HEWLETT-PACKARD COMPANY AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND EARNINGS PER SHARE (Unaudited) (In millions except per share amounts) Three Three Three months months months ended Diluted ended Diluted ended Diluted January earnings October earnings January earnings 31, per 31, per 31, per 2008 share 2007 share 2007 share ---------------- ---------------- ---------------- GAAP net earnings $2,133 $ 0.80 $2,164 $ 0.81 $1,547 $ 0.55 Non-GAAP adjustments: Amortization of purchased intangible assets 206 0.08 187 0.07 201 0.07 In-process research and development charges - - 4 - 167 0.06 Restructuring 10 - (20) (0.01) (41) (0.02) Pension curtailments and pension settlements, net - - - - (9) - Adjustments for taxes (58) (0.02) (39) (0.01) (39) (0.01) ------- -------- ------- -------- ------- -------- Non-GAAP net earnings $2,291 $ 0.86 $2,296 $ 0.86 $1,826 $ 0.65 ======= ======== ======= ======== ======= ======== GAAP earnings from operations $2,613 $2,632 $1,843 Non-GAAP adjustments: Amortization of purchased intangible assets 206 187 201 In-process research and development charges - 4 167 Restructuring 10 (20) (41) Pension curtailments and pension settlements, net - - (9) ------- ------- ------- Non-GAAP earnings from operations $2,829 $2,803 $2,161 ======= ======= ======= GAAP operating margin 9% 9% 7% Non-GAAP adjustments 1% 1% 2% ------- ------- ------- Non-GAAP operating margin 10% 10% 9% ======= ======= =======
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In millions) January 31, October 31, 2008 2007 ----------- ----------- (unaudited) ASSETS Current assets: Cash and cash equivalents $ 9,903 $ 11,293 Short-term investments 73 152 Accounts receivable 12,384 13,420 Financing receivables 2,561 2,507 Inventory 7,938 8,033 Other current assets 11,767 11,997 ----------- ----------- Total current assets 44,626 47,402 ----------- ----------- Property, plant and equipment 7,804 7,798 Long-term financing receivables and other assets 10,325 7,647 Goodwill and purchased intangible assets 25,817 25,852 ----------- ----------- Total assets $ 88,572 $ 88,699 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and short-term borrowings $ 2,212 $ 3,186 Accounts payable 11,162 11,787 Employee compensation and benefits 2,657 3,465 Taxes on earnings 420 1,891 Deferred revenue 5,314 5,025 Accrued restructuring 95 123 Other accrued liabilities 14,798 13,783 ----------- ----------- Total current liabilities 36,658 39,260 ----------- ----------- Long-term debt 5,099 4,997 Other liabilities 8,871 5,916 Stockholders' equity 37,944 38,526 ----------- ----------- Total liabilities and stockholders' equity $ 88,572 $ 88,699 =========== ===========