EX-12 4 a2125373zex-12.htm EXHIBIT 12
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Exhibit 12

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Statement of Computation of Ratio of Earnings to Fixed Charges⁽¹⁾

			Fiscal Years Ended October 31,
			2003		2002			2001			2000			1999
			In millions, except ratios
Earnings (loss) from continuing operations:
	Earnings (loss) from continuing operations before cumulative effect of change in accounting principle and taxes⁽²⁾		$	2,888	$	(1,021	)	$	791		$	4,625		$	4,194
	Adjustments:
		Minority interest in the income of subsidiaries with fixed charges		15		7			10			4			14
		Undistributed loss (earnings) of equity method investees		22		46			(30	)		(52	)		6
		Fixed charges from continuing operations		710		439			440			398			332

			$	3,635	$	(529	)	$	1,211		$	4,975		$	4,546

Fixed charges from continuing operations:
	Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other		$	304	$	255		$	285		$	257		$	202
	Interest included in rent			406		184			155			141			130

	Total fixed charges from continuing operations		$	710	$	439		$	440		$	398		$	332

Ratio of earnings to fixed charges (excess of fixed charges over earnings)				5.1x	$	(968	)		2.8x			12.5x			13.7x

⁽¹⁾: We computed the ratio of earnings to fixed charges by dividing earnings (earnings from continuing operations before 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.
⁽²⁾: We restated earnings (loss) from continuing operations before cumulative effect of change in accounting principle and taxes for the effects of adopting SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections." HP adopted SFAS No. 145 effective November 1, 2002 and reclassified the gains on the early extinguishment of its debt and related taxes that were previously recorded in the Consolidated Condensed Statement of Earnings as an extraordinary item to (losses) gains on investments and other, net and provision for taxes, respectively.