sheet Details

Accounts Receivables

	April 30, 2013			October 31, 2012
	In millions
Accounts receivable	$	15,013		$	16,871
Allowance for doubtful accounts		(407	)		(464	)
	$	14,606		$	16,407

Schedule of maximum program capacity and available program capacity under financing arrangements

	As of April 30, 2013		As of October 31, 2012
	In millions
Non-recourse arrangements
Aggregate maximum program capacity	$	743	$	636
Aggregate available capacity	$	376	$	434
Partial-recourse arrangement
Maximum program capacity	$	899	$	876
Available capacity	$	507	$	413

Inventory

• Inventory

	April 30, 2013		October 31, 2012
	In millions
Finished goods	$	3,778	$	4,094
Purchased parts and fabricated assemblies		2,221		2,223
	$	5,999	$	6,317

Property, Plant and Equipment

• Property, Plant and Equipment, Net

	April 30, 2013			October 31, 2012
	In millions
Land	$	634		$	636
Buildings and leasehold improvements		8,768			8,744
Machinery and equipment		16,516			16,503
		25,918			25,883
Accumulated depreciation		(14,442	)		(13,929	)
	$	11,476		$	11,954

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Fair Value (Details) (USD $)	Apr. 30, 2013	Oct. 31, 2012
Fair Value and Carrying Value of Debt
Fair value, short- and long-term debt	$ 27,100,000,000	$ 28,400,000,000
Carrying value, short- and long-term debt	26,800,000,000	28,400,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,249,000,000	4,699,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,169,000,000	4,630,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	72,000,000	60,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	8,000,000	8,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis		1,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	4,209,000,000	5,126,000,000
Total Liabilities, measured at fair value on a recurring basis	566,000,000	517,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Time deposits
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	2,886,000,000	3,641,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Mutual funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	371,000,000	469,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	4,000,000	3,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	384,000,000	377,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	2,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Interest rate contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	257,000,000	344,000,000
Total Liabilities, measured at fair value on a recurring basis	10,000,000	29,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign exchange contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	297,000,000	291,000,000
Total Liabilities, measured at fair value on a recurring basis	556,000,000	485,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other derivatives
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	8,000,000	1,000,000
Total Liabilities, measured at fair value on a recurring basis		3,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	51,000,000	44,000,000
Total Liabilities, measured at fair value on a recurring basis		1,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	38,000,000	44,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Foreign exchange contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	13,000,000
Total Liabilities, measured at fair value on a recurring basis		1,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	11,509,000,000	9,869,000,000
Total Liabilities, measured at fair value on a recurring basis	566,000,000	518,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Time deposits
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	2,886,000,000	3,641,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,169,000,000	4,630,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Mutual funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	371,000,000	469,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	76,000,000	63,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	392,000,000	385,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	40,000,000	45,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Interest rate contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	257,000,000	344,000,000
Total Liabilities, measured at fair value on a recurring basis	10,000,000	29,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Foreign exchange contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	310,000,000	291,000,000
Total Liabilities, measured at fair value on a recurring basis	556,000,000	486,000,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Other derivatives
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	8,000,000	1,000,000
Total Liabilities, measured at fair value on a recurring basis		$ 3,000,000

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Income Taxes (Tables)

6 Months Ended

Apr. 30, 2013

Income Taxes

Schedule of current and long-term deferred tax assets and liabilities

	April 30, 2013			October 31, 2012
	In millions
Current deferred tax assets	$	4,107		$	3,783
Current deferred tax liabilities		(300	)		(230	)
Long-term deferred tax assets		1,567			1,581
Long-term deferred tax liabilities		(3,790	)		(2,948	)
Net deferred tax position	$	1,584		$	2,186

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Balance Sheet Details (Details) (USD $)	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012
Accounts Receivable, Net
Accounts receivable, gross	$ 15,013,000,000		$ 15,013,000,000		$ 16,871,000,000
Allowance for doubtful accounts	(407,000,000)		(407,000,000)		(464,000,000)
Accounts receivable, net	14,606,000,000		14,606,000,000		16,407,000,000
Non-recourse arrangements
Aggregate maximum program capacity	743,000,000		743,000,000		636,000,000
Aggregate available capacity	376,000,000		376,000,000		434,000,000
Partial recourse arrangement
Maximum program capacity	899,000,000		899,000,000		876,000,000
Available capacity	507,000,000		507,000,000		413,000,000
Trade receivables sold	1,200,000,000	1,000,000,000	2,700,000,000	2,100,000,000
Inventory
Finished goods	3,778,000,000		3,778,000,000		4,094,000,000
Purchased parts and fabricated assemblies	2,221,000,000		2,221,000,000		2,223,000,000
Inventory, net	$ 5,999,000,000		$ 5,999,000,000		$ 6,317,000,000

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Financial Instruments (Details 3) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Derivative disclosures
Cash held as collateral from counterparties	$ 266	$ 198
Number of business days in which the funds held as collateral and posted as collateral, from/to counterparties are transferred	2 days
Cash posted as collateral under collateralized arrangements		72
Cash posted as collateral to counterparties through reuse	137	49
Cash posted as collateral to counterparties in cash		23
Total derivatives, gross notional amount	46,827	50,262
Other Current Assets
Derivative disclosures
Derivative asset, fair value	279	304
Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	296	332
Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	456	396
Other Liabilities
Derivative disclosures
Derivative liability, fair value	110	122
Cash flow hedges
Cash flow hedges
Maturity period of foreign currency cash flow hedges	12 months
Maximum maturity period for lease-related cash flow hedges	5 years
Derivatives designated as hedging instruments
Derivative disclosures
Total derivatives, gross notional amount	28,031	28,992
Derivatives designated as hedging instruments | Other Current Assets
Derivative disclosures
Derivative asset, fair value	173	217
Derivatives designated as hedging instruments | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	281	315
Derivatives designated as hedging instruments | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	361	313
Derivatives designated as hedging instruments | Other Liabilities
Derivative disclosures
Derivative liability, fair value	95	103
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts
Derivative disclosures
Total derivatives, gross notional amount	8,900	7,900
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets
Derivative disclosures
Derivative asset, fair value	38	43
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	210	276
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts
Derivative disclosures
Total derivatives, gross notional amount	17,230	19,409
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Current Assets
Derivative disclosures
Derivative asset, fair value	123	160
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	49	24
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	332	277
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Liabilities
Derivative disclosures
Derivative liability, fair value	70	79
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts
Derivative disclosures
Total derivatives, gross notional amount	1,901	1,683
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Current Assets
Derivative disclosures
Derivative asset, fair value	12	14
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	22	15
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	29	36
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Liabilities
Derivative disclosures
Derivative liability, fair value	25	24
Derivatives not designated as hedging instruments
Derivative disclosures
Total derivatives, gross notional amount	18,796	21,270
Derivatives not designated as hedging instruments | Other Current Assets
Derivative disclosures
Derivative asset, fair value	106	87
Derivatives not designated as hedging instruments | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	15	17
Derivatives not designated as hedging instruments | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	95	83
Derivatives not designated as hedging instruments | Other Liabilities
Derivative disclosures
Derivative liability, fair value	15	19
Derivatives not designated as hedging instruments | Foreign exchange contracts
Derivative disclosures
Total derivatives, gross notional amount	16,246	18,687
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Current Assets
Derivative disclosures
Derivative asset, fair value	90	61
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	14	17
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	85	51
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Liabilities
Derivative disclosures
Derivative liability, fair value	15	19
Derivatives not designated as hedging instruments | Interest rate contracts
Derivative disclosures
Total derivatives, gross notional amount	2,200	2,200
Derivatives not designated as hedging instruments | Interest rate contracts | Other Current Assets
Derivative disclosures
Derivative asset, fair value	9	25
Derivatives not designated as hedging instruments | Interest rate contracts | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value	10	29
Derivatives not designated as hedging instruments | Other derivatives
Derivative disclosures
Total derivatives, gross notional amount	350	383
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets
Derivative disclosures
Derivative asset, fair value	7	1
Derivatives not designated as hedging instruments | Other derivatives | Long-term Financing Receivables and Other Assets
Derivative disclosures
Derivative asset, fair value	1
Derivatives not designated as hedging instruments | Other derivatives | Other Accrued Liabilities
Derivative disclosures
Derivative liability, fair value		$ 3

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Financing Receivables and Operating Leases (Tables)

6 Months Ended

Apr. 30, 2013

Financing Receivables and Operating Leases

Components of financing receivables

	April 30, 2013			October 31, 2012
	In millions
Minimum lease payments receivable		$7,725			$8,133
Unguaranteed residual value		255			248
Unearned income		(651	)		(688	)
Financing receivables, gross		7,329			7,693
Allowance for doubtful accounts		(149	)		(149	)
Financing receivables, net		7,180			7,544
Less current portion		(3,212	)		(3,252	)
Amounts due after one year, net		$3,968			$4,292

Credit risk profile of gross financing receivables

	April 30, 2013		October 31, 2012
	In millions
Risk Rating
Low	$	4,128	$	4,461
Moderate		3,100		3,151
High		101		81
Total	$	7,329	$	7,693

Allowance for doubtful accounts

	Six months ended April 30, 2013
	In millions
Allowance for doubtful accounts
Balance, beginning of period	$	149
Change in estimates		14
Deductions, net of recoveries		(14	)
Balance, end of period	$	149

Allowance for financing receivables and the related financing receivables evaluated for loss

	April 30, 2013		October 31, 2012
	In millions
Allowance for financing receivables collectively evaluated for loss	$	100	$	104
Allowance for financing receivables individually evaluated for loss		49		45
Total	$	149	$	149
Gross financing receivables collectively evaluated for loss	$	6,956	$	7,355
Gross financing receivables individually evaluated for loss		373		338
Total	$	7,329	$	7,693
Gross financing receivables on non-accrual status	$	208	$	225
Gross financing receivables 90 days past due and still accruing interest		165		113
Total	$	373	$	338

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Goodwill and Purchased Intangible Assets (Details 2) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Purchased intangible assets
Amortizable purchased intangible assets, accumulated amortization	$ (5,835)	$ (5,281)
Finite-lived Intangible Assets, Accumulated Impairment Losses	(4,330)	(4,330)
Amortizable purchased intangible assets, net	3,866
Purchased intangible assets, gross	14,034	14,126
Purchased intangible assets, net	3,869	4,515
Amount of fully amortized intangible assets	118
"Compaq" trade name
Purchased intangible assets
Amortizable purchased intangible assets, gross	1,422	1,422
Amortizable purchased intangible assets, accumulated amortization	(37)	(18)
Indefinite-lived Intangible Assets, Accumulated Impairment Losses	(1,227)	(1,227)
Amortizable purchased intangible assets, net	158	177
In-process research and development ("IPR&D")
Purchased intangible assets
Indefinite-lived purchased intangible assets	3	7
Customer contracts, customer lists and distribution agreements
Purchased intangible assets
Amortizable purchased intangible assets, gross	5,800	5,807
Amortizable purchased intangible assets, accumulated amortization	(2,859)	(2,625)
Finite-lived Intangible Assets, Accumulated Impairment Losses	(856)	(856)
Amortizable purchased intangible assets, net	2,085	2,326
Developed and core technology and patents
Purchased intangible assets
Amortizable purchased intangible assets, gross	6,497	6,580
Amortizable purchased intangible assets, accumulated amortization	(2,795)	(2,501)
Finite-lived Intangible Assets, Accumulated Impairment Losses	(2,138)	(2,138)
Amortizable purchased intangible assets, net	1,564	1,941
Other product trademarks
Purchased intangible assets
Amortizable purchased intangible assets, gross	312	310
Amortizable purchased intangible assets, accumulated amortization	(144)	(137)
Finite-lived Intangible Assets, Accumulated Impairment Losses	(109)	(109)
Amortizable purchased intangible assets, net	$ 59	$ 64

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Net Earnings Per Share (Tables)

6 Months Ended

Apr. 30, 2013

Net Earnings Per Share

Basic and diluted EPS calculations

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,077	$	1,593	$	2,309	$	3,061
Denominator:
Weighted-average shares used to compute basic EPS		1,935		1,979		1,944		1,980
Dilutive effect of employee stock plans		12		8		8		15
Weighted-average shares used to compute diluted EPS		1,947		1,987		1,952		1,995
Net earnings per share:
Basic	$	0.56	$	0.80	$	1.19	$	1.55
Diluted	$	0.55	$	0.80	$	1.18	$	1.53

⁽¹⁾

Net earnings available to participating securities were not significant for the three and six months ended April 30, 2013 and 2012. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

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Consolidated Condensed Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012
Cash flows from operating activities:
Net earnings	$ 2,309	$ 3,061
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	2,333	2,588
Stock-based compensation expense	291	344
Provision for doubtful accounts-accounts and financing receivables	39	57
Provision for inventory	178	90
Restructuring charges	538	93
Deferred taxes on earnings	472	(155)
Excess tax benefit from stock-based compensation		(12)
Other, net	226	240
Changes in operating assets and liabilities:
Accounts and financing receivables	2,148	1,479
Inventory	140	89
Accounts payable	(1,050)	(1,851)
Taxes on earnings	(426)	(54)
Restructuring	(402)	(274)
Other assets and liabilities	(678)	(2,029)
Net cash provided by operating activities	6,118	3,666
Cash flows from investing activities:
Investment in property, plant and equipment	(1,400)	(1,963)
Proceeds from sale of property, plant and equipment	274	224
Purchases of available-for-sale securities and other investments	(497)	(565)
Maturities and sales of available-for-sale securities and other investments	592	346
Payments in connection with business acquisitions, net of cash acquired	(167)	(141)
Proceeds from business divestiture, net		81
Net cash used in investing activities	(1,198)	(2,018)
Cash flows from financing activities:
Repayment of commercial paper and notes payable, net	(133)	(2,792)
Issuance of long-term debt	199	5,052
Repayment of long-term debt	(1,668)	(2,661)
Issuance of common stock under employee stock plans	212	634
Repurchase of common stock	(1,050)	(1,130)
Excess tax benefit from stock-based compensation		12
Cash dividends paid	(541)	(495)
Net cash used in financing activities	(2,981)	(1,380)
Increase in cash and cash equivalents	1,939	268
Cash and cash equivalents at beginning of period	11,301	8,043
Cash and cash equivalents at end of period	$ 13,240	$ 8,311

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Stock-Based Compensation

6 Months Ended

Apr. 30, 2013

Stock-Based Compensation

Stock-Based Compensation

Note 2: Stock-Based Compensation

        HP's stock-based compensation plans include HP's principal equity plans as well as various equity plans assumed through acquisitions. HP's principal equity plans permit the issuance of restricted stock awards, stock options and performance-based restricted units ("PRUs").

        Stock-based compensation expense and the resulting tax benefits were as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Stock-based compensation expense	$	107		$	169		$	291		$	344
Income tax benefit		(32	)		(54	)		(89	)		(111	)
Stock-based compensation expense, net of tax	$	75		$	115		$	202		$	233

• Restricted Stock Awards

        Restricted stock awards are non-vested stock awards that include grants of restricted stock and restricted stock units.

        Non-vested restricted stock awards outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at October 31, 2012		25,532		$	31
Granted		18,550		$	14
Vested		(9,730	)	$	33
Forfeited		(1,723	)	$	27
Outstanding at April 30, 2013		32,629		$	21

        At April 30, 2013, there was $448 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 1.4 years.

• Stock Options

        HP utilizes the Black-Scholes option pricing model to value the service-based stock options granted under its principal equity plans. HP estimates the fair value of the performance-contingent stock options using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions.

        The weighted-average fair value and the assumptions used to measure fair value were as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
Weighted-average fair value of grants per share(1)	$	4.89		$	5.82		$	4.03		$	9.46
Implied volatility		35	%		32	%		42	%		43	%
Risk-free interest rate		0.78	%		0.91	%		0.98	%		1.20	%
Expected dividend yield		2.90	%		2.14	%		3.75	%		1.73	%
Expected term in months		62			61			70			67

⁽¹⁾

The fair value calculation was based on stock options granted during the period.

        Option awards outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at October 31, 2012		87,296		$	29
Granted		23,470		$	14
Exercised		(8,015	)	$	20
Forfeited/cancelled/expired		(15,696	)	$	24
Outstanding at April 30, 2013		87,055		$	27		4.3	$	203
Vested and expected to vest at April 30, 2013		82,313		$	27		4.1	$	182
Exercisable at April 30, 2013		50,002		$	33		2.1	$	40

        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 April 30, 2013. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the second quarter of fiscal 2013 and the exercise price, multiplied by the number of in-the-money options. Total intrinsic value of options exercised for the three and six months ended April 30, 2013 was $15 million and $17 million, respectively.

        At April 30, 2013, there was $148 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 2.4 years.

• Performance-based Restricted Units

        HP's PRU program provides for the issuance of PRUs representing hypothetical shares of HP common stock. Each PRU award reflects a target number of shares ("Target Shares") that may be issued to the award recipient before adjusting for performance and market conditions. The actual number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus company performance goals and may range from 0% to 200% of the Target Shares granted. The performance goals for PRUs granted in fiscal year 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on HP's adjusted annual revenue growth. The performance goals for PRUs granted prior to fiscal year 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on a market condition based on total shareholder return ("TSR") relative to the S&P 500 over the three-year performance period.

        For PRU awards granted in fiscal year 2012, HP estimates the fair value of the Target Shares using HP's closing stock price on the measurement date. The weighted-average fair value for these PRUs was as follows:

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	13.14	(1)	$	27.00	(2)

⁽¹⁾

Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period.

⁽²⁾

Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in fiscal 2012.

        For PRU awards granted prior to fiscal year 2012, HP estimates the fair value of the Target Shares subject to those awards using a Monte Carlo simulation model, as the TSR modifier represents a market condition. The weighted-average fair values of these PRU awards and the following weighted-average assumptions, in addition to projections of market conditions, used to measure the weighted-average fair values were as follows:

	Six months ended April 30
	2013			2012
Weighted-average fair value of grants per unit	$	0.00	(1)	$	3.35	(2)
Expected volatility(3)		33	%		41	%
Risk-free interest rate		0.18	%		0.14	%
Expected dividend yield		3.94	%		1.78	%
Expected term in months		12			15

⁽¹⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011.

⁽²⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011.

⁽³⁾

HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500.

        Non-vested PRUs outstanding as of April 30, 2013 and changes during the six months ended April 30, 2013 were as follows:

	Shares
	In thousands
Outstanding Target Shares at October 31, 2012		5,688
Forfeited		(236	)
Outstanding Target Shares at April 30, 2013		5,452
Outstanding Target Shares assigned a fair value at April 30, 2013		5,100	(1)

⁽¹⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date has not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual performance goals are approved.

        At April 30, 2013, there was $9 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 0.7 years.

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Goodwill and Purchased Intangible Assets

6 Months Ended

Apr. 30, 2013

Goodwill and Purchased Intangible Assets

Goodwill and Purchased Intangible Assets

Note 5: Goodwill and Purchased Intangible Assets

• Goodwill

        Goodwill allocated to HP's reportable segments as of April 30, 2013 and changes in the carrying amount of goodwill for the six months ended April 30, 2013 are as follows:

	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software			HP Financial Services		Corporate Investments		Total
	In millions
Net balance at October 31, 2012(1)	$	2,498	$	2,487	$	17,041	$	—	$	8,899		$	144	$	—	$	31,069
Goodwill acquired during the period		—		—		—		107		—			—		—		107
Goodwill adjustments/reclassifications		—		—		17		—		(60	)		—		—		(43	)
Net balance at April 30, 2013(1)	$	2,498	$	2,487	$	17,058	$	107	$	8,839		$	144	$	—	$	31,133

⁽¹⁾

Goodwill at October 31, 2012 and April 30, 2013 is net of accumulated impairment losses of $14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software, and the remaining $813 million relates to Corporate Investments.

        In the first quarter of fiscal 2013, HP implemented certain organizational realignments. As a result of these realignments, HP has re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013, created two new financial reporting segments, the Enterprise Group segment ("EG") and the Enterprise Services segment ("ES"), and eliminated two other financial reporting segments, the Enterprise Servers, Storage and Networking ("ESSN") segment and the Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the Technology Services ("TS") business unit, which was previously a part of the former Services segment. The ES segment consists of the Applications and Business Services ("ABS") and Infrastructure Technology Outsourcing ("ITO") business units primarily from the former Services segment. As a result of the reporting segment changes described above, the net goodwill balance at October 31, 2012 includes the reclassification of $9.3 billion of goodwill related to the realignment of the TS business unit from the former Services segment to the EG segment. See Note 16 for a full description of the segment realignments.

        In the second quarter of fiscal 2013, MphasiS Limited, a majority-owned subsidiary of HP, acquired Digital Risk LLC for $174 million. HP recorded $107 million of goodwill related to this acquisition.

        HP reviews goodwill for impairment annually at the beginning of its fourth fiscal quarter and whenever events or changes in circumstances, such as significant adverse changes in business climate or operating results, changes in management's business strategy or significant declines in HP's stock price, indicate the carrying amount of goodwill may not be recoverable. Based on its last annual goodwill impairment test, the excess of fair value over carrying value for each of HP's reporting units as of August 1, 2012, the annual testing date, ranged from approximately 9% to approximately 330% of carrying value. Based on that same test, the Autonomy and legacy HP software reporting units, both of which were included in the Software segment, had the lowest excess of fair value over carrying value at 10% and 9%, respectively.

• Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

	April 30, 2013										October 31, 2012
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,800	$	(2,859	)	$	(856	)	$	2,085	$	5,807	$	(2,625	)	$	(856	)	$	2,326
Developed and core technology and patents		6,497		(2,795	)		(2,138	)		1,564		6,580		(2,501	)		(2,138	)		1,941
"Compaq" trade name		1,422		(37	)		(1,227	)		158		1,422		(18	)		(1,227	)		177
Other product trademarks		312		(144	)		(109	)		59		310		(137	)		(109	)		64
In-process research and development ("IPR&D")		3		—			—			3		7		—			—			7
Total purchased intangible assets	$	14,034	$	(5,835	)	$	(4,330	)	$	3,869	$	14,126	$	(5,281	)	$	(4,330	)	$	4,515

        For the first six months of fiscal 2013, the majority of the decrease in gross intangibles was related to $118 million of fully amortized intangible assets which have been eliminated from both the gross and accumulated amortization amounts.

        Estimated future amortization expense related to finite-lived purchased intangible assets at April 30, 2013 is as follows:

Fiscal year:	In millions
2013 (remaining 6 months)	$	667
2014		1,035
2015		845
2016		688
2017		262
2018		150
Thereafter		219
Total	$	3,866

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Net Earnings Per Share

6 Months Ended

Apr. 30, 2013

Net Earnings Per Share

Net Earnings Per Share

Note 3: Net Earnings Per Share

        HP calculates basic earnings per share ("EPS") 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, and restricted stock.

        The reconciliation of the numerators and denominators of the basic and diluted EPS calculations was as follows:

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,077	$	1,593	$	2,309	$	3,061
Denominator:
Weighted-average shares used to compute basic EPS		1,935		1,979		1,944		1,980
Dilutive effect of employee stock plans		12		8		8		15
Weighted-average shares used to compute diluted EPS		1,947		1,987		1,952		1,995
Net earnings per share:
Basic	$	0.56	$	0.80	$	1.19	$	1.55
Diluted	$	0.55	$	0.80	$	1.18	$	1.53

⁽¹⁾

Net earnings available to participating securities were not significant for the three and six months ended April 30, 2013 and 2012. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

        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. As such, for both the three and six months ended April 30, 2013, HP excluded from the calculation of diluted EPS options to purchase 53 million shares compared to 50 million shares for both the three and six months ended April 30, 2012. Further, during the same time periods, HP also excluded from the calculation of diluted EPS options to purchase an additional 2 million shares and 6 million shares, respectively, for the three and six months ended April 30, 2013, compared to an additional 10 million shares for both the three and six months ended April 30, 2012, as their 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.

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Balance Sheet Details (Details 2) (USD $)	6 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 25,918,000,000	$ 25,883,000,000
Accumulated depreciation	(14,442,000,000)	(13,929,000,000)
Property, plant and equipment, net	11,476,000,000	11,954,000,000
Investment in property, plant and equipment	1,400,000,000
Sale and retirement of gross Property, Plant and Equipment	1,100,000,000
Accumulated depreciation on sale and retirement of property, plant and equipment	900,000,000
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	634,000,000	636,000,000
Buildings and leasehold improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	8,768,000,000	8,744,000,000
Machinery and equipment
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 16,516,000,000	$ 16,503,000,000

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Restructuring Charges (Tables)

6 Months Ended

Apr. 30, 2013

Restructuring Charges.

Schedule of Restructuring Reserve by Type of Cost

			Three months ended April 30, 2013 charges			Six months ended April 30, 2013 charges											As of April 30, 2013
	Balance, October 31, 2012								Cash payments			Other adjustments and non-cash settlements			Balance, April 30, 2013		Total costs and adjustments to date		Total expected costs and adjustments
Fiscal 2012 Plan
Severance and EER	$	597	$	409		$	665		$	(300	)	$	3		$	965	$	2,650	$	3,027
Infrastructure and other		11		24			58			(42	)		—			27		163		582
Total 2012 Plan		608		433			723			(342	)		3			992		2,813		3,609
Fiscal 2010 acquisitions		10		(10	)		(10	)		—			—			—		91		91
Fiscal 2010 ES Plan:
Severance		227		(14	)		(171	)		(31	)		2			27		452		452
Infrastructure		1		—			—			—			—			1		369		369
Total ES Plan		228		(14	)		(171	)		(31	)		2			28		821		821
Fiscal 2008 HP/EDS Plan:
Severance		—		—			—			—			—			—		2,195		2,195
Infrastructure		181		(1	)		(4	)		(29	)		(1	)		147		1,071		1,080
Total HP/EDS Plan		181		(1	)		(4	)		(29	)		(1	)		147		3,266		3,275
Total restructuring plans	$	1,027	$	408		$	538		$	(402	)	$	4		$	1,167	$	6,991	$	7,796

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Guarantees (Tables)

6 Months Ended

Apr. 30, 2013

Guarantees

Changes in aggregate product warranty liabilities

	In millions
Product warranty liability at October 31, 2012		$2,170
Accruals for warranties issued		1,013
Adjustments related to pre-existing warranties (including changes in estimates)		(3	)
Settlements made (in cash or in kind)		(1,110	)
Product warranty liability at April 30, 2013		$2,070

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Segment Information (Tables)

6 Months Ended

Apr. 30, 2013

Segment Information

Schedule of Revenue and Earnings (Loss) from Operations, by Segment

        Selected operating results information for each business segment was as follows for the three months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	7,325	$	6,033	$	6,591	$	5,889	$	868	$	866	$	10		$	27,582
Intersegment net revenue and other		259		48		228		110		73		15		—			733
Total segment net revenue	$	7,584	$	6,081	$	6,819	$	5,999	$	941	$	881	$	10		$	28,315
Earnings (loss) from operations	$	239	$	958	$	1,082	$	156	$	180	$	97	$	(56	)	$	2,656
2012
Net revenue	$	9,231	$	6,068	$	7,171	$	6,362	$	892	$	962	$	7		$	30,693
Intersegment net revenue and other		239		64		375		127		78		6		—			889
Total segment net revenue	$	9,470	$	6,132	$	7,546	$	6,489	$	970	$	968	$	7		$	31,582
Earnings (loss) from operations	$	516	$	808	$	1,352	$	237	$	172	$	96	$	(48	)	$	3,133

        Selected operating results information for each business segment was as follows for the six months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	15,365	$	11,917	$	13,412	$	11,681	$	1,740	$	1,812	$	14		$	55,941
Intersegment net revenue and other		423		90		391		237		127		26		—			1,294
Total segment net revenue	$	15,788	$	12,007	$	13,803	$	11,918	$	1,867	$	1,838	$	14		$	57,235
Earnings (loss) from operations	$	462	$	1,911	$	2,166	$	232	$	337	$	198	$	(121	)	$	5,185
2012
Net revenue	$	17,883	$	12,294	$	14,201	$	12,634	$	1,779	$	1,902	$	36		$	60,729
Intersegment net revenue and other		479		96		627		226		137		16		1			1,582
Total segment net revenue	$	18,362	$	12,390	$	14,828	$	12,860	$	1,916	$	1,918	$	37		$	62,311
Earnings (loss) from operations	$	975	$	1,569	$	2,681	$	382	$	334	$	187	$	(98	)	$	6,030

Schedule of Reconciliation of Revenues and Earnings before Taxes from Segments to Consolidated

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Segment total	$	28,315		$	31,582		$	57,235		$	62,311
Elimination of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729
Earnings before taxes:
Total segment earnings from operations	$	2,656		$	3,133		$	5,185		$	6,030
Corporate and unallocated costs and eliminations		(179	)		(203	)		(288	)		(356	)
Unallocated costs related to stock-based compensation expense		(107	)		(168	)		(291	)		(342	)
Amortization of purchased intangible assets		(350	)		(470	)		(700	)		(936	)
Restructuring charges		(408	)		(53	)		(538	)		(93	)
Acquisition-related charges		(11	)		(17	)		(15	)		(39	)
Interest and other, net		(193	)		(243	)		(372	)		(464	)
Total HP consolidated earnings before taxes	$	1,408		$	1,979		$	2,981		$	3,800

Schedule of Revenue by Segment and Business Unit

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Notebooks	$	3,718		$	4,900		$	7,846		$	9,842
Desktops		3,103			3,827			6,424			7,033
Workstations		521			537			1,056			1,072
Other		242			206			462			415
Personal Systems		7,584			9,470			15,788			18,362
Supplies		4,122			4,060			8,015			8,139
Commercial Hardware		1,398			1,479			2,752			2,968
Consumer Hardware		561			593			1,240			1,283
Printing		6,081			6,132			12,007			12,390
Printing and Personal Systems Group		13,665			15,602			27,795			30,752
Industry Standard Servers		2,806			3,186			5,800			6,258
Technology Services		2,272			2,335			4,515			4,599
Storage		857			990			1,690			1,945
Networking		618			614			1,226			1,200
Business Critical Systems		266			421			572			826
Enterprise Group		6,819			7,546			13,803			14,828
Infrastructure Technology Outsourcing		3,721			3,954			7,457			7,934
Application and Business Services		2,278			2,535			4,461			4,926
Enterprise Services		5,999			6,489			11,918			12,860
Software		941			970			1,867			1,916
HP Financial Services		881			968			1,838			1,918
Corporate Investments		10			7			14			37
Total segments		28,315			31,582			57,235			62,311
Eliminations of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729

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Borrowings (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended																						3 Months Ended	6 Months Ended	12 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended															3 Months Ended	6 Months Ended	12 Months Ended																	6 Months Ended	12 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012	Apr. 30, 2013 U.S. Dollar Global Notes	Oct. 31, 2012 U.S. Dollar Global Notes	Apr. 30, 2013 2006 Shelf Registration Statement-$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	Oct. 31, 2012 2006 Shelf Registration Statement-$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	Oct. 31, 2012 2006 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013	Apr. 30, 2013 2006 Shelf Registration Statement-$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018	Oct. 31, 2012 2006 Shelf Registration Statement-$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018	Apr. 30, 2013 2006 Shelf Registration Statement-$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014	Oct. 31, 2012 2006 Shelf Registration Statement-$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014	Apr. 30, 2013 2006 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014	Oct. 31, 2012 2006 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014	Apr. 30, 2013 2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25% due September 2013	Oct. 31, 2012 2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25% due September 2013	Apr. 30, 2013 2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125% due September 2015	Oct. 31, 2012 2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125% due September 2015	Apr. 30, 2013 2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2% due December 2015	Oct. 31, 2012 2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2% due December 2015	Apr. 30, 2013 2009 Shelf Registration Statement-$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75% due December 2020	Oct. 31, 2012 2009 Shelf Registration Statement-$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75% due December 2020	Apr. 30, 2013	Apr. 30, 2013	Oct. 31, 2012	Apr. 30, 2013	Apr. 30, 2013	Oct. 31, 2012	Apr. 30, 2013 2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014	Oct. 31, 2012 2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014	Apr. 30, 2013 2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016	Oct. 31, 2012 2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016	Apr. 30, 2013 2009 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021	Oct. 31, 2012 2009 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021	Apr. 30, 2013 2009 Shelf Registration Statement-$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015	Oct. 31, 2012 2009 Shelf Registration Statement-$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015	Apr. 30, 2013 2009 Shelf Registration Statement-$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016	Oct. 31, 2012 2009 Shelf Registration Statement-$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016	Apr. 30, 2013 2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021	Oct. 31, 2012 2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021	Apr. 30, 2013 2009 Shelf Registration Statement-$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0% due September 2041	Oct. 31, 2012 2009 Shelf Registration Statement-$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0% due September 2041	Apr. 30, 2013	Apr. 30, 2013	Oct. 31, 2012	Apr. 30, 2013 2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014	Oct. 31, 2012 2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014	Apr. 30, 2013 2009 Shelf Registration Statement-$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016	Oct. 31, 2012 2009 Shelf Registration Statement-$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016	Apr. 30, 2013 2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021	Oct. 31, 2012 2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021	Apr. 30, 2013 2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017	Oct. 31, 2012 2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017	Apr. 30, 2013 2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022	Oct. 31, 2012 2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022	Apr. 30, 2013 EDS Senior Notes	Oct. 31, 2012 EDS Senior Notes	Apr. 30, 2013 EDS Senior Notes-$1,100 issued June 2003 at 6.0%, due August 2013	Oct. 31, 2012 EDS Senior Notes-$1,100 issued June 2003 at 6.0%, due August 2013	Apr. 30, 2013 EDS Senior Notes-$300 issued October 1999 at 7.45%, due October 2029	Oct. 31, 2012 EDS Senior Notes-$300 issued October 1999 at 7.45%, due October 2029	Apr. 30, 2013 Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2013-2024	Oct. 31, 2012 Other, including capital lease obligations, at 0.60%-8.63%, due in calendar years 2013-2024
Long-term debt
Balance outstanding						$ 23,532	$ 25,031	$ 499	$ 499	$ 1,500	$ 750	$ 750	$ 1,999	$ 1,998	$ 1,500	$ 1,500	$ 1,100	$ 1,100	$ 1,099	$ 1,100	$ 650	$ 650	$ 1,348	$ 1,348	$ 1,750	$ 1,750	$ 1,750	$ 500	$ 500	$ 500	$ 500	$ 500	$ 1,000	$ 1,000	$ 1,248	$ 1,248	$ 750	$ 750	$ 1,298	$ 1,298	$ 998	$ 998	$ 1,198	$ 1,198	$ 350	$ 350	$ 350	$ 650	$ 650	$ 849	$ 849	$ 1,497	$ 1,496	$ 1,500	$ 1,500	$ 499	$ 499	$ 1,417	$ 1,423	$ 1,103	$ 1,109	$ 314	$ 314
Other, including capital lease obligations																																																																713	680
Fair value adjustment related to hedged debt	363		363		399
Less: current portion	(6,162)		(6,162)		(5,744)
Total long-term debt	19,863		19,863		21,789
Discount to par (as a percent)								99.694%	99.694%	99.921%	99.932%	99.932%	99.561%	99.561%	99.993%	99.993%	99.921%	99.921%	99.887%	99.887%	99.911%	99.911%	99.827%	99.827%							99.971%	99.971%	99.958%	99.958%	99.799%	99.799%	99.977%	99.977%	99.784%	99.784%	99.816%	99.816%	99.863%	99.863%				99.946%	99.946%	99.79%	99.79%	99.707%	99.707%	99.985%	99.985%	99.771%	99.771%
Interest rate (as a percent)								5.40%	5.40%	4.50%	5.50%	5.50%	6.125%	6.125%	4.75%	4.75%	1.25%	1.25%	2.125%	2.125%	2.20%	2.20%	3.75%	3.75%							1.55%	1.55%	2.65%	2.65%	4.30%	4.30%	2.35%	2.35%	3.00%	3.00%	4.375%	4.375%	6.00%	6.00%				2.625%	2.625%	3.30%	3.30%	4.65%	4.65%	2.60%	2.60%	4.05%	4.05%			6.00%	6.00%	7.45%	7.45%
Face amount of debt instrument								500	500	1,500	750	750	2,000	2,000	1,500	1,500	1,100	1,100	1,100	1,100	650	650	1,350	1,350	1,750	1,750	1,750	500	500	500	500	500	1,000	1,000	1,250	1,250	750	750	1,300	1,300	1,000	1,000	1,200	1,200	350	350	350	650	650	850	850	1,500	1,500	1,500	1,500	500	500			1,100	1,100	300	300
Reference interest rate																									three-month USD LIBOR	three-month USD LIBOR	three-month USD LIBOR	three-month USD LIBOR	three-month USD LIBOR	three-month USD LIBOR															three-month USD LIBOR	three-month USD LIBOR	three-month USD LIBOR
Spread on reference interest rate (as a percent)																									0.28%	0.28%	0.28%	0.40%	0.40%	0.40%															1.55%	1.55%	1.55%
Minimum interest rate (as a percent)																																																																0.00%	0.00%
Maximum interest rate (as a percent)																																																																8.39%	8.39%
Borrowings collateralized by certain financing receivable assets																																																																219
Interest expense on borrowings
Financing interest	81	80	161	158
Interest expense	103	116	225	238
Total Interest	$ 184	$ 196	$ 386	$ 396

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Financial Instruments (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Effect of derivative instruments not designated as hedging instruments on earnings
Gain (Loss) recognized in earnings on derivatives not designated as hedges	$ (11)	$ 69	$ (42)	$ 151
Interest rate contracts | Interest and other, net
Effect of fair value hedges on earnings
Gain (Loss) recognized in earnings before taxes on derivative, fair value hedges	28	(80)	(71)	(76)
Gain (Loss) recognized in earnings before taxes on related hedged item, fair value hedges	(28)	80	70	80
Effect of derivative instruments not designated as hedging instruments on earnings
Gain (Loss) recognized in earnings on derivatives not designated as hedges	1	1	3	11
Foreign exchange contracts | Interest and other, net
Effect of derivative instruments not designated as hedging instruments on earnings
Gain (Loss) recognized in earnings on derivatives not designated as hedges	(15)	74	(55)	156
Other derivatives | Interest and other, net
Effect of derivative instruments not designated as hedging instruments on earnings
Gain (Loss) recognized in earnings on derivatives not designated as hedges	3	(6)	10	(16)
Cash flow hedges
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	154	(191)	(160)	216
Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)	24	(11)	(40)	87
Loss expected to be reclassified from Accumulated OCI into earnings in next 12 months			158
Cash flow hedges | Foreign exchange contracts | Net revenue
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	206	(120)	7	298
Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)	46	3	(11)	86
Cash flow hedges | Foreign exchange contracts | Cost of products
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	(44)	(53)	(169)	(61)
Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)	(27)	2	(30)	18
Cash flow hedges | Foreign exchange contracts | Other operating expenses
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	3	(1)	11	(4)
Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)	4	(1)	5	(2)
Cash flow hedges | Foreign exchange contracts | Interest and other, net
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	(11)	(17)	(9)	(17)
Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)	1	(15)	(4)	(15)
Net investment hedges | Foreign exchange contracts | Interest and other, net
Effect of cash flow hedges on earnings
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	$ (2)	$ 13	$ (17)	$ 38

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Restructuring Charges (Details) (USD $)	3 Months Ended		6 Months Ended			1 Months Ended	3 Months Ended	6 Months Ended		1 Months Ended	3 Months Ended	6 Months Ended	1 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	1 Months Ended	3 Months Ended	6 Months Ended		1 Months Ended	6 Months Ended	1 Months Ended	3 Months Ended	6 Months Ended		1 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012	May 31, 2012 Fiscal 2012 Restructuring Plan position	Apr. 30, 2013 Fiscal 2012 Restructuring Plan position	Apr. 30, 2013 Fiscal 2012 Restructuring Plan position	May 23, 2012 Fiscal 2012 Restructuring Plan	May 31, 2012 Fiscal 2012 Restructuring Plan Severance and EER	Apr. 30, 2013 Fiscal 2012 Restructuring Plan Severance and EER	Apr. 30, 2013 Fiscal 2012 Restructuring Plan Severance and EER	May 31, 2012 Fiscal 2012 Restructuring Plan Infrastructure and other items	Apr. 30, 2013 Fiscal 2012 Restructuring Plan Infrastructure and other items	Apr. 30, 2013 Fiscal 2012 Restructuring Plan Infrastructure and other items	Apr. 30, 2013 Fiscal 2010 Acquisitions	Apr. 30, 2013 Fiscal 2010 Acquisitions	Apr. 30, 2013 Fiscal 2010 Enterprise Services Business Restructuring Plan	Apr. 30, 2013 Fiscal 2010 Enterprise Services Business Restructuring Plan	Jun. 30, 2010 Fiscal 2010 Enterprise Services Business Restructuring Plan Severance and workforce reductions	Apr. 30, 2013 Fiscal 2010 Enterprise Services Business Restructuring Plan Severance and workforce reductions	Apr. 30, 2013 Fiscal 2010 Enterprise Services Business Restructuring Plan Severance and workforce reductions	Oct. 31, 2012 Fiscal 2010 Enterprise Services Business Restructuring Plan Severance and workforce reductions position	Oct. 31, 2012 Fiscal 2010 Enterprise Services Business Restructuring Plan Severance and workforce reductions U.S. Defined Benefit Plans position	Apr. 30, 2013 Fiscal 2010 Enterprise Services Business Restructuring Plan Infrastructure	Aug. 31, 2008 Fiscal 2008 HP/EDS Restructuring Plan	Apr. 30, 2013 Fiscal 2008 HP/EDS Restructuring Plan	Apr. 30, 2013 Fiscal 2008 HP/EDS Restructuring Plan	Aug. 26, 2008 Fiscal 2008 HP/EDS Restructuring Plan	Aug. 31, 2008 Fiscal 2008 HP/EDS Restructuring Plan Severance and workforce reductions position	Apr. 30, 2013 Fiscal 2008 HP/EDS Restructuring Plan Severance and workforce reductions	Apr. 30, 2013 Fiscal 2008 HP/EDS Restructuring Plan Infrastructure	Apr. 30, 2013 Fiscal 2008 HP/EDS Restructuring Plan Infrastructure
Restructuring and related costs
Expected positions to be eliminated						29,000																		8,200						25,000
Positions eliminated							18,800	18,800															8,200
Variance of expected headcount reductions (as a percent)									15.00%
Charges	$ 408,000,000	$ 53,000,000	$ 538,000,000	$ 93,000,000			$ 433,000,000	$ 723,000,000			$ 409,000,000	$ 665,000,000		$ 24,000,000	$ 58,000,000	$ (10,000,000)	$ (10,000,000)	$ (14,000,000)	$ (171,000,000)		$ (14,000,000)	$ (171,000,000)					$ (1,000,000)	$ (4,000,000)				$ (1,000,000)	$ (4,000,000)
Costs reflected in purchase price of Electronic Data Systems Corporation ("EDS")																													1,500,000,000
Amount of restructuring charges anticipated																	0		0
Restructuring Reserve
Balance at the beginning of the period			1,027,000,000					608,000,000				597,000,000			11,000,000		10,000,000		228,000,000			227,000,000			1,000,000			181,000,000					181,000,000
Charges	408,000,000	53,000,000	538,000,000	93,000,000			433,000,000	723,000,000			409,000,000	665,000,000		24,000,000	58,000,000	(10,000,000)	(10,000,000)	(14,000,000)	(171,000,000)		(14,000,000)	(171,000,000)					(1,000,000)	(4,000,000)				(1,000,000)	(4,000,000)
Cash payments			(402,000,000)					(342,000,000)				(300,000,000)			(42,000,000)				(31,000,000)			(31,000,000)						(29,000,000)					(29,000,000)
Other adjustments and non-cash settlements			4,000,000					3,000,000				3,000,000							2,000,000			2,000,000						(1,000,000)					(1,000,000)
Balance at the end of the period	1,167,000,000		1,167,000,000				992,000,000	992,000,000			965,000,000	965,000,000		27,000,000	27,000,000			28,000,000	28,000,000		27,000,000	27,000,000			1,000,000		147,000,000	147,000,000				147,000,000	147,000,000
Total costs and adjustments to date			6,991,000,000					2,813,000,000				2,650,000,000			163,000,000		91,000,000		821,000,000			452,000,000			369,000,000			3,266,000,000			2,195,000,000		1,071,000,000
Total expected costs and adjustments			7,796,000,000					3,609,000,000				3,027,000,000			582,000,000		91,000,000		821,000,000			452,000,000			369,000,000			3,275,000,000			2,195,000,000		1,080,000,000
Short-term portion of restructuring reserve, recorded in Accrued restructuring	1,063,000,000		1,063,000,000		771,000,000
Long-term portion of restructuring reserve, recorded in Other liabilities	104,000,000		104,000,000		256,000,000
Expected cost of the plan						$ 3,600,000,000				$ 3,000,000,000			$ 600,000,000							$ 821,000,000						$ 3,300,000,000

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Consolidated Condensed Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Consolidated Condensed Statements of Comprehensive Income
Net earnings	$ 1,077	$ 1,593	$ 2,309	$ 3,061
Other comprehensive income before tax:
Change in unrealized gains (losses) on available-for-sale securities	19	43	22	(19)
Change in unrealized gains / losses on cash flow hedges:
Unrealized gains (losses) arising during the period	154	(191)	(160)	216
(Gains) losses reclassified into earnings	(24)	11	40	(87)
Change in unrealized gains / losses on cash flow hedges	130	(180)	(120)	129
Change in unrealized components of defined benefit plans:
Gains (losses) arising during the period	1		1	(59)
Amortization of actuarial loss and prior service (benefit)	81	41	164	84
Curtailments, settlements and other		(8)	13	165
Change in unrealized components of defined benefit plans	82	33	178	190
Change in cumulative translation adjustment	(32)	523	(58)	276
Other comprehensive income before taxes	199	419	22	576
(Provision) benefit for taxes	(49)	22	15	(144)
Other comprehensive income, net of tax	150	441	37	432
Comprehensive income	$ 1,227	$ 2,034	$ 2,346	$ 3,493

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Financial Instruments

6 Months Ended

Apr. 30, 2013

Financial Instruments

Financial Instruments

Note 8: Financial Instruments

• Cash Equivalents and Available-for-Sale Investments

        Cash equivalents and available-for-sale investments at fair value as of April 30, 2013 and October 31, 2012 were as follows:

	April 30, 2013									October 31, 2012
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	In millions
Cash Equivalents
Time deposits	$	2,873	$	—	$	—		$	2,873	$	3,633	$	—	$	—		$	3,633
Money market funds		7,169		—		—			7,169		4,630		—		—			4,630
Mutual funds		39		—		—			39		69		—		—			69
Total cash equivalents		10,081		—		—			10,081		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		300		92		—			392		303		82		—			385
Other debt securities		58		—		(18	)		40		62		—		(17	)		45
Total debt securities		371		92		(18	)		445		373		82		(17	)		438
Equity securities:
Mutual funds		332		—		—			332		400		—		—			400
Equity securities in public companies		50		24		(2	)		72		50		9		—			59
Total equity securities		382		24		(2	)		404		450		9		—			459
Total available-for-sale investments		753		116		(20	)		849		823		91		(17	)		897
Total cash equivalents and available-for-sale investments	$	10,834	$	116	$	(20	)	$	10,930	$	9,155	$	91	$	(17	)	$	9,229

        All highly liquid investments with original maturities of three months or less at the date of acquisition are considered to be cash equivalents. Time deposits were primarily issued by institutions outside the United States as of April 30, 2013 and October 31, 2012. Investments in debt and marketable equity securities are generally considered available-for-sale. The estimated fair values of the available-for-sale investments may not be representative of actual values that will be realized in the future.

        The gross unrealized loss as of April 30, 2013 and October 31, 2012 was due primarily to decline in the fair value of a debt security of $18 million and $17 million, respectively, that has been in a continuous loss position for more than twelve months. HP does not intend to sell this debt security, and it is not likely that HP will be required to sell this debt security prior to the recovery of the amortized cost. HP has evaluated the near-term prospects of its debt and equity investments in a gross unrealized loss positions in relation to the severity and duration of the impairment and considers the decline in market value of these investments to be temporary in nature.

        Contractual maturities of short-term and long-term investments in available-for-sale debt securities were as follows:

	April 30, 2013
	Cost		Estimated Fair Value
	In millions
Due in one to five years	$	14	$	14
Due in more than five years		357		431
	$	371	$	445

        Equity securities in privately held companies include cost basis and equity method investments. These amounted to $52 million and $51 million for the periods ended April 30, 2013 and October 31, 2012 and are included in long-term financing receivables and other assets.

• Derivative Financial Instruments

        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 and does not use derivative contracts for speculative purposes. 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, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives, on a gross basis, in the Consolidated Condensed Balance Sheets at fair value. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of the use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate 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 risk limits that correspond to each institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-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 the same counterparty.

        To further mitigate credit exposure to counterparties, HP has collateral security arrangements with substantially all of its counterparties. These arrangements require HP to post collateral or to hold collateral from counterparties when the derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. Such funds are generally transferred within two business days of the due date. As of April 30, 2013, HP held $266 million of collateral and posted $137 million through re-use of counterparty cash collateral under these collateralized arrangements. As of October 31, 2012, HP held $198 million of collateral and posted $72 million under these collateralized arrangements, of which $49 million was through re-use of counterparty cash collateral and $23 million in cash.

• Fair Value Hedges

        HP enters into derivatives 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 mitigate the market risk exposures in connection with the debt to achieve a 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 payments into variable interest payments 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 period of change.

• Cash Flow Hedges

        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 expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months. However, certain leasing revenue-related forward contracts and intercompany 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 income or 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 three and six months ended April 30, 2013 there was no significant impact to results of operations as a result of discontinued cash flow hedges. During the three and six months ended April 30, 2012, HP did not discontinue any cash flow hedge for which it was probable that a forecasted transaction would not occur.

• Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. These derivative instruments are designated as net investment hedges and, as such, 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.

• Other Derivatives

        Other derivatives not designated as hedging instruments 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, HP recognizes changes in the fair values in earnings in the 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.

• Hedge Effectiveness

        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.

• Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

        As discussed in Note 7, HP estimates the fair values of derivatives primarily based on pricing models using current market rates and records all derivatives on the balance sheet at fair value. The gross notional and fair value of derivative financial instruments in the Consolidated Condensed Balance Sheets were as follows:

	As of April 30, 2013										As of October 31, 2012
	Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities		Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	8,900	$	38	$	210	$	—	$	—	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		17,230		123		49		332		70		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,901		12		22		29		25		1,683		14		15		36		24
Total derivatives designated as hedging instruments		28,031		173		281		361		95		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,246		90		14		85		15		18,687		61		17		51		19
Interest rate contracts(2)		2,200		9		—		10		—		2,200		25		—		29		—
Other derivatives		350		7		1		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		18,796		106		15		95		15		21,270		87		17		83		19
Total derivatives	$	46,827	$	279	$	296	$	456	$	110	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of April 30, 2013 and October 31, 2012, respectively.

⁽²⁾

Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments.

• Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

        The before-tax effect of derivative instruments and related hedged items in fair value hedging relationships for the three and six months ended April 30, 2013 and 2012 were as follows:

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2013		Six months ended April 30, 2013			Hedged Item	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions							In millions
Interest rate contracts	Interest and other, net	$	28	$	(71	)	Fixed-rate debt	Interest and other, net	$	(28	)	$	70

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2012			Six months ended April 30, 2012			Hedged Item	Location	Three months ended April 30, 2012		Six months ended April 30, 2012
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(80	)	$	(76	)	Fixed-rate debt	Interest and other, net	$	80	$	80

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2013 was as follows:

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2013			Six months ended April 30, 2013			Location	Three months ended April 30, 2013			Six months ended April 30, 2013
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	206		$	7		Net revenue		$46			$(11	)
Foreign exchange contracts		(44	)		(169	)	Cost of products		(27	)		(30	)
Foreign exchange contracts		3			11		Other operating expenses		4			5
Foreign exchange contracts		(11	)		(9	)	Interest and other, net		1			(4	)
Total cash flow hedges	$	154		$	(160	)			$24			$(40	)
Net investment hedges:
Foreign exchange contracts	$	(2	)	$	(17	)	Interest and other, net		$ —			$ —

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2012 was as follows:

	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2012			Six months ended April 30, 2012			Location	Three months ended April 30, 2012			Six months ended April 30, 2012
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	(120	)	$	298		Net revenue	$	3		$	86
Foreign exchange contracts		(53	)		(61	)	Cost of products		2			18
Foreign exchange contracts		(1	)		(4	)	Other operating expenses		(1	)		(2	)
Foreign exchange contracts		(17	)		(17	)	Interest and other, net		(15	)		(15	)
Total cash flow hedges	$	(191	)	$	216			$	(11	)	$	87
Net investment hedges:
Foreign exchange contracts	$	13		$	38		Interest and other, net	$	—		$	—

        As of April 30, 2013 and 2012, 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 in the three and six months ended April 30, 2013 and 2012.

        As of April 30, 2013, HP expects to reclassify an estimated net accumulated other comprehensive loss of approximately $158 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.

        The before-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2013 and 2012 was as follows:

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	(15	)	$	(55	)
Other derivatives	Interest and other, net		3			10
Interest rate contracts	Interest and other, net		1			3
Total		$	(11	)	$	(42	)

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2012			Six months ended April 30, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	74		$	156
Other derivatives	Interest and other, net		(6	)		(16	)
Interest rate contracts	Interest and other, net		1			11
Total		$	69		$	151

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Consolidated Condensed Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Consolidated Condensed Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	300	300
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	9,600	9,600
Common stock, shares issued	1,925	1,963
Common stock, shares outstanding	1,925	1,963

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Retirement and Post-Retirement Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012
Non US Pension Plans
Future Contributions and Funding Policy
Expected contribution to defined benefit plans in fiscal 2013					$ 674
Contributions to benefit plans			363
Expected contribution to benefit plans as of balance sheet date	293		293
U.S. Defined Benefit Plans
Net benefit (credit) cost
Interest cost	140	141	280	283
Expected return on plan assets	(211)	(198)	(423)	(396)
Amortization and deferrals:
Actuarial loss (gain)	19	11	39	22
Net periodic benefit (credit) cost	(52)	(46)	(104)	(91)
Settlements (gain) loss	3		8
Net benefit (credit) cost	(49)	(46)	(96)	(91)
Non-U.S. Defined Benefit Plans
Net benefit (credit) cost
Service cost	84	74	170	148
Interest cost	168	174	341	349
Expected return on plan assets	(250)	(206)	(507)	(413)
Amortization and deferrals:
Actuarial loss (gain)	85	59	172	119
Prior service benefit	(6)	(6)	(13)	(12)
Net periodic benefit (credit) cost	81	95	163	191
Settlements (gain) loss		8		(20)
Special termination benefits	2	1	5	2
Net benefit (credit) cost	83	104	168	173
U.S. non-qualified plan participants
Future Contributions and Funding Policy
Expected contribution to defined benefit plans in fiscal 2013					33
Contributions to benefit plans			35
Expected contribution to benefit plans as of balance sheet date	16		16
Post-Retirement Benefit Plans
Net benefit (credit) cost
Service cost	2	2	3	4
Interest cost	8	8	15	17
Expected return on plan assets	(8)	(9)	(17)	(18)
Amortization and deferrals:
Actuarial loss (gain)		(1)		(2)
Prior service benefit	(17)	(22)	(34)	(43)
Net periodic benefit (credit) cost	(15)	(22)	(33)	(42)
Curtailment gain	(4)		(7)
Net benefit (credit) cost	(19)	(22)	(40)	(42)
Future Contributions and Funding Policy
Expected contribution to defined benefit plans in fiscal 2013					124
Contributions to benefit plans			47
Expected contribution to benefit plans as of balance sheet date	$ 77		$ 77

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Consolidated Condensed Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Net revenue:
Products	$ 17,458	$ 19,962	$ 35,728	$ 39,473
Services	10,010	10,614	19,981	21,023
Financing income	114	117	232	233
Total net revenue	27,582	30,693	55,941	60,729
Costs and expenses:
Cost of products	13,241	15,181	27,272	30,230
Cost of services	7,733	8,280	15,651	16,466
Financing interest	81	80	161	158
Research and development	815	850	1,609	1,636
Selling, general and administrative	3,342	3,540	6,642	6,907
Amortization of purchased intangible assets	350	470	700	936
Restructuring charges	408	53	538	93
Acquisition-related charges	11	17	15	39
Total operating expenses	25,981	28,471	52,588	56,465
Earnings from operations	1,601	2,222	3,353	4,264
Interest and other, net	(193)	(243)	(372)	(464)
Earnings before taxes	1,408	1,979	2,981	3,800
Provision for taxes	(331)	(386)	(672)	(739)
Net earnings	$ 1,077	$ 1,593	$ 2,309	$ 3,061
Net earnings per share:
Basic (in dollars per share)	$ 0.56	$ 0.80	$ 1.19	$ 1.55
Diluted (in dollars per share)	$ 0.55	$ 0.80	$ 1.18	$ 1.53
Cash dividends declared per share (in dollars per share)			$ 0.26	$ 0.24
Weighted-average shares used to compute net earnings per share:
Basic (in shares)	1,935	1,979	1,944	1,980
Diluted (in shares)	1,947	1,987	1,952	1,995

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Financing Receivables and Operating Leases (Details) (USD $)	6 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Financing Receivables and Operating Leases
Financing receivable term, low end of range	2 years
Financing receivable term, high end of range	5 years
Minimum lease payments receivable	$ 7,725,000,000	$ 8,133,000,000
Unguaranteed residual value	255,000,000	248,000,000
Unearned income	(651,000,000)	(688,000,000)
Financing receivables, gross	7,329,000,000	7,693,000,000
Allowance for doubtful accounts	(149,000,000)	(149,000,000)
Financing receivables, net	7,180,000,000	7,544,000,000
Less current portion	(3,212,000,000)	(3,252,000,000)
Amounts due after one year, net	3,968,000,000	4,292,000,000
Equipment leased to customers under operating leases	3,700,000,000	3,900,000,000
Accumulated depreciation on equipment under lease	$ 1,400,000,000	$ 1,500,000,000

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Fair Value (Tables)

6 Months Ended

Apr. 30, 2013

Fair Value

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	As of April 30, 2013								As of October 31, 2012
	Fair Value Measured Using								Fair Value Measured Using
							Total Balance								Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	In millions
Assets
Time deposits	$	—	$	2,886	$	—	$	2,886	$	—	$	3,641	$	—	$	3,641
Money market funds		7,169		—		—		7,169		4,630		—		—		4,630
Mutual funds		—		371		—		371		—		469		—		469
Marketable equity securities		72		4		—		76		60		3		—		63
Foreign bonds		8		384		—		392		8		377		—		385
Other debt securities		—		2		38		40		1		—		44		45
Derivatives:
Interest rate contracts		—		257		—		257		—		344		—		344
Foreign exchange contracts		—		297		13		310		—		291		—		291
Other derivatives		—		8		—		8		—		1		—		1
Total Assets	$	7,249	$	4,209	$	51	$	11,509	$	4,699	$	5,126	$	44	$	9,869
Liabilities
Derivatives:
Interest rate contracts	$	—	$	10	$	—	$	10	$	—	$	29	$	—	$	29
Foreign exchange contracts		—		556		—		556		—		485		1		486
Other derivatives		—		—		—		—		—		3		—		3
Total Liabilities	$	—	$	566	$	—	$	566	$	—	$	517	$	1	$	518

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Basis of Presentation (Policies)

6 Months Ended

Apr. 30, 2013

Basis of Presentation

Segment Reorganization and Reclassifications

        HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of prior year financial information have been made to conform to the current year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. See Note 16 for a further discussion of HP's segment reorganization.

Transfers and Servicing Trade Receivables Policy

HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain circumstances may provide for partial recourse, result in a transfer of HP's receivables and risk to the third party. As these transfers qualify as true sales, the receivables are derecognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets.

Restructuring Policy

        HP records restructuring charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with one or more business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. HP records the short-term portion of the restructuring liability in Accrued restructuring and the long-term portion in Other liabilities in the Consolidated Condensed Balance Sheets.

Fair Value Policy

HP determines fair value 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.

• Fair Value Hierarchy

        Valuation techniques used by HP 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 the best information available. Observable inputs are the preferred basis of valuation. These two types of inputs create the following fair value hierarchy:

        Level 1—Quoted prices (unadjusted) for identical instruments in active markets.

        Level 2—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.

        Level 3—Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

Valuation Techniques

        Cash Equivalents and Investments:    HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. Where applicable, HP uses quoted prices in active markets for identical assets to determine fair value. If quoted prices in active markets for identical assets 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 for which inputs include bid prices, and third-party valuations utilizing underlying assets assumptions.

        Derivative Instruments:    As discussed in Note 8, 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 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.

• Other Fair Value Disclosures

        Short- and Long-Term Debt:    The estimated fair value of HP's debt is primarily calculated using an expected present value technique based upon observable market inputs. The portion of HP's fixed-rate debt obligations that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying value, which includes a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates.

Derivative Financial Instruments

• Derivative Financial Instruments

        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 and does not use derivative contracts for speculative purposes. 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, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives, on a gross basis, in the Consolidated Condensed Balance Sheets at fair value. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of the use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate 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 risk limits that correspond to each institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-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 the same counterparty.

        To further mitigate credit exposure to counterparties, HP has collateral security arrangements with substantially all of its counterparties. These arrangements require HP to post collateral or to hold collateral from counterparties when the derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. Such funds are generally transferred within two business days of the due date.

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 period of change.

• Cash Flow Hedges

        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 expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months. However, certain leasing revenue-related forward contracts and intercompany 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 income or 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 three and six months ended April 30, 2013 there was no significant impact to results of operations as a result of discontinued cash flow hedges.

Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. These derivative instruments are designated as net investment hedges and, as such, 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.

• Other Derivatives

        Other derivatives not designated as hedging instruments 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, HP recognizes changes in the fair values in earnings in the 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.

• Hedge Effectiveness

        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.

Receivables Financing Allowance and Reserves Policy

The allowance for doubtful accounts balance is comprised of a general reserve, which is determined based on a percentage of the financing receivables balance, and a specific reserve, which is established for certain leases with identified exposures, such as customer default, bankruptcy or other events, that make it unlikely that HP will recover its investment in the lease. The general reserve percentages are maintained on a regional basis and are based on several factors, which include consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking.

      Accounts are generally put on non-accrual status (cessation of interest accrual) when they reach 90 days past due. In certain circumstances, such as when the delinquency is deemed to be of an administrative nature, accounts may still accrue interest when they reach 90 days past due. The non-accrual status may not impact a customer's risk rating. A write-off or specific reserve is generally recorded when an account reaches 180 days past due.

Warranty Policy

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.

Litigation and Contingencies Policy

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. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has adequate provisions for any such matters, and, as of April 30, 2013, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the amounts already recognized in HP's financial statements. 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, 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.

Segment Reporting Policy

HP derives the results of the business segments directly from its internal management reporting system. The accounting policies 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 restructuring charges and any associated adjustments related to restructuring actions, amortization of purchased intangible assets, stock-based compensation expense related to HP-granted employee stock options, PRUs, restricted stock awards and the employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&D, as well as certain corporate governance costs.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments that are carried out at an arm's-length transfer price. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are classified as operating leases within HPFS. HP's Consolidated Net Revenue is derived and reported after elimination of intersegment revenues for such arrangements in accordance with U.S. GAAP.

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Goodwill and Purchased Intangible Assets (Details 3) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013
Estimated future amortization expense related to finite-lived purchased intangible assets
2013 (remaining 6 months)	$ 667
2014	1,035
2015	845
2016	688
2017	262
2018	150
Thereafter	219
Amortizable purchased intangible assets, net	$ 3,866

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Borrowings (Details) (USD $)	6 Months Ended
	Apr. 30, 2013 item	Oct. 31, 2012	Sep. 30, 2012
Notes Payable and Short-Term Borrowings
Amount outstanding	$ 6,928,000,000	$ 6,647,000,000
Amount available under credit facility	7,500,000,000
Available borrowing resources, other than 2012 Shelf Registration	17,700,000,000
Euro
Notes Payable and Short-Term Borrowings
Maximum borrowing capacity under credit facility			2,200,000,000
GBP
Notes Payable and Short-Term Borrowings
Maximum borrowing capacity under credit facility			300,000,000
Current portion of long-term debt
Notes Payable and Short-Term Borrowings
Amount outstanding	6,162,000,000	5,744,000,000
Weighted average interest rate (as a percent)	2.30%	1.60%
Commercial paper
Notes Payable and Short-Term Borrowings
Amount outstanding	310,000,000	365,000,000
Weighted average interest rate (as a percent)	0.30%	0.90%
Commercial paper authorization by HP	16,000,000,000
Subsidiaries' commercial paper authorization	1,000,000,000
U.S. commercial paper authorization increase			3,000,000,000
Subsidiaries' commercial paper authorization, available for Hewlett-Packard International Bank PLC	500,000,000
Available borrowing resources, other than 2012 Shelf Registration	16,200,000,000
Number of commercial paper	2
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt
Notes Payable and Short-Term Borrowings
Amount outstanding	456,000,000	538,000,000
Weighted average interest rate (as a percent)	2.10%	2.80%
Deposits associated with banking activities	340,000,000	369,000,000
Available borrowing resources, other than 2012 Shelf Registration	1,500,000,000
Credit facility expiring March 2017
Notes Payable and Short-Term Borrowings
Amount available under credit facility	3,000,000,000
Term of credit facility	5 years
Credit facility expired February 2015
Notes Payable and Short-Term Borrowings
Amount available under credit facility	$ 4,500,000,000
Term of credit facility	4 years

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Net Earnings Per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Numerator:
Net earnings	$ 1,077	$ 1,593	$ 2,309	$ 3,061
Denominator:
Weighted-average shares used to compute basic EPS	1,935	1,979	1,944	1,980
Dilutive effect of employee stock plans (in shares)	12	8	8	15
Weighted-average shares used to compute diluted EPS	1,947	1,987	1,952	1,995
Net earnings per share:
Basic (in dollars per share)	$ 0.56	$ 0.80	$ 1.19	$ 1.55
Diluted (in dollars per share)	$ 0.55	$ 0.80	$ 1.18	$ 1.53
Options with exercise price greater than market price of stock
Other information related to EPS computation
Antidilutive securities excluded from the calculation of EPS (in shares)	53	50	53	50
Stock options combined exercise price unamortized fair value excess tax benefits greater than market price
Other information related to EPS computation
Antidilutive securities excluded from the calculation of EPS (in shares)	2	10	6	10

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Stockholders' Equity (Tables)

6 Months Ended

Apr. 30, 2013

Stockholders' Equity

Taxes related to items of other comprehensive loss/income

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions						In millions
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities	$	(5	)	$	—		$	(38	)	$	5
Tax (expense) benefit on change in unrealized gains/losses on cash flow hedges:
Tax (expense) benefit on unrealized gains/losses arising during the period		(42	)		60			60			(92	)
Tax expense (benefit) on gains/losses reclassified into earnings		10			—			(7	)		37
		(32	)		60			53			(55	)
Tax (expense) benefit on change in unrealized components of defined benefit plans:
Tax benefit (expense) on net losses arising during the period		—			—			—			24
Tax (benefit) expense on amortization of actuarial loss and prior service benefit		(16	)		(6	)		(21	)		(16	)
Tax benefit (expense) on curtailments, settlements and other		—			20			(1	)		(64	)
		(16	)		14			(22	)		(56	)
Tax benefit (expense) on change in cumulative translation adjustment		4			(52	)		22			(38	)
Tax (expense) benefit on other comprehensive income	$	(49	)	$	22		$	15		$	(144	)

Accumulated Other Comprehensive Loss Net of Tax

	April 30, 2013			October 31, 2012
	In millions
Net unrealized gain on available-for-sale securities	$	71		$	87
Net unrealized loss on cash flow hedges		(166	)		(99	)
Unrealized components of defined benefit plans		(4,934	)		(5,090	)
Cumulative translation adjustment		(493	)		(457	)
Accumulated other comprehensive loss	$	(5,522	)	$	(5,559	)

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Retirement and Post-Retirement Benefit Plans (Tables)

6 Months Ended

Apr. 30, 2013

Retirement and Post-Retirement Benefit Plans

Net pension and post-retirement benefit cost (credit)

	Three months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	84		$	74		$	2		$	2
Interest cost		140			141			168			174			8			8
Expected return on plan assets		(211	)		(198	)		(250	)		(206	)		(8	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		19			11			85			59			—			(1	)
Prior service benefit		—			—			(6	)		(6	)		(17	)		(22	)
Net periodic benefit (credit) cost		(52	)		(46	)		81			95			(15	)		(22	)
Curtailment gain		—			—			—			—			(4	)		—
Settlement loss		3			—			—			8			—			—
Special termination benefits		—			—			2			1			—			—
Net benefit (credit) cost	$	(49	)	$	(46	)	$	83		$	104		$	(19	)	$	(22	)

	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	170		$	148		$	3		$	4
Interest cost		280			283			341			349			15			17
Expected return on plan assets		(423	)		(396	)		(507	)		(413	)		(17	)		(18	)
Amortization and deferrals:
Actuarial loss (gain)		39			22			172			119			—			(2	)
Prior service benefit		—			—			(13	)		(12	)		(34	)		(43	)
Net periodic benefit (credit) cost		(104	)		(91	)		163			191			(33	)		(42	)
Curtailment gain		—			—			—			—			(7	)		—
Settlement loss (gain)		8			—			—			(20	)		—			—
Special termination benefits		—			—			5			2			—			—
Net benefit (credit) cost	$	(96	)	$	(91	)	$	168		$	173		$	(40	)	$	(42	)

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Fair Value

6 Months Ended

Apr. 30, 2013

Fair Value

Fair Value

Note 7: Fair Value

        HP determines fair value 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.

• Fair Value Hierarchy

        Valuation techniques used by HP 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 the best information available. Observable inputs are the preferred basis of valuation. These two types of inputs create the following fair value hierarchy:

        Level 1—Quoted prices (unadjusted) for identical instruments in active markets.

        Level 2—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.

        Level 3—Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

        The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis:

	As of April 30, 2013								As of October 31, 2012
	Fair Value Measured Using								Fair Value Measured Using
							Total Balance								Total Balance
	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
	In millions
Assets
Time deposits	$	—	$	2,886	$	—	$	2,886	$	—	$	3,641	$	—	$	3,641
Money market funds		7,169		—		—		7,169		4,630		—		—		4,630
Mutual funds		—		371		—		371		—		469		—		469
Marketable equity securities		72		4		—		76		60		3		—		63
Foreign bonds		8		384		—		392		8		377		—		385
Other debt securities		—		2		38		40		1		—		44		45
Derivatives:
Interest rate contracts		—		257		—		257		—		344		—		344
Foreign exchange contracts		—		297		13		310		—		291		—		291
Other derivatives		—		8		—		8		—		1		—		1
Total Assets	$	7,249	$	4,209	$	51	$	11,509	$	4,699	$	5,126	$	44	$	9,869
Liabilities
Derivatives:
Interest rate contracts	$	—	$	10	$	—	$	10	$	—	$	29	$	—	$	29
Foreign exchange contracts		—		556		—		556		—		485		1		486
Other derivatives		—		—		—		—		—		3		—		3
Total Liabilities	$	—	$	566	$	—	$	566	$	—	$	517	$	1	$	518

• Valuation Techniques

        Cash Equivalents and Investments:    HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. Where applicable, HP uses quoted prices in active markets for identical assets to determine fair value. If quoted prices in active markets for identical assets 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 for which inputs include bid prices, and third-party valuations utilizing underlying assets assumptions.

        Derivative Instruments:    As discussed in Note 8, 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 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.

• Other Fair Value Disclosures

        Short- and Long-Term Debt:    The estimated fair value of HP's debt is primarily calculated using an expected present value technique based upon observable market inputs. The portion of HP's fixed-rate debt obligations that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying value, which includes a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was approximately $27.1 billion at April 30, 2013, compared to its carrying value of $26.8 billion at that date. The estimated fair value of HP's short- and long-term debt approximated its carrying value of $28.4 billion at October 31, 2012. If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified as Level 2 in the fair value hierarchy.

        Other Financial Instruments:    For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.

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Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2013

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	April 30, 2013									October 31, 2012
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
	In millions
Cash Equivalents
Time deposits	$	2,873	$	—	$	—		$	2,873	$	3,633	$	—	$	—		$	3,633
Money market funds		7,169		—		—			7,169		4,630		—		—			4,630
Mutual funds		39		—		—			39		69		—		—			69
Total cash equivalents		10,081		—		—			10,081		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		300		92		—			392		303		82		—			385
Other debt securities		58		—		(18	)		40		62		—		(17	)		45
Total debt securities		371		92		(18	)		445		373		82		(17	)		438
Equity securities:
Mutual funds		332		—		—			332		400		—		—			400
Equity securities in public companies		50		24		(2	)		72		50		9		—			59
Total equity securities		382		24		(2	)		404		450		9		—			459
Total available-for-sale investments		753		116		(20	)		849		823		91		(17	)		897
Total cash equivalents and available-for-sale investments	$	10,834	$	116	$	(20	)	$	10,930	$	9,155	$	91	$	(17	)	$	9,229

Contractual maturities of short-term and long-term investments in available-for-sale debt securities

	April 30, 2013
	Cost		Estimated Fair Value
	In millions
Due in one to five years	$	14	$	14
Due in more than five years		357		431
	$	371	$	445

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of April 30, 2013										As of October 31, 2012
	Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities		Gross Notional(1)		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	8,900	$	38	$	210	$	—	$	—	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		17,230		123		49		332		70		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,901		12		22		29		25		1,683		14		15		36		24
Total derivatives designated as hedging instruments		28,031		173		281		361		95		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,246		90		14		85		15		18,687		61		17		51		19
Interest rate contracts(2)		2,200		9		—		10		—		2,200		25		—		29		—
Other derivatives		350		7		1		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		18,796		106		15		95		15		21,270		87		17		83		19
Total derivatives	$	46,827	$	279	$	296	$	456	$	110	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of April 30, 2013 and October 31, 2012, respectively.

⁽²⁾

Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments.

Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2013		Six months ended April 30, 2013			Hedged Item	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions							In millions
Interest rate contracts	Interest and other, net	$	28	$	(71	)	Fixed-rate debt	Interest and other, net	$	(28	)	$	70

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2012			Six months ended April 30, 2012			Hedged Item	Location	Three months ended April 30, 2012		Six months ended April 30, 2012
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(80	)	$	(76	)	Fixed-rate debt	Interest and other, net	$	80	$	80

Gain (Loss) Recognized on Cash Flow and Net Investment Hedges

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2013			Six months ended April 30, 2013			Location	Three months ended April 30, 2013			Six months ended April 30, 2013
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	206		$	7		Net revenue		$46			$(11	)
Foreign exchange contracts		(44	)		(169	)	Cost of products		(27	)		(30	)
Foreign exchange contracts		3			11		Other operating expenses		4			5
Foreign exchange contracts		(11	)		(9	)	Interest and other, net		1			(4	)
Total cash flow hedges	$	154		$	(160	)			$24			$(40	)
Net investment hedges:
Foreign exchange contracts	$	(2	)	$	(17	)	Interest and other, net		$ —			$ —

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2012 was as follows:

	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2012			Six months ended April 30, 2012			Location	Three months ended April 30, 2012			Six months ended April 30, 2012
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	(120	)	$	298		Net revenue	$	3		$	86
Foreign exchange contracts		(53	)		(61	)	Cost of products		2			18
Foreign exchange contracts		(1	)		(4	)	Other operating expenses		(1	)		(2	)
Foreign exchange contracts		(17	)		(17	)	Interest and other, net		(15	)		(15	)
Total cash flow hedges	$	(191	)	$	216			$	(11	)	$	87
Net investment hedges:
Foreign exchange contracts	$	13		$	38		Interest and other, net	$	—		$	—

Gain (Loss) Recognized in Income on Derivatives Not Designated as Hedges

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	(15	)	$	(55	)
Other derivatives	Interest and other, net		3			10
Interest rate contracts	Interest and other, net		1			3
Total		$	(11	)	$	(42	)

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2012			Six months ended April 30, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	74		$	156
Other derivatives	Interest and other, net		(6	)		(16	)
Interest rate contracts	Interest and other, net		1			11
Total		$	69		$	151

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Goodwill and Purchased Intangible Assets (Details) (USD $)	3 Months Ended	6 Months Ended
	Jan. 31, 2013 segment	Apr. 30, 2013 segment	Oct. 31, 2012
Goodwill
Net balance at the beginning of the period	$ 31,069,000,000	$ 31,069,000,000
Goodwill acquired during the period		107,000,000
Goodwill adjustments/reclassifications		(43,000,000)
Net balance at the end of the period		31,133,000,000
Accumulated impairment loss		14,518,000,000	14,518,000,000
Goodwill reclassification adjustment	9,300,000,000	9,300,000,000
Number of financial reporting segments eliminated	2	2
Number of new financial reporting segments	2	2
Autonomy
Goodwill
Percentage of excess of fair value over carrying value of the goodwill		10.00%
Digital Risk LLC | MphasiS
Goodwill
Acquisition price paid by subsidiary		174,000,000
Personal Systems
Goodwill
Net balance at the beginning of the period			2,498,000,000
Net balance at the end of the period		2,498,000,000	2,498,000,000
Printing
Goodwill
Net balance at the beginning of the period			2,487,000,000
Net balance at the end of the period		2,487,000,000	2,487,000,000
Enterprise Group
Goodwill
Net balance at the beginning of the period	17,041,000,000	17,041,000,000
Goodwill adjustments/reclassifications		17,000,000
Net balance at the end of the period		17,058,000,000
Enterprise Services
Goodwill
Goodwill acquired during the period		107,000,000
Net balance at the end of the period		107,000,000
Accumulated impairment loss		7,961,000,000	7,961,000,000
Software
Goodwill
Net balance at the beginning of the period	8,899,000,000	8,899,000,000
Goodwill adjustments/reclassifications		(60,000,000)
Net balance at the end of the period		8,839,000,000
Accumulated impairment loss		5,744,000,000	5,744,000,000
HP Financial Services
Goodwill
Net balance at the beginning of the period			144,000,000
Net balance at the end of the period		144,000,000	144,000,000
Corporate Investments
Goodwill
Accumulated impairment loss		$ 813,000,000	$ 813,000,000
Reporting Units | Minimum
Goodwill
Percentage of excess of fair value over carrying value of the goodwill		9.00%
Reporting Units | Maximum
Goodwill
Percentage of excess of fair value over carrying value of the goodwill		330.00%
Legacy HP software business
Goodwill
Percentage of excess of fair value over carrying value of the goodwill		9.00%

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Guarantees

6 Months Ended

Apr. 30, 2013

Guarantees

Guarantees

Note 10: Guarantees

• Guarantees and Indemnifications

        In the ordinary course of business, HP may provide certain clients 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 it is in compliance with the performance obligations under all material service contracts for which there is a performance guarantee.

        HP has certain service contracts supported by client financing or securitization arrangements. Under specific circumstances involving nonperformance 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.

        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.

• Warranty

        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.

        The changes in HP's aggregate product warranty liabilities for the six months ended April 30, 2013 were as follows:

	In millions
Product warranty liability at October 31, 2012		$2,170
Accruals for warranties issued		1,013
Adjustments related to pre-existing warranties (including changes in estimates)		(3	)
Settlements made (in cash or in kind)		(1,110	)
Product warranty liability at April 30, 2013		$2,070

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Restructuring Charges

6 Months Ended

Apr. 30, 2013

Restructuring Charges.

Restructuring Charges

Note 6: Restructuring Charges

        HP records restructuring charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with one or more business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. HP records the short-term portion of the restructuring liability in Accrued restructuring and the long-term portion in Other liabilities in the Consolidated Condensed Balance Sheets.

• Fiscal 2012 Restructuring Plan

        On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP estimates that it will eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. The majority of the U.S. EER program will be funded through HP's U.S. pension plan. In connection with the 2012 Plan, HP expects to record aggregate charges of approximately $3.6 billion through the end of HP's 2014 fiscal year as accounting recognition criteria are met. Of that amount, HP expects approximately $3.0 billion to relate to the workforce reductions and the EER programs and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation and other items. Due to uncertainties associated with attrition and the acceptance rates of future international EER programs, the total expected headcount reductions could vary as much as 15% from HP's original estimates. HP could also experience similar variations in the total expense of the 2012 Plan.

        HP recorded a charge of approximately $723 million for the six months ended April 30, 2013 relating to the 2012 Plan, of which $58 million related to data center and real estate consolidations. As of April 30, 2013, HP had eliminated approximately 18,800 positions as part of the 2012 Plan. The cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2015.

• Fiscal 2010 Acquisitions

        In connection with the acquisitions of Palm, Inc. ("Palm") and 3Com Corporation ("3Com") in fiscal 2010, HP's management approved and initiated plans to restructure the operations of the acquired companies, including severance for employees, contract cancellation costs, costs to vacate duplicative facilities and other items. The total combined cost of the plans was $91 million. As of October 31, 2011, HP had recorded all of the costs of the plans based upon the anticipated timing of planned terminations and facility closure costs. In the second quarter of fiscal 2013, $10 million was credited to restructuring expense to close the Palm and 3Com plans as no further restructuring costs or payments are anticipated.

• Fiscal 2010 Enterprise Services Business Restructuring Plan

        On June 1, 2010, HP's management announced a plan to restructure its ES business, which included the ITO and ABS business units. The multi-year restructuring program included plans to consolidate commercial data centers, tools and applications. The total expected cost of the plan is approximately $821 million, which includes severance costs to eliminate approximately 8,200 positions and infrastructure charges. As of October 31, 2012 all 8,200 positions under the plan had been eliminated. As the restructuring plan was implemented, certain components and their related cost estimates were revised. For the six months ended April 30, 2013, HP reversed $171 million of the restructuring accrual to reflect an updated estimate of expected cash payments for severance. The majority of the infrastructure charges were paid out during fiscal 2012 with the remaining charges expected to be paid out through the first half of fiscal 2015. This plan is now closed with no further restructuring charges anticipated. HP expects the majority of the remaining severance for the plan to be paid out through fiscal year 2013.

• Fiscal 2008 HP/EDS Restructuring Plan

        In connection with the acquisition of Electronic Data Systems Corporation ("EDS") on August 26, 2008, HP's management approved and initiated a restructuring plan to combine and align HP's services businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented at a total expected cost of $3.3 billion. Approximately $1.5 billion of the expected costs were associated with pre-acquisition EDS and were reflected in the purchase price of EDS. The remaining costs were primarily associated with HP and were recorded as a restructuring charge.

        The restructuring plan included severance costs related to eliminating approximately 25,000 positions. As of October 31, 2011, all actions had occurred and the associated severance costs had been paid out. The infrastructure charges in the restructuring plan included facility closure and consolidation costs and the costs associated with early termination of certain related contractual obligations. HP has recorded the majority of these costs based upon the anticipated execution of site closure and consolidation plans. The associated cash payments are expected to be paid out through fiscal 2016.

• Summary of Restructuring Plans

        The adjustments to the accrued restructuring expenses related to all of HP's restructuring plans described above for the six months ended April 30, 2013 were as follows:

			Three months ended April 30, 2013 charges			Six months ended April 30, 2013 charges											As of April 30, 2013
	Balance, October 31, 2012								Cash payments			Other adjustments and non-cash settlements			Balance, April 30, 2013		Total costs and adjustments to date		Total expected costs and adjustments
Fiscal 2012 Plan
Severance and EER	$	597	$	409		$	665		$	(300	)	$	3		$	965	$	2,650	$	3,027
Infrastructure and other		11		24			58			(42	)		—			27		163		582
Total 2012 Plan		608		433			723			(342	)		3			992		2,813		3,609
Fiscal 2010 acquisitions		10		(10	)		(10	)		—			—			—		91		91
Fiscal 2010 ES Plan:
Severance		227		(14	)		(171	)		(31	)		2			27		452		452
Infrastructure		1		—			—			—			—			1		369		369
Total ES Plan		228		(14	)		(171	)		(31	)		2			28		821		821
Fiscal 2008 HP/EDS Plan:
Severance		—		—			—			—			—			—		2,195		2,195
Infrastructure		181		(1	)		(4	)		(29	)		(1	)		147		1,071		1,080
Total HP/EDS Plan		181		(1	)		(4	)		(29	)		(1	)		147		3,266		3,275
Total restructuring plans	$	1,027	$	408		$	538		$	(402	)	$	4		$	1,167	$	6,991	$	7,796

        At April 30, 2013 and October 31, 2012, HP included the short-term portion of $1,063 million and $771 million, respectively, in Accrued restructuring and the long-term portion of the restructuring liability of $104 million and $256 million, respectively, in Other liabilities, in the accompanying Consolidated Condensed Balance Sheets.

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Basis of Presentation

6 Months Ended

Apr. 30, 2013

Basis of Presentation

Basis of Presentation

Note 1: Basis of Presentation

        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 April 30, 2013, its results of operations for the three and six months ended April 30, 2013 and 2012 and its cash flows for the six months ended April 30, 2013 and 2012.

        The results of operations for the three and six months ended April 30, 2013 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 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 1A, 3, 7, 7A and 8, respectively, of the Hewlett Packard Company Annual Report on Form 10-K for the fiscal year ended October 31, 2012.

        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.

        HP consolidates the financial results of its subsidiaries for all periods presented. Non-controlling interests in these subsidiaries are presented as a separate component from HP's equity in the Consolidated Condensed Balance Sheets. Net earnings attributable to the non-controlling interests are included in the Consolidated Condensed Statements of Earnings within Interest and other, net and are not presented separately as they were not material for any of the periods presented.

• Segment Reorganization and Reclassifications

        HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of prior year financial information have been made to conform to the current year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. See Note 16 for a further discussion of HP's segment reorganization.

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Financing Receivables and Operating Leases (Details 2) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013	Oct. 31, 2012
Gross financing receivables
Net Investment	$ 7,329	$ 7,693
Allowance for doubtful accounts
Balance at beginning of period	149
Change in estimates	14
Deductions, net of recoveries	(14)
Balance, end of period	149
Allowance for financing receivables collectively evaluated for loss	100	104
Allowance for financing receivables individually evaluated for loss	49	45
Gross financing receivables collectively evaluated for loss	6,956	7,355
Gross financing receivables individually evaluated for loss	373	338
Gross financing receivables on non-accrual status	208	225
Gross financing receivables 90 days past due and still accruing interest	165	113
Total	373	338
Period past due, after which account is put on non-accrual status	90 days
Period past due, after which a write-off or specific reserve is created	180 days
Low
Gross financing receivables
Net Investment	4,128	4,461
Moderate
Gross financing receivables
Net Investment	3,100	3,151
High
Gross financing receivables
Net Investment	$ 101	$ 81

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Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Cash equivalents and available-for-sale investments
Cost, Total	$ 10,834	$ 9,155
Cost, Investments	753	823
Gross Unrealized Gain	116	91
Gross Unrealized Loss	(20)	(17)
Estimated Fair Value, Total	10,930	9,229
Estimated Fair Value, Investments	849	897
Total cash equivalents
Cash equivalents and available-for-sale investments
Cost, Cash Equivalents	10,081	8,332
Estimated Fair Value, Cash Equivalents	10,081	8,332
Time deposits
Cash equivalents and available-for-sale investments
Cost, Cash Equivalents	2,873	3,633
Estimated Fair Value, Cash Equivalents	2,873	3,633
Money market funds
Cash equivalents and available-for-sale investments
Cost, Cash Equivalents	7,169	4,630
Estimated Fair Value, Cash Equivalents	7,169	4,630
Mutual funds
Cash equivalents and available-for-sale investments
Cost, Cash Equivalents	39	69
Estimated Fair Value, Cash Equivalents	39	69
Total debt securities
Cash equivalents and available-for-sale investments
Cost, Investments	371	373
Gross Unrealized Gain	92	82
Gross Unrealized Loss	(18)	(17)
Estimated Fair Value, Investments	445	438
Gross unrealized loss of debt security in a continuous loss position for more than 12 months	18	17
Time deposits, debt securities
Cash equivalents and available-for-sale investments
Cost, Investments	13	8
Estimated Fair Value, Investments	13	8
Foreign bonds
Cash equivalents and available-for-sale investments
Cost, Investments	300	303
Gross Unrealized Gain	92	82
Estimated Fair Value, Investments	392	385
Other Debt Securities
Cash equivalents and available-for-sale investments
Cost, Investments	58	62
Gross Unrealized Loss	(18)	(17)
Estimated Fair Value, Investments	40	45
Equity securities
Cash equivalents and available-for-sale investments
Cost, Investments	382	450
Gross Unrealized Gain	24	9
Gross Unrealized Loss	(2)
Estimated Fair Value, Investments	404	459
Mutual funds
Cash equivalents and available-for-sale investments
Cost, Investments	332	400
Estimated Fair Value, Investments	332	400
Equity securities in public companies
Cash equivalents and available-for-sale investments
Cost, Investments	50	50
Gross Unrealized Gain	24	9
Gross Unrealized Loss	(2)
Estimated Fair Value, Investments	$ 72	$ 59

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Borrowings (Tables)

6 Months Ended

Apr. 30, 2013

Borrowings

Notes Payable and Short-Term Borrowings

	April 30, 2013					October 31, 2012
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	6,162		2.3	%	$	5,744		1.6	%
Commercial paper		310		0.3	%		365		0.9	%
Notes payable to banks, lines of credit and other		456		2.1	%		538		2.8	%
	$	6,928				$	6,647

Long-Term Debt

	April 30, 2013			October 31, 2012
	In millions
U.S. Dollar Global Notes
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	499		$	499
$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013		—			1,500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014		1,999			1,998
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014		1,500			1,500
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, due September 2013		1,100			1,100
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,099			1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,348			1,348
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013		1,750			1,750
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014		500			500
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014		500			500
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		998			998
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,198			1,198
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014		350			350
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014		650			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,497			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
		23,532			25,031
EDS Senior Notes
$1,100 issued June 2003 at 6.0%, due August 2013		1,103			1,109
$300 issued October 1999 at 7.45%, due October 2029		314			314
		1,417			1,423
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024		713			680
Fair value adjustment related to hedged debt		363			399
Less: current portion		(6,162	)		(5,744	)
Total long-term debt	$	19,863		$	21,789

Interest expense on borrowings

	Three months ended April 30				Six months ended April 30
	2013		2012		2013		2012
	In millions
Financing interest	$	81	$	80	$	161	$	158
Interest expense		103		116		225		238
Total Interest	$	184	$	196	$	386	$	396

XML

Litigation and Contingencies (Details)	1 Months Ended		3 Months Ended	1 Months Ended		0 Months Ended	2 Months Ended	1 Months Ended				6 Months Ended	72 Months Ended	1 Months Ended	6 Months Ended
	Dec. 31, 2004	Apr. 30, 2013 USD ($)	Oct. 31, 2012 Software Autonomy Acquisition USD ($)	Aug. 31, 2010 Inkjet Printer Litigation Maximum USD ($)	Dec. 31, 2010 Fair Labor Standards Act Litigation code employee	Mar. 14, 2013 India Directorate of Revenue Intelligence Proceedings USD ($)	May 31, 2010 India Directorate of Revenue Intelligence Proceedings USD ($)	Apr. 30, 2012 Bangalore Commissioner of Customs USD ($)	Dec. 11, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 20, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 11, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 30, 2013 Russia GPO and Related Investigations USD ($)	Oct. 31, 2006 Russia GPO and Related Investigations EUR (€)	Jul. 31, 2011 ECT Proceedings	Apr. 30, 2013 ECT Proceedings Minimum	Apr. 30, 2013 ECT Proceedings Maximum
Copyright Levies
Levy assessed on a specific vendor on personal computers sold since March 2001 in Germany (euros per unit)	12
Litigation and Contingencies
Copyright levies payable on sales of MFDs in Belgium		$ 0
Number of job codes					20
Total settlement agreement amount of e-credits				5,000,000
Number of employees filed consent to opt-in to litigation					2,600
Recovery sought							370,000,000
Loss contingency deposit to prevent interruption of business							16,000,000
Additional amount deposited under products show cause notice									10,000,000
Duties and penalties under show cause notices										17,000,000	386,000,000
Amount deposited under show cause notice prior to order										7,000,000	9,000,000
Expected additional amount deposited against product appeal						24,000,000
Additional amount deposited against parts show cause notice								3,000,000
Transaction of former subsidiary under investigation													35,000,000
Civil penalties per violation												500,000
Criminal penalties per violation, specific value												2,000,000
ETC Proceedings, period to suspend right to bid and contract														5 years
Length of sanctions															2 years	5 years
Impairment of goodwill and intangible assets			$ 8,800,000,000

XML

Stockholders' Equity

6 Months Ended

Apr. 30, 2013

Stockholders' Equity

Stockholders' Equity

Note 13: Stockholders' Equity

• Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and six months ended April 30, 2013, HP executed share repurchases of 36 million shares and 56 million shares, respectively. Such repurchased shares were settled for $797 million and $1.1 billion, respectively. HP paid approximately $350 million in connection with repurchases of 13 million shares during the three months ended April 30, 2012 and paid $1.1 billion in connection with repurchases of approximately 43 million shares in the first six months of fiscal 2012. As of April 30, 2013, HP had remaining authorization of $8.1 billion for future share repurchases.

Taxes related to Items of Other Comprehensive Loss/Income

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions						In millions
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities	$	(5	)	$	—		$	(38	)	$	5
Tax (expense) benefit on change in unrealized gains/losses on cash flow hedges:
Tax (expense) benefit on unrealized gains/losses arising during the period		(42	)		60			60			(92	)
Tax expense (benefit) on gains/losses reclassified into earnings		10			—			(7	)		37
		(32	)		60			53			(55	)
Tax (expense) benefit on change in unrealized components of defined benefit plans:
Tax benefit (expense) on net losses arising during the period		—			—			—			24
Tax (benefit) expense on amortization of actuarial loss and prior service benefit		(16	)		(6	)		(21	)		(16	)
Tax benefit (expense) on curtailments, settlements and other		—			20			(1	)		(64	)
		(16	)		14			(22	)		(56	)
Tax benefit (expense) on change in cumulative translation adjustment		4			(52	)		22			(38	)
Tax (expense) benefit on other comprehensive income	$	(49	)	$	22		$	15		$	(144	)

        The components of accumulated other comprehensive loss, net of taxes, were as follows:

	April 30, 2013			October 31, 2012
	In millions
Net unrealized gain on available-for-sale securities	$	71		$	87
Net unrealized loss on cash flow hedges		(166	)		(99	)
Unrealized components of defined benefit plans		(4,934	)		(5,090	)
Cumulative translation adjustment		(493	)		(457	)
Accumulated other comprehensive loss	$	(5,522	)	$	(5,559	)

XML

Financing Receivables and Operating Leases

6 Months Ended

Apr. 30, 2013

Financing Receivables and Operating Leases

Financing Receivables and Operating Leases

Note 9: Financing Receivables and Operating Leases

        Financing receivables represent sales-type and direct-financing leases resulting from the placement of HP 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 billed receivables from operating leases. The components of financing receivables, which are included in Financing receivables, net and Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets, were as follows:

	April 30, 2013			October 31, 2012
	In millions
Minimum lease payments receivable		$7,725			$8,133
Unguaranteed residual value		255			248
Unearned income		(651	)		(688	)
Financing receivables, gross		7,329			7,693
Allowance for doubtful accounts		(149	)		(149	)
Financing receivables, net		7,180			7,544
Less current portion		(3,212	)		(3,252	)
Amounts due after one year, net		$3,968			$4,292

        Equipment leased to customers under operating leases was $3.7 billion and $3.9 billion at April 30, 2013 and October 31, 2012, respectively, and is included in machinery and equipment. Accumulated depreciation on equipment under lease was $1.4 billion and $1.5 billion at April 30, 2013 and at October 31, 2012, respectively.

        Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographical regions. The credit quality of an obligor is evaluated at lease inception and monitored over the term of a transaction. Risk ratings are assigned to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of guarantees, letters of credit, security deposits or other credit enhancements.

        The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows:

	April 30, 2013		October 31, 2012
	In millions
Risk Rating
Low	$	4,128	$	4,461
Moderate		3,100		3,151
High		101		81
Total	$	7,329	$	7,693

        Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB- or higher, while accounts rated moderate risk would generally be the equivalent of BB+ or lower. Based upon impairment analyses performed periodically, HP identifies and monitors accounts rated high risk and may establish a specific reserve against a portion of these receivables.

        The allowance for doubtful accounts balance is comprised of a general reserve, which is determined based on a percentage of the financing receivables balance, and a specific reserve, which is established for certain leases with identified exposures, such as customer default, bankruptcy or other events, that make it unlikely that HP will recover its investment in the lease. The general reserve percentages are maintained on a regional basis and are based on several factors, which include consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking.

        The allowance for doubtful accounts and the related financing receivables were as follows:

	Six months ended April 30, 2013
	In millions
Allowance for doubtful accounts
Balance, beginning of period	$	149
Change in estimates		14
Deductions, net of recoveries		(14	)
Balance, end of period	$	149

	April 30, 2013		October 31, 2012
	In millions
Allowance for financing receivables collectively evaluated for loss	$	100	$	104
Allowance for financing receivables individually evaluated for loss		49		45
Total	$	149	$	149
Gross financing receivables collectively evaluated for loss	$	6,956	$	7,355
Gross financing receivables individually evaluated for loss		373		338
Total	$	7,329	$	7,693
Gross financing receivables on non-accrual status	$	208	$	225
Gross financing receivables 90 days past due and still accruing interest		165		113
Total	$	373	$	338

        Accounts are generally put on non-accrual status (cessation of interest accrual) when they reach 90 days past due. In certain circumstances, such as when the delinquency is deemed to be of an administrative nature, accounts may still accrue interest when they reach 90 days past due. The non-accrual status may not impact a customer's risk rating. A write-off or specific reserve is generally recorded when an account reaches 180 days past due.

XML

Segment Information

6 Months Ended

Apr. 30, 2013

Segment Information

Segment Information

Note 16: Segment Information

• Description of Segments

        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 customers in the government, health and education sectors. HP's offerings span personal computing and other access devices; imaging and printing-related products and services; multi-vendor customer services, including infrastructure technology and business process outsourcing, application development and support services, and consulting and integration services; enterprise information technology ("IT") infrastructure, including enterprise storage and server technology, networking products and solutions, and technology support and maintenance; and IT management software, information management solutions and security intelligence/risk management solutions.

        HP's operations are organized into seven reportable business segments for financial reporting purposes: Personal Systems, Printing, the Enterprise Group, Enterprise Services, Software, 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 reportable business segments are based on this organizational structure and information reviewed by HP's management to evaluate the business segment results.

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). While PPS is not a financial reporting segment, HP sometimes provides financial data aggregating the segments within it in order to provide a supplementary view of its business.

        HP has implemented certain organizational realignments. As a result of these realignments, HP re-evaluated its segment financial reporting structure and, effective in the first quarter of fiscal 2013, created two new financial reporting segments, the EG segment and the ES segment, and eliminated two other financial reporting segments, the ESSN segment and the Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the TS business unit, which was previously a part of the former Services segment. The ES segment consists of the ABS and ITO business units from the former Services segment, along with the end-user workplace support services business that was previously a part of the TS business unit.

        Also as a result of these realignments, the financial results of the Personal Systems commercial products support business, which were previously reported as part of the TS business unit, are now reported as part of the Other business unit within the Personal Systems segment, and the financial results of the portion of the business intelligence services business that had continued to be reported as part of the Corporate Investments segment following the implementation of prior realignment actions are now reported as part of the ABS business unit. In addition, the end-user workplace support business, which, as noted above, was previously a part of the TS business unit and is now a part of the ES segment, is reported as part of the ITO business unit within that segment.

        A description of the types of products and services provided by each business segment follows.

        The Printing and Personal Systems Group's mission is to leverage the respective strengths of the Personal Systems business and the Printing business in creating a single, unified business that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the business segments within PPS is described in detail below.

Personal Systems provides commercial PCs, consumer PCs, workstations, thin clients, tablets, retail POS systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops and workstations into commercial PC's and consumer notebooks and consumer desktops into consumer PC's when describing its performance in these markets. Described below are HP's global business capabilities within Personal Systems.

• •

  Commercial PCs are optimized for commercial uses, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments. Commercial PCs include the HP ProBook and HP EliteBook lines of notebooks; the HP Compaq Pro, HP Compaq Elite, HP Pro and HP Elite lines of business desktops and all-in-ones, retail POS systems, HP Thin Clients and HP ElitePad Tablet PCs.

  •

  Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion and Compaq Presario series of multi-media consumer notebooks, desktops, including the TouchSmart line of touch-enabled notebooks and all-in-one desktops.

  •

  Workstations are designed and optimized to reliably operate in high performance and demanding application environments, such as computer animation, graphic design, video and audio production, software development, financial trading, engineering design and analysis, architectural engineering, image analysis and energy exploration. HP offers Z desktop workstations, Z all-in-ones and EliteBook mobile workstations.
  
  
  

  Printing provides consumer and commercial printer hardware, supplies, media, software and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial markets. HP groups laserjet, large format and Indigo printers into commercial hardware and inkjet printers into consumer hardware when describing our performance in these markets. Described below are HP's global business capabilities within Printing.

  •

  Inkjet and Printing Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). It includes single-function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as ePrintCenter.

  •

  LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices, scanners, web-connected hardware and services, and enterprise software solutions, such as Exstream Software and Web Jetadmin. HP Managed Solutions include managed service products, support and solutions delivered to enterprise customers partnering with third-party software providers to offer workflow solutions in the enterprise environment.

  •

  Graphics Solutions include large format printing (Designjet and Scitex) and supplies, Indigo digital presses and supplies, inkjet high-speed production solutions and supplies, specialty printing systems and graphics services. Graphic Solutions targets print service providers, architects, engineers, designers, photofinishers and industrial solution providers.

  •

  Software and Web Services delivers a robust platform and a suite of offerings, including photo-storage and printing offerings, such as Snapfish, document storage, entertainment services, web-connected printing, and PC back-up and related services.

        The Enterprise Group provides servers, storage, networking, technology services and, when combined with HP's Cloud Service Automation software suite, the HP CloudSystem. The CloudSystem enables infrastructure, platform and software-as-a-service in private, public or hybrid environments. Described below are HP's business units and capabilities within EG.

• •

  Industry Standard Servers offers ProLiant servers, running primarily Windows, Linux and virtualization platforms from software providers, such as Microsoft Corporation and VMware, Inc., and open sourced software from other major vendors while leveraging Intel Corporation and Advanced Micro Devices, Inc. x86 processors. The business spans a range of server product lines, including pedestal-tower, traditional rack, density-optimized rack, blades and solutions for large, distributed computing companies (Hyperscale class) who buy and deploy compute nodes at a massive scale. HP recently launched its new HP Moonshot servers that deliver reductions in cost, space, energy and complexity.

  •

  Business Critical Systems offers HP Integrity servers based on the Intel Itanium-based processor, HP Integrity NonStop solutions and scale-up x86 ProLiant Servers.

  •

  Storage offers traditional storage and converged storage solutions. Traditional storage includes tape, storage networking and legacy external disk products such as EVA and XP. Converged storage solutions include 3PAR, StoreOnce, StoreVirtual and StoreAll products.

• •

  Networking offers switches and routers that span the data center, campus and branch environments and deliver network management and unified communications. HP's wireless networking offerings include wireless LAN access points and controllers/switches.

  •

  Technology Services differentiates the HP product experience for customers with consulting and support services focused on the data center. Support services includes Datacenter Care, Foundation Care, Proactive Care and Lifecycle Event services that help align support service levels to business needs, as well as warranty support across EG's product lines. Consulting services, which are tightly aligned and optimized for HP's enterprise product portfolio, include data center, network and storage consulting, and education services, as well as converged cloud, mobility and big data consulting services.

Enterprise Services provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. ES is divided into Infrastructure Technology Outsourcing and Application and Business Services.

• •

  Infrastructure Technology Outsourcing delivers comprehensive services that encompass the data center, IT security, cloud-based computing, workplace technology, network, unified communications, and enterprise service management.

  •

  Application and Business Services helps clients develop, revitalize and manage their applications and information assets. This full application life cycle approach encompasses application development, testing, modernization, system integration, maintenance and management for both packaged and custom-built applications. The ABS portfolio also includes intellectual property-based industry solutions, services and technologies to help clients better manage critical business processes. HP also offers services for customer relationship management, finance and administration, human resources, payroll and document processing.

Software provides IT management, information management and security solutions for businesses and enterprises of all sizes. HP's IT management solutions help customers around the world deliver applications and services that perform to defined standards and automate and assure the underlying infrastructure, be it traditional, cloud or hybrid. HP's information management solutions include its Autonomy platform, which is designed to help customers get faster answers from all of their structured and unstructured information. HP's security solutions provide customers with security at all levels of the enterprise—from the infrastructure through applications and information. HP's Software offerings include licenses, support, professional services, and software-as-a-service in order to provide an end-to-end solution to customers.

HP Financial Services 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.

Corporate Investments includes HP Labs, the webOS business and certain business incubation projects.

• Segment Data

        HP derives the results of the business segments directly from its internal management reporting system. The accounting policies 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 restructuring charges and any associated adjustments related to restructuring actions, amortization of purchased intangible assets, stock-based compensation expense related to HP-granted employee stock options, PRUs, restricted stock awards and the employee stock purchase plan, certain acquisition-related charges and charges for purchased IPR&D, as well as certain corporate governance costs.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments that are carried out at an arm's-length transfer price. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are classified as operating leases within HPFS. HP's Consolidated Net Revenue is derived and reported after elimination of intersegment revenues for such arrangements in accordance with U.S. GAAP.

        To provide improved visibility and comparability, HP has reflected the 2013 changes to its reporting structure in prior financial reporting periods on an as-if basis, which has resulted in the transfer of revenue and operating profit among the Personal Systems, EG, ES and Corporate Investments segments. These changes had no impact on the previously reported financial results for the Printing, Software or HPFS segments. In addition, none of these changes impacted HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

        Selected operating results information for each business segment was as follows for the three months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	7,325	$	6,033	$	6,591	$	5,889	$	868	$	866	$	10		$	27,582
Intersegment net revenue and other		259		48		228		110		73		15		—			733
Total segment net revenue	$	7,584	$	6,081	$	6,819	$	5,999	$	941	$	881	$	10		$	28,315
Earnings (loss) from operations	$	239	$	958	$	1,082	$	156	$	180	$	97	$	(56	)	$	2,656
2012
Net revenue	$	9,231	$	6,068	$	7,171	$	6,362	$	892	$	962	$	7		$	30,693
Intersegment net revenue and other		239		64		375		127		78		6		—			889
Total segment net revenue	$	9,470	$	6,132	$	7,546	$	6,489	$	970	$	968	$	7		$	31,582
Earnings (loss) from operations	$	516	$	808	$	1,352	$	237	$	172	$	96	$	(48	)	$	3,133

        Selected operating results information for each business segment was as follows for the six months ended April 30:

	Printing and Personal Systems
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
2013
Net revenue	$	15,365	$	11,917	$	13,412	$	11,681	$	1,740	$	1,812	$	14		$	55,941
Intersegment net revenue and other		423		90		391		237		127		26		—			1,294
Total segment net revenue	$	15,788	$	12,007	$	13,803	$	11,918	$	1,867	$	1,838	$	14		$	57,235
Earnings (loss) from operations	$	462	$	1,911	$	2,166	$	232	$	337	$	198	$	(121	)	$	5,185
2012
Net revenue	$	17,883	$	12,294	$	14,201	$	12,634	$	1,779	$	1,902	$	36		$	60,729
Intersegment net revenue and other		479		96		627		226		137		16		1			1,582
Total segment net revenue	$	18,362	$	12,390	$	14,828	$	12,860	$	1,916	$	1,918	$	37		$	62,311
Earnings (loss) from operations	$	975	$	1,569	$	2,681	$	382	$	334	$	187	$	(98	)	$	6,030

        The reconciliation of segment operating results information to HP consolidated totals was as follows:

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Segment total	$	28,315		$	31,582		$	57,235		$	62,311
Elimination of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729
Earnings before taxes:
Total segment earnings from operations	$	2,656		$	3,133		$	5,185		$	6,030
Corporate and unallocated costs and eliminations		(179	)		(203	)		(288	)		(356	)
Unallocated costs related to stock-based compensation expense		(107	)		(168	)		(291	)		(342	)
Amortization of purchased intangible assets		(350	)		(470	)		(700	)		(936	)
Restructuring charges		(408	)		(53	)		(538	)		(93	)
Acquisition-related charges		(11	)		(17	)		(15	)		(39	)
Interest and other, net		(193	)		(243	)		(372	)		(464	)
Total HP consolidated earnings before taxes	$	1,408		$	1,979		$	2,981		$	3,800

        In connection with certain fiscal 2013 organizational realignments, HP reclassified total assets between its EG and ES financial reporting segments. Following the realignments, the total assets of EG and ES were $32.9 billion and $18.8 billion, respectively, as of October 31, 2012. There have been no material changes to the total assets of HP's individual segments since October 31, 2012.

• Net revenue by segment and business unit

	Three months ended April 30						Six months ended April 30
	2013			2012			2013			2012
	In millions
Net revenue:
Notebooks	$	3,718		$	4,900		$	7,846		$	9,842
Desktops		3,103			3,827			6,424			7,033
Workstations		521			537			1,056			1,072
Other		242			206			462			415
Personal Systems		7,584			9,470			15,788			18,362
Supplies		4,122			4,060			8,015			8,139
Commercial Hardware		1,398			1,479			2,752			2,968
Consumer Hardware		561			593			1,240			1,283
Printing		6,081			6,132			12,007			12,390
Printing and Personal Systems Group		13,665			15,602			27,795			30,752
Industry Standard Servers		2,806			3,186			5,800			6,258
Technology Services		2,272			2,335			4,515			4,599
Storage		857			990			1,690			1,945
Networking		618			614			1,226			1,200
Business Critical Systems		266			421			572			826
Enterprise Group		6,819			7,546			13,803			14,828
Infrastructure Technology Outsourcing		3,721			3,954			7,457			7,934
Application and Business Services		2,278			2,535			4,461			4,926
Enterprise Services		5,999			6,489			11,918			12,860
Software		941			970			1,867			1,916
HP Financial Services		881			968			1,838			1,918
Corporate Investments		10			7			14			37
Total segments		28,315			31,582			57,235			62,311
Eliminations of intersegment net revenue and other		(733	)		(889	)		(1,294	)		(1,582	)
Total HP consolidated net revenue	$	27,582		$	30,693		$	55,941		$	60,729

XML

Retirement and Post-Retirement Benefit Plans

6 Months Ended

Apr. 30, 2013

Retirement and Post-Retirement Benefit Plans

Retirement and Post-Retirement Benefit Plans

Note 14: Retirement and Post-Retirement Benefit Plans

        HP's net pension and post-retirement benefit costs were as follows:

	Three months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	84		$	74		$	2		$	2
Interest cost		140			141			168			174			8			8
Expected return on plan assets		(211	)		(198	)		(250	)		(206	)		(8	)		(9	)
Amortization and deferrals:
Actuarial loss (gain)		19			11			85			59			—			(1	)
Prior service benefit		—			—			(6	)		(6	)		(17	)		(22	)
Net periodic benefit (credit) cost		(52	)		(46	)		81			95			(15	)		(22	)
Curtailment gain		—			—			—			—			(4	)		—
Settlement loss		3			—			—			8			—			—
Special termination benefits		—			—			2			1			—			—
Net benefit (credit) cost	$	(49	)	$	(46	)	$	83		$	104		$	(19	)	$	(22	)

	Six months ended April 30
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2013			2012			2013			2012			2013			2012
	In millions
Service cost	$	—		$	—		$	170		$	148		$	3		$	4
Interest cost		280			283			341			349			15			17
Expected return on plan assets		(423	)		(396	)		(507	)		(413	)		(17	)		(18	)
Amortization and deferrals:
Actuarial loss (gain)		39			22			172			119			—			(2	)
Prior service benefit		—			—			(13	)		(12	)		(34	)		(43	)
Net periodic benefit (credit) cost		(104	)		(91	)		163			191			(33	)		(42	)
Curtailment gain		—			—			—			—			(7	)		—
Settlement loss (gain)		8			—			—			(20	)		—			—
Special termination benefits		—			—			5			2			—			—
Net benefit (credit) cost	$	(96	)	$	(91	)	$	168		$	173		$	(40	)	$	(42	)

• Employer Contributions and Funding Policy

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2012 that it expected to contribute in fiscal 2013 approximately $674 million to its non-US pension plans and approximately $33 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $124 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 makes at least the minimum contribution required by local government, funding and taxing authorities.

        During the six months ended April 30, 2013, HP made $363 million of contributions to its non-US pension plans, paid $35 million to cover benefit payments to U.S. non-qualified plan participants, and paid $47 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2013, HP anticipates making additional contributions of approximately $293 million to its non-U.S. pension plans and approximately $16 million to its U.S. non-qualified plan participants and expects to pay approximately $77 million to cover benefit claims under HP's post-retirement benefit plans.

        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 invested assets 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.

XML

Document and Entity Information	6 Months Ended
	Apr. 30, 2013	May 31, 2013
Document and Entity Information
Entity Registrant Name	HEWLETT PACKARD CO
Entity Central Index Key	0000047217
Document Type	10-Q
Document Period End Date	Apr. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,928,551,688
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

XML

Litigation and Contingencies

6 Months Ended

Apr. 30, 2013

Litigation and Contingencies

Litigation and Contingencies

Note 15: Litigation and Contingencies

        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. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has adequate provisions for any such matters, and, as of April 30, 2013, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the amounts already recognized in HP's financial statements. 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, 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.

Litigation, Proceedings and Investigations

        Copyright Levies.    As described below, proceedings are ongoing or have been concluded involving HP in certain European Union ("EU") member countries, including litigation in Germany, Belgium and Austria, seeking to impose or modify 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. Descriptions of some of the ongoing proceedings are included below. The levies are generally 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 have opposed the extension of levies to the digital environment and have advocated alternative models of compensation to rights holders.

        VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted legal proceedings against HP in the Stuttgart Civil Court seeking levies on printers. On December 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 11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June 6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December 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 25, 2008, and VG Wort subsequently filed an application with the German Federal Supreme Court under Section 321a of the German Code of Civil Procedure contending that the court did not consider their arguments. On May 9, 2008, the German Federal Supreme Court denied VG Wort's application. VG Wort appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. On September 21, 2010, the Constitutional Court published a decision holding that the German Federal Supreme Court erred by not referring questions on interpretation of German copyright law to the Court of Justice of the European Union ("CJEU") and therefore revoked the German Federal Supreme Court decision and remitted the matter to it.

        On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. The CJEU conducted an oral hearing in October 2012 and is expected to issue a decision in June 2013, after which the matter will be remitted back to the German Federal Supreme Court.

        In September 2003, VG Wort filed a lawsuit against Fujitsu Siemens Computer 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 23, 2004, the Munich Civil Court held that PCs are subject to a levy and that FSC must pay €12 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 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 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 31, 2007 and, therefore, not subject to the levies on photocopiers established by that law. VG Wort subsequently filed a claim with the German Federal Constitutional Court challenging that ruling. In January 2011, the Constitutional Court published a decision holding that the German Federal Supreme Court decision was inconsistent with the German Constitution and revoking the German Federal Supreme Court decision. The Constitutional Court remitted the matter to the German Federal Supreme Court for further action. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. The CJEU conducted an oral hearing in October 2012 and is expected to issue a decision in June 2013, after which the matter will be remitted back to the German Federal Supreme Court.

        Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested HP by extra-judicial means to amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated based on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with EU law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. Hearings on the appeal are scheduled to be held in September 2013.

        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 number of units impacted and the amounts of the 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.

Skold, et al. v. Intel Corporation and Hewlett-Packard Company is a lawsuit filed against HP on June 14, 2004 that is pending in state court in Santa Clara County, California. The lawsuit alleges that Intel Corporation ("Intel") concealed performance problems related to the Intel Pentium 4 processor by, among others things, the manipulation of performance benchmarks. The lawsuit alleges that HP aided and abetted Intel's allegedly unlawful conduct. The plaintiffs seek unspecified damages, restitution, attorneys' fees and costs. On April 19, 2012, the court issued an order granting in part and denying in part the plaintiffs' motion to certify a nationwide class asserting claims under the California Unfair Competition Law. As to Intel, the court certified a nationwide class excluding residents of Illinois. As to HP, the court certified a class limited to California residents who purchased their computers "from HP" for "personal, family or household use." As required by the same order, the plaintiffs filed an amended complaint that limits their claims against HP to a California class while reserving the right to seek additional state-specific subclasses as to HP.

        Inkjet Printer Litigation.    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 warnings and that the smart chip limits the ability of consumers to use the cartridge to its full capacity or to choose competitive products.

• •

  A consolidated lawsuit captioned In re HP Inkjet Printer Litigation was filed in the United States District Court for the Northern District of California seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees.

  •

  A lawsuit captioned Blennis v. HP was filed on January 17, 2007 in the United States District Court for the Northern District of California seeking class certification, restitution, damages (including enhanced damages), injunctive relief, interest, costs, and attorneys' fees.

  •

  A lawsuit captioned Rich v. HP was filed against HP on May 22, 2006 in the United States District Court for the Northern District of California alleging 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 and seeking to certify a nationwide injunctive class and a California-only damages class.

  •

  Two class actions against HP and its subsidiary, Hewlett-Packard (Canada) Co., are pending in Canada, one commenced in British Columbia in February 2006 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.

        On August 25, 2010, HP and the plaintiffs in In re HP Inkjet Printer Litigation, Blennis v. HP and Rich v. HP entered into an agreement to settle those lawsuits on behalf of the proposed classes. Under the terms of the settlement, the lawsuits were consolidated, and eligible class members each have the right to obtain e-credits not to exceed $5 million in the aggregate for use in purchasing printers or printer supplies through HP's website. As part of the settlement, HP also agreed to provide class members with additional information regarding HP inkjet printer functionality and to change the content of certain software and user guide messaging provided to users regarding the life of inkjet printer cartridges. In addition, the settlement provides for class counsel and the class representatives to be paid attorneys' fees and expenses and stipends. On March 29, 2011, the court granted final approval of the settlement. On April 27, 2011, certain class members who objected to the settlement filed an appeal in the United States Court of Appeals for the Ninth Circuit of the court's order granting final approval of the settlement. On May 15, 2013, the United States Court of Appeals for the Ninth Circuit reversed the District Court's grant of final approval of the settlement on the grounds that the District Court did not properly calculate attorneys' fees.

        Fair Labor Standards Act Litigation.    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 or other state laws. Those matters include the following:

• •

  Cunningham and Cunningham, et al. v. Electronic Data Systems Corporation is a purported collective action filed on May 10, 2006 in the United States District Court for the Southern District of New York claiming that current and former EDS employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Another purported collective action, Steavens, et al. v. Electronic Data Systems

• • Corporation, which was filed on October 23, 2007, is also now pending in the same court alleging similar facts. The Steavens case has been consolidated for pretrial purposes with the Cunningham case. On December 14, 2010, the court granted conditional certification of a class consisting of employees in 20 legacy EDS job codes in the consolidated Cunningham and Steavens matter. Approximately 2,600 current and former EDS employees have filed consents to opt in to the litigation. Plaintiffs had alleged separate "opt-out" classes based on the overtime laws of the states of California, Washington, Massachusetts and New York, but plaintiffs have dismissed those claims.

  •

  Salva v. Hewlett-Packard Company is a purported collective action filed on June 15, 2012 in the United States District Court for the Western District of New York alleging that certain information technology employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees under the Fair Labor Standards Act. On August 31, 2012, HP filed its answer to plaintiffs' complaint and counterclaims against two of the three named plaintiffs. Also on August 31, 2012, HP filed a motion to transfer venue to the United States District Court for the Eastern District of Texas. A hearing on HP's motion to transfer venue was scheduled for November 21, 2012, but was postponed by the court.

  •

  Heffelfinger, et al. v. Electronic Data Systems Corporation is a class action filed in November 2006 in California Superior Court claiming that certain EDS information technology workers in California were misclassified as exempt employees. The case was subsequently transferred to the United States District Court for the Central District of California, which, on January 7, 2008, certified a class of information technology workers in California. On June 6, 2008, the court granted the defendant's motion for summary judgment. The plaintiffs subsequently filed an appeal with the United States Court of Appeals for the Ninth Circuit. On June 7, 2012, the Court of Appeals affirmed summary judgment for two of the named plaintiffs, but reversed summary judgment on the third named plaintiff, remanding the case back to the trial court and inviting the trial court to revisit its prior certification order. On February 26, 2013, the trial court issued a final order and opinion granting the defendant's motion to decertify the class. Another purported class action originally filed in California Superior Court, Karlbom, et al. v. Electronic Data Systems Corporation, which was filed on March 16, 2009, alleges similar facts and is pending in San Diego County Superior Court.

  •

  Blake, et al. v. Hewlett-Packard Company is a purported nationwide collective action filed on February 17, 2011 in the United States District Court for the Southern District of Texas claiming that a class of information technology support personnel were misclassified as exempt employees under the Fair Labor Standards Act. On February 10, 2012, plaintiffs filed a motion requesting that the court conditionally certify the case as a collective action. HP has opposed plaintiffs' motion for conditional certification, and the court has taken the motion under advisement. Only one opt-in plaintiff had joined the named plaintiff in the lawsuit at the time that the motion was filed.

  •

  Benedict v. Hewlett-Packard Company is a purported collective action filed on January 10, 2013 in the United States District Court for the Northern District of California alleging that certain technical support employees allegedly involved in installing, maintaining and/or supporting computer software and/or hardware for HP were misclassified as exempt employees under the Fair Labor Standards Act. The plaintiff has also alleged that HP violated California law by, among other things, allegedly improperly classifying these employees as exempt.

        India Directorate of Revenue Intelligence Proceedings.    On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HPI"), a subsidiary of HP, seven current HP employees and one former HP employee alleging that HP underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP products and spare parts and to not interrupt the transaction of business by HP in India.

        On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million, of which HPI had already deposited $9 million. On December 11, 2012, HPI voluntarily deposited an additional $10 million in connection with the products show cause notice.

        On April 20, 2012, the Commissioner issued an order on the parts show cause notice affirming certain duties and penalties against HPI and certain of the named individuals of approximately $17 million, of which HPI had already deposited $7 million. After the order, HPI deposited an additional $3 million in connection with the parts show cause notice so as to avoid certain penalties.

        HPI filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The customs department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HPI to deposit an additional $24 million against the products order, which HP deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order.

        Russia GPO and Related Investigations.    The German Public Prosecutor's Office ("German PPO") has been conducting an investigation into allegations that current and former employees of HP engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary of HP, and the General Prosecutor's Office of the Russian Federation. The approximately €35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO has issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO has also asked that HP be made an associated party to the case, and, if the German PPO's request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees.

        The U.S. Department of Justice and the SEC have also been conducting an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). Under the FCPA, a person or an entity could be subject to fines, civil penalties of up to $500,000 per violation and equitable remedies, including disgorgement and other injunctive relief. In addition, criminal penalties could range from the greater of $2 million per violation or twice the gross pecuniary gain or loss from the violation.

        In addition to information about the Russia GPO deal, the U.S. enforcement authorities have requested information from HP relating to certain transactions in Russia, the Commonwealth of Independent States, Poland and Mexico dating back to 2000.

        HP is cooperating with these investigating agencies.

        ECT Proceedings.    In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified HP that it had initiated administrative proceedings against an HP subsidiary in Brazil ("HP Brazil") to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies coordinated their bids for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP it had decided to apply the penalties against HP Brazil, suspending HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP filed petitions with ECT requesting that the decision be revoked and seeking injunctive relief to have the application of the penalties suspended until a final, non-appealable decision is made on the merits of the case. In April 2013, ECT rejected HP's position that the penalties be revoked. HP is currently awaiting a decision from ECT on the injunctive relief petition. Because ECT did not rule on the substance of HP's petitions in a timely manner, HP filed a lawsuit seeking similar relief from the court. The court of first instance has not decided the merits of HP's lawsuit, but has denied HP's request for injunctive relief suspending application of the penalties pending a final, non-appealable decision on the merits of the case. HP appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until HP can be heard on the full merits of the case. HP expects the court of first instance to issue a decision on the merits of the case during 2013 and any appeal on the merits to last several years.

        Stockholder Litigation.    As described below, HP is involved in various stockholder litigation commenced against certain current and former HP executive officers and/or certain current and former members of the HP Board of Directors in which the plaintiffs are seeking to recover certain compensation paid by HP to the defendants, other damages and/or injunctive relief:

• •

  Saginaw Police & Fire Pension Fund v. Marc L. Andreessen, et al. is a lawsuit filed on October 19, 2010 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and were unjustly enriched by consciously disregarding HP's alleged violations of the FCPA. On August 15, 2011, the defendants filed a motion to dismiss the lawsuit. On March 21, 2012, the court granted the defendants' motion to dismiss, and the court entered judgment in the defendants' favor and closed the case on May 29, 2012. On June 28, 2012, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit.

• •

  A.J. Copeland v. Raymond J. Lane, et al. is a lawsuit filed on March 7, 2011 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's alleged violations of the FCPA, HP's severance payments made to Mr. Hurd, and HP's acquisition of 3PAR Inc. The lawsuit also alleges violations of Section 14(a) of the Exchange Act in connection with HP's 2010 and 2011 proxy statements. On February 8, 2012, the defendants filed a motion to dismiss the lawsuit. On October 10, 2012, the Court granted the defendants' motion to dismiss with leave to file an amended complaint. On November 1, 2012, plaintiff filed an amended complaint adding an unjust enrichment claim and claims that the defendants violated Section 14(a) of the Exchange Act and breached their fiduciary duties in connection with HP's 2012 proxy statement. On December 13, 14 and 17, 2012, the defendants moved to dismiss the amended complaint. On May 6, 2013, the court granted the motions to dismiss with prejudice and entered judgment in the defendants' favor.

  •

  Richard Gammel v. Hewlett-Packard Company, et al. is a putative securities class action filed on September 13, 2011 in the United States District Court for the Central District of California alleging, among other things, that from November 22, 2010 to August 18, 2011, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model, the future of the webOS operating system, and HP's commitment to developing and integrating webOS products, including the TouchPad tablet PC. On April 11, 2012, the defendants filed a motion to dismiss the lawsuit. On September 4, 2012, the court granted the defendants' motion to dismiss and gave plaintiff 30 days to file an amended complaint. On October 19, 2012, plaintiff filed an amended complaint that asserts the same causes of action but drops one of the defendants and shortens the period that the alleged violations of the Exchange Act occurred to February 9, 2011 to August 18, 2011. On December 3, 2012, the defendants moved to dismiss the amended complaint. On May 8, 2013, the court granted the defendants' motion to dismiss in part and denied it in part. As a result of the court's ruling, the alleged class period in the action runs from June 1, 2011 to August 18, 2011.

  •

  Ernesto Espinoza v. Léo Apotheker, et al. and Larry Salat v. Léo Apotheker, et al. are consolidated lawsuits filed on September 21, 2011 in the United States District Court for the Central District of California alleging, among other things, that the defendants violated Section 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched when they authorized HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending developments in the Gammel matter.

  •

  Luis Gonzalez v. Léo Apotheker, et al. and Richard Tyner v. Léo Apotheker, et al. are consolidated lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business and by authorizing HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending resolution of the Espinoza/Salat consolidated action in federal court.

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  Cement & Concrete Workers District Council Pension Fund v. Hewlett-Packard Company, et al. is a putative securities class action filed on August 3, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 13, 2007 to August 6, 2010 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by making statements regarding HP's Standards of Business Conduct ("SBC") that were false and misleading because Mr. Hurd, who was serving as HP's Chairman and Chief Executive Officer during that period, had been violating the SBC and concealing his misbehavior in a manner that jeopardized his continued employment with HP. On February 7, 2013, the defendants moved to dismiss the amended complaint. The Court has not yet ruled on the motion.

Autonomy-Related Legal Matters

        Investigations.    As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy. On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy. On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy. HP is cooperating with the three investigating agencies.

        Litigation.    As described below, HP is involved in various stockholder litigation relating to, among other things, its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP's statements that, based on HP's findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of the HP Board of Directors, and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. These matters include the following:

• •

  In re HP Securities Litigation consists of two consolidated putative class actions filed on November 26 and 30, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 19, 2011 to November 20, 2012, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's Enterprise Services business. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging that, during that same period, all of the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5(b) by concealing material information and making false statements related to HP's acquisition of Autonomy and that certain defendants violated SEC Rule 10b-5(a) and (c) by engaging in a "scheme" to defraud investors.

  •

  In re Hewlett-Packard Shareholder Derivative Litigation consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's Enterprise Services business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP's acquisition of Autonomy and Autonomy's IDOL technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in "abuse of control" over HP and corporate waste and were unjustly enriched. On May 10, 2013, HP moved to stay the litigation until HP's Board of Directors decides whether to pursue any of the claims asserted in the litigation or the court resolves HP's anticipated motion to dismiss the consolidated complaint in In re HP Securities Litigation. The court has not yet ruled on the motion.

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  In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 18, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP's 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP's Enterprise Services business and by failing to restrict participants from investing in HP stock.

  •

  Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. On April 22, 2013, the court stayed the lawsuit pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation in federal court.

Environmental

        HP's operations and products are 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 HP's products and the recycling, treatment and disposal of those products. 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, and the energy consumption associated with those products, including requirements relating to climate change. 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"). HP could incur substantial costs, its products could be restricted from entering certain 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.

        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 and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. 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.

XML

Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended
	Apr. 30, 2013	Jan. 31, 2013 segment	Apr. 30, 2012	Apr. 30, 2013 segment	Apr. 30, 2012	Oct. 31, 2012
Segment Reporting Information
Number of business segments				7
Number of new financial reporting segments		2		2
Number of financial reporting segments eliminated		2		2
Net revenue:
Net revenue	$ 27,582		$ 30,693	$ 55,941	$ 60,729
Eliminations of intersegment net revenue and other	(733)		(889)	(1,294)	(1,582)
Earnings (Loss) from Operations	1,601		2,222	3,353	4,264
Earnings before taxes:
Amortization of purchased intangible assets	(350)		(470)	(700)	(936)
Restructuring charges	(408)		(53)	(538)	(93)
Acquisition-related charges	(11)		(17)	(15)	(39)
Interest and other, net	(193)		(243)	(372)	(464)
Earnings before taxes	1,408		1,979	2,981	3,800
Total assets	106,254			106,254		108,768
Notebooks
Net revenue:
Net revenue - segment information	3,718		4,900	7,846	9,842
Desktops
Net revenue:
Net revenue - segment information	3,103		3,827	6,424	7,033
Workstations
Net revenue:
Net revenue - segment information	521		537	1,056	1,072
Other personal systems
Net revenue:
Net revenue - segment information	242		206	462	415
Supplies
Net revenue:
Net revenue - segment information	4,122		4,060	8,015	8,139
Commercial Hardware
Net revenue:
Net revenue - segment information	1,398		1,479	2,752	2,968
Consumer Hardware
Net revenue:
Net revenue - segment information	561		593	1,240	1,283
Industry Standard Servers
Net revenue:
Net revenue - segment information	2,806		3,186	5,800	6,258
Technology Services
Net revenue:
Net revenue - segment information	2,272		2,335	4,515	4,599
Storage
Net revenue:
Net revenue - segment information	857		990	1,690	1,945
Networking
Net revenue:
Net revenue - segment information	618		614	1,226	1,200
Business Critical Systems
Net revenue:
Net revenue - segment information	266		421	572	826
Infrastructure Technology Outsourcing
Net revenue:
Net revenue - segment information	3,721		3,954	7,457	7,934
Application and Business Services
Net revenue:
Net revenue - segment information	2,278		2,535	4,461	4,926
Total
Net revenue:
Net revenue	27,582		30,693	55,941	60,729
Eliminations of intersegment net revenue and other	733		889	1,294	1,582
Net revenue - segment information	28,315		31,582	57,235	62,311
Earnings (Loss) from Operations	2,656		3,133	5,185	6,030
Personal Systems
Net revenue:
Net revenue	7,325		9,231	15,365	17,883
Eliminations of intersegment net revenue and other	259		239	423	479
Net revenue - segment information	7,584		9,470	15,788	18,362
Earnings (Loss) from Operations	239		516	462	975
Printing
Net revenue:
Net revenue	6,033		6,068	11,917	12,294
Eliminations of intersegment net revenue and other	48		64	90	96
Net revenue - segment information	6,081		6,132	12,007	12,390
Earnings (Loss) from Operations	958		808	1,911	1,569
Printing and Personal Systems Group
Net revenue:
Net revenue - segment information	13,665		15,602	27,795	30,752
Enterprise Group
Net revenue:
Net revenue	6,591		7,171	13,412	14,201
Eliminations of intersegment net revenue and other	228		375	391	627
Net revenue - segment information	6,819		7,546	13,803	14,828
Earnings (Loss) from Operations	1,082		1,352	2,166	2,681
Earnings before taxes:
Total assets						32,900
Enterprise Services
Segment Reporting Information
Number of business units within segment				2
Net revenue:
Net revenue	5,889		6,362	11,681	12,634
Eliminations of intersegment net revenue and other	110		127	237	226
Net revenue - segment information	5,999		6,489	11,918	12,860
Earnings (Loss) from Operations	156		237	232	382
Earnings before taxes:
Total assets						18,800
Software
Net revenue:
Net revenue	868		892	1,740	1,779
Eliminations of intersegment net revenue and other	73		78	127	137
Net revenue - segment information	941		970	1,867	1,916
Earnings (Loss) from Operations	180		172	337	334
HP Financial Services
Net revenue:
Net revenue	866		962	1,812	1,902
Eliminations of intersegment net revenue and other	15		6	26	16
Net revenue - segment information	881		968	1,838	1,918
Earnings (Loss) from Operations	97		96	198	187
Corporate Investments
Net revenue:
Net revenue	10		7	14	36
Eliminations of intersegment net revenue and other					1
Net revenue - segment information	10		7	14	37
Earnings (Loss) from Operations	(56)		(48)	(121)	(98)
Significant Reconciling Items
Net revenue:
Net revenue	27,582		30,693	55,941	60,729
Eliminations of intersegment net revenue and other	(733)		(889)	(1,294)	(1,582)
Net revenue - segment information	28,315		31,582	57,235	62,311
Earnings (Loss) from Operations	2,656		3,133	5,185	6,030
Earnings before taxes:
Corporate and unallocated costs and eliminations	(179)		(203)	(288)	(356)
Unallocated costs related to stock-based compensation expense	(107)		(168)	(291)	(342)
Amortization of purchased intangible assets	(350)		(470)	(700)	(936)
Restructuring charges	(408)		(53)	(538)	(93)
Acquisition-related charges	(11)		(17)	(15)	(39)
Interest and other, net	(193)		(243)	(372)	(464)
Earnings before taxes	$ 1,408		$ 1,979	$ 2,981	$ 3,800