EX-12 7 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Statement of Computation of Ratio of Earnings to Fixed Charges/(1)/
Years ended October 31, ------------------------------------ 2001 2000 1999 1998 1997 ------ ------ ------ ------ ------ (In millions, except ratios) Earnings from continuing operations before extraordinary item, cumulative effect of change in accounting principle and taxes........................................................... $ 702 $4,625 $4,194 $3,694 $3,568 Minority interest in the income of subsidiaries with fixed charges......................................................... 10 4 14 4 22 Undistributed (earnings) or loss of equity method investees....... (30) (52) 6 7 (7) Fixed charges from continuing operations: Interest expense and amortization of debt discount and premium on all indebtedness.................................. 285 257 202 235 215 Interest included in rent...................................... 155 141 130 120 107 ------ ------ ------ ------ ------ Total fixed charges from continuing operations............. 440 398 332 355 322 Earnings before extraordinary item, cumulative effect of change in accounting principle, income taxes, minority interest, undistributed earnings or loss of equity investees and fixed charges......................................................... $1,122 $4,975 $4,546 $4,060 $3,905 ====== ====== ====== ====== ====== Ratio of earnings to fixed charges................................ 2.6x 12.5x 13.7x 11.4x 12.1x
--------------------- (1) The ratio of earnings to fixed charges was computed by dividing earnings (earnings from continuing operations before extraordinary item, cumulative effect of change in accounting principle and taxes, adjusted for fixed charges from continuing operations, minority interest in the income of subsidiaries with fixed charges and undistributed earnings or loss of equity method investees) by fixed charges from continuing operations for the periods indicated. Fixed charges from continuing operations include (i) interest expense and amortization of debt discount or premium on all indebtedness, and (ii) a reasonable approximation of the interest factor deemed to be included in rental expense.