Form 8-K HEWLETT PACKARD CO For: Feb 24

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February 24, 2015 4:21 PM EST

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

February 24, 2015

Date of Report (Date of Earliest Event Reported)

HEWLETT-PACKARD COMPANY

(Exact name of registrant as specified in its charter)

DELAWARE	1-4423	94-1081436
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


3000 HANOVER STREET, PALO ALTO, CA		94304
(Address of principal executive offices)		(Zip code)


	(650) 857-1501

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.	Results of Operations and Financial Condition.

	On February 24, 2015, Hewlett-Packard Company (“HP”) issued a press release relating to its fiscal quarter ended January 31, 2015 entitled “HP Reports Fiscal 2015 First Quarter Results.” The text of this press release, with the related GAAP consolidated condensed statements of earnings, adjustments to certain GAAP financial information, GAAP consolidated condensed balance sheets, GAAP consolidated condensed statements of cash flows, certain segment and business unit information, and certain additional financial information, is furnished herewith as Exhibit 99.1. The information in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), solely as a result of being included in Exhibit 99.1. HP’s GAAP consolidated condensed statements of earnings for the fiscal quarter ended January 31, 2015, HP’s GAAP consolidated condensed balance sheets as of January 31, 2015 and certain segment information for the fiscal quarter ended January 31, 2015 also are filed herewith as Exhibit 99.2. The information in Exhibit 99.2 is filed for purposes of Section 18 of the Exchange Act and therefore may be incorporated by reference into filings under the Securities Act. To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share. A reconciliation of the adjustments to GAAP results for HP’s fiscal quarter ended January 31, 2015 and prior periods is included in the tables that are a part of Exhibit 99.1 or elsewhere in the materials related hereto. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s management’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of Non-GAAP Financial Information” in Exhibit 99.1. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted net earnings per share, cash and cash equivalents, cash flow from operations, capital expenditures or total company debt prepared in accordance with GAAP. Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. As a result of this change, HP has released modified quarterly and full year segment financial results and statements of business unit revenue for fiscal 2014 and 2013, which are attached hereto as Exhibit 99.3. Exhibit 99.3 is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act and shall not be deemed incorporated by reference into any filing under the Securities Act.

Item 9.01.	Financial Statements and Exhibits.

Exhibit Number	Description

Exhibit 99.1	Text of HP’s press release relating to its fiscal quarter ended January 31, 2015 entitled “HP Reports Fiscal 2015 First Quarter Results,” with the related GAAP consolidated condensed statements of earnings, adjustments to certain GAAP financial information, GAAP consolidated condensed balance sheets, GAAP consolidated condensed statements of cash flows, segment financial results, statements of business unit revenue and certain additional financial information (furnished herewith).

Exhibit 99.2	HP’s GAAP consolidated condensed statements of earnings for the fiscal quarter ended January 31, 2015, HP’s GAAP consolidated condensed balance sheets as of January 31, 2015 and segment financial results for the fiscal quarter ended January 31, 2015 (filed herewith).

Exhibit 99.3	HP’s revised segment financial results and statements of business unit revenue for fiscal 2014 and 2013 (furnished herewith).


SIGNATURE


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



	HEWLETT-PACKARD COMPANY


DATE: February 24, 2015	By:	/s/ Rishi Varma
	Name:	Rishi Varma
	Title:	Senior Vice President, Deputy General Counsel and Assistant Secretary

EXHIBIT INDEX

Item 9.01.	Financial Statements and Exhibits.

Exhibit Number	Description

Exhibit 99.1	Text of HP’s press release relating to its fiscal quarter ended January 31, 2015 entitled “HP Reports Fiscal 2015 First Quarter Results,” with the related GAAP consolidated condensed statements of earnings, adjustments to certain GAAP financial information, GAAP consolidated condensed balance sheets, GAAP consolidated condensed statements of cash flows, segment financial results, statements of business unit revenue and certain additional financial information (furnished herewith).

Exhibit 99.2	HP’s GAAP consolidated condensed statements of earnings for the fiscal quarter ended January 31, 2015, HP’s GAAP consolidated condensed balance sheets as of January 31, 2015 and segment financial results for the fiscal quarter ended January 31, 2015 (filed herewith).

Exhibit 99.3	HP’s revised segment financial results and statements of business unit revenue for fiscal 2014 and 2013 (furnished herewith).

		EXHIBIT 99.1

	Hewlett-Packard Company 3000 Hanover Street Palo Alto, CA 94304 hp.com

	News Release
	HP Reports Fiscal 2015 First Quarter Results

Editorial contacts	●	First quarter net revenue of $26.8 billion, down 5% from the prior-year period and down 2% on a constant currency basis
Kate Holderness, HP +1 650 236 1024	●	First quarter non-GAAP diluted net earnings per share of $0.92, up 2% from the prior-year period and within the previously provided outlook of $0.89 to $0.93 per share
[email protected]	●	First quarter GAAP diluted net earnings per share of $0.73, down 1% from the prior-year period and within the previously provided outlook of $0.72 to $0.76 per share
HP Investor Relations [email protected]	●	First quarter cash flow from operations of $744 million, down 75% from the prior-year period
www.hp.com/go/newsroom	●	Returned $1.9 billion to shareholders in the form of share repurchases and dividends in the first quarter

HP fiscal 2015 first quarter financial performance
	Q1 FY15	Q1 FY14	Y/Y
GAAP net revenue ($B)	$28.6	$28.2	(5%)
GAAP operating margin	7.1%	7.1%	0 pts.	.
GAAP net earnings ($B)	$1.4	$1.4	(4%)
GAAP diluted net earnings per share	$0.73	$0.74	(1%)
Non-GAAP operating margin	8.8%	8.5%	0.3pts.	.
Non-GAAP net earnings ($B)	$1.71	$1.74	(2%)
Non-GAAP diluted net earnings per share	$0.92	$0.90	2%
Cash flow from operations ($B)	$0.7	$3.0	(75%)

Information about HP’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.

PALO ALTO, Calif., Feb. 24, 2015 — HP today announced financial results for its fiscal 2015 first quarter ended January 31, 2015.

First quarter net revenue of $26.8 billion was down 5% from the prior-year period and down 2% on a constant currency basis.

First quarter GAAP diluted net earnings per share (EPS) was $0.73, down from $0.74 in the prior-year period and within its previously provided outlook of $0.72 to $0.76. First quarter non-GAAP diluted net EPS was $0.92, up from $0.90 in the prior-year period and within its previously provided outlook of $0.89 to $0.93. First quarter non-GAAP net

Page 1 of 16

	earnings and non-GAAP diluted net EPS exclude after-tax costs of $339 million and $0.19 per diluted share, respectively, related to the amortization of intangible assets, restructuring charges, separation costs, and acquisition-related charges.

	“With the first quarter of fiscal 2015 now behind us, the HP turnaround remains on track,” said Meg Whitman, chairman, president and chief executive officer, HP. “We grew operating profit margins across all of our major business segments, increased investment in innovation, and executed well across key areas of our portfolio and in our separation activities. Our progress continues as we head into Q2.”

	Outlook
	The US dollar has strengthened considerably since HP last provided an FY15 outlook in November, 2014. As is the case with many US based companies, this currency challenge is having a significant impact on HP’s financial outlook.

	For the fiscal 2015 second quarter, HP estimates non-GAAP diluted net EPS to be in the range of $0.84 to $0.88, reflecting an estimated currency impact of $0.09. HP expects GAAP diluted net EPS to be in the range of $0.57 to $0.61, reflecting an estimated currency impact of $0.09. Fiscal 2015 second quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.27 per share, related to separation costs, the amortization of intangible assets, restructuring charges and acquisition-related charges.

	For fiscal 2015, HP estimates non-GAAP diluted net EPS to be in the range of $3.53 to $3.73, reflecting an estimated currency impact of $0.30. Absent the impact of currency, the range is in line with HP’s prior forecast. HP expects GAAP diluted net EPS to be in the range of $2.03 to $2.23, reflecting an estimated currency impact of $0.30. Fiscal 2015 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $1.50 per share, related to separation costs, the amortization of intangible assets, restructuring charges and acquisition-related charges.

	“While we were able to manage the impact of currency in the quarter and deliver earnings as expected, we believe the impact on FY15 will be significantly greater than we anticipated in November,” Whitman added. “We’ll work hard to offset these impacts through re-pricing and productivity, but fully mitigating currency movements of this size would require reducing investments and mortgaging our future. We won’t do that.”

	Asset management
	HP generated $744 million in cash flow from operations in the first quarter, down 75% from the prior-year period. Inventory ended the quarter at $6.6 billion, up 4 days year over year to 29 days. Accounts receivable ended the quarter at $12.3 billion, down 2 days year over year to 41 days. Accounts payable ended the quarter at $14.9 billion, up 13 days year over year to 65 days. HP’s dividend payment of $0.16 per share in the first quarter resulted in cash usage of $304 million. HP also utilized $1.6 billion of cash during the quarter to repurchase approximately 41.1 million shares of common stock in the open market. HP exited the quarter with $13.3 billion in gross cash.

Page 2 of 16

Fiscal 2015 first quarter segment results

	•	Personal Systems revenue was flat year over year with a 3.7% operating margin. Commercial revenue decreased 1% and Consumer revenue increased 2%. Total units were up 9% with Notebooks units up 21% and Desktops units down 7%.
	•	Printing revenue was down 5% year over year with a 19.2% operating margin. Total hardware units were down 4% with Commercial hardware units flat and Consumer hardware units down 6%. Supplies revenue was down 5%.
	•	Enterprise Group revenue was flat year over year with a 15.6% operating margin. Industry Standard Servers revenue was up 7%, Storage revenue was flat, Business Critical Systems revenue was down 9%, Networking revenue was down 11% and Technology Services revenue was down 5%.
	•	Enterprise Services revenue was down 11% year over year with a 3.0% operating margin. Application and Business Services revenue was down 11%, and Infrastructure Technology Outsourcing revenue declined 11%.
	•	Software revenue was down 5% year over year with an 18.0% operating margin. License revenue was down 16%, support revenue was flat, professional services revenue was down 7% and software-as-a-service (SaaS) revenue was flat.
	•	HP Financial Services revenue was down 8% year over year with a 1% decrease in net portfolio assets and a 14% increase in financing volume. The business delivered an operating margin of 11.2%.

	More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at www.hp.com/investor/home.

	HP’s FY15 Q1 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2015Q1Webcast.

	About HP
	HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customers’ most complex challenges in every region of the world. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

	Use of non-GAAP financial information
	To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (GAAP) basis, HP provides revenue on a constant currency basis, as well as non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below or elsewhere in the materials

Page 3 of 16

	accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings, diluted net earnings per share, cash and cash equivalents, cash flow from operations, capital expenditures, or total company debt prepared in accordance with GAAP.

	Forward-looking statements
	This news release 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 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, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, 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 previously announced separation transaction and the future performances of the post-separation companies if the separation is completed, as well as 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 or 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, including the planned separation transaction; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP’s products and the delivery of HP’s 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 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

Page 4 of 16

	risks associated with business combination and investment transactions; the execution, timing and results of the separation transaction or restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of implementing the separation transaction and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2014, and HP’s other filings with the Securities and Exchange Commission.

	As in prior periods, the financial information set forth in this release, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2015. HP assumes no obligation and does not intend to update these forward-looking statements.

Page 5 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Unaudited)

(In millions, except per share amounts)

	Three months ended
	January 31, 2015			October 31, 2014			January 31, 2014

Net revenue	$	26,839		$	28,406		$	28,154

Costs and expenses:
Cost of sales		20,571			21,425			21,736
Research and development		825			876			811
Selling, general and administrative		3,071			3,364			3,210
Amortization of intangible assets		222			226			283
Restructuring charges		146			604			114
Acquisition-related charges		4			3			3
Separation costs		80			-			-
Total costs and expenses		24,919			26,498			26,157

Earnings from operations		1,920			1,908			1,997

Interest and other, net		(174	)		(146	)		(163	)

Earnings before taxes		1,746			1,762			1,834

Provision for taxes		(380	)		(432	)		(409	)

Net earnings	$	1,366		$	1,330		$	1,425

Net earnings per share:
Basic	$	0.75		$	0.71		$	0.75
Diluted	$	0.73		$	0.70		$	0.74

Cash dividends declared per share	$	0.32		$	-		$	0.29


Weighted-average shares used to compute net earnings per share:
Basic		1,833			1,862			1,907
Diluted		1,861			1,896			1,935

Page 6 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,

OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE

(Unaudited)

(In millions, except per share amounts)

	Three months ended January 31, 2015			Diluted net earnings per share			Three months ended October 31, 2014			Diluted net earnings per share			Three months ended January 31, 2014			Diluted net earnings per share

GAAP net earnings	$	1,366		$	0.73		$	1,330		$	0.70		$	1,425		$	0.74

Non-GAAP adjustments:
Amortization of intangible assets		222			0.12			226			0.12			283			0.15
Restructuring charges		146			0.08			604			0.32			114			0.06
Acquisition-related charges		4			-			3			-			3			-
Separation costs		80			0.04			-			-			-			-
Adjustments for taxes		(113	)		(0.05	)		(149	)		(0.08	)		(83	)		(0.05	)
Non-GAAP net earnings	$	1,705		$	0.92		$	2,014		$	1.06		$	1,742		$	0.90


GAAP earnings from operations	$	1,920					$	1,908					$	1,997

Non-GAAP adjustments:
Amortization of intangible assets		222						226						283
Restructuring charges		146						604						114
Acquisition-related charges		4						3						3
Separation costs		80						-						-
Non-GAAP earnings from operations	$	2,372					$	2,741					$	2,397

GAAP operating margin		7	%					7	%					7	%
Non-GAAP adjustments		2	%					3	%					2	%
Non-GAAP operating margin		9	%					10	%					9	%

Page 7 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions)

	As of
	January 31, 2015		October 31, 2014
	(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	12,919	$	15,133
Accounts receivable		12,295		13,832
Financing receivables		2,907		2,946
Inventory		6,575		6,415
Other current assets		13,502		11,819

Total current assets		48,198		50,145

Property, plant and equipment		11,030		11,340

Long-term financing receivables and other assets		8,619		8,454

Goodwill and intangible assets		33,014		33,267

Total assets	$	100,861	$	103,206


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Notes payable and short-term borrowings	$	3,509	$	3,486
Accounts payable		14,873		15,903
Employee compensation and benefits		2,900		4,209
Taxes on earnings		1,565		1,017
Deferred revenue		6,241		6,143
Other accrued liabilities		13,441		12,977

Total current liabilities		42,529		43,735

Long-term debt		15,552		16,039

Other liabilities		15,876		16,305

Stockholders' equity:
HP stockholders' equity		26,507		26,731
Non-controlling interests		397		396

Total stockholders' equity		26,904		27,127

Total liabilities and stockholders' equity	$	100,861	$	103,206

Page 8 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

	Three months ended January 31,
	2015			2014

Cash flows from operating activities:
Net earnings	$	1,366		$	1,425
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		1,028			1,117
Stock-based compensation expense		187			170
Provision for doubtful accounts and inventory		62			57
Restructuring charges		146			114
Deferred taxes on earnings		(173	)		9
Excess tax benefit from stock-based compensation		(109	)		(27	)
Other, net		138			(33	)

Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable		1,540			2,391
Financing receivables		222			296
Inventory		(224	)		(19	)
Accounts payable		(852	)		(1,165	)
Taxes on earnings		293			170
Restructuring		(483	)		(381	)
Other assets and liabilities		(2,397	)		(1,134	)
Net cash provided by operating activities		744			2,990

Cash flows from investing activities:
Investment in property, plant and equipment		(947	)		(997	)
Proceeds from sale of property, plant and equipment		130			450
Purchases of available-for-sale securities and other investments		(50	)		(135	)
Maturities and sales of available-for-sale securities and other investments		30			465
Payments made in connection with business acquisitions		(1	)		-
Net cash used in investing activities		(838	)		(217	)

Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net		77			2
Issuance of debt		299			2,005
Payment of debt		(911	)		(45	)
Issuance of common stock under employee stock plans		181			83
Repurchase of common stock		(1,571	)		(565	)
Excess tax benefit from stock-based compensation		109			27
Cash dividends paid		(304	)		(278	)
Net cash (used in) provided by financing activities		(2,120	)		1,229

(Decrease) increase in cash and cash equivalents		(2,214	)		4,002
Cash and cash equivalents at beginning of period		15,133			12,163
Cash and cash equivalents at end of period	$	12,919		$	16,165

Page 9 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

(In millions)

	Three months ended
	January 31, 2015			October 31, 2014			January 31, 2014

Net revenue: ^(a)

Personal Systems	$	8,544		$	8,948		$	8,530
Printing		5,543			5,740			5,815
Total Printing and Personal Systems Group		14,087			14,688			14,345
Enterprise Group		6,981			7,248			6,970
Enterprise Services		4,993			5,511			5,595
Software		871			1,087			916
HP Financial Services		803			906			870
Corporate Investments		16			5			288
Total segments		27,751			29,445			28,984
Elimination of intersegment net revenue and other		(912	)		(1,039	)		(830	)

Total HP consolidated net revenue	$	26,839		$	28,406		$	28,154

Earnings before taxes:^(a)

Personal Systems	$	313		$	355		$	279
Printing		1,067			1,040			979
Total Printing and Personal Systems Group		1,380			1,395			1,258
Enterprise Group		1,090			1,072			1,003
Enterprise Services		148			377			60
Software		157			338			145
HP Financial Services		90			110			101
Corporate Investments		(124	)		(107	)		121
Total segment earnings from operations		2,741			3,185			2,688

Corporate and unallocated costs and eliminations		(182	)		(316	)		(121	)
Stock-based compensation expense		(187	)		(128	)		(170	)
Amortization of intangible assets		(222	)		(226	)		(283	)
Restructuring charges		(146	)		(604	)		(114	)
Acquisition-related charges		(4	)		(3	)		(3	)
Separation costs		(80	)		-			-
Interest and other, net		(174	)		(146	)		(163	)

Total HP consolidated earnings before taxes	$	1,746		$	1,762		$	1,834

(a)

Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

Page 10 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT/BUSINESS UNIT INFORMATION

(Unaudited)

(In millions)

	Three months ended									Change (%)
	January 31, 2015			October 31, 2014			January 31, 2014				Q/Q		Y/Y

Net revenue:^(a)

Printing and Personal Systems Group
Personal Systems
Notebooks	$	4,724		$	4,869		$	4,335			(3	%)	9	%
Desktops		2,949			3,185			3,274			(7	%)	(10	%)
Workstations		526			558			533			(6	%)	(1	%)
Other		345			336			388			3	%	(11	%)
Total Personal Systems		8,544			8,948			8,530			(5	%)	0	%

Printing
Supplies		3,601			3,596			3,795			0	%	(5	%)
Commercial Hardware		1,316			1,567			1,347			(16	%)	(2	%)
Consumer Hardware		626			577			673			8	%	(7	%)
Total Printing		5,543			5,740			5,815			(3	%)	(5	%)
Total Printing and Personal Systems Group		14,087			14,688			14,345			(4	%)	(2	%)

Enterprise Group
Industry Standard Servers		3,387			3,370			3,178			1	%	7	%
Technology Services		1,987			2,093			2,100			(5	%)	(5	%)
Storage		837			878			834			(5	%)	0	%
Networking		562			669			630			(16	%)	(11	%)
Business Critical Systems		208			238			228			(13	%)	(9	%)
Total Enterprise Group		6,981			7,248			6,970			(4	%)	0	%

Enterprise Services
Infrastructure Technology Outsourcing		3,132			3,446			3,501			(9	%)	(11	%)
Application and Business Services		1,861			2,065			2,094			(10	%)	(11	%)
Total Enterprise Services		4,993			5,511			5,595			(9	%)	(11	%)

Software		871			1,087			916			(20	%)	(5	%)

HP Financial Services		803			906			870			(11	%)	(8	%)

Corporate Investments ^(b)		16			5			288			N	M	(94	%)
Total segments		27,751			29,445			28,984			(6	%)	(4	%)

Elimination of intersegment net revenue and other		(912	)		(1,039	)		(830	)		(12	%)	10	%

Total HP consolidated net revenue	$	26,839		$	28,406		$	28,154			(6	%)	(5	%)


(a)	Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

(b)	"NM" represents not meaningful.

Page 11 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT OPERATING MARGIN SUMMARY DATA

(Unaudited)

Three months

ended

Change in Operating Margin (pts)

January 31,

2015

Q/Q

Y/Y

Segment operating margin:^(a)

Personal Systems

3.7

(0.3 pts

)

0.4 pts

Printing

19.2

1.1 pts

2.4 pts

Total Printing and Personal Systems Group

9.8

0.3 pts

1.0 pts

Enterprise Group

15.6

0.8 pts

1.2 pts

Enterprise Services

3.0

(3.8 pts

)

1.9 pts

Software

18.0

(13.1 pts

)

2.2 pts

HP Financial Services

11.2

(0.9 pts

)

(0.4 pts

)

Corporate Investments ^(b)

Total segments

9.9

(0.9 pts

)

0.6 pts

(a)	Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

(b)	"NM" represents not meaningful.

Page 12 of 16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CALCULATION OF DILUTED NET EARNINGS PER SHARE

(Unaudited)

(In millions, except per share amounts)

	Three months ended
	January 31, 2015		October 31, 2014		January 31, 2014

Numerator:
GAAP net earnings	$	1,366	$	1,330	$	1,425
Non-GAAP net earnings	$	1,705	$	2,014	$	1,742

Denominator:
Weighted-average shares outstanding during the reporting period		1,833		1,862		1,907
Dilutive effect of employee stock plans ^(a)		28		34		28
Weighted-average shares used to compute diluted net earnings per share		1,861		1,896		1,935

GAAP diluted net earnings per share	$	0.73	$	0.70	$	0.74
Non-GAAP diluted net earnings per share	$	0.92	$	1.06	$	0.90

(a)

Includes any dilutive effect of restricted stock units, restricted stock, stock options and performance-based restricted stock units.

Page 13 of 16

	Use of non-GAAP financial measures
	To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash. HP also provides forecasts of non-GAAP diluted net earnings per share.

	These non-GAAP financial measures are not computed in accordance with, or as an alternative to, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to revenue on a constant currency basis is revenue. The GAAP measure most directly comparable to non-GAAP operating profit is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net earnings is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share. The GAAP measure most directly comparable to gross cash is cash and cash equivalents. The GAAP measure most directly comparable to free cash flow is cash flow from operations. The GAAP measure most directly comparable to net capital expenditures is capital expenditures. The GAAP measure most directly comparable to net debt and operating company net debt is total company debt. The GAAP measure most directly comparable to each of net cash and operating company net cash is cash and cash equivalents. Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.

	Use and economic substance of non-GAAP financial measures used by HP
	Revenue on a constant currency basis assumes no change in the foreign exchange rate from the prior-year period. Non-GAAP operating profit and non-GAAP operating margin are defined to exclude the effects of any charges relating to the amortization of intangible assets, restructuring charges, charges relating to the separation transaction and acquisition-related charges. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding those same charges. In addition, non-GAAP net earnings and non-GAAP diluted net earnings per share are adjusted by the amount of additional taxes or tax benefits associated with each non-GAAP item. HP’s management uses these non-GAAP financial measures for purposes of evaluating HP’s historical and prospective financial performance, as well as HP’s performance relative to its competitors. HP’s management also uses these non-GAAP measures to further its own understanding of HP’s segment operating performance. HP believes that excluding the items mentioned above from these non-GAAP financial measures allows HP’s management to better understand HP’s consolidated financial performance in relation to the operating results of HP’s segments, as HP’s management does not believe that the excluded items are reflective of ongoing operating results. More specifically, HP’s management excludes each of those items mentioned above for the following reasons:

	•	HP incurs charges relating to the amortization of intangible assets. Those charges are included in HP’s GAAP earnings from operations, operating margin, net earnings and diluted net earnings per share. Such charges are significantly impacted by the timing and magnitude of HP’s acquisitions and any related impairment charges. Consequently, HP excludes these charges for purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.

	•	Restructuring charges are costs associated with a formal restructuring plan and are primarily related to (i) employee termination costs and benefits and (ii) costs to vacate duplicative facilities. HP excludes these restructuring costs (and any reversals of charges recorded in prior periods) for purposes of calculating these non-GAAP measures because it believes that these historical costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of HP’s current operating performance or comparisons to HP’s operating performance in other periods.

Page 14 of 16

	•	Separation costs are expenses associated with HP’s plan to separate into two independent publicly-traded companies. The charges are related primarily to third-party consulting fees and other expenses incurred to complete the separation. HP excludes these separation costs for purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.

	•	HP incurs costs related to its acquisitions. As acquisition-related expenses are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP’s acquisitions, HP believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.

	Gross cash is a non-GAAP measure that is defined as cash and cash equivalents plus short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights. Free cash flow is defined as cash flow from operations less net capital expenditures. Net capital expenditures is defined as investments in property, plant and equipment less proceeds from the sale of property, plant and equipment. HP’s management uses gross cash and free cash flow for the purpose of determining the amount of cash available for investment in HP’s businesses, funding acquisitions, repurchasing stock and other purposes. HP’s management also uses gross cash and free cash flow to evaluate HP’s historical and prospective liquidity. Because gross cash includes liquid assets that are not included in GAAP cash and cash equivalents, HP believes that gross cash provides a more accurate and complete assessment of HP’s liquidity. Because net capital expenditures includes proceeds from the sale of property, plant and equipment, HP believes that net capital expenditures provides a more accurate and complete assessment of HP’s liquidity. Because free cash flow includes the effect of net capital expenditures that are not reflected in GAAP cash flow from operations, HP believes that free cash flow provides a more accurate and complete assessment of HP’s liquidity and capital resources.

	Total company net debt consists of total debt (including the effects of hedging) less gross cash, which includes cash and cash equivalents, short-term investments, and certain liquid long-term investments. Total company net cash consists of gross cash less total debt. HP Financial Services (HPFS) net debt consists of HPFS debt, which includes primarily intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing and funding related activity associated with HPFS and its subsidiaries, less HPFS cash. Total company net debt and total company net cash provide useful information to HP’s management about the state of HP’s consolidated condensed balance sheet. Operating company net debt is a non-GAAP measure that is defined as total company net debt less HPFS net debt. Operating company net cash is a non-GAAP measure that is defined as total company net cash less HPFS net debt. Operating company net debt and operating company net cash provide additional useful information to HP’s management about the state of HP’s consolidated condensed balance sheet by providing more transparency into the financial components of the operating company separate from HP’s financing business, which has different capital structure requirements and requires much greater leverage to run effectively.

Page 15 of 16

	Material limitations associated with use of non-GAAP financial measures
	These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

	•	Items such as amortization of intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time. The expense associated with this loss in value is not included in non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings or non-GAAP diluted net earnings per share, and therefore does not reflect the full economic effect of the loss in value of those intangible assets.

	•	Items such as restructuring charges and separation costs that are excluded from non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measure and cash flows.

	•	HP may not be able to immediately liquidate the short-term and long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.

	•	Other companies may calculate revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash differently than HP does, limiting the usefulness of those measures for comparative purposes.

	Compensation for limitations associated with use of non-GAAP financial measures
	HP compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review carefully those reconciliations.

	Usefulness of non-GAAP financial measures to investors
	HP believes that providing revenue on a constant currency basis, non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash to investors in addition to the related GAAP measures provides investors with greater transparency to the information used by HP’s management in its financial and operational decision making and allows investors to see HP’s results “through the eyes” of management. HP further believes that providing this information better enables HP’s investors to understand HP’s operating performance and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP’s operating performance with the performance of other companies in HP’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.





	© 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

Page 16 of 16

EXHIBIT 99.2

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Unaudited)

(In millions, except per share amounts)

	Three months ended
	January 31, 2015			October 31, 2014			January 31, 2014

Net revenue	$	26,839		$	28,406		$	28,154

Costs and expenses:
Cost of sales		20,571			21,425			21,736
Research and development		825			876			811
Selling, general and administrative		3,071			3,364			3,210
Amortization of intangible assets		222			226			283
Restructuring charges		146			604			114
Acquisition-related charges		4			3			3
Separation costs		80			-			-
Total costs and expenses		24,919			26,498			26,157

Earnings from operations		1,920			1,908			1,997

Interest and other, net		(174	)		(146	)		(163	)

Earnings before taxes		1,746			1,762			1,834

Provision for taxes		(380	)		(432	)		(409	)

Net earnings	$	1,366		$	1,330		$	1,425

Net earnings per share:
Basic	$	0.75		$	0.71		$	0.75
Diluted	$	0.73		$	0.70		$	0.74

Cash dividends declared per share	$	0.32		$	-		$	0.29


Weighted-average shares used to compute net earnings per share:
Basic		1,833			1,862			1,907
Diluted		1,861			1,896			1,935

Page 1 of 3

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(In millions)

	As of
	January 31, 2015		October 31, 2014
	(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	12,919	$	15,133
Accounts receivable		12,295		13,832
Financing receivables		2,907		2,946
Inventory		6,575		6,415
Other current assets		13,502		11,819

Total current assets		48,198		50,145

Property, plant and equipment		11,030		11,340

Long-term financing receivables and other assets		8,619		8,454

Goodwill and intangible assets		33,014		33,267

Total assets	$	100,861	$	103,206


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Notes payable and short-term borrowings	$	3,509	$	3,486
Accounts payable		14,873		15,903
Employee compensation and benefits		2,900		4,209
Taxes on earnings		1,565		1,017
Deferred revenue		6,241		6,143
Other accrued liabilities		13,441		12,977

Total current liabilities		42,529		43,735

Long-term debt		15,552		16,039

Other liabilities		15,876		16,305

Stockholders' equity:
HP stockholders' equity		26,507		26,731
Non-controlling interests		397		396

Total stockholders' equity		26,904		27,127

Total liabilities and stockholders' equity	$	100,861	$	103,206

Page 2 of 3

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

(In millions)

	Three months ended
	January 31, 2015			October 31, 2014			January 31, 2014

Net revenue: ^(a)

Personal Systems	$	8,544		$	8,948		$	8,530
Printing		5,543			5,740			5,815
Total Printing and Personal Systems Group		14,087			14,688			14,345
Enterprise Group		6,981			7,248			6,970
Enterprise Services		4,993			5,511			5,595
Software		871			1,087			916
HP Financial Services		803			906			870
Corporate Investments		16			5			288
Total segments		27,751			29,445			28,984
Elimination of intersegment net revenue and other		(912	)		(1,039	)		(830	)

Total HP consolidated net revenue	$	26,839		$	28,406		$	28,154

Earnings before taxes:^(a)

Personal Systems	$	313		$	355		$	279
Printing		1,067			1,040			979
Total Printing and Personal Systems Group		1,380			1,395			1,258
Enterprise Group		1,090			1,072			1,003
Enterprise Services		148			377			60
Software		157			338			145
HP Financial Services		90			110			101
Corporate Investments		(124	)		(107	)		121
Total segment earnings from operations		2,741			3,185			2,688

Corporate and unallocated costs and eliminations		(182	)		(316	)		(121	)
Stock-based compensation expense		(187	)		(128	)		(170	)
Amortization of intangible assets		(222	)		(226	)		(283	)
Restructuring charges		(146	)		(604	)		(114	)
Acquisition-related charges		(4	)		(3	)		(3	)
Separation costs		(80	)		-			-
Interest and other, net		(174	)		(146	)		(163	)

Total HP consolidated earnings before taxes	$	1,746		$	1,762		$	1,834

(a)

Page 3 of 3

EXHIBIT 99.3

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2014 SEGMENT INFORMATION (Revised)

(Unaudited)

(In millions)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014

Net revenue: ^(a)

Personal Systems	$	8,530		$	8,176		$	8,649		$	8,948		$	34,303		$	8,530		$	8,176		$	8,649		$	8,948		$	34,303		$	-		$	-		$	-		$	-		$	-
Printing		5,815			5,834			5,590			5,740			22,979			5,815			5,834			5,590			5,740			22,979			-			-			-			-			-
Total Printing and Personal Systems Group		14,345			14,010			14,239			14,688			57,282			14,345			14,010			14,239			14,688			57,282			-			-			-			-			-
Enterprise Group		6,970			6,633			6,872			7,248			27,723			6,993			6,657			6,894			7,270			27,814			(23	)		(24	)		(22	)		(22	)		(91	)
Enterprise Services		5,595			5,702			5,590			5,511			22,398			5,595			5,702			5,590			5,511			22,398			-			-			-			-			-
Software		916			971			959			1,087			3,933			916			971			959			1,087			3,933			-			-			-			-			-
HP Financial Services		870			867			855			906			3,498			870			867			855			906			3,498			-			-			-			-			-
Corporate Investments		288			6			3			5			302			288			6			3			5			302			-			-			-			-			-
Total segments		28,984			28,189			28,518			29,445			115,136			29,007			28,213			28,540			29,467			115,227			(23	)		(24	)		(22	)		(22	)		(91	)

Elimination of intersegment net revenue and other		(830	)		(880	)		(933	)		(1,039	)		(3,682	)		(853	)		(904	)		(955	)		(1,061	)		(3,773	)		23			24			22			22			91

Total HP consolidated net revenue	$	28,154		$	27,309		$	27,585		$	28,406		$	111,454		$	28,154		$	27,309		$	27,585		$	28,406		$	111,454		$	-		$	-		$	-		$	-		$	-


Earnings before taxes: ^(a)

Personal Systems	$	279		$	290		$	346		$	355		$	1,270		$	279		$	290		$	346		$	355		$	1,270		$	-		$	-		$	-		$	-		$	-
Printing		979			1,140			1,026			1,040			4,185			979			1,140			1,026			1,040			4,185			-			-			-			-			-
Total Printing and Personal Systems Group		1,258			1,430			1,372			1,395			5,455			1,258			1,430			1,372			1,395			5,455			-			-			-			-			-
Enterprise Group		1,003			957			963			1,072			3,995			1,006			961			966			1,075			4,008			(3	)		(4	)		(3	)		(3	)		(13	)
Enterprise Services		60			148			231			377			816			57			144			228			374			803			3			4			3			3			13
Software		145			186			203			338			872			145			186			203			338			872			-			-			-			-			-
HP Financial Services		101			99			79			110			389			101			99			79			110			389			-			-			-			-			-
Corporate Investments		121			(98	)		(115	)		(107	)		(199	)		121			(98	)		(115	)		(107	)		(199	)		-			-			-			-			-
Total segment earnings from operations		2,688			2,722			2,733			3,185			11,328			2,688			2,722			2,733			3,185			11,328			-			-			-			-			-

Corporate and unallocated costs and eliminations		(121	)		(251	)		(265	)		(316	)		(953	)		(121	)		(251	)		(265	)		(316	)		(953	)		-			-			-			-			-
Stock-based compensation expense		(170	)		(130	)		(132	)		(128	)		(560	)		(170	)		(130	)		(132	)		(128	)		(560	)		-			-			-			-			-
Amortization of intangible assets		(283	)		(264	)		(227	)		(226	)		(1,000	)		(283	)		(264	)		(227	)		(226	)		(1,000	)		-			-			-			-			-
Restructuring charges		(114	)		(252	)		(649	)		(604	)		(1,619	)		(114	)		(252	)		(649	)		(604	)		(1,619	)		-			-			-			-			-
Acquisition-related charges		(3	)		(3	)		(2	)		(3	)		(11	)		(3	)		(3	)		(2	)		(3	)		(11	)		-			-			-			-			-
Interest and other, net		(163	)		(174	)		(145	)		(146	)		(628	)		(163	)		(174	)		(145	)		(146	)		(628	)		-			-			-			-			-

Total HP consolidated earnings before taxes	$	1,834		$	1,648		$	1,313		$	1,762		$	6,557		$	1,834		$	1,648		$	1,313		$	1,762		$	6,557		$	-		$	-		$	-		$	-		$	-

(a)

Page 1 of 6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2013 SEGMENT INFORMATION (Revised)

(Unaudited)

(In millions

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013

Net revenue: ^(a)

Personal Systems	$	8,232		$	7,610		$	7,733		$	8,604		$	32,179		$	8,232		$	7,610		$	7,733		$	8,604		$	32,179		$	-		$	-		$	-		$	-		$	-
Printing		5,946			6,094			5,809			6,047			23,896			5,946			6,094			5,809			6,047			23,896			-			-			-			-			-
Total Printing and Personal Systems Group		14,178			13,704			13,542			14,651			56,075			14,178			13,704			13,542			14,651			56,075			-			-			-			-			-
Enterprise Group		6,929			6,774			6,745			7,555			28,003			6,948			6,794			6,764			7,575			28,081			(19	)		(20	)		(19	)		(20	)		(78	)
Enterprise Services		6,038			6,133			5,972			5,918			24,061			6,038			6,133			5,972			5,918			24,061			-			-			-			-			-
Software		951			967			1,010			1,093			4,021			951			967			1,010			1,093			4,021			-			-			-			-			-
HP Financial Services		957			881			879			912			3,629			957			881			879			912			3,629			-			-			-			-			-
Corporate Investments		4			10			5			5			24			4			10			5			5			24			-			-			-			-			-
Total segments		29,057			28,469			28,153			30,134			115,813			29,076			28,489			28,172			30,154			115,891			(19	)		(20	)		(19	)		(20	)		(78	)

Elimination of intersegment net revenue and other		(698	)		(887	)		(927	)		(1,003	)		(3,515	)		(717	)		(907	)		(946	)		(1,023	)		(3,593	)		19			20			19			20			78

Total HP consolidated net revenue	$	28,359		$	27,582		$	27,226		$	29,131		$	112,298		$	28,359		$	27,582		$	27,226		$	29,131		$	112,298		$	-		$	-		$	-		$	-		$	-


Earnings before taxes: ^(a)

Personal Systems	$	233		$	244		$	238		$	265		$	980		$	233		$	244		$	238		$	265		$	980		$	-		$	-		$	-		$	-		$	-
Printing		967			970			915			1,081			3,933			967			970			915			1,081			3,933			-			-			-			-			-
Total Printing and Personal Systems Group		1,200			1,214			1,153			1,346			4,913			1,200			1,214			1,153			1,346			4,913			-			-			-			-			-
Enterprise Group		1,067			1,070			1,020			1,088			4,245			1,070			1,074			1,023			1,092			4,259			(3	)		(4	)		(3	)		(4	)		(14	)
Enterprise Services		79			160			195			259			693			76			156			192			255			679			3			4			3			4			14
Software		155			180			203			330			868			155			180			203			330			868			-			-			-			-			-
HP Financial Services		101			97			99			102			399			101			97			99			102			399			-			-			-			-			-
Corporate Investments		(73	)		(75	)		(82	)		(86	)		(316	)		(73	)		(75	)		(82	)		(86	)		(316	)		-			-			-			-			-
Total segment earnings from operations		2,529			2,646			2,588			3,039			10,802			2,529			2,646			2,588			3,039			10,802			-			-			-			-			-

Corporate and unallocated costs and eliminations		(109	)		(169	)		(185	)		(323	)		(786	)		(109	)		(169	)		(185	)		(323	)		(786	)		-			-			-			-			-
Stock-based compensation expense		(184	)		(107	)		(107	)		(102	)		(500	)		(184	)		(107	)		(107	)		(102	)		(500	)		-			-			-			-			-
Amortization of intangible assets		(350	)		(350	)		(356	)		(317	)		(1,373	)		(350	)		(350	)		(356	)		(317	)		(1,373	)		-			-			-			-			-
Restructuring charges		(130	)		(408	)		(81	)		(371	)		(990	)		(130	)		(408	)		(81	)		(371	)		(990	)		-			-			-			-			-
Acquisition-related charges		(4	)		(11	)		(4	)		(3	)		(22	)		(4	)		(11	)		(4	)		(3	)		(22	)		-			-			-			-			-
Interest and other, net		(179	)		(193	)		(146	)		(103	)		(621	)		(179	)		(193	)		(146	)		(103	)		(621	)		-			-			-			-			-

Total HP consolidated earnings before taxes	$	1,573		$	1,408		$	1,709		$	1,820		$	6,510		$	1,573		$	1,408		$	1,709		$	1,820		$	6,510		$	-		$	-		$	-		$	-		$	-

(a)

Page 2 of 6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2014 SEGMENT INFORMATION (Revised)

(Unaudited)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended								Twelve months ended
	Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014		Apr. 30, 2014		Jul. 31, 2014		Oct. 31, 2014		Oct. 31, 2014

Segment operating margin: ^(a)

Personal Systems		3.3	%		3.5	%		4.0	%		4.0	%		3.7	%		3.3	%		3.5	%		4.0	%		4.0	%		3.7	%		-		-		-		-		-
Printing		16.8	%		19.5	%		18.4	%		18.1	%		18.2	%		16.8	%		19.5	%		18.4	%		18.1	%		18.2	%		-		-		-		-		-
Total Printing and Personal Systems Group		8.8	%		10.2	%		9.6	%		9.5	%		9.5	%		8.8	%		10.2	%		9.6	%		9.5	%		9.5	%		-		-		-		-		-

Enterprise Group		14.4	%		14.4	%		14.0	%		14.8	%		14.4	%		14.4	%		14.4	%		14.0	%		14.8	%		14.4	%		-		-		-		-		-
Enterprise Services		1.1	%		2.6	%		4.1	%		6.8	%		3.6	%		1.0	%		2.5	%		4.1	%		6.8	%		3.6	%	0.1 pts		0.1 pts			-		-		-
Software		15.8	%		19.2	%		21.2	%		31.1	%		22.2	%		15.8	%		19.2	%		21.2	%		31.1	%		22.2	%		-		-		-		-		-
HP Financial Services		11.6	%		11.4	%		9.2	%		12.1	%		11.1	%		11.6	%		11.4	%		9.2	%		12.1	%		11.1	%		-		-		-		-		-
Corporate Investments ^(b)		42.0	%	NM			NM			NM				(65.9	%)		42.0	%	NM			NM			NM				(65.9	%)		-	-			-		-		-
Total Segments		9.3	%		9.7	%		9.6	%		10.8	%		9.8	%		9.3	%		9.6	%		9.6	%		10.8	%		9.8	%		-	0.1 pts			-		-		-

(a)	Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

(b)	"NM" represents not meaningful.

Page 3 of 6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2013 SEGMENT INFORMATION (Revised)

(Unaudited)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended								Twelve months ended
	Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013		Apr. 30, 2013		Jul. 31, 2013		Oct. 31, 2013		Oct. 31, 2013

Segment operating margin: ^(a)

Personal Systems		2.8	%		3.2	%		3.1	%		3.1	%		3.0	%		2.8	%		3.2	%		3.1	%		3.1	%		3.0	%		-		-		-		-		-
Printing		16.3	%		15.9	%		15.8	%		17.9	%		16.5	%		16.3	%		15.9	%		15.8	%		17.9	%		16.5	%		-		-		-		-		-
Total Printing and Personal Systems Group		8.5	%		8.9	%		8.5	%		9.2	%		8.8	%		8.5	%		8.9	%		8.5	%		9.2	%		8.8	%		-		-		-		-		-

Enterprise Group		15.4	%		15.8	%		15.1	%		14.4	%		15.2	%		15.4	%		15.8	%		15.1	%		14.4	%		15.2	%		-		-		-		-		-
Enterprise Services		1.3	%		2.6	%		3.3	%		4.4	%		2.9	%		1.3	%		2.5	%		3.2	%		4.3	%		2.8	%		-	0.1 pts		0.1 pts		0.1 pts		0.1 pts
Software		16.3	%		18.6	%		20.1	%		30.2	%		21.6	%		16.3	%		18.6	%		20.1	%		30.2	%		21.6	%		-		-		-		-		-
HP Financial Services		10.6	%		11.0	%		11.3	%		11.2	%		11.0	%		10.6	%		11.0	%		11.3	%		11.2	%		11.0	%		-		-		-		-		-
Corporate Investments ^(b)	NM			NM			NM			NM			NM			NM			NM			NM			NM			NM				-		-		-		-		-
Total Segments	8.7		%	9.3		%	9.2		%	10.1		%	9.3		%	8.7		%	9.3		%	9.2		%	10.1		%	9.3		%		-		-		-		-		-

(a)	Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

(b)	"NM" represents not meaningful.

Page 4 of 6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2014 SEGMENT / BUSINESS UNIT INFORMATION (Revised)

(Unaudited

(In millions)

	REVISED AMOUNTS																AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
		Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
		Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014			Jan. 31, 2014			Apr. 30, 2014			Jul. 31, 2014			Oct. 31, 2014			Oct. 31, 2014

Net revenue: ^(a)
Printing and Personal Systems Group
Personal Systems
Notebooks		$	4,335		$	3,977		$	4,359		$	4,869		$	17,540		$	4,335		$	3,977		$	4,359		$	4,869		$	17,540		$	-		$	-		$	-		$	-		$	-
Desktops			3,274			3,343			3,395			3,185			13,197			3,274			3,343			3,395			3,185			13,197			-			-			-			-			-
Workstations			533			548			579			558			2,218			533			548			579			558			2,218			-			-			-			-			-
Other			388			308			316			336			1,348			388			308			316			336			1,348			-			-			-			-			-
Total Personal Systems			8,530			8,176			8,649			8,948			34,303			8,530			8,176			8,649			8,948			34,303			-			-			-			-			-

Printing
Supplies			3,795			3,866			3,660			3,596			14,917			3,795			3,866			3,660			3,596			14,917			-			-			-			-			-
Commercial Hardware			1,347			1,402			1,401			1,567			5,717			1,347			1,402			1,401			1,567			5,717			-			-			-			-			-
Consumer Hardware			673			566			529			577			2,345			673			566			529			577			2,345			-			-			-			-			-
Total Printing			5,815			5,834			5,590			5,740			22,979			5,815			5,834			5,590			5,740			22,979			-			-			-			-			-
Total Printing and Personal Systems Group			14,345			14,010			14,239			14,688			57,282			14,345			14,010			14,239			14,688			57,282			-			-			-			-			-

Enterprise Group
Industry Standard Servers			3,178			2,829			3,097			3,370			12,474			3,178			2,829			3,097			3,370			12,474			-			-			-			-			-
Technology Services			2,100			2,108			2,074			2,093			8,375			2,123			2,132			2,096			2,115			8,466			(23	)		(24	)		(22	)		(22	)		(91	)
Storage			834			808			796			878			3,316			834			808			796			878			3,316			-			-			-			-			-
Networking			630			658			672			669			2,629			630			658			672			669			2,629			-			-			-			-			-
Business Critical Systems			228			230			233			238			929			228			230			233			238			929			-			-			-			-			-
Total Enterprise Group			6,970			6,633			6,872			7,248			27,723			6,993			6,657			6,894			7,270			27,814			(23	)		(24	)		(22	)		(22	)		(91	)

Enterprise Services
Infrastructure Technology Outsourcing			3,501			3,597			3,494			3,446			14,038			3,501			3,597			3,494			3,446			14,038			-			-			-			-			-
Application and Business Services			2,094			2,105			2,096			2,065			8,360			2,094			2,105			2,096			2,065			8,360			-			-			-			-			-
Total Enterprise Services			5,595			5,702			5,590			5,511			22,398			5,595			5,702			5,590			5,511			22,398			-			-			-			-			-

Software			916			971			959			1,087			3,933			916			971			959			1,087			3,933			-			-			-			-			-

HP Financial Services			870			867			855			906			3,498			870			867			855			906			3,498			-			-			-			-			-

Corporate Investments			288			6			3			5			302			288			6			3			5			302			-			-			-			-			-
Total segments			28,984			28,189			28,518			29,445			115,136			29,007			28,213			28,540			29,467			115,227			(23	)		(24	)		(22	)		(22	)		(91	)

Elimination of intersegment net revenue and other			(830	)		(880	)		(933	)		(1,039	)		(3,682	)		(853	)		(904	)		(955	)		(1,061	)		(3,773	)		23			24			22			22			91

Total HP consolidated net revenue		$	28,154		$	27,309		$	27,585		$	28,406		$	111,454		$	28,154		$	27,309		$	27,585		$	28,406		$	111,454		$	-		$	-		$	-		$	-		$	-

(a)

Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

Page 5 of 6

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

FISCAL 2013 SEGMENT / BUSINESS UNIT INFORMATION (Revised)

(Unaudited)

(In millions)

	REVISED AMOUNTS															AMOUNTS AS PREVIOUSLY REPORTED															CHANGE
	Three months ended												Twelve months ended			Three months ended												Twelve months ended			Three months ended												Twelve months ended
	Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013			Jan. 31, 2013			Apr. 30, 2013			Jul. 31, 2013			Oct. 31, 2013			Oct. 31, 2013

Net revenue: ^(a)
Printing and Personal Systems Group
Personal Systems
Notebooks	$	4,128		$	3,718		$	3,722		$	4,461		$	16,029		$	4,128		$	3,718		$	3,722		$	4,461		$	16,029		$	-		$	-		$	-		$	-		$	-
Desktops		3,321			3,103			3,147			3,273			12,844			3,321			3,103			3,147			3,273			12,844			-			-			-			-			-
Workstations		535			521			537			554			2,147			535			521			537			554			2,147			-			-			-			-			-
Other		248			268			327			316			1,159			248			268			327			316			1,159			-			-			-			-			-
Total Personal Systems		8,232			7,610			7,733			8,604			32,179			8,232			7,610			7,733			8,604			32,179			-			-			-			-			-

Printing
Supplies		3,893			4,122			3,839			3,862			15,716			3,893			4,122			3,839			3,862			15,716			-			-			-			-			-
Commercial Hardware		1,374			1,411			1,405			1,554			5,744			1,374			1,411			1,405			1,554			5,744			-			-			-			-			-
Consumer Hardware		679			561			565			631			2,436			679			561			565			631			2,436			-			-			-			-			-
Total Printing		5,946			6,094			5,809			6,047			23,896			5,946			6,094			5,809			6,047			23,896			-			-			-			-			-
Total Printing and Personal Systems Group		14,178			13,704			13,542			14,651			56,075			14,178			13,704			13,542			14,651			56,075			-			-			-			-			-

Enterprise Group
Industry Standard Servers		2,994			2,806			2,851			3,451			12,102			2,994			2,806			2,851			3,451			12,102			-			-			-			-			-
Technology Services		2,188			2,227			2,133			2,162			8,710			2,207			2,247			2,152			2,182			8,788			(19	)		(20	)		(19	)		(20	)		(78	)
Storage		833			857			833			952			3,475			833			857			833			952			3,475			-			-			-			-			-
Networking		608			618			644			656			2,526			608			618			644			656			2,526			-			-			-			-			-
Business Critical Systems		306			266			284			334			1,190			306			266			284			334			1,190			-			-			-			-			-
Total Enterprise Group		6,929			6,774			6,745			7,555			28,003			6,948			6,794			6,764			7,575			28,081			(19	)		(20	)		(19	)		(20	)		(78	)

Enterprise Services
Infrastructure Technology Outsourcing		3,855			3,855			3,791			3,722			15,223			3,855			3,855			3,791			3,722			15,223			-			-			-			-			-
Application and Business Services		2,183			2,278			2,181			2,196			8,838			2,183			2,278			2,181			2,196			8,838			-			-			-			-			-
Total Enterprise Services		6,038			6,133			5,972			5,918			24,061			6,038			6,133			5,972			5,918			24,061			-			-			-			-			-

Software		951			967			1,010			1,093			4,021			951			967			1,010			1,093			4,021			-			-			-			-			-

HP Financial Services		957			881			879			912			3,629			957			881			879			912			3,629			-			-			-			-			-

Corporate Investments		4			10			5			5			24			4			10			5			5			24			-			-			-			-			-
Total segments		29,057			28,469			28,153			30,134			115,813			29,076			28,489			28,172			30,154			115,891			(19	)		(20	)		(19	)		(20	)		(78	)

Elimination of intersegment net revenue and other		(698	)		(887	)		(927	)		(1,003	)		(3,515	)		(717	)		(907	)		(946	)		(1,023	)		(3,593	)		19			20			19			20			78

Total HP consolidated net revenue	$	28,359		$	27,582		$	27,226		$	29,131		$	112,298		$	28,359		$	27,582		$	27,226		$	29,131		$	112,298		$	-		$	-		$	-		$	-		$	-

(a)

Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third party multi-vendor support arrangements from the Technology Services business unit within the Enterprise Group segment to the Infrastructure Technology Outsourcing business unit within the Enterprise Services segment. HP reflected this change to its segment information in prior reporting periods on an as-if basis, which resulted in the removal of intersegment revenue from the Technology Services business unit within the Enterprise Group segment and the related corporate intersegment revenue eliminations. This change had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

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