HP Reports Fiscal 2014 First Quarter Results

HP's Q1 FY14 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2014Q1webcast.

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 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, 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 debt, net cash, operating company net debt and operating company net cash. 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 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 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 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 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, HP's effective tax rate, 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 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 of 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; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and 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 risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those 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, 2013 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 actual reported amounts in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2014. HP assumes no obligation and does not intend to update these forward-looking statements.

                                                                            
                                                                            
                  HEWLETT-PACKARD COMPANY AND SUBSIDIARIES                  
               CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS                
                                (Unaudited)                                 
                   (In millions except per share amounts)                   
                                                                            
                                                                            
                                                 Three months ended         
                                         ---------------------------------- 
                                           Jan 31,     Oct 31,     Jan 31,  
                                            2014        2013              2013        
                                                                                  ----------    ----------    ----------  
                                                                                                                                                        
Net  revenue                                                            $      28,154    $      29,131    $      28,359  
                                                                                                                                                        
Costs  and  expenses:                                                                                                                  
    Cost  of  sales                                                            21,736            22,437            22,029  
    Research  and  development                                            811                  729                  794  
    Selling,  general  and  administrative                  3,210              3,351              3,300  
    Amortization  of  intangible  assets                          283                  317                  350  
    Restructuring  charges                                                  114                  371                  130  
    Acquisition-related  charges                                          3                      3                      4  
                                                                                  ----------    ----------    ----------  
        Total  costs  and  expenses                                  26,157            27,208            26,607  
                                                                                  ----------    ----------    ----------  
                                                                                                                                                        
Earnings  from  operations                                            1,997              1,923              1,752  
                                                                                                                                                        
Interest  and  other,  net                                                (163)              (103)              (179)
                                                                                  ----------    ----------    ----------  
                                                                                                                                                        
Earnings  before  taxes                                                  1,834              1,820              1,573  
                                                                                                                                                        
Provision  for  taxes                                                        (409)              (406)              (341)
                                                                                  ----------    ----------    ----------  
                                                                                                                                                        
Net  earnings                                                          $        1,425    $        1,414    $        1,232  
                                                                                  ==========    ==========    ==========  
                                                                                                                                                        
Net  earnings  per  share:                                                                                                          
    Basic                                                                    $          0.75    $          0.74    $          0.63  
    Diluted                                                                $          0.74    $          0.73    $          0.63  
                                                                                                                                                        
Cash  dividends  declared  per  share                $          0.29    $                -    $          0.26  
                                                                                                                                                        
                                                                                                                                                        
Weighted-average  shares  used  to  compute                                                                          
  net  earnings  per  share:                                                                                                        
    Basic                                                                              1,907              1,918              1,953  
    Diluted                                                                          1,935              1,940              1,956  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    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        Diluted      Three        Diluted      Three        Diluted  
                                          months          net          months          net          months          net      
                                          ended      earnings      ended      earnings      ended      earnings  
                                        Jan  31,          per        Oct  31,          per        Jan  31,          per      
                                            2014          share          2013          share          2013          share    
                                        -------    --------    -------    --------    -------    --------  
                                                                                                                                                        
GAAP  net  earnings      $  1,425    $      0.74    $  1,414    $      0.73    $  1,232    $      0.63  
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible  assets        283            0.15            317            0.16            350            0.18  
    Restructuring                                                                                                                          
      charges                            114            0.06            371            0.19            130            0.07  
    Acquisition-                                                                                                                            
      related  charges                3                  -                3                  -                4                  -  
    Adjustments  for                                                                                                                      
      taxes                                (83)        (0.05)        (146)        (0.07)        (111)        (0.06)
                                        -------    --------    -------    --------    -------    --------  
Non-GAAP  net                                                                                                                                
  earnings                      $  1,742    $      0.90    $  1,959    $      1.01    $  1,605    $      0.82  
                                        =======    ========    =======    ========    =======    ========  
                                                                                                                                                        
                                                                                                                                                        
GAAP  earnings  from                                                                                                                    
  operations                  $  1,997                        $  1,923                        $  1,752                      
                                                                                                                                                        
Non-GAAP                                                                                                                                        
  adjustments:                                                                                                                              
    Amortization  of                                                                                                                      
      intangible  assets        283                                317                                350                      
    Restructuring                                                                                                                          
      charges                            114                                371                                130                      
    Acquisition-                                                                                                                            
      related  charges                3                                    3                                    4                      
                                        -------                        -------                        -------                      
Non-GAAP  earnings                                                                                                                      
  from  operations        $  2,397                        $  2,614                        $  2,236                      
                                        =======                        =======                        =======                      
                                                                                                                                                        
GAAP  operating                                                                                                                            
  margin                                      7%                                  7%                                  6%                    
Non-GAAP  adjustments            2%                                  2%                                  2%                    
                                        -------                        -------                        -------                      
Non-GAAP  operating                                                                                                                    
  margin                                      9%                                  9%                                  8%                    
                                        =======                        =======                        =======                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                        CONSOLIDATED  CONDENSED  BALANCE  SHEETS                                      
                                                                (In  millions)                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                        January  31,    October  31,
                                                                                                                2014                  2013      
                                                                                                        -----------    -----------
                                                                                                        (Unaudited)                          
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                                  $        16,165    $        12,163
    Accounts  receivable                                                                        13,492              15,876
    Financing  receivables                                                                      3,054                3,144
    Inventory                                                                                              6,004                6,046
    Other  current  assets                                                                      11,969              13,135
                                                                                                        -----------    -----------
                                                                                                                                                        
        Total  current  assets                                                                  50,684              50,364
                                                                                                        -----------    -----------
                                                                                                                                                        
Property,  plant  and  equipment                                                        11,259              11,463
                                                                                                                                                        
Long-term  financing  receivables  and  other  assets                    9,131                9,556
                                                                                                                                                        
Goodwill  and  intangible  assets                                                      33,951              34,293
                                                                                                        -----------    -----------
                                                                                                                                                        
Total  assets                                                                                $      105,025    $      105,676
                                                                                                        ===========    ===========
                                                                                                                                                        
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Notes  payable  and  short-term  borrowings                      $          6,621    $          5,979
    Accounts  payable                                                                              12,640              14,019
    Employee  compensation  and  benefits                                            3,171                4,436
    Taxes  on  earnings                                                                              1,224                1,203
    Deferred  revenue                                                                                6,754                6,477
    Other  accrued  liabilities                                                            13,201              13,407
                                                                                                        -----------    -----------
                                                                                                                                                        
        Total  current  liabilities                                                        43,611              45,521
                                                                                                        -----------    -----------
                                                                                                                                                        
Long-term  debt                                                                                      17,971              16,608
                                                                                                                                                        
Other  liabilities                                                                                15,294              15,891
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    HP  stockholders'  equity                                                                27,754              27,269
    Non-controlling  interests                                                                  395                    387
                                                                                                        -----------    -----------
                                                                                                                                                        
        Total  stockholders'  equity                                                      28,149              27,656
                                                                                                        -----------    -----------
                                                                                                                                                        
Total  liabilities  and  stockholders'  equity                    $      105,025    $      105,676
                                                                                                        ===========    ===========
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                            CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS                              
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                                                        
                                                                                                            Three  months  ended        
                                                                                                      ------------------------  
                                                                                                      January  31,    January  31,  
                                                                                                              2014                  2013        
                                                                                                      -----------    -----------  
Cash  flows  from  operating  activities:                                                                              
    Net  earnings                                                                          $          1,425    $          1,232  
    Adjustments  to  reconcile  net  earnings  to  net                                                            
      cash  provided  by  operating  activities:                                                                      
        Depreciation  and  amortization                                                1,117                1,163  
        Stock-based  compensation  expense                                              170                    184  
        Provision  for  doubtful  accounts  and  inventory                      57                    124  
        Restructuring  charges                                                                    114                    130  
        Deferred  taxes  on  earnings                                                              9                    500  
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                    (27)                      -  
        Other,  net                                                                                          (33)                  167  
                                                                                                                                                        
        Changes  in  operating  assets  and  liabilities:                                                        
            Accounts  receivable                                                                2,391                2,148  
            Financing  receivables                                                                296                      98  
            Inventory                                                                                        (19)                (149)
            Accounts  payable                                                                    (1,165)            (1,690)
            Taxes  on  earnings                                                                        170                  (423)
            Restructuring                                                                              (381)                (237)
            Other  assets  and  liabilities                                            (1,134)                (685)
                                                                                                      -----------    -----------  
                Net  cash  provided  by  operating  activities                2,990                2,562  
                                                                                                      -----------    -----------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
        Investment  in  property,  plant  and  equipment                      (997)                (633)
        Proceeds  from  sale  of  property,  plant  and                                                              
          equipment                                                                                          450                    127  
        Purchases  of  available-for-sale  securities  and                                                    
          other  investments                                                                        (135)                (299)
        Maturities  and  sales  of  available-for-sale                                                            
          securities  and  other  investments                                            465                    161  
                                                                                                      -----------    -----------  
                Net  cash  used  in  investing  activities                          (217)                (644)
                                                                                                      -----------    -----------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
        Issuance  (repayment)  of  commercial  paper  and                                                        
          notes  payable,  net                                                                            2                  (105)
        Issuance  of  debt                                                                          2,005                      45  
        Payment  of  debt                                                                                (45)                (114)
        Issuance  of  common  stock  under  employee  stock                                                      
          plans                                                                                                    83                      55  
        Repurchase  of  common  stock                                                        (565)                (253)
        Excess  tax  benefit  from  stock-based                                                                          
          compensation                                                                                      27                        -  
        Cash  dividends  paid                                                                      (278)                (258)
                                                                                                      -----------    -----------  
                Net  cash  provided  by  (used  in)  financing                                                        
                  activities                                                                            1,229                  (630)
                                                                                                      -----------    -----------  
                                                                                                                                                        
Increase  in  cash  and  cash  equivalents                                        4,002                1,288  
Cash  and  cash  equivalents  at  beginning  of  period                12,163              11,301  
                                                                                                      -----------    -----------  
Cash  and  cash  equivalents  at  end  of  period                  $        16,165    $        12,589  
                                                                                                      ===========    ===========  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                                        SEGMENT  INFORMATION                                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                Three  months  ended                    
                                                                            -------------------------------------  
                                                                            January  31,    October  31,    January  31,  
                                                                                    2014                  2013                  2013        
                                                                            -----------    -----------    -----------  
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Personal  Systems                                        $          8,530    $          8,604    $          8,232  
    Printing                                                                    5,815                6,047                5,946  
                                                                            -----------    -----------    -----------  
        Total  Printing  and  Personal                                                                                          
          Systems  Group                                                  14,345              14,651              14,178  
    Enterprise  Group                                                    6,993                7,575                6,948  
    Enterprise  Services                                              5,595                5,918                6,038  
    Software                                                                        916                1,093                    951  
    HP  Financial  Services                                              870                    912                    957  
    Corporate  Investments                                              288                        5                        4  
                                                                            -----------    -----------    -----------  
        Total  segments                                                  29,007              30,154              29,076  
    Elimination  of  intersegment  net                                                                                      
      revenue  and  other                                                  (853)            (1,023)                (717)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  net  revenue  $        28,154    $        29,131    $        28,359  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Earnings  before  taxes:(a)                                                                                                      
                                                                                                                                                        
    Personal  Systems                                        $              279    $              265    $              233  
    Printing                                                                        979                1,081                    967  
                                                                            -----------    -----------    -----------  
        Total  Printing  and  Personal                                                                                          
          Systems  Group                                                    1,258                1,346                1,200  
    Enterprise  Group                                                    1,006                1,092                1,070  
    Enterprise  Services                                                    57                    255                      76  
    Software                                                                        145                    330                    155  
    HP  Financial  Services                                              101                    102                    101  
    Corporate  Investments                                              121                    (86)                  (73)
                                                                            -----------    -----------    -----------  
        Total  segment  earnings  from                                                                                          
          operations                                                          2,688                3,039                2,529  
                                                                                                                                                        
    Corporate  and  unallocated  costs  and                                                                              
      eliminations                                                            (121)                (323)                (109)
    Unallocated  costs  related  to  stock-                                                                              
      based  compensation  expense                                (170)                (102)                (184)
    Amortization  of  intangible  assets                    (283)                (317)                (350)
    Restructuring  charges                                            (114)                (371)                (130)
    Acquisition-related  charges                                    (3)                    (3)                    (4)
    Interest  and  other,  net                                        (163)                (103)                (179)
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
        Total  HP  consolidated  earnings                                                                                    
          before  taxes                                          $          1,834    $          1,820    $          1,573  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
(a)    Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2014,  HP          
          implemented  certain  organizational  changes  to  align  its  segment                
          financial  reporting  more  closely  with  its  current  business  structure.    
          These  organizational  changes  include  (i)  transferring  the  HP  Exstream    
          business  from  the  Commercial  Hardware  business  unit  within  the  Printing
          segment  to  the  Software  segment;  (ii)  transferring  the  Personal  Systems
          trade  and  warranty  support  business  from  the  Technology  Services              
          business  unit  within  the  Enterprise  Group  segment  to  the  Other  business
          unit  within  the  Personal  Systems  segment;  (iii)  transferring  the  spare  
          and  replacement  parts  business  supporting  the  Personal  Systems  and          
          Printing  segments  from  the  Technology  Services  business  unit  within  the
          Enterprise  Group  segment  to  the  Other  business  unit  within  the  Personal
          Systems  segment  and  the  Commercial  Hardware  business  unit  within  the      
          Printing  segment,  respectively;  and  (iv)  transferring  certain  cloud-      
          related  incubation  activities  previously  reported  in  Corporate  and          
          unallocated  costs  and  eliminations  and  in  the  Enterprise  Group  segment  
          to  the  Corporate  Investments  segment.  In  addition,  HP  transferred            
          certain  intrasegment  eliminations  from  the  Enterprise  Services  segment  
          and  the  Enterprise  Group  segment  to  corporate  intersegment  revenue          
          eliminations.                                                                                                                    
                                                                                                                                                        
          HP  reflected  these  changes  to  its  segment  information  in  prior                  
          reporting  periods  on  an  as-if  basis,  which  resulted  in  the  transfer  of  
          revenue  among  the  Personal  Systems,  Printing,  the  Enterprise  Group,        
          Enterprise  Services  and  Software  segments.  These  changes  also  resulted  
          in  the  transfer  of  operating  profit  among  the  Personal  Systems,                
          Printing,  the  Enterprise  Group,  Software  and  Corporate  Investments          
          segments.  These  changes  had  no  impact  on  HP's  previously  reported            
          consolidated  net  revenue,  earnings  from  operations,  net  earnings  or  net
          earnings  per  share.                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                  HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                      
                                        SEGMENT  /  BUSINESS  UNIT  INFORMATION                                          
                                                                (Unaudited)                                                                  
                                                              (In  millions)                                                                
                                                                                                                                                        
                                                                                                                            Growth  rate      
                                                                Three  months  ended                                (%)              
                                            -------------------------------------    -------------    
                                            January  31,    October  31,    January  31,                                  
                                                    2014                  2013                  2013            Q/Q          Y/Y      
                                            -----------    -----------    -----------    -----      -----    
Net  revenue:(a)                                                                                                                          
                                                                                                                                                        
    Printing  and                                                                                                                            
      Personal  Systems                                                                                                                  
      Group                                                                                                                                        
        Personal  Systems                                                                                                                
            Notebooks              $          4,335    $          4,461    $          4,128          (3%)          5%  
            Desktops                            3,274                3,273                3,321            0%          (1%)
            Workstations                        533                    554                    535          (4%)          0%  
            Other                                      388                    316                    248          23%          56%  
                                            -----------    -----------    -----------                                  
                Total                                                                                                                              
                  Personal                                                                                                                      
                  Systems                        8,530                8,604                8,232          (1%)          4%  
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Printing                                                                                                                                
            Supplies                            3,795                3,862                3,893          (2%)        (3%)
            Commercial                                                                                                                        
              Hardware                          1,347                1,554                1,374        (13%)        (2%)
            Consumer                                                                                                                            
              Hardware                              673                    631                    679            7%          (1%)
                                            -----------    -----------    -----------                                  
                Total                                                                                                                              
                  Printing                      5,815                6,047                5,946          (4%)        (2%)
                                            -----------    -----------    -----------                                  
                    Total                                                                                                                          
                      Printing                                                                                                                  
                      and                                                                                                                            
                      Personal                                                                                                                  
                      Systems                                                                                                                    
                      Group                      14,345              14,651              14,178          (2%)          1%  
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Enterprise  Group                                                                                                                
            Industry                                                                                                                            
              Standard                                                                                                                          
              Servers                            3,178                3,451                2,994          (8%)          6%  
            Technology                                                                                                                        
              Services                          2,123                2,182                2,207          (3%)        (4%)
            Storage                                  834                    952                    833        (12%)          0%  
            Networking                            630                    656                    608          (4%)          4%  
            Business                                                                                                                            
              Critical                                                                                                                          
              Systems                                228                    334                    306        (32%)      (25%)
                                            -----------    -----------    -----------                                  
                Total                                                                                                                              
                  Enterprise                                                                                                                  
                  Group                            6,993                7,575                6,948          (8%)          1%  
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Enterprise                                                                                                                            
          Services                                                                                                                              
            Infrastructure                                                                                                                
              Technology                                                                                                                      
              Outsourcing                    3,501                3,722                3,855          (6%)        (9%)
            Application  and                                                                                                              
              Business                                                                                                                          
              Services                          2,094                2,196                2,183          (5%)        (4%)
                                            -----------    -----------    -----------                                  
                Total                                                                                                                              
                  Enterprise                                                                                                                  
                  Services                      5,595                5,918                6,038          (5%)        (7%)
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Software                                    916                1,093                    951        (16%)        (4%)
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        HP  Financial                                                                                                                        
          Services                                  870                    912                    957          (5%)        (9%)
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Corporate                                                                                                                              
          Investments                            288                        5                        4          NM            NM    
                                            -----------    -----------    -----------                                  
                Total                                                                                                                              
                  segments                    29,007              30,154              29,076          (4%)          0%  
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
        Elimination  of                                                                                                                    
          intersegment  net                                                                                                              
          revenue  and                                                                                                                        
          other                                      (853)            (1,023)                (717)      (17%)        19%  
                                            -----------    -----------    -----------                                  
                                                                                                                                                        
            Total  HP                                                                                                                            
              consolidated                                                                                                                  
              net  revenue        $        28,154    $        29,131    $        28,359          (3%)        (1%)
                                            ===========    ===========    ===========                                  
                                                                                                                                                        
(a)    Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2014,  HP          
          implemented  certain  organizational  changes  to  align  its  segment                
          financial  reporting  more  closely  with  its  current  business  structure.    
          These  organizational  changes  include  (i)  transferring  the  HP  Exstream    
          business  from  the  Commercial  Hardware  business  unit  within  the  Printing
          segment  to  the  Software  segment;  (ii)  transferring  the  Personal  Systems
          trade  and  warranty  support  business  from  the  Technology  Services              
          business  unit  within  the  Enterprise  Group  segment  to  the  Other  business
          unit  within  the  Personal  Systems  segment;  (iii)  transferring  the  spare  
          and  replacement  parts  business  supporting  the  Personal  Systems  and          
          Printing  segments  from  the  Technology  Services  business  unit  within  the
          Enterprise  Group  segment  to  the  Other  business  unit  within  the  Personal
          Systems  segment  and  the  Commercial  Hardware  business  unit  within  the      
          Printing  segment,  respectively;  and  (iv)  transferring  certain  cloud-      
          related  incubation  activities  previously  reported  in  Corporate  and          
          unallocated  costs  and  eliminations  and  in  the  Enterprise  Group  segment  
          to  the  Corporate  Investments  segment.  In  addition,  HP  transferred            
          certain  intrasegment  eliminations  from  the  Enterprise  Services  segment  
          and  the  Enterprise  Group  segment  to  corporate  intersegment  revenue          
          eliminations.                                                                                                                    
                                                                                                                                                        
          HP  reflected  these  changes  to  its  segment  information  in  prior                  
          reporting  periods  on  an  as-if  basis,  which  resulted  in  the  transfer  of  
          revenue  among  the  Personal  Systems,  Printing,  the  Enterprise  Group,        
          Enterprise  Services  and  Software  segments.  These  changes  had  no  impact  
          on  HP's  previously  reported  consolidated  net  revenue,  earnings  from        
          operations,  net  earnings  or  net  earnings  per  share.                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                      SEGMENT  OPERATING  MARGIN  SUMMARY  DATA                                        
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                      Three  months    Change  in  Operating  Margin  
                                                                              ended                                (pts)                      
                                                                      ------------    --------------------------  
                                                                      January  31,                                                            
                                                                              2014                      Q/Q                      Y/Y          
                                                                      ------------    ------------    ------------  
                                                                                                                                                        
Segment  operating  margin:(a)                                                                                                
    Personal  Systems                                                    3.3%            0.2  pts              0.5  pts  
    Printing                                                                  16.8%          (1.1  pts)            0.5  pts  
        Printing  and  Personal  Systems                                                                                      
          Group                                                                    8.8%          (0.4  pts)            0.3  pts  
                                                                                                                                                        
    Enterprise  Group                                                  14.4%                        -            (1.0  pts)
    Enterprise  Services                                              1.0%          (3.3  pts)          (0.3  pts)
    Software                                                                  15.8%        (14.4  pts)          (0.5  pts)
    HP  Financial  Services                                        11.6%            0.4  pts              1.0  pts  
    Corporate  Investments                                        42.0%                      NM                        NM  
        Total  segments                                                    9.3%          (0.8  pts)            0.6  pts  
                                                                                                                                                      
(a)  Effective  at  the  beginning  of  its  first  quarter  of  fiscal  2014,  HP          
        implemented  certain  organizational  changes  to  align  its  segment                
        financial  reporting  more  closely  with  its  current  business  structure.    
        These  organizational  changes  include  (i)  transferring  the  HP  Exstream    
        business  from  the  Commercial  Hardware  business  unit  within  the  Printing
        segment  to  the  Software  segment;  (ii)  transferring  the  Personal  Systems
        trade  and  warranty  support  business  from  the  Technology  Services              
        business  unit  within  the  Enterprise  Group  segment  to  the  Other  business
        unit  within  the  Personal  Systems  segment;  (iii)  transferring  the  spare  
        and  replacement  parts  business  supporting  the  Personal  Systems  and          
        Printing  segments  from  the  Technology  Services  business  unit  within  the
        Enterprise  Group  segment  to  the  Other  business  unit  within  the  Personal
        Systems  segment  and  the  Commercial  Hardware  business  unit  within  the      
        Printing  segment,  respectively;  and  (iv)  transferring  certain  cloud-      
        related  incubation  activities  previously  reported  in  Corporate  and          
        unallocated  costs  and  eliminations  and  in  the  Enterprise  Group  segment  
        to  the  Corporate  Investments  segment.  In  addition,  HP  transferred            
        certain  intrasegment  eliminations  from  the  Enterprise  Services  segment  
        and  the  Enterprise  Group  segment  to  corporate  intersegment  revenue          
        eliminations.                                                                                                                    
                                                                                                                                                      
        HP  reflected  these  changes  to  its  segment  information  in  prior                  
        reporting  periods  on  an  as-if  basis,  which  resulted  in  the  transfer  of  
        revenue  among  the  Personal  Systems,  Printing,  the  Enterprise  Group,        
        Enterprise  Services  and  Software  segments.  These  changes  also  resulted  
        in  the  transfer  of  operating  profit  among  the  Personal  Systems,                
        Printing,  the  Enterprise  Group,  Software  and  Corporate  Investments          
        segments.  These  changes  had  no  impact  on  HP's  previously  reported            
        consolidated  net  revenue,  earnings  from  operations,  net  earnings  or  net
        earnings  per  share.                                                                                                        
                                                                                                                                                      
                                                                                                                                                      
                                                                                                                                                      
                                    HEWLETT-PACKARD  COMPANY  AND  SUBSIDIARIES                                    
                                CALCULATION  OF  DILUTED  NET  EARNINGS  PER  SHARE                              
                                                                  (Unaudited)                                                                
                                      (In  millions  except  per  share  amounts)                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                  Three  months  ended                  
                                                                              -------------------------------------
                                                                              January  31,    October  31,    January  31,
                                                                                      2014                  2013                  2013      
                                                                              -----------    -----------    -----------
                                                                                                                                                        
Numerator:                                                                                                                                    
    GAAP  net  earnings                                        $          1,425    $          1,414    $          1,232
                                                                              ===========    ===========    ===========
    Non-GAAP  net  earnings                                $          1,742    $          1,959    $          1,605
                                                                              ===========    ===========    ===========
                                                                                                                                                        
Denominator:                                                                                                                                
    Weighted-average  number  of  shares                                                                                  
      outstanding  duirng  the  reporting                                                                                  
      period                                                                        1,907                1,918                1,953
    Dilutive  effect  of  employee  stock                                                                                  
      plans(a)                                                                          28                      22                        3
                                                                              -----------    -----------    -----------
        Weighted-average  number  of  shares                                                                              
          used  to  compute  diluted  net                                                                                        
          earnings  per  share                                            1,935                1,940                1,956
                                                                              ===========    ===========    ===========
                                                                                                                                                        
GAAP  diluted  net  earnings  per  share        $            0.74    $            0.73    $            0.63
                                                                              ===========    ===========    ===========
Non-GAAP  diluted  net  earnings  per                                                                                      
  share                                                                  $            0.90    $            1.01    $            0.82
                                                                              ===========    ===========    ===========
                                                                                                                                                        
(a)    Includes  any  dilutive  effect  of  outstanding  stock  options,  performance-
          based  restricted  units,  restricted  stock  units  and  restricted  stock.      
                                                                                                                                                        
 

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