EX-12 4 a2224881zex-12.htm 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,
2015
  Fiscal years ended October 31  
 
  2014   2013   2012   2011   2010  
 
  In millions, except ratios
 

Earnings (loss):

                                     

Earnings (loss) before taxes

  $ 3,038   $ 6,557   $ 6,510   $ (11,933 ) $ 8,982   $ 10,974  

Adjustments:

                                     

Non-controlling interests in the income of subsidiaries with fixed charges

    28     46     69     102     75     108  

Undistributed loss (earnings) of equity method investees

    2     (5 )   (4 )   (2 )   3     12  

Fixed charges

    445     1,017     1,162     1,297     1,027     868  

  $ 3,513   $ 7,615   $ 7,737   $ (10,536 ) $ 10,087   $ 11,962  

Fixed charges:

                                     

Total interest expense, including interest expense on borrowings, amortization of debt discount, premium on all indebtedness and other

  $ 282   $ 665   $ 769   $ 865   $ 551   $ 417  

Interest included in rent

    163     352     393     432     476     451  

Total fixed charges

  $ 445   $ 1,017   $ 1,162   $ 1,297   $ 1,027   $ 868  

Ratio of earnings to fixed charges (excess of fixed charges over earnings)

    7.9x     7.5x     6.7x   $ (11,833 )   9.8x     13.8x  

(1)
HP computed the ratio of earnings to fixed charges by dividing earnings (earnings (loss) before taxes, adjusted for non-controlling interests in the income of subsidiaries with fixed charges, undistributed loss (earnings) of equity method investees, and fixed charges) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings, amortization of debt discount, premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rent expense.