HP’s Profit Falls 91%, but It Beats Expectations



                                                                            
                  HEWLETT-PACKARD COMPANY AND SUBSIDIARIES                  
                            SEGMENT INFORMATION                             
                                (Unaudited)                                 
                               (In millions)                                
                                                                            
                                              Three months ended            
                                   ---------------------------------------- 
                                    October 31,    July 31,     October 31, 
                                       2011          2011          2010     
                                   ------------  ------------  ------------ 
                                                                            
Net revenue:(a)                                                             
                                                                            
  Services                         $      9,281  $      9,089  $      9,125 
  Enterprise Servers, Storage and                                           
   Networking                             5,655         5,396         5,888 
  HP Software                               976           780           763 
  Personal Systems Group                 10,118         9,592        10,283 
  Imaging and Printing Group              6,321         6,087         6,995 
  HP Financial Services                     952           932           809 
  Corporate Investments                     (94)          266           135 
                                   ------------  ------------  ------------ 
    Total Segments                       33,209        32,142        33,998 
  Eliminations of intersegment net                                          
   revenue and other                     (1,087)         (953)         (720)
                                   ------------  ------------  ------------ 
                                                                                             
        Total  HP  Consolidated  Net                                                                                              
          Revenue                                              $          32,122    $          31,189    $          33,278  
                                                                      ============    ============    ============  
                                                                                                                                                        
Earnings  from  operations:(a)                                                                                                
                                                                                                                                                        
    Services                                                  $            1,188    $            1,225    $            1,500  
    Enterprise  Servers,  Storage  and                                                                                      
      Networking                                                              733                      699                      888  
    HP  Software                                                              270                      151                      261  
    Personal  Systems  Group                                        578                      567                      568  
    Imaging  and  Printing  Group                                808                      892                  1,220  
    HP  Financial  Services                                            98                        88                        73  
    Corporate  Investments                                        (903)                  (332)                  (157)
                                                                      ------------    ------------    ------------  
        Total  Segments                                                2,772                  3,290                  4,353  
                                                                                                                                                        
    Corporate  and  unallocated  costs                                                                                      
      and  eliminations                                                (196)                  (114)                  (239)
    Unallocated  costs  related  to                                                                                            
      stock-based  compensation                                                                                                  
      expense                                                                  (192)                  (130)                  (109)
    Amortization  of  purchased                                                                                                  
      intangible  assets                                              (411)                  (358)                  (424)
    Restructuring  charges                                        (179)                  (150)                  (235)
    Acquisition-related  charges                            (114)                    (18)                    (51)
    Impairment  of  goodwill  and                                                                                                
      purchased  intangible  assets                          (885)                        -                          -  
    Interest  and  other,  net                                    (401)                  (121)                    (81)
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Total  HP  Consolidated  Earnings                                                                                            
  Before  Taxes                                            $                394    $            2,399    $            3,214  
                                                                      ============    ============    ============  
                                                                                                                                                        
                                                                                                                                                        
(a)  Certain  fiscal  2011  organizational  reclassifications  have  been  reflected
        retroactively  to  provide  improved  visibility  and  comparability.  For  each
        of  the  quarters  in  fiscal  year  2010,  the  reclassifications  resulted  in    
        the  transfer  of  revenue  and  operating  profit  among  the  Enterprise              
        Servers,  Storage  and  Networking,  Services,  HP  Software  and  Corporate        
        Investments  financial  reporting  segments.  Reclassifications  between          
        segments  included  the  transfer  of  the  networking  business  from  Corporate
        Investments  to  Enterprise  Servers,  Storage  and  Networking,  the  transfer  
        of  the  communications  and  media  solutions  business  from  HP  Software  to    
        Services,  and  the  transfer  of  the  business  intelligence  business  from  HP
        Software  to  Corporate  Investments.  There  was  no  impact  on  the  previously
        reported  financial  results  for  the  Personal  Systems  Group,  HP  Financial  
        Services  and  Imaging  and  Printing  Group  segments.                                              
                                                                                                                                                        
                                                                                                                                                        
 

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