EX-12 2 a07-6571_3ex12.htm EX-12

Exhibit 12

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Statements of Computation of Ratio of Earnings to Fixed Charges(1)

 

 

Three Months
Ended
January 31,

 

Fiscal Years Ended October 31,

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

In millions, except ratios

 

Earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before cumulative effect of change in accounting principle and taxes(2)

 

 

$

1,964

 

 

$

7,191

 

$

3,543

 

$

4,196

 

$

2,888

 

$

(1,021

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in the income of subsidiaries with fixed charges

 

 

7

 

 

8

 

4

 

12

 

15

 

7

 

Undistributed loss (earnings) of equity method investees

 

 

8

 

 

(8

)

(2

)

(2

)

22

 

46

 

Fixed charges

 

 

230

 

 

746

 

809

 

687

 

710

 

439

 

 

 

 

$

2,209

 

 

$

7,937

 

$

4,354

 

$

4,893

 

$

3,635

 

$

(529

)

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

$

120

 

 

$

336

 

$

377

 

$

257

 

$

304

 

$

255

 

Interest included in rent

 

 

110

 

 

410

 

432

 

430

 

406

 

184

 

Total fixed charges

 

 

$

230

 

 

$

746

 

$

809

 

$

687

 

$

710

 

$

439

 

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

 

 

9.6x

 

 

10.6x

 

5.4x

 

7.1x

 

5.1x

 

$

(968

)

(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, minority interest 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.

(2)                HP restated earnings (loss) before cumulative effect of change in accounting principle and taxes for the effects of adopting SFAS No. 145 “Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections.” HP adopted SFAS No. 145 effective November 1, 2002.