EX-12 7 a2160914zex-12.htm EXHIBIT 12
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Exhibit 12

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

			Nine Months Ended July 31, 2005		Fiscal Years Ended October 31
			Nine Months Ended July 31, 2005		2004			2003		2002			2001			2000
			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⁾		$	3,162	$	4,196		$	2,888	$	(1,021	)	$	791		$	4,625
	Adjustments:
		Minority interest in the income of subsidiaries with fixed charges		11		12			15		7			10			4
		Undistributed loss (earnings) of equity method investees		1		(2	)		22		46			(30	)		(52	)
		Fixed charges from continuing operations		635		687			710		439			440			398

			$	3,809	$	4,893		$	3,635	$	(529	)	$	1,211		$	4,975

Fixed charges from continuing operations:
	Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other		$	317	$	257		$	304	$	255		$	285		$	257
	Interest included in rent			318		430			406		184			155			141

Total fixed charges from continuing operations			$	635	$	687		$	710	$	439		$	440		$	398

Ratio of earnings to fixed charges (excess of fixed charges over earnings)				6.0x		7.1x			5.1x	$	(968	)		2.8x			12.5x

⁽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 on borrowings and amortization of debt discount or premium on all indebtedness and other, 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.