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. HP’s management uses gross cash for the purpose of determining the amount of cash available for investment in HP’s businesses, funding strategic acquisitions, repurchasing stock and other purposes. HP’s management also uses gross cash for the purposes of evaluating HP’s historical and prospective liquidity, as well as to further its own understanding of HP’s segment operating results. 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 and segment operating results.

Material Limitations Associated with Use of Non-GAAP Financial Measures

These non-GAAP financial measures may 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 purchased 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 and non-GAAP diluted 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 that are excluded from non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted earnings per share can have a material impact on cash flows and earnings per share.
• HP may not be able to liquidate immediately the long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.
• Other companies may calculate non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross 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 operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash 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 press 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 non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross 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 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 are calculated in a similar manner.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions except per share amounts)
		Three months ended
		October 31, 2009(c)				July 31, 2009(c)				October 31, 2008
Net revenue		$	30,777			$	27,585			$	33,603
Costs and expenses (a) :
Cost of sales			23,475				21,031				25,853		(d)
Research and development			704				667				842
Selling, general and administrative			2,966				2,874				3,506		(d)
Amortization of purchased intangible assets			400				379				337
In-process research and development charges			1				-				32
Restructuring charges			38				362				251
Acquisition-related charges			60				59				41
Total costs and expenses			27,644				25,372				30,862
Earnings from operations			3,133				2,213				2,741
Interest and other, net			(132	)			(177	)			(98	)
Earnings before taxes			3,001				2,036				2,643
Provision for taxes (b)			589				365				531
Net earnings		$	2,412			$	1,671			$	2,112
Net earnings per share:
Basic		$	1.02			$	0.70			$	0.87
Diluted		$	0.99			$	0.69			$	0.84
Cash dividends declared per share		$	-			$	0.16			$	-
Weighted-average shares used to compute net earnings per share:
Basic			2,366				2,382				2,440
Diluted			2,433				2,436				2,516
(a) Stock-based compensation expense included under SFAS 123(R) was as follows:
Cost of sales		$	37			$	41			$	46
Research and development			10				12				17
Selling, general and administrative			86				94				94
Acquisition-related charges			1				3				-
Total costs and expenses		$	134			$	150			$	157
(b) Tax benefit from stock-based compensation		$	(41	)		$	(51	)		$	(37	)
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.
(d) For the prior year reporting period presented, certain pursuit-related costs previously reported as Cost of sales have been realigned retroactively to Selling, general and administrative expenses due to organizational realignments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (In millions except per share amounts)
		Twelve months ended October 31,
		2009 (c)				2008
		(unaudited)
Net revenue		$	114,552			$	118,364
Costs and expenses (a) :
Cost of sales			87,524				89,699		(d)
Research and development			2,819				3,543
Selling, general and administrative			11,613				13,326		(d)
Amortization of purchased intangible assets			1,571				967
In-process research and development charges			7				45
Restructuring charges			640				270
Acquisition-related charges			242				41
Total costs and expenses			104,416				107,891
Earnings from operations			10,136				10,473
Interest and other, net			(721	)			-
Earnings before taxes			9,415				10,473
Provision for taxes (b)			1,755				2,144
Net earnings		$	7,660			$	8,329
Net earnings per share:
Basic		$	3.21			$	3.35
Diluted		$	3.14			$	3.25
Cash dividends declared per share		$	0.32			$	0.32
Weighted-average shares used to compute net earnings per share:
Basic			2,388				2,483
Diluted			2,437				2,567
(a) Stock-based compensation expense included under SFAS 123(R) was as follows:
Cost of sales		$	178			$	152
Research and development			57				72
Selling, general and administrative			374				382
Acquisition-related charges			26				-
Total costs and expenses		$	635			$	606
(b) Tax benefit from stock-based compensation		$	(199	)		$	(167	)
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.
(d) For the prior year reporting period presented, certain pursuit-related costs previously reported as Cost of sales have been realigned retroactively to Selling, general and administrative expenses due to organizational realignments.

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 months ended October 31, 2009 (a)				Diluted earnings per share				Three months ended July 31, 2009 (a)				Diluted earnings per share				Three months ended October 31, 2008				Diluted earnings per share
GAAP net earnings		$	2,412			$	0.99			$	1,671			$	0.69			$	2,112			$	0.84
Non-GAAP adjustments:
Amortization of purchased intangible assets			400				0.16				379				0.16				337				0.13
In-process research and development charges			1				-				-				-				32				0.01
Restructuring charges			38				0.02				362				0.15				251				0.10
Acquisition-related charges			60				0.03				59				0.02				41				0.02
Adjustments for taxes			(147	)			(0.06	)			(232	)			(0.10	)			(179	)			(0.07	)
Non-GAAP net earnings		$	2,764			$	1.14			$	2,239			$	0.92			$	2,594			$	1.03
GAAP earnings from operations		$	3,133							$	2,213							$	2,741
Non-GAAP adjustments:
Amortization of purchased intangible assets			400								379								337
In-process research and development charges			1								-								32
Restructuring charges			38								362								251
Acquisition-related charges			60								59								41
Non-GAAP earnings from operations		$	3,632							$	3,013							$	3,402
GAAP operating margin			10	%							8	%							8	%
Non-GAAP adjustments			2	%							3	%							2	%
Non-GAAP operating margin			12	%							11	%							10	%
(a) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and GAAP net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and GAAP net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

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)
		Twelve months ended October 31, 2009 (a)				Diluted earnings per share				Twelve months ended October 31, 2008				Diluted earnings per share
GAAP net earnings		$	7,660			$	3.14			$	8,329			$	3.25
Non-GAAP adjustments:
Amortization of purchased intangible assets			1,571				0.65				967				0.38
In-process research and development charges			7				-				45				0.02
Restructuring charges			640				0.26				270				0.10
Acquisition-related charges			242				0.10				41				0.01
Adjustments for taxes			(727	)			(0.30	)			(350	)			(0.14	)
Non-GAAP net earnings		$	9,393			$	3.85			$	9,302			$	3.62
GAAP earnings from operations		$	10,136							$	10,473
Non-GAAP adjustments:
Amortization of purchased intangible assets			1,571								967
In-process research and development charges			7								45
Restructuring charges			640								270
Acquisition-related charges			242								41
Non-GAAP earnings from operations		$	12,596							$	11,796
GAAP operating margin			9	%							9	%
Non-GAAP adjustments			2	%							1	%
Non-GAAP operating margin			11	%							10	%
(a) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and GAAP net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and GAAP net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In millions)
		October 31, 2009			October 31, 2008
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	13,279		$	10,153
Short-term investments			55			93
Accounts receivable			16,537			16,928
Financing receivables			2,675			2,314
Inventory			6,128			7,879
Other current assets			13,865			14,361
Total current assets			52,539			51,728
Property, plant and equipment			11,262			10,838
Long-term financing receivables and other assets			11,289			10,468
Goodwill and purchased intangible assets			39,709			40,297
Total assets		$	114,799		$	113,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings		$	1,850		$	10,176
Accounts payable			14,809			14,917
Employee compensation and benefits			4,071			4,159
Taxes on earnings			910			869
Deferred revenue			6,182			6,287
Other accrued liabilities			15,181			16,531
Total current liabilities			43,003			52,939
Long-term debt			13,980			7,676
Other liabilities			17,299			13,774
Stockholders' equity			40,517			38,942
Total liabilities and stockholders' equity		$	114,799		$	113,331

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
		Three months ended October 31, 2009				Twelve months ended October 31, 2009
Cash flows from operating activities:
Net earnings (a)		$	2,412			$	7,660
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			1,227				4,773
Stock-based compensation expense			134				635
Provision for bad debt and inventory			104				566
In-process research and development charges			1				7
Restructuring charges			38				640
Deferred taxes on earnings			107				379
Excess tax benefit from stock-based compensation			(95	)			(162	)
Other, net			(19	)			(20	)
Changes in assets and liabilities:
Accounts and financing receivables			(2,184	)			(549	)
Inventory			(311	)			1,532
Accounts payable			2,075				(153	)
Taxes on earnings			(146	)			557
Restructuring			(393	)			(1,237	)
Other assets and liabilities			483				(1,249	)
Net cash provided by operating activities			3,433				13,379
Cash flows from investing activities:
Investment in property, plant and equipment			(946	)			(3,695	)
Proceeds from sale of property, plant and equipment			94				495
Purchases of available-for-sale securities and other investments			(55	)			(160	)
Maturities and sales of available-for-sale securities and other investments			68				171
Payments made in connection with business acquisitions, net			(43	)			(391	)
Net cash used in investing activities			(882	)			(3,580	)
Cash flows from financing activities:
Issuance (repayment) of commercial paper and notes payable, net			10				(6,856	)
Issuance of debt			22				6,800
Payment of debt			(1,529	)			(2,710	)
Issuance of common stock under employee stock plans			901				1,837
Repurchase of common stock			(2,102	)			(5,140	)
Excess tax benefit from stock-based compensation			95				162
Dividends			(190	)			(766	)
Net cash used in financing activities			(2,793	)			(6,673	)
(Decrease) increase in cash and cash equivalents			(242	)			3,126
Cash and cash equivalents at beginning of period			13,521				10,153
Cash and cash equivalents at end of period		$	13,279			$	13,279
(a) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net earnings were higher by $55 million. Fourth quarter fiscal 2009 net earnings were higher by $19 million. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions)
		Three months ended
		October 31, 2009 (b)				July 31, 2009 (b)				October 31, 2008 (c)
Net revenue:
Services (a)		$	8,926			$	8,520			$	8,277
Enterprise Storage and Servers			4,218				3,735				5,059
HP Software			967				847				1,148
Technology Solutions Group			14,111				13,102				14,484
Personal Systems Group			9,862				8,441				11,179
Imaging and Printing Group			6,454				5,660				7,572
HP Financial Services			726				670				691
Corporate Investments			191				193				246
Total Segments			31,344				28,066				34,172
Eliminations of intersegment net revenue and other			(567	)			(481	)			(569	)
Total HP Consolidated		$	30,777			$	27,585			$	33,603
Earnings (Loss) from operations:
Services (a)		$	1,444			$	1,302			$	945
Enterprise Storage and Servers			481				381				705
HP Software			234				153				211
Technology Solutions Group			2,159				1,836				1,861
Personal Systems Group			460				387				616
Imaging and Printing Group			1,171				960				1,155
HP Financial Services			66				53				51
Corporate Investments			(8	)			(10	)			9
Total Segments			3,848				3,226				3,692
Corporate and unallocated costs and eliminations			(100	)			(81	)			(153	)
Unallocated costs related to stock-based compensation expense			(116	)			(132	)			(137	)
Amortization of purchased intangible assets			(400	)			(379	)			(337	)
In-process research and development charges			(1	)			-				(32	)
Restructuring charges			(38	)			(362	)			(251	)
Acquisition-related charges			(60	)			(59	)			(41	)
Interest and other, net			(132	)			(177	)			(98	)
Total HP Consolidated Earnings Before Taxes		$	3,001			$	2,036			$	2,643
(a) Includes the results of EDS which was acquired on August 26, 2008.
(b) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly segment results have been restated to reflect the impact of adoption. The adoption primarily impacted the Services and Enterprise Storage and Servers financial reporting segments.
(c) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions)
		Twelve months ended October 31,
		2009 (b)				2008 (c)
Net revenue:
Services (a)		$	34,693			$	20,977
Enterprise Storage and Servers			15,359				19,400
HP Software			3,572				4,220
Technology Solutions Group			53,624				44,597
Personal Systems Group			35,305				42,295
Imaging and Printing Group			24,011				29,614
HP Financial Services			2,673				2,698
Corporate Investments			768				965
Total Segments			116,381				120,169
Eliminations of intersegment net revenue and other			(1,829	)			(1,805	)
Total HP Consolidated		$	114,552			$	118,364
Earnings (Loss) from operations:
Services (a)		$	5,044			$	2,518
Enterprise Storage and Servers			1,518				2,577
HP Software			684				499
Technology Solutions Group			7,246				5,594
Personal Systems Group			1,661				2,375
Imaging and Printing Group			4,310				4,559
HP Financial Services			206				192
Corporate Investments			(56	)			49
Total Segments			13,367				12,769
Corporate and unallocated costs and eliminations			(219	)			(461	)
Unallocated costs related to stock-based compensation expense			(552	)			(512	)
Amortization of purchased intangible assets			(1,571	)			(967	)
In-process research and development charges			(7	)			(45	)
Restructuring charges			(640	)			(270	)
Acquisition-related charges			(242	)			(41	)
Interest and other, net			(721	)			-
Total HP Consolidated Earnings Before Taxes		$	9,415			$	10,473
(a) Includes the results of EDS which was acquired on August 26, 2008.
(b) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly segment results have been restated to reflect the impact of adoption. The adoption primarily impacted the Services and Enterprise Storage and Servers financial reporting segments.
(c) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT / BUSINESS UNIT INFORMATION (Unaudited) (In millions)
		Three months ended
		October 31, 2009 (b)				July 31, 2009 (b)				October 31, 2008 (c)
Net revenue:
Infrastructure technology outsourcing		$	4,084			$	3,967			$	3,531
Technology services			2,493				2,404				2,657
Application services			1,538				1,399				1,427
Business process outsourcing			778				711				604
Other			33				39				58
Services (a)			8,926				8,520				8,277
Industry standard servers			2,669				2,316				2,977
Storage			918				824				1,147
Business critical systems			631				595				935
Enterprise Storage and Servers			4,218				3,735				5,059
Business technology optimization			660				563				786
Other software			307				284				362
HP Software			967				847				1,148
Technology Solutions Group			14,111				13,102				14,484
Notebooks			5,794				4,803				6,270
Desktops			3,481				3,098				4,149
Workstations			342				299				470
Handhelds			36				32				79
Other			209				209				211
Personal Systems Group			9,862				8,441				11,179
Supplies			4,430				3,949				4,808
Commercial Hardware			1,261				1,085				1,846
Consumer Hardware			763				626				918
Imaging and Printing Group			6,454				5,660				7,572
HP Financial Services			726				670				691
Corporate Investments			191				193				246
Total Segments			31,344				28,066				34,172
Eliminations of intersegment net revenue and other			(567	)			(481	)			(569	)
Total HP Consolidated		$	30,777			$	27,585			$	33,603
(a) Includes the results of EDS, which was acquired on August 26, 2008. The businesses included in the former consulting and integration business unit were divided among the application services and technology services business units and the HP software segment. The businesses included in the former outsourcing services business unit were divided among the infrastructure technology outsourcing and business process outsourcing business units. The infrastructure technology outsourcing, application services and business process outsourcing business units were added with the technology services business unit, and these four business units now comprise the Services segment.
(b) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly segment results have been restated to reflect the impact of adoption. The adoption primarily impacted the Services and Enterprise Storage and Servers financial reporting segments.
(c) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT / BUSINESS UNIT INFORMATION (Unaudited) (In millions)
		Twelve months ended October 31,
		2009 (b)				2008 (c)
Net revenue:
Infrastructure technology outsourcing		$	15,751			$	7,488
Technology services			9,789				10,297
Application services			6,032				2,411
Business process outsourcing			2,941				723
Other			180				58
Services (a)			34,693				20,977
Industry standard servers			9,296				11,657
Storage			3,473				4,205
Business critical systems			2,590				3,538
Enterprise Storage and Servers			15,359				19,400
Business technology optimization			2,385				2,792
Other software			1,187				1,428
HP Software			3,572				4,220
Technology Solutions Group			53,624				44,597
Notebooks			20,210				22,657
Desktops			12,864				16,643
Workstations			1,261				1,885
Handhelds			172				360
Other			798				750
Personal Systems Group			35,305				42,295
Supplies			16,532				18,472
Commercial Hardware			4,778				7,422
Consumer Hardware			2,701				3,720
Imaging and Printing Group			24,011				29,614
HP Financial Services			2,673				2,698
Corporate Investments			768				965
Total Segments			116,381				120,169
Eliminations of intersegment net revenue and other			(1,829	)			(1,805	)
Total HP Consolidated		$	114,552			$	118,364
(a) Includes the results of EDS, which was acquired on August 26, 2008. The businesses included in the former consulting and integration business unit were divided among the application services and technology services business units and the HP software segment. The businesses included in the former outsourcing services business unit were divided among the infrastructure technology outsourcing and business process outsourcing business units. The infrastructure technology outsourcing, application services and business process outsourcing business units were added with the technology services business unit, and these four business units now comprise the Services segment.
(b) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly segment results have been restated to reflect the impact of adoption. The adoption primarily impacted the Services and Enterprise Storage and Servers financial reporting segments.
(c) Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments segments.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF NET EARNINGS PER SHARE (Unaudited) (In millions except per share amounts)
		Three months ended
		October 31, 2009 (c)			July 31, 2009 (c)			October 31, 2008
Numerator:
Net earnings		$	2,412		$	1,671		$	2,112
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes			-			-			-
Net earnings, adjusted		$	2,412		$	1,671		$	2,112
Denominator:
Weighted-average shares used to compute basic EPS			2,366			2,382			2,440
Effect of dilutive securities:
Dilution from employee stock plans			67			54			76
Zero-coupon subordinated convertible notes			-			-			-
Dilutive potential common shares			67			54			76
Weighted-average shares used to compute diluted EPS			2,433			2,436			2,516
Net earnings per share:
Basic (a)		$	1.02		$	0.70		$	0.87
Diluted (b)		$	0.99		$	0.69		$	0.84
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options and vesting of restricted stock units, except when such issuances would be anti-dilutive.
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF NET EARNINGS PER SHARE (In millions except per share amounts)
		Twelve months ended October 31,
		2009 (c)				2008
		(unaudited)
Numerator:
Net earnings		$	7,660			$	8,329
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes			-				3
Net earnings, adjusted		$	7,660			$	8,332
Denominator:
Weighted-average shares used to compute basic EPS			2,388				2,483
Effect of dilutive securities:
Dilution from employee stock plans			49				81
Zero-coupon subordinated convertible notes			-				3
Dilutive potential common shares			49				84
Weighted-average shares used to compute diluted EPS			2,437				2,567
Net earnings per share:
Basic (a)		$	3.21			$	3.35
Diluted (b)		$	3.14			$	3.25
(a) HP's basic earnings per share was calculated based on net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) The diluted earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF NON-GAAP NET EARNINGS PER SHARE (Unaudited) (In millions except per share amounts)
		Three months ended
		October 31, 2009 (c)			July 31, 2009 (c)			October 31, 2008
Numerator:
Non-GAAP net earnings		$	2,764		$	2,239		$	2,594
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes			-			-			-
Non-GAAP net earnings, adjusted		$	2,764		$	2,239		$	2,594
Denominator:
Weighted-average shares used to compute basic EPS			2,366			2,382			2,440
Effect of dilutive securities:
Dilution from employee stock plans			67			54			76
Zero-coupon subordinated convertible notes			-			-			-
Dilutive potential common shares			67			54			76
Weighted-average shares used to compute diluted EPS			2,433			2,436			2,516
Non-GAAP net earnings per share:
Basic (a)		$	1.17		$	0.94		$	1.06
Diluted (b)		$	1.14		$	0.92		$	1.03
(a) HP's basic non-GAAP earnings per share was calculated based on non-GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) HP’s diluted non-GAAP earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options and vesting of restricted stock units, except when such issuances would be anti-dilutive.
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and Non-GAAP net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and Non-GAAP net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF NON-GAAP NET EARNINGS PER SHARE (Unaudited) (In millions except per share amounts)
		Twelve months ended October 31,
		2009 (c)				2008
Numerator:
Non-GAAP net earnings		$	9,393			$	9,302
Adjustment for interest expense on zero-coupon subordinated convertible notes, net of taxes			-				3
Non-GAAP net earnings, adjusted		$	9,393			$	9,305
Denominator:
Weighted-average shares used to compute basic EPS			2,388				2,483
Effect of dilutive securities:
Dilution from employee stock plans			49				81
Zero-coupon subordinated convertible notes			-				3
Dilutive potential common shares			49				84
Weighted-average shares used to compute diluted EPS			2,437				2,567
Non-GAAP net earnings per share:
Basic (a)		$	3.93			$	3.75
Diluted (b)		$	3.85			$	3.62
(a) HP's basic non-GAAP earnings per share was calculated based on non-GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(b) HP’s diluted non-GAAP earnings per share included additional dilution from potential issuance of common stock, such as stock issuable pursuant to exercise of stock options, vesting of restricted stock units and conversion of debt, except when such issuances would be anti-dilutive.
(c) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and Non-GAAP net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and Non-GAAP net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES RESTATED CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions except per share amounts)
		Three months ended
		July 31, 2009 (a) (Restated)				April 30, 2009 (a) (Restated)				January 31, 2009 (a) (Restated)
Net revenue		$	27,585			$	27,383			$	28,807
Costs and expenses:
Cost of sales			21,031				20,945				22,073
Research and development			667				716				732
Selling, general and administrative			2,874				2,880				2,893
Amortization of purchased intangible assets			379				380				412
In-process research and development charges			-				-				6
Restructuring charges			362				94				146
Acquisition-related charges			59				75				48
Total costs and expenses			25,372				25,090				26,310
Earnings from operations			2,213				2,293				2,497
Interest and other, net			(177	)			(180	)			(232	)
Earnings before taxes			2,036				2,113				2,265
Provision for taxes			365				392				409
Net earnings		$	1,671			$	1,721			$	1,856
Net earnings per share:
Basic		$	0.70			$	0.72			$	0.77
Diluted		$	0.69			$	0.71			$	0.75
Cash dividends declared per share		$	0.16			$	-			$	0.16
Weighted-average shares used to compute net earnings per share:
Basic			2,382				2,394				2,410
Diluted			2,436				2,438				2,464
Impact from adoption of ASU No. 2009-13 and ASU No. 2009-14 was as follows:
Net Revenue		$	134			$	32			$	7
Cost of Sales			95				26				4
Earnings before taxes			39				6				3
Net earnings		$	29			$	5			$	2
Net earnings per share		$	0.02			$	0.01			$	-
(a) In the fourth quarter of fiscal 2009, HP early adopted Accounting Standards Update ("ASU") No. 2009-13, "Multiple-Deliverable Revenue Arrangements" and ASU No. 2009-14, "Certain Revenue Arrangements That Include Software Elements." As a result, fiscal 2009 net revenues and net earnings were higher by $255 million and $55 million, respectively. Fourth quarter fiscal 2009 net revenues and net earnings were higher by $82 million and $19 million, respectively. HP adopted these standards as of the beginning of fiscal 2009; therefore the previously reported quarterly results have been restated to reflect the impact of adoption.

Use of Non-GAAP Financial Measures