HP’s Q3 FY11 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2011q3webcast.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.

Use of non-GAAP financial information

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides non-GAAP operating profit, non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted earnings per share and gross cash. HP also provides forecasts of non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below. In addition, an explanation of the ways in which HP management uses these non-GAAP measures to evaluate its business, the substance behind HP 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 management compensates for those limitations, and the substantive reasons why HP 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 operating profit, operating margin, net earnings, diluted earnings per share, or cash and cash equivalents 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, earnings, tax provisions, cash flows, benefit obligations, share repurchases, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, the exploration of strategic options for HERMES and the execution of cost reduction programs and restructuring and integration plans; any statements concerning the expected development, performance or market share 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 business combination transactions; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; 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 protection of HP’s intellectual property assets, including intellectual property licensed from third parties; integration and other risks associated with business combination and investment transactions; the hiring and retention of key employees; assumptions related to pension and other post-retirement costs; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring and integration plans; the possibility that the expected benefits of pending business combination transactions may not materialize as expected or that the transactions may not be timely completed; 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, 2010 and HP’s other filings with the Securities and Exchange Commission, including HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2011. 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 meaningful, these amounts could differ materially from actual reported amounts in HP’s Form 10-Q for the quarter ended July 31, 2011. In particular, determining HP’s actual tax balances and provisions as of July 31, 2011 requires extensive internal and external review of tax data (including consolidating and reviewing the tax provisions of numerous domestic and foreign entities), which is being completed in the ordinary course of preparing HP’s Form 10-Q. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2011 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.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
		Three months ended
		July 31, 2011					April 30, 2011					July 31, 2010
Net revenue		$		31,189			$		31,632			$		30,729
Costs and Expenses: (a)
Cost of sales				23,929					23,860					23,365
Research and development				812					815					742
Selling, general and administrative				3,402					3,397					3,191
Amortization of purchased intangible assets				358					413					383
Restructuring charges				150					158					598
Acquisition-related charges				18					21					127
Total costs and expenses				28,669					28,664					28,406
Earnings from operations				2,520					2,968					2,323
Interest and other, net				(121	)				(76	)				(134	)
Earnings before taxes				2,399					2,892					2,189
Provision for taxes				473					588					416
Net earnings		$		1,926			$		2,304			$		1,773
Net earnings per share:
Basic		$		0.94			$		1.07			$		0.76
Diluted		$		0.93			$		1.05			$		0.75
Cash dividends declared per share		$		0.24			$		-			$		0.16
Weighted-average shares used to compute net earnings per share:
Basic				2,054					2,150					2,322
Diluted				2,080					2,184					2,376

(a)		In connection with organizational realignments implemented in the first quarter of fiscal 2011, certain costs previously reported as Cost of Sales have been reclassified as Selling, General and Administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
		Nine months ended
		July 31,
		2011					2010
Net revenue		$		95,123			$		92,755
Costs and expenses: (a)
Cost of sales				72,197					70,961
Research and development				2,425					2,145
Selling, general and administrative				9,889					9,254
Amortization of purchased intangible assets				1,196					1,060
Restructuring charges				466					909
Acquisition-related charges				68					242
Total costs and expenses				86,241					84,571
Earnings from operations				8,882					8,184
Interest and other, net				(294	)				(424	)
Earnings before taxes				8,588					7,760
Provision for taxes				1,753					1,537
Net earnings		$		6,835			$		6,223
Net earnings per share:
Basic		$		3.21			$		2.66
Diluted		$		3.16			$		2.60
Cash dividends declared per share		$		0.40			$		0.32
Weighted-average shares used to compute net earnings per share:
Basic				2,129					2,342
Diluted				2,161					2,398

(a)		In connection with organizational realignments implemented in the first quarter of fiscal 2011, certain costs previously reported as Cost of Sales have been reclassified as Selling, General and Administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

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 July 31, 2011				Diluted earnings per share				Three months ended April 30, 2011				Diluted earnings per share				Three months ended July 31, 2010				Diluted earnings per share
GAAP net earnings		$	1,926			$	0.93			$	2,304			$	1.05			$	1,773			$	0.75
Non-GAAP adjustments:
Amortization of purchased intangible assets			358				0.17				413				0.19				383				0.16
Restructuring charges			150				0.07				158				0.07				598				0.25
Acquisition-related charges			18				0.01				21				0.01				127				0.05
Adjustments for taxes			(170	)			(0.08	)			(179	)			(0.08	)			(306	)			(0.13	)
Non-GAAP net earnings		$	2,282			$	1.10			$	2,717			$	1.24			$	2,575			$	1.08
GAAP earnings from operations		$	2,520							$	2,968							$	2,323
Non-GAAP adjustments:
Amortization of purchased intangible assets			358								413								383
Restructuring charges			150								158								598
Acquisition-related charges			18								21								127
Non-GAAP earnings from operations		$	3,046							$	3,560							$	3,431
GAAP operating margin			8	%							9	%							8	%
Non-GAAP adjustments			2	%							2	%							3	%
Non-GAAP operating margin			10	%							11	%							11	%

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)
		Nine months ended July 31, 2011				Diluted earnings per share				Nine months ended July 31, 2010				Diluted earnings per share
GAAP net earnings		$	6,835			$	3.16			$	6,223			$	2.60
Non-GAAP adjustments:
Amortization of purchased intangible assets			1,196				0.55				1,060				0.44
Restructuring charges			466				0.22				909				0.38
Acquisition-related charges			68				0.03				242				0.10
Adjustments for taxes			(536	)			(0.24	)			(632	)			(0.27	)
Non-GAAP net earnings		$	8,029			$	3.72			$	7,802			$	3.25
GAAP earnings from operations		$	8,882							$	8,184
Non-GAAP adjustments:
Amortization of purchased intangible assets			1,196								1,060
Restructuring charges			466								909
Acquisition-related charges			68								242
Non-GAAP earnings from operations		$	10,612							$	10,395
GAAP operating margin			9	%							9	%
Non-GAAP adjustments			2	%							2	%
Non-GAAP operating margin			11	%							11	%

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
		July 31, 2011			October 31, 2010
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	12,953		$	10,929
Accounts receivable			18,121			18,481
Financing receivables			3,167			2,986
Inventory			7,427			6,466
Other current assets			14,611			15,322
Total current assets			56,279			54,184
Property, plant and equipment			11,959			11,763
Long-term financing receivables and other assets			11,178			12,225
Goodwill and purchased intangible assets			45,501			46,331
Total assets		$	124,917		$	124,503
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings		$	6,666		$	7,046
Accounts payable			14,489			14,365
Employee compensation and benefits			3,728			4,256
Taxes on earnings			788			802
Deferred revenue			7,390			6,727
Other accrued liabilities			15,877			16,207
Total current liabilities			48,938			49,403
Long-term debt			19,030			15,258
Other liabilities			17,731			19,061
Stockholders' equity:
HP stockholders' equity			38,823			40,449
Non-controlling interests			395			332
Total stockholders' equity			39,218			40,781
Total liabilities and stockholders' equity		$	124,917		$	124,503

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
		Three months ended July 31, 2011				Nine months ended July 31, 2011
Cash flows from operating activities:
Net earnings		$	1,926			$	6,835
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			1,225				3,722
Stock-based compensation expense			148				475
Provision for bad debt and inventory			112				208
Restructuring charges			150				466
Deferred taxes on earnings			163				804
Excess tax benefit from stock-based compensation			(6	)			(160	)
Other, net			(63	)			(202	)
Changes in assets and liabilities:
Accounts and financing receivables			388				(220	)
Inventory			(724	)			(1,139	)
Accounts payable			265				122
Taxes on earnings			158				251
Restructuring			(245	)			(750	)
Other assets and liabilities			(290	)			(173	)
Net cash provided by operating activities			3,207				10,239
Cash flows from investing activities:
Investment in property, plant and equipment			(1,128	)			(3,154	)
Proceeds from sale of property, plant and equipment			149				782
Maturities and sales of available-for-sale securities and other investments			2				59
Payments made in connection with business acquisitions, net of cash acquired			(23	)			(269	)
Proceeds from business divestiture, net			89				89
Net cash used in investing activities			(911	)			(2,493	)
Cash flows from financing activities:
Repayment of commercial paper and notes payable, net			(534	)			(1,532	)
Issuance of debt			5,246				7,462
Payment of debt			(1,981	)			(2,435	)
Issuance of common stock under employee stock plans			71				845
Repurchase of common stock			(4,641	)			(9,617	)
Excess tax benefit from stock-based compensation			6				160
Dividends			(248	)			(605	)
Net cash used in financing activities			(2,081	)			(5,722	)
Increase in cash and cash equivalents			215				2,024
Cash and cash equivalents at beginning of period			12,738				10,929
Cash and cash equivalents at end of period		$	12,953			$	12,953

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
			Three months ended
			July 31, 2011					April 30, 2011					July 31, 2010
Net revenue: (a)
	Services		$		9,089			$		8,977			$		8,772
	Enterprise Servers, Storage and Networking				5,396					5,556					5,021
	HP Software				780					764					650
	Personal Systems Group				9,592					9,415					9,918
	Imaging and Printing Group				6,087					6,745					6,167
	HP Financial Services				932					885					764
	Corporate Investments				266					72					85
	Total Segments				32,142					32,414					31,377
	Eliminations of intersegment net revenue and other				(953	)				(782	)				(648	)
	Total HP Consolidated Net Revenue		$		31,189			$		31,632			$		30,729
Earnings from operations: (a)
	Services		$		1,225			$		1,361			$		1,381
	Enterprise Servers, Storage and Networking				699					766					706
	HP Software				151					154					182
	Personal Systems Group				567					533					469
	Imaging and Printing Group				892					1,144					1,040
	HP Financial Services				88					83					72
	Corporate Investments				(332	)				(198	)				(88	)
	Total Segments				3,290					3,843					3,762
	Corporate and unallocated costs and eliminations				(114	)				(153	)				(175	)
	Unallocated costs related to stock-based compensation expense				(130	)				(130	)				(156	)
	Amortization of purchased intangible assets				(358	)				(413	)				(383	)
	Restructuring charges				(150	)				(158	)				(598	)
	Acquisition-related charges				(18	)				(21	)				(127	)
	Interest and other, net				(121	)				(76	)				(134	)
Total HP Consolidated Earnings Before Taxes			$		2,399			$		2,892			$		2,189

(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.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
			Nine months ended
			July 31,
			2011					2010
Net revenue: (a)
	Services		$		26,673			$		26,404
	Enterprise Servers, Storage and Networking				16,586					14,468
	HP Software				2,241					1,966
	Personal Systems Group				29,456					30,458
	Imaging and Printing Group				19,462					18,769
	HP Financial Services				2,644					2,238
	Corporate Investments				416					211
	Total Segments				97,478					94,514
	Eliminations of intersegment net revenue and other				(2,355	)				(1,759	)
	Total HP Consolidated Net Revenue		$		95,123			$		92,755
Earnings from operations: (a)
	Services		$		3,961			$		4,161
	Enterprise Servers, Storage and Networking				2,293					1,937
	HP Software				428					521
	Personal Systems Group				1,772					1,464
	Imaging and Printing Group				3,165					3,192
	HP Financial Services				250					208
	Corporate Investments				(713	)				(209	)
	Total Segments				11,156					11,274
	Corporate and unallocated costs and eliminations				(118	)				(375	)
	Unallocated costs related to stock-based compensation expense				(426	)				(504	)
	Amortization of purchased intangible assets				(1,196	)				(1,060	)
	Restructuring charges				(466	)				(909	)
	Acquisition-related charges				(68	)				(242	)
	Interest and other, net				(294	)				(424	)
Total HP Consolidated Earnings Before Taxes			$		8,588			$		7,760

(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.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
		Three months ended															Growth rate (%)
		July 31, 2011					April 30, 2011					July 31, 2010					Q/Q			Y/Y
Net revenue: (a)
Services
Infrastructure Technology Outsourcing		$		3,884			$		3,783			$		3,692			3	%		5	%
Technology Services				2,754					2,713					2,611			2	%		5	%
Application Services				1,698					1,724					1,664			(2	%)		2	%
Business Process Outsourcing				658					673					727			(2	%)		(9	%)
Other				95					84					78			13	%		22	%
Total Services				9,089					8,977					8,772			1	%		4	%
Enterprise Servers, Storage and Networking
Industry Standard Servers				3,302					3,387					3,042			(3	%)		9	%
Storage				976					980					904			0	%		8	%
Business Critical Systems				459					546					503			(16	%)		(9	%)
HP Networking (b)				659					643					572			2	%		15	%
Total Enterprise Servers, Storage and Networking				5,396					5,556					5,021			(3	%)		7	%
HP Software (c)				780					764					650			2	%		20	%
Personal Systems Group (d)
Notebooks				5,082					5,039					5,314			1	%		(4	%)
Desktops				3,777					3,641					3,941			4	%		(4	%)
Workstations				547					541					459			1	%		19	%
Other				186					194					204			(4	%)		(9	%)
Total Personal Systems Group				9,592					9,415					9,918			2	%		(3	%)
Imaging and Printing Group
Supplies				4,143					4,612					4,130			(10	%)		0	%
Commercial Hardware				1,292					1,438					1,389			(10	%)		(7	%)
Consumer Hardware				652					695					648			(6	%)		1	%
Total Imaging and Printing Group				6,087					6,745					6,167			(10	%)		(1	%)
HP Financial Services				932					885					764			5	%		22	%
Corporate Investments				266					72					85			269	%		213	%
Total Segments				32,142					32,414					31,377			(1	%)		2	%
Eliminations of intersegment net revenue and other				(953	)				(782	)				(648	)		22	%		47	%
Total HP Consolidated Net Revenue		$		31,189			$		31,632			$		30,729			(1	%)		1	%

(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 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. In addition, revenue was transferred among the business units within the Services and Personal Systems Group segments. There was no impact on the previously reported financial results for the HP Financial Services and Imaging and Printing Group segments or for the business units within the Imaging and Printing Group segment.
(b)		The networking business was added to the Enterprise Servers, Storage and Networking segment in fiscal 2011.
(c)		The Business Technology Optimization and Other Software business units were consolidated into a single business unit within the HP Software segment in fiscal 2011.
(d)		The Handhelds business unit, which includes devices that run on Windows Mobile software, was reclassified into the Other business unit within the Personal Systems Group in fiscal 2011.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT / BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
				Nine months ended
				July 31,
				2011					2010
Net revenue: (a)
Services
Infrastructure Technology Outsourcing				$		11,303			$		11,091
Technology Services						8,069					7,894
Application Services						5,054					5,029
Business Process Outsourcing						1,989					2,177
Other						258					213
Total Services						26,673					26,404
Enterprise Servers, Storage and Networking
Industry Standard Servers						10,137					9,044
Storage						2,968					2,741
Business Critical Systems						1,560					1,597
HP Networking (b)						1,921					1,086
Total Enterprise Servers, Storage and Networking						16,586					14,468
HP Software (c)						2,241					1,966
Personal Systems Group (d)
Notebooks						15,929					16,979
Desktops						11,314					11,591
Workstations						1,623					1,257
Other						590					631
Total Personal Systems Group						29,456					30,458
Imaging and Printing Group
Supplies						13,113					12,542
Commercial Hardware						4,194					4,028
Consumer Hardware						2,155					2,199
Total Imaging and Printing Group						19,462					18,769
HP Financial Services						2,644					2,238
Corporate Investments						416					211
Total Segments						97,478					94,514
Eliminations of intersegment net revenue and other						(2,355	)				(1,759	)
Total HP Consolidated Net Revenue				$		95,123			$		92,755

(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 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. In addition, revenue was transferred among the business units within the Services and Personal Systems Group segments. There was no impact on the previously reported financial results for the HP Financial Services and Imaging and Printing Group segments or for the business units within the Imaging and Printing Group segment.
(b)		The networking business was added to the Enterprise Servers, Storage and Networking segment in fiscal 2011.
(c)		The Business Technology Optimization and Other Software business units were consolidated into a single business unit within the HP Software segment in fiscal 2011.
(d)		The Handhelds business unit, which includes devices that run on Windows Mobile software, was reclassified into the Other business unit within the Personal Systems Group in fiscal 2011.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT NON-GAAP OPERATING MARGIN SUMMARY DATA
(Unaudited)
(In millions)
			Three months ended		Change in Operating Margin (pts)
			July 31, 2011		Y/Y		Q/Q
Non-GAAP Operating Margin: (a)
	Services		13.5%		(2.2 pts)		(1.7 pts)
	Enterprise Servers, Storage and Networking		13.0%		(1.1 pts)		(0.8 pts)
	HP Software		19.4%		(8.6 pts)		(0.8 pts)
	Personal Systems Group		5.9%		1.2 pts		0.2 pts
	Imaging and Printing Group		14.7%		(2.2 pts)		(2.3 pts)
	HP Financial Services		9.4%		0.0 pts		0.0 pts
	Corporate Investments		(124.8%)		(21.3 pts)		150.2 pts
	Total Segments		10.2%		(1.8 pts)		(1.7 pts)
	Total HP Consolidated Non-GAAP Operating Margin		9.8%		(1.4 pts)		(1.5 pts)

(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.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
		Three months ended
		July 31, 2011			April 30, 2011			July 31, 2010
Numerator:
GAAP net earnings		$	1,926		$	2,304		$	1,773
Non-GAAP net earnings		$	2,282		$	2,717		$	2,575
Denominator:
Weighted-average shares used to compute basic EPS			2,054			2,150			2,322
Dilutive effect of employee stock plans			26			34			54
Weighted-average shares used to compute diluted EPS			2,080			2,184			2,376
GAAP net earnings per share:
Basic (a)		$	0.94		$	1.07		$	0.76
Diluted (c)		$	0.93		$	1.05		$	0.75
Non-GAAP net earnings per share:
Basic (b)		$	1.11		$	1.26		$	1.11
Diluted (c)		$	1.10		$	1.24		$	1.08

(a)		GAAP basic earnings per share were calculated based on GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(b)		Non-GAAP basic earnings per share were calculated based on non-GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(c)		Diluted net earnings per share included any dilutive effect of outstanding stock options, performance-based restricted units, restricted stock units and restricted stock.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
				Nine months ended
				July 31,
				2011			2010
Numerator:
GAAP net earnings				$	6,835		$	6,223
Non-GAAP net earnings				$	8,029		$	7,802
Denominator:
Weighted-average shares used to compute basic EPS					2,129			2,342
Dilutive effect of employee stock plans					32			56
Weighted-average shares used to compute diluted EPS					2,161			2,398
GAAP net earnings per share:
Basic (a)				$	3.21		$	2.66
Diluted (c)				$	3.16		$	2.60
Non-GAAP net earnings per share:
Basic (b)				$	3.77		$	3.33
Diluted (c)				$	3.72		$	3.25

(a)		GAAP basic earnings per share were calculated based on GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(b)		Non-GAAP basic earnings per share were calculated based on non-GAAP net earnings and the weighted-average number of shares outstanding during the reporting period.
(c)		Diluted net earnings per share included any dilutive effect of outstanding stock options, performance-based restricted units, restricted stock units and restricted stock.

Use of Non-GAAP Financial Measures