10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: January 31, 2015
Or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                        to
Commission file number 1-4423

HEWLETT-PACKARD COMPANY
(Exact name of registrant as specified in its charter)

Delaware	94-1081436
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
3000 Hanover Street, Palo Alto, California	94304
(Address of principal executive offices)	(Zip code)
(650) 857-1501 (Registrant's telephone number, including area code)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ý    No o

        Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ý    No o

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a smaller
reporting company) Smaller reporting company o

        Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes o    No ý

        The number of shares of HP common stock outstanding as of February 28, 2015 was 1,817,558,730 shares.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Form 10-Q
For the Quarterly Period ended January 31, 2015
Table of Contents

			Page
Forward-Looking Statements				2
Part I.	Financial Information			4
	Item 1.	Financial Statements and Supplementary Data		4
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		60
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		97
	Item 4.	Controls and Procedures		97
Part II.	Other Information			99
	Item 1.	Legal Proceedings		99
	Item 1A.	Risk Factors		99
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		99
	Item 5.	Other Information		99
	Item 6.	Exhibits		99
Signature				100
Exhibit Index				101

Forward-Looking Statements

This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I, 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 Hewlett-Packard Company and its consolidated subsidiaries ("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, effective tax rates, 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 previously announced separation transaction and the future performances of the post-separation companies if the separation is completed, as well as 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, including the planned separation transaction; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and the delivery of HP's 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, clients 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 the separation transaction or restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP's business) and the anticipated benefits of

2

implementing the separation transaction and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described herein, including but not limited to the items discussed in "Risk Factors" in Item 1A of Part II of this report and that are otherwise described or updated from time to time in HP's Securities and Exchange Commission reports. HP assumes no obligation and does not intend to update these forward-looking statements.

3

Part I. Financial Information

ITEM 1.    Financial Statements and Supplementary Data.

Index

	Page
Consolidated Condensed Statements of Earnings for the three months ended January 31, 2015 and 2014 (Unaudited)	5
Consolidated Condensed Statements of Comprehensive Income for the three months ended January 31, 2015 and 2014 (Unaudited)	6
Consolidated Condensed Balance Sheets as of January 31, 2015 (Unaudited) and as of October 31, 2014 (Audited)	7
Consolidated Condensed Statements of Cash Flows for the three months ended January 31, 2015 and 2014 (Unaudited)	8
Notes to Consolidated Condensed Financial Statements (Unaudited)	9
Note 1: Basis of Presentation	9
Note 2: Segment Information	10
Note 3: Restructuring	16
Note 4: Retirement and Post-Retirement Benefit Plans	17
Note 5: Stock-Based Compensation	18
Note 6: Taxes on Earnings	20
Note 7: Balance Sheet Details	23
Note 8: Financing Receivables and Operating Leases	25
Note 9: Goodwill and Intangible Assets	29
Note 10: Fair Value	30
Note 11: Financial Instruments	33
Note 12: Borrowings	40
Note 13: Stockholders' Equity	43
Note 14: Net Earnings Per Share	46
Note 15: Litigation and Contingencies	47
Note 16: Guarantees	58

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Earnings

(Unaudited)

	Three months ended January 31
	2015			2014
	In millions, except per share amounts
Net revenue:
Products	$	18,161		$	18,770
Services		8,583			9,281
Financing income		95			103
Total net revenue		26,839			28,154
Costs and expenses:
Cost of products		14,075			14,525
Cost of services		6,433			7,139
Financing interest		63			72
Research and development		825			811
Selling, general and administrative		3,071			3,210
Amortization of intangible assets		222			283
Restructuring charges		146			114
Acquisition-related charges		4			3
Separation costs		80			—
Total operating expenses		24,919			26,157
Earnings from operations		1,920			1,997
Interest and other, net		(174	)		(163	)
Earnings before taxes		1,746			1,834
Provision for taxes		(380	)		(409	)
Net earnings	$	1,366		$	1,425
Net earnings per share:
Basic	$	0.75		$	0.75
Diluted	$	0.73		$	0.74
Cash dividends declared per share	$	0.32		$	0.29
Weighted-average shares used to compute net earnings per share:
Basic		1,833			1,907
Diluted		1,861			1,935

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

(Unaudited)

	Three months ended January 31
	2015			2014
	In millions
Net earnings	$	1,366		$	1,425
Other comprehensive income before taxes:
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period		46			(1	)
Gains reclassified into earnings		—			(1	)
		46			(2	)
Change in unrealized gains on cash flow hedges:
Unrealized gains arising during the period		631			70
(Gains) losses reclassified into earnings		(334	)		109
		297			179
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit		112			63
Curtailments, settlements and other		(2	)		—
		110			63
Change in cumulative translation adjustment		(68	)		(24	)
Other comprehensive income before taxes		385			216
Provision for taxes		(179	)		(105	)
Other comprehensive income, net of taxes		206			111
Comprehensive income	$	1,572		$	1,536

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

	As of
	January 31, 2015			October 31, 2014
	In millions, except par value
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	12,919		$	15,133
Accounts receivable		12,295			13,832
Financing receivables		2,907			2,946
Inventory		6,575			6,415
Other current assets		13,502			11,819
Total current assets		48,198			50,145
Property, plant and equipment		11,030			11,340
Long-term financing receivables and other assets		8,619			8,454
Goodwill		31,108			31,139
Intangible assets		1,906			2,128
Total assets	$	100,861		$	103,206
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	3,509		$	3,486
Accounts payable		14,873			15,903
Employee compensation and benefits		2,900			4,209
Taxes on earnings		1,565			1,017
Deferred revenue		6,241			6,143
Accrued restructuring		559			898
Other accrued liabilities		12,882			12,079
Total current liabilities		42,529			43,735
Long-term debt		15,552			16,039
Other liabilities		15,876			16,305
Commitments and contingencies
Stockholders' equity:
HP stockholders' equity
Preferred stock, $0.01 par value (300 shares authorized; none issued)		—			—
Common stock, $0.01 par value (9,600 shares authorized; 1,822 and 1,839 shares issued and outstanding at January 31, 2015 and October 31, 2014, respectively)		18			18
Additional paid-in capital		2,538			3,430
Retained earnings		29,626			29,164
Accumulated other comprehensive loss		(5,675	)		(5,881	)
Total HP stockholders' equity		26,507			26,731
Non-controlling interests		397			396
Total stockholders' equity		26,904			27,127
Total liabilities and stockholders' equity	$	100,861		$	103,206

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flows

(Unaudited)

	Three months ended January 31
	2015			2014
	In millions
Cash flows from operating activities:
Net earnings	$	1,366		$	1,425
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		1,028			1,117
Stock-based compensation expense		187			170
Provision for doubtful accounts		(2	)		(4	)
Provision for inventory		64			61
Restructuring charges		146			114
Deferred taxes on earnings		(173	)		9
Excess tax benefit from stock-based compensation		(109	)		(27	)
Other, net		138			(33	)
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable		1,540			2,391
Financing receivables		222			296
Inventory		(224	)		(19	)
Accounts payable		(852	)		(1,165	)
Taxes on earnings		293			170
Restructuring		(483	)		(381	)
Other assets and liabilities		(2,397	)		(1,134	)
Net cash provided by operating activities		744			2,990
Cash flows from investing activities:
Investment in property, plant and equipment		(947	)		(997	)
Proceeds from sale of property, plant and equipment		130			450
Purchases of available-for-sale securities and other investments		(50	)		(135	)
Maturities and sales of available-for-sale securities and other investments		30			465
Payments made in connection with business acquisitions		(1	)		—
Net cash used in investing activities		(838	)		(217	)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net		77			2
Issuance of debt		299			2,005
Payment of debt		(911	)		(45	)
Issuance of common stock under employee stock plans		181			83
Repurchase of common stock		(1,571	)		(565	)
Excess tax benefit from stock-based compensation		109			27
Cash dividends paid		(304	)		(278	)
Net cash (used in) provided by financing activities		(2,120	)		1,229
Net (decrease) increase in cash and cash equivalents		(2,214	)		4,002
Cash and cash equivalents at beginning of period		15,133			12,163
Cash and cash equivalents at end of period	$	12,919		$	16,165
Supplemental schedule of non-cash investing and financing activities:
Purchase of assets under capital leases	$	—		$	95

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements

(Unaudited)

Note 1: Basis of Presentation

        In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements of Hewlett-Packard Company and its consolidated subsidiaries ("HP") contain all adjustments, including normal recurring adjustments, necessary to present fairly HP's financial position as of January 31, 2015 and October 31, 2014 and its results of operations and cash flows for the three months ended January 31, 2015 and January 31, 2014.

        The results of operations and cash flows for the three months ended January 31, 2015 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2014, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, included therein.

Principles of Consolidation

        The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of HP and other subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. HP accounts for investments in companies over which HP has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated Condensed Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated Condensed Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Condensed Statements of Earnings and are not presented separately as they were not material for any period presented. HP has eliminated all intercompany accounts and transactions.

Reclassifications

        HP has implemented certain segment and business unit realignments in order to align its segment financial reporting more closely with its current business structure. Reclassifications of certain prior-year segment and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share ("EPS"). See Note 2 for a further discussion of HP's segment realignment.

Use of Estimates

        The preparation of financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates.

Subsequent Event

        On March 2, 2015, HP announced it has entered into a definitive agreement to acquire Aruba Networks Inc. ("Aruba"), a leading provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 1: Basis of Presentation (Continued)

billion, and net of cash and debt is approximately $2.7 billion. Both companies' boards of directors have approved the transaction. This acquisition will be integrated into HP's Networking business unit within the Enterprise Group ("EG") segment. The transaction is expected to close in the second half of HP's fiscal 2015, subject to approval by Aruba's stockholders, regulatory approvals in the US and other countries as well as other customary closing conditions.

Accounting Pronouncements

        In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP is required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. HP is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Condensed Financial Statements.

Note 2: Segment Information

        HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses ("SMBs") and large enterprises, including customers in the government, health and education sectors. HP's offerings span the following:

•

personal computing and other access devices;

•

imaging- and printing-related products and services;

•

enterprise information technology ("IT") infrastructure, including enterprise server and storage technology, networking products and solutions, and technology support and maintenance;

•

multi-vendor customer services, including technology consulting, outsourcing and support services across infrastructure, applications and business process domains; and

•

software, products and solutions, including application testing and delivery, big data analytics, enterprise security, information governance, IT operations management, and marketing optimization.

        HP's operations are organized into seven segments for financial reporting purposes: Personal Systems, Printing, EG, Enterprise Services ("ES"), Software, HP Financial Services ("HPFS") and Corporate Investments. HP's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP's management to evaluate segment results.

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). While PPS is not a reportable segment, HP may provide financial data aggregating the Personal Systems and the Printing segments in order to provide a supplementary view of its business.

        A summary description of each segment follows.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Segment Information (Continued)

        The Printing and Personal Systems Group's mission is to leverage the respective strengths of the Personal Systems business and the Printing business by creating a unified organization that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the segments within PPS is described below.

Personal Systems provides commercial personal computers ("PCs"), consumer PCs, workstations, thin clients, tablets, retail point-of-sale systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops, commercial tablets, workstations and thin clients into commercial clients and consumer notebooks, consumer desktops and consumer tablets into consumer clients when describing performance in these markets. Described below are HP's global business capabilities within Personal Systems.

•

Commercial PCs are optimized for use by customers, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments.

•

Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion, HP Chromebook, HP Split, HP Slate and HP Stream series of multi-media consumer notebooks, consumer tablets, hybrids and desktops.

Printing provides consumer and commercial printer hardware, supplies, media, software and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial markets. HP groups LaserJet, large format printers and commercial inkjet printers into Commercial Hardware and consumer inkjet printers into Consumer Hardware when describing performance in these markets. Described below are HP's global business capabilities within Printing.

•

LaserJet and Enterprise Solutions deliver HP's LaserJet and enterprise products, services and solutions to the SMB and enterprise segments. Managed Print Services provides printing equipment, supplies, support, workflow optimization and security services for SMB and enterprise customers around the world, utilizing proprietary HP tools and fleet management solutions as well as third-party software.

•

Inkjet and Printing Solutions deliver HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). Ongoing initiatives and programs such as Ink in the Office and Ink Advantage and newer initiatives such as Instant Ink provide innovative printing solutions to consumers and SMBs.

•

Graphics Solutions deliver large format printers (Designjet, Large Format Production, and Scitex Industrial), specialty printing, digital press solutions (Indigo and Inkjet Webpress), supplies and services to print service providers and design and rendering customers.

•

Software and Web Services delivers a suite of solutions and services, including photo-storage, printing offerings such as Snapfish and web-connected printing services.

        The Enterprise Group provides servers, storage, networking and technology services that, when combined with HP's Cloud solutions, enable customers to manage applications across public cloud, virtual private cloud, private cloud and traditional IT environments. Described below are HP's business units and capabilities within EG.

•

Industry Standard Servers offers a range of products from entry-level servers through premium ProLiant servers, which run primarily Windows, Linux and virtualization platforms from software

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Segment Information (Continued)

providers such as Microsoft Corporation ("Microsoft") and VMware, Inc. ("VMware") and open sourced software from other major vendors while leveraging x86 processors from Intel Corporation ("Intel") and Advanced Micro Devices, Inc. ("AMD").

•

Business Critical Systems offers HP Integrity servers based on the Intel® Itanium® processor, HP Integrity NonStop solutions and mission-critical x86 ProLiant servers.

•

Storage offers traditional storage and Converged Storage solutions. Traditional storage includes tape, storage networking and legacy external disk products such as EVA and XP. Converged Storage solutions include 3PAR StoreServ, StoreOnce and StoreVirtual products.

•

Networking offers switches, routers, wireless local area network and network management products that span the data center, campus and branch environments and deliver software-defined networking and unified communications capabilities.

•

Technology Services provides support services and technology consulting optimizing EG's hardware platforms, and focuses on cloud, mobility and big data. These services are available in the form of service contracts, pre-packaged offerings or on a customized basis.

Enterprise Services provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. ES is comprised of the Infrastructure Technology Outsourcing ("ITO") and the Application and Business Services ("ABS") business units.

•

Infrastructure Technology Outsourcing delivers comprehensive services that encompass the management of data centers, IT security, cloud computing, workplace technology, networks, unified communications and enterprise service management.

•

Application and Business Services helps clients develop, revitalize and manage their applications and information assets.

Software provides application testing and delivery, big data analytics, enterprise security, information governance, IT operations management, and marketing optimization solutions for businesses and enterprises of all sizes. Our software offerings include licenses, support, professional services and software-as-a-service ("SaaS").

HP Financial Services provides flexible investment solutions, such as leasing, financing, utility programs and asset management services, for customers to enable the creation of unique technology deployment models and acquire complete IT solutions, including hardware, software and services from HP and others. Providing flexible services and capabilities that support the entire IT lifecycle, HPFS partners with customers globally to help build investment strategies that enhance their business agility and support their business transformation. HPFS offers a wide selection of investment solution capabilities for large enterprise customers and channel partners, along with an array of financial options to SMBs and educational and governmental entities.

Corporate Investments includes HP Labs and certain cloud-related business incubation projects amongst others.

Segment Policy

        HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive segment results are substantially the same as those the consolidated company uses. Management measures the performance of each segment based on

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Segment Information (Continued)

several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the segments.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by HPFS. HP's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.

        HP periodically engages in intercompany advanced royalty payment and licensing arrangements that may result in advance payments between subsidiaries. Revenues from these intercompany arrangements are deferred and recognized as earned over the term of the arrangement by the HP legal entities involved in such transactions; however, these advanced payments are eliminated from revenues as reported by HP and its business segments. As disclosed in Note 6, in the first quarter of fiscal 2015, HP executed an intercompany advanced royalty payment arrangement resulting in advanced payments of $8.2 billion, while during fiscal 2014 HP executed a multi-year intercompany licensing arrangement and intercompany advanced royalty payment arrangement which resulted in combined advanced payments of $11.5 billion. In these transactions, the payments were received in the U.S. from a foreign consolidated affiliate, with a deferral of intercompany revenues over the term of the arrangements, approximately 5 years and 15 years, respectively. The impact of these intercompany arrangements is eliminated from both HP consolidated and segment revenues.

        Financing interest in the Consolidated Condensed Statements of Earnings reflects interest expense on debt attributable to HPFS. Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries.

        HP does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate governance costs, stock-based compensation expense, amortization of intangible assets, restructuring charges, separation costs and acquisition-related charges.

Segment Realignment

        Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third-party multi-vendor support arrangements from the Technology Services ("TS") business unit within the EG segment to the Infrastructure Technology Outsourcing business unit within the ES segment.

        HP has reflected this change to its segment information retrospectively to the earliest period presented, which has resulted in the removal of intersegment revenue from the Technology Services business unit within the EG segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the TS business unit within the EG segment to the Infrastructure Technology Outsourcing business unit within the ES segment. This change had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Segment Information (Continued)

        There have been no material changes to the total assets of HP's individual segments since October 31, 2014.

Segment Operating Results

	Personal Systems and Printing Group
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
	In millions
Three months ended January 31, 2015
Net revenue	$	8,286	$	5,485	$	6,680	$	4,780	$	811	$	781	$	16		$	26,839
Intersegment net revenue and other		258		58		301		213		60		22		—			912
Total segment net revenue	$	8,544	$	5,543	$	6,981	$	4,993	$	871	$	803	$	16		$	27,751
Earnings from operations	$	313	$	1,067	$	1,090	$	148	$	157	$	90	$	(124	)	$	2,741
Three months ended January 31, 2014
Net revenue	$	8,310	$	5,782	$	6,791	$	5,283	$	846	$	854	$	288		$	28,154
Intersegment net revenue and other		220		33		179		312		70		16		—			830
Total segment net revenue	$	8,530	$	5,815	$	6,970	$	5,595	$	916	$	870	$	288		$	28,984
Earnings from operations	$	279	$	979	$	1,003	$	60	$	145	$	101	$	121		$	2,688

        The reconciliation of segment operating results to HP consolidated results was as follows:

	Three months ended January 31
	2015			2014
	In millions
Net Revenue:
Total segments	$	27,751		$	28,984
Elimination of intersegment net revenue and other		(912	)		(830	)
Total HP consolidated net revenue	$	26,839		$	28,154
Earnings before taxes:
Total segment earnings from operations	$	2,741		$	2,688
Corporate and unallocated costs and eliminations		(182	)		(121	)
Stock-based compensation expense		(187	)		(170	)
Amortization of intangible assets		(222	)		(283	)
Restructuring charges		(146	)		(114	)
Acquisition-related charges		(4	)		(3	)
Separation costs		(80	)		—
Interest and other, net		(174	)		(163	)
Total HP consolidated earnings before taxes	$	1,746		$	1,834

14

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 2: Segment Information (Continued)

        Net revenue by segment and business unit was as follows:

	Three months ended January 31
	2015			2014
	In millions
Notebooks	$	4,724		$	4,335
Desktops		2,949			3,274
Workstations		526			533
Other		345			388
Personal Systems		8,544			8,530
Supplies		3,601			3,795
Commercial Hardware		1,316			1,347
Consumer Hardware		626			673
Printing		5,543			5,815
Total Printing and Personal Systems Group		14,087			14,345
Industry Standard Servers		3,387			3,178
Technology Services		1,987			2,100
Storage		837			834
Networking		562			630
Business Critical Systems		208			228
Enterprise Group		6,981			6,970
Infrastructure Technology Outsourcing		3,132			3,501
Application and Business Services		1,861			2,094
Enterprise Services		4,993			5,595
Software		871			916
HP Financial Services		803			870
Corporate Investments		16			288
Total segment net revenue		27,751			28,984
Eliminations of intersegment net revenue and other		(912	)		(830	)
Total net revenue	$	26,839		$	28,154

15

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 3: Restructuring

Summary of Restructuring Plans

        HP's restructuring activities summarized by plan were as follows:

			Three months ended January 31, 2015											As of January 31, 2015
	Balance, October 31, 2014		Charges			Cash Payments			Other Adjustments and Non-Cash Settlements			Balance, January 31, 2015		Total Costs Incurred to Date		Total Expected Costs to Be Incurred
	In millions
Fiscal 2012 Plan
Severance and EER	$	955	$	133		$	(439	)	$	(45	)	$	604	$	4,526	$	5,000
Infrastructure and other		98		17			(39	)		(3	)		73		532		540
Total 2012 Plan		1,053		150			(478	)		(48	)		677		5,058		5,540
Other Plans:
Severance		7		—			—			(1	)		6		2,629		2,629
Infrastructure		54		(4	)		(5	)		(1	)		44		1,429		1,433
Total Other Plans		61		(4	)		(5	)		(2	)		50		4,058		4,062
Total restructuring plans	$	1,114	$	146		$	(483	)	$	(50	)	$	727	$	9,116	$	9,602
Reflected in Consolidated Balance Sheets:
Accrued restructuring	$	898										$	559
Other liabilities	$	216										$	168

Fiscal 2012 Restructuring Plan

        On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP estimates that it will eliminate approximately 55,000 positions in connection with the 2012 Plan through fiscal 2015, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. As of October 31, 2014 HP estimated that it will recognize approximately $5.5 billion in aggregate charges in connection with the 2012 Plan. HP expects approximately $5.0 billion to relate to workforce reductions, including the EER programs, and approximately $0.5 billion to relate to infrastructure, including data center and real estate consolidation, and other items. As of January 31, 2015, HP had recorded $5.1 billion in aggregate charges of which $4.5 billion related to workforce reductions and $532 million related to infrastructure, including data center and real estate consolidation, and other items. HP expects to record the remaining charges through the end of HP's 2015 fiscal year as the accounting recognition criteria are met. As of January 31, 2015, HP had eliminated approximately 43,700 positions for which a severance payment has been or will be made as part of the 2012 Plan. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021.

Other Plans

        Restructuring plans initiated by HP in fiscal 2008 and 2010 were substantially completed as of January 31, 2015. Severance- and infrastructure-related cash payments associated with the other plans are expected to be paid out through fiscal 2019.

16

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 4: Retirement and Post-Retirement Benefit Plans

        HP's net pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings was as follows:

	Three months ended January 31
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
	In millions
Service cost	$	—		$	—		$	86		$	78		$	1		$	1
Interest cost		143			142			163			183			7			8
Expected return on plan assets		(217	)		(203	)		(305	)		(282	)		(9	)		(8	)
Amortization and deferrals:
Actuarial loss (gain)		13			4			112			78			(3	)		(3	)
Prior service benefit		—			—			(5	)		(6	)		(5	)		(10	)
Net periodic benefit (credit) cost		(61	)		(57	)		51			51			(9	)		(12	)
Special termination benefits		—			—			6			6			—			(11	)
Net benefit (credit) cost	$	(61	)	$	(57	)	$	57		$	57		$	(9	)	$	(23	)

Employer Contributions and Funding Policy

        HP's policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2014 that it expected to contribute approximately $686 million in fiscal 2015 to its non-U.S. pension plans and expected to pay approximately $35 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $47 million to cover benefit claims for HP's post-retirement benefit plans.

        During the three months ended January 31, 2015, HP contributed $54 million to its non-U.S. pension plans, paid $8 million to cover benefit payments to U.S. non-qualified plan participants, and paid $12 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2015, HP anticipates making additional contributions of approximately $632 million to its non-U.S. pension plans and approximately $27 million to its U.S. non-qualified plan participants and expects to pay approximately $35 million to cover benefit claims under HP's post-retirement benefit plans.

        HP's pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and

17

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 4: Retirement and Post-Retirement Benefit Plans (Continued)

amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

Note 5: Stock-Based Compensation

        HP's stock-based compensation plans include HP's principal equity plans as well as various equity plans assumed through business combinations. HP's principal equity plans permit the issuance of restricted stock awards, stock options and performance-based awards.

        Stock-based compensation expense and the resulting tax benefits were as follows:

	Three months ended January 31
	2015			2014
	In millions
Stock-based compensation expense	$	187		$	170
Income tax benefit		(60	)		(53	)
Stock-based compensation expense, net of tax	$	127		$	117

Restricted Stock Awards

        Restricted stock awards are non-vested stock awards that may include grants of restricted stock or restricted stock units. For the three months ended January 31, 2015, HP granted only restricted stock units.

        A summary of restricted stock award activity is as follows:

	Three months ended January 31, 2015
	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at beginning of period		40,808		$	24
Granted		14,738		$	37
Vested		(15,749	)	$	23
Forfeited		(733	)	$	25
Outstanding at end of period		39,064		$	30

        At January 31, 2015, there was $852 million of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expects to recognize over the remaining weighted-average vesting period of 1.6 years.

18

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 5: Stock-Based Compensation (Continued)

Stock Options

        HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows:

	Three months ended January 31
	2015			2014
Weighted-average fair value of grants per option(1)	$	8.04		$	7.45
Expected volatility(2)		26.3	%		33.6	%
Risk-free interest rate(3)		1.7	%		1.8	%
Expected dividend yield(4)		1.7	%		2.2	%
Expected term in years(5)		5.8			5.7

⁽¹⁾

The weighted-average fair value was based on stock options granted during the period.

⁽²⁾

For all awards granted in fiscal 2015, expected volatility was estimated using the implied volatility derived from options traded on HP's common stock. For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock.

⁽³⁾

The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.

⁽⁴⁾

The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award.

⁽⁵⁾

For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model.

19

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 5: Stock-Based Compensation (Continued)

        A summary of stock option activity is as follows:

	Three months ended January 31, 2015
	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at beginning of period		57,853		$	27
Granted		7,869		$	37
Exercised		(6,977	)	$	20
Forfeited/cancelled/expired		(14,375	)	$	41
Outstanding at end of period		44,370		$	25		5.6	$	514
Vested and expected to vest at end of period		40,827		$	25		5.5	$	478
Exercisable at end of period		20,921		$	24		4.5	$	278

        The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of the first quarter of fiscal 2015. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the first quarter of fiscal 2015 and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised for the three months ended January 31, 2015 was $134 million.

        At January 31, 2015, there was $90 million of unrecognized pre-tax, stock-based compensation expense related to unvested stock options, which HP expects to recognize over the remaining weighted-average vesting period of 2.2 years.

Note 6: Taxes on Earnings

Provision for Taxes

        HP's effective tax rate was 21.8% and 22.3% for the three months ended January 31, 2015 and 2014, respectively. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world. HP has not provided U.S. taxes for all foreign earnings because HP plans to reinvest some of those earnings indefinitely outside the U.S.

        In the three months ended January 31, 2015, HP recorded $81 million of net tax benefits related to discrete items. These amounts included a tax benefit of $47 million arising from the retroactive research and development credit provided by the Tax Increase Prevention Act of 2014 signed into law in December 2014, a tax benefit of $29 million on separation charges and a tax benefit of $21 million on restructuring charges. These tax benefits were partially offset by various tax charges of $16 million.

        In the three months ended January 31, 2014, HP recorded $22 million of net tax charges related to discrete items. These amounts included $37 million of various tax charges and $15 million of tax benefits on restructuring charges.

20

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Taxes on Earnings (Continued)

Uncertain Tax Positions

        HP is subject to income tax in the U.S. and approximately 105 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The IRS is conducting an audit of HP's 2009, 2010 and 2011 income tax returns. HP has received from the IRS Notices of Deficiency for its fiscal 1999, 2000, 2003, 2004 and 2005 tax years, and Revenue Agent's Reports ("RAR") for its fiscal 2001, 2002, 2006, 2007 and 2008 tax years. In addition, HP expects the IRS to issue an RAR for 2009 relating to certain tax positions taken on the filed tax returns, including matters related to the U.S. taxation of certain intercompany loans. While the RAR may be material in amount, HP believes it has valid positions supporting its tax returns and, if necessary, it will rigorously defend such matters.

        With respect to major foreign and state tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 1999. HP is subject to a foreign tax audit concerning an intercompany transaction for fiscal 2009. The relevant taxing authority has proposed an assessment of approximately $680 million. HP is contesting this proposed assessment.

        HP believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP's tax provision. HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that HP will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows.

        As of January 31, 2015, the amount of unrecognized tax benefits was $4.2 billion, of which up to $2.3 billion would affect HP's effective tax rate if realized. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Condensed Statements of Earnings. As of January 31, 2015, HP had accrued $244 million for interest and penalties.

        HP engages in continuous discussion and negotiation with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $1.5 billion within the next 12 months.

21

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Taxes on Earnings (Continued)

Deferred Tax Assets and Liabilities

        Current and long-term deferred tax assets and liabilities are presented in the Consolidated Condensed Balance Sheets as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Current deferred tax assets	$	3,093		$	2,754
Current deferred tax liabilities		(401	)		(284	)
Long-term deferred tax assets		953			740
Long-term deferred tax liabilities		(1,594	)		(1,124	)
Net deferred tax assets net of deferred tax liabilities	$	2,051		$	2,086

        HP periodically engages in intercompany advanced royalty payment and licensing arrangements that may result in advance payments between subsidiaries in different tax jurisdictions. When the local tax treatment of the intercompany licensing arrangements differs from U.S. GAAP treatment, deferred taxes are recognized. In the first quarter of fiscal 2015, HP executed an intercompany advanced royalty payment arrangement resulting in advanced payments of $8.2 billion, while during fiscal 2014, HP executed a multi-year intercompany licensing arrangement and an intercompany advanced royalty payment arrangement which resulted in combined advanced payments of $11.5 billion, the result of which was the recognition of net U.S. long-term deferred tax assets of $2.1 billion and $1.7 billion in the respective periods. In these transactions, the payments were received in the U.S. from a foreign consolidated affiliate, with a deferral of intercompany revenues over the term of the arrangements, approximately 5 years and 15 years, respectively. Intercompany royalty revenue and the amortization expense related to the licensing rights are eliminated in consolidation.

        Separation costs are expenses associated with HP's plan to separate into two independent publicly-traded companies. These costs include finance, IT, consulting and legal fees, real estate, and other items that are incremental and one-time in nature. HP is recording a deferred tax asset on these costs and expenses as they are incurred through fiscal 2015. We expect a portion of these deferred tax assets associated with separation costs and expenses will be eliminated, as non-deductible expenses, at the time the separation is executed. Furthermore, in future periods we expect to record adjustments to certain deferred tax assets reflecting the impact of separation related activities. HP's results of operations could be materially affected in any particular period by the impact of these matters.

22

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 7: Balance Sheet Details

        Balance sheet details were as follows:

Accounts Receivable, Net

	As of
	January 31, 2015			October 31, 2014
	In millions
Accounts receivable	$	12,513		$	14,064
Allowance for doubtful accounts		(218	)		(232	)
	$	12,295		$	13,832

        The allowance for doubtful accounts related to accounts receivable and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	232
Provision for doubtful accounts, net of recoveries		(3	)
Deductions		(11	)
Balance at end of period	$	218

        HP has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. The maximum, utilized and available program capacity under these revolving short-term financing arrangements was as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Non-recourse arrangements:
Maximum program capacity	$	1,045		$	1,083
Utilized capacity(1)(2)		(406	)		(613	)
Available capacity	$	639		$	470
Partial-recourse arrangements:
Maximum program capacity	$	1,769		$	1,877
Utilized capacity(1)(2)		(1,337	)		(1,500	)
Available capacity	$	432		$	377
Total arrangements:
Maximum program capacity	$	2,814		$	2,960
Utilized capacity(1)(2)		(1,743	)		(2,113	)
Available capacity	$	1,071		$	847

⁽¹⁾

Utilized capacity represents the receivables sold to third parties, but not collected from the customer by the third parties.

23

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 7: Balance Sheet Details (Continued)

⁽²⁾

HP reflects the amounts transferred to but not yet collected from third parties in accounts receivable in the Consolidated Condensed Balance Sheets. These amounts, included in the utilized capacity are as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Non-recourse arrangements	$	1	$	78
Partial-recourse arrangements		293		381
Total arrangements	$	294	$	459

        The activity related to HP's revolving short-term financing arrangements was as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period(1)	$	459
Trade receivables sold		2,760
Cash receipts		(2,893	)
Foreign currency and other		(32	)
Balance at end of period(1)	$	294

⁽¹⁾

Beginning and ending balance represents amounts for trade receivables sold but not yet collected.

Inventory

	As of
	January 31, 2015		October 31, 2014
	In millions
Finished goods	$	4,103	$	3,973
Purchased parts and fabricated assemblies		2,472		2,442
	$	6,575	$	6,415

24

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 7: Balance Sheet Details (Continued)

Property, Plant and Equipment

	As of
	January 31, 2015			October 31, 2014
	In millions
Land	$	540		$	540
Buildings and leasehold improvements		9,068			9,048
Machinery and equipment, including equipment held for lease		15,959			16,664
		25,567			26,252
Accumulated depreciation		(14,537	)		(14,912	)
	$	11,030		$	11,340

        For the three months ended January 31, 2015, the change in gross property, plant and equipment was due primarily to purchases of $0.8 billion, which were partially offset by sales and retirements totaling $1.0 billion and unfavorable currency impacts of $0.3 billion. Accumulated depreciation associated with the assets sold and retired was $0.9 billion.

Note 8: Financing Receivables and Operating Leases

        Financing receivables represent sales-type and direct-financing leases of HP and third-party products. These receivables typically have terms ranging from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The components of financing receivables were as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Minimum lease payments receivable	$	6,729		$	6,982
Unguaranteed residual value		229			235
Unearned income		(528	)		(547	)
Financing receivables, gross		6,430			6,670
Allowance for doubtful accounts		(102	)		(111	)
Financing receivables, net		6,328			6,559
Less: current portion(1)		(2,907	)		(2,946	)
Amounts due after one year, net(1)	$	3,421		$	3,613

⁽¹⁾

HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets.

25

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financing Receivables and Operating Leases (Continued)

Credit Quality Indicators

        Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographic regions. HP evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. HP assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.

        The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Risk Rating:
Low	$	3,374	$	3,536
Moderate		2,967		3,022
High		89		112
Total	$	6,430	$	6,670

        Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. HP classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts for financing receivables is comprised of a general reserve and a specific reserve. HP maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. HP excludes accounts evaluated as part of the specific reserve from the general reserve analysis. HP establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely HP will recover its investment. For individually evaluated receivables, HP determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, HP records a specific reserve. HP generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if HP determines that the receivable is not collectible.

26

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financing Receivables and Operating Leases (Continued)

        The allowance for doubtful accounts related to financing receivables and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts		1
Deductions, net of recoveries		(10	)
Balance at end of period	$	102

        The gross financing receivables and related allowance evaluated for loss were as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Gross financing receivables collectively evaluated for loss	$	6,143	$	6,378
Gross financing receivables individually evaluated for loss		287		292
Total	$	6,430	$	6,670
Allowance for financing receivables collectively evaluated for loss	$	82	$	92
Allowance for financing receivables individually evaluated for loss		20		19
Total	$	102	$	111

Non-Accrual and Past-Due Financing Receivables

        HP considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. HP generally places financing receivables on non-accrual status, which is suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if HP deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status.

27

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 8: Financing Receivables and Operating Leases (Continued)

        The following table summarizes the aging and non-accrual status of gross financing receivables:

	As of
	January 31, 2015		October 31, 2014
	In millions
Billed(1):
Current 1-30 days	$	231	$	243
Past due 31-60 days		44		46
Past due 61-90 days		25		12
Past due >90 days		54		49
Unbilled sales-type and direct-financing lease receivables		6,076		6,320
Total gross financing receivables	$	6,430	$	6,670
Gross financing receivables on non-accrual status(2)	$	131	$	130
Gross financing receivables 90 days past due and still accruing interest(2)	$	156	$	162

⁽¹⁾

Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.

⁽²⁾

Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

Operating Leases

        Operating lease assets included in machinery and equipment in the Consolidated Condensed Balance Sheets were as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Equipment leased to customers	$	3,867		$	3,977
Accumulated depreciation		(1,342	)		(1,382	)
	$	2,525		$	2,595

28

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 9: Goodwill and Intangible Assets

Goodwill

        Goodwill allocated to HP's reportable segments and changes in the carrying amount of goodwill were as follows:

	Three months ended January 31, 2015
	Personal Systems		Printing		Enterprise Group			Enterprise Services(2)			Software		HP Financial Services		Corporate Investments		Total
	In millions
Balance at beginning of period(1)	$	2,588	$	2,591	$	16,867		$	97		$	8,852	$	144	$	—	$	31,139
Goodwill adjustments		—		—		(30	)		(1	)		—		—		—		(31	)
Balance at end of period(1)	$	2,588	$	2,591	$	16,837		$	96		$	8,852	$	144	$	—	$	31,108

⁽¹⁾

Goodwill at January 31, 2015 and October 31, 2014 is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments.

⁽²⁾

Goodwill relates to the MphasiS Limited reporting unit.

        Goodwill is tested for impairment at the reporting unit level. As of January 31, 2015 our reporting units are consistent with the reportable segments identified in Note 2, except for ES, which includes two reporting units: MphasiS Limited; and the remainder of ES.

        HP will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Intangible Assets

        HP's intangible assets are composed of:

	As of January 31, 2015										As of October 31, 2014
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,282	$	(3,361	)	$	(856	)	$	1,065	$	5,289	$	(3,228	)	$	(856	)	$	1,205
Developed and core technology and patents		4,244		(1,341	)		(2,138	)		765		4,266		(1,301	)		(2,138	)		827
Trade name and trade marks		1,693		(281	)		(1,336	)		76		1,693		(261	)		(1,336	)		96
Total intangible assets	$	11,219	$	(4,983	)	$	(4,330	)	$	1,906	$	11,248	$	(4,790	)	$	(4,330	)	$	2,128

29

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 9: Goodwill and Intangible Assets (Continued)

        During the first three months of fiscal 2015, $29 million of intangible assets became fully amortized and have been eliminated from gross intangible assets and accumulated amortization.

        As of January 31, 2015, the estimated future amortization expense related to finite-lived intangible assets was as follows:

Fiscal year:	In millions
2015 (remaining 9 months)	$	651
2016		653
2017		244
2018		147
2019		110
2020		97
Thereafter		4
Total	$	1,906

Note 10: Fair Value

        Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

Fair Value Hierarchy

        HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement:

        Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

        Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.

        Level 3—Unobservable inputs for the asset or liability.

        The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs.

30

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 10: Fair Value (Continued)

        The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis:

	As of January 31, 2015								As of October 31, 2014
	Fair Value Measured Using								Fair Value Measured Using
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	In millions
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	2,678	$	—	$	2,678	$	—	$	2,865	$	—	$	2,865
Money market funds		7,632		—		—		7,632		9,857		—		—		9,857
Mutual funds		—		260		—		260		—		244		—		244
Marketable equity securities		12		95		—		107		14		5		—		19
Foreign bonds		8		342		—		350		9		367		—		376
Other debt securities		—		1		44		45		—		1		46		47
Derivatives:
Interest rate contracts		—		191		—		191		—		105		—		105
Foreign currency contracts		—		1,670		5		1,675		—		862		6		868
Other derivatives		—		6		—		6		—		7		—		7
Total assets	$	7,652	$	5,243	$	49	$	12,944	$	9,880	$	4,456	$	52	$	14,388
Liabilities
Derivatives:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	55	$	—	$	55
Foreign currency contracts		—		512		2		514		—		348		2		350
Total liabilities	$	—	$	512	$	2	$	514	$	—	$	403	$	2	$	405

        For the three months ended January 31, 2015, the transfers between levels within the fair value hierarchy were not material.

Valuation Techniques

        Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data.

        Derivative Instruments: HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and

31

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 10: Fair Value (Continued)

discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign currency rates, and forward and spot prices for currencies and interest rates. See Note 11 for a further discussion of HP's use of derivative instruments.

Other Fair Value Disclosures

        Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of HP's debt that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was $19.6 billion at January 31, 2015, compared to its carrying amount of $19.1 billion at that date. The estimated fair value of HP's short- and long-term debt was $19.9 billion at October 31, 2014, compared to its carrying amount of $19.5 billion at that date. If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy.

        Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy.

        Non-Marketable Equity Investments and Non-Financial Assets: HP's non-marketable equity investments and non-financial assets, such as goodwill, intangible assets and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Consolidated Condensed Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

32

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments

Cash Equivalents and Available-for-Sale Investments

        Cash equivalents and available-for-sale investments were as follows:

	As of January 31, 2015									As of October 31, 2014
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	2,492	$	—	$	—		$	2,492	$	2,720	$	—	$	—		$	2,720
Money market funds		7,632		—		—			7,632		9,857		—		—		$	9,857
Mutual funds		121		—		—			121		110		—		—			110
Total cash equivalents		10,245		—		—			10,245		12,687		—		—			12,687
Available-for-Sale Investments:
Debt securities:
Time deposits		186		—		—			186		145		—		—			145
Foreign bonds		257		93		—			350		286		90		—			376
Other debt securities		59		—		(14	)		45		61		—		(14	)		47
Total debt securities		502		93		(14	)		581		492		90		(14	)		568
Equity securities:
Mutual funds		134		5		—			139		134		—		—			134
Equity securities in public companies		58		45		—			103		8		7		—			15
Total equity securities		192		50		—			242		142		7		—			149
Total available-for-sale investments		694		143		(14	)		823		634		97		(14	)		717
Total cash equivalents and available-for-sale investments	$	10,939	$	143	$	(14	)	$	11,068	$	13,321	$	97	$	(14	)	$	13,404

        All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of January 31, 2015 and October 31, 2014, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside the U.S. as of January 31, 2015 and October 31, 2014. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

        Contractual maturities of investments in available-for-sale debt securities were as follows:

	As of January 31, 2015
	Amortized Cost		Fair Value
	In millions
Due in one year	$	171	$	171
Due in one to five years		3		3
Due in more than five years		328		407
	$	502	$	581

33

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

        Equity securities in privately held companies include cost basis and equity method investments and are included in Long-term financing receivables and other assets in the Consolidated Condensed Balance Sheets. These amounted to $23 million and $97 million at January 31, 2015 and October 31, 2014, respectively.

Derivative Instruments

        HP is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets. HP classifies cash flows from its derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, HP has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-assessing the creditworthiness of its counterparties. Master netting agreements further mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions.

        To further mitigate credit exposure to counterparties, HP has collateral security agreements that allow HP to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of derivatives with credit contingent features in a net liability position was $27 million and $38 million at January 31, 2015 and October 31, 2014, respectively, all of which were fully collateralized within two business days.

        Under HP's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP's financial position or cash flows as of January 31, 2015 and October 31, 2014.

34

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

Fair Value Hedges

        HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial.

        When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges.

        For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.

Cash Flow Hedges

        HP uses a combination of forward contracts and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months; however, hedges related to longer term procurement arrangements extend several years and forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which typically range from two to five years.

        For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of the derivative instrument in Accumulated other comprehensive loss as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item.

Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. HP records the effective portion of such derivative instruments together with changes in the fair value of the hedged items in Cumulative translation adjustment as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets.

35

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

Other Derivatives

        Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability.

        For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other net in the Consolidated Condensed Statements of Earnings in the period of change.

Hedge Effectiveness

        For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged instrument with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge in the Consolidated Condensed Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Condensed Statements of Earnings in the period they arise.

36

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

        The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:

	As of January 31, 2015										As of October 31, 2014
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	10,800	$	4	$	187	$	—	$	—	$	10,800	$	3	$	102	$	—	$	55
Cash flow hedges:
Foreign currency contracts		19,310		1,050		292		181		138		20,196		539		124		131		94
Net investment hedges:
Foreign currency contracts		1,934		105		87		7		6		1,952		44		47		10		8
Total derivatives designated as hedging instruments		32,044		1,159		566		188		144		32,948		586		273		141		157
Derivatives not designated as hedging instruments
Foreign currency contracts		14,235		98		43		149		33		21,384		82		32		82		25
Other derivatives		297		5		1		—		—		361		6		1		—		—
Total derivatives not designated as hedging instruments		14,532		103		44		149		33		21,745		88		33		82		25
Total derivatives	$	46,576	$	1,262	$	610	$	337	$	177	$	54,693	$	674	$	306	$	223	$	182

Offsetting of Derivative Instruments

        HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of January 31, 2015 and October 31, 2014,

37

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

information related to the potential effect of HP's master netting agreements and collateral security agreements was as follows:

	As of January 31, 2015
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	1,872	$	—	$	1,872	$	484	$	1,141		$	247
Derivative liabilities	$	514	$	—	$	514	$	484	$	27	(1)	$	3

⁽¹⁾

Collateral posted through re-use of counterparty cash collateral.

	As of October 31, 2014
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	980	$	—	$	980	$	361	$	452		$	167
Derivative liabilities	$	405	$	—	$	405	$	361	$	29	(1)	$	15

⁽¹⁾

Collateral posted through re-use of counterparty cash collateral.

Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

        The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
		Three months ended January 31							Three months ended January 31
							Hedged Item
Derivative Instrument	Location	2015		2014				Location	2015			2014
		In millions							In millions
Interest rate contracts	Interest and other, net	$	141	$	(24	)	Fixed-rate debt	Interest and other, net	$	(141	)	$	24

38

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

        The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)
	Three months ended January 31							Three months ended January 31
	2015			2014			Location	2015			2014
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	737		$	175		Net revenue	$	334		$	(63	)
Foreign currency contracts		(138	)		(87	)	Cost of products		(26	)		(23	)
Foreign currency contracts		(3	)		—		Other operating expenses		(4	)		(4	)
Foreign currency contracts		35			(18	)	Interest and other, net		30			(19	)
Total cash flow hedges	$	631		$	70			$	334		$	(109	)
Net investment hedges:
Foreign currency contracts	$	129		$	66		Interest and other, net	$	—		$	—

        As of January 31, 2015 and January 31, 2014, no portion of the hedging instruments gain or loss was excluded from the assessment of effectiveness for fair value, cash flow or net investment hedges. There was no hedge ineffectiveness for fair value, cash flow and net investment hedges in the three months ended January 31, 2015. Hedge ineffectiveness for fair value, cash flow and net investment hedges was not material in the three months ended January 31, 2014.

        As of January 31, 2015, HP expects to reclassify an estimated net Accumulated other comprehensive gain of approximately $415 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

39

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 11: Financial Instruments (Continued)

        The pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Earnings on Derivatives
		Three months ended January 31,
	Location	2015			2014
		In millions
Foreign currency contracts	Interest and other, net	$	247		$	190
Other derivatives	Interest and other, net		(3	)		(10	)
Total		$	244		$	180

Note 12: Borrowings

Notes Payable and Short-Term Borrowings

	As of January 31, 2015					As of October 31, 2014
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	2,677		2.0	%	$	2,655		2.2	%
Commercial paper(1)		306		0.4	%		298		0.5	%
Notes payable to banks, lines of credit and other(1)		526		4.1	%		533		4.0	%
	$	3,509				$	3,486

⁽¹⁾

Commercial paper balances of $306 million and $298 million and Notes payable to banks, lines of credit and other includes $378 million and $404 million at January 31, 2015 and October 31, 2014, respectively, of borrowing and funding-related activity associated with HPFS and its subsidiaries.

40

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 12: Borrowings (Continued)

Long-Term Debt

	As of
	January 31, 2015			October 31, 2014
	In millions
U.S. Dollar Global Notes(1)
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	500		$	500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,100			1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,349			1,349
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		999			999
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,199			1,199
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid December 2014		—			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,496			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
2012 Shelf Registration Statement:
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019		750			750
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019		1,250			1,250
		17,187			17,837
EDS Senior Notes(1)
$300 issued October 1999 at 7.45%, due October 2029		313			313
Other, including capital lease obligations, at 0.00%-8.30%, due in calendar years 2015-2024(2)		475			424
Fair value adjustment related to hedged debt		254			120
Less: current portion		(2,677	)		(2,655	)
Total long-term debt	$	15,552		$	16,039

⁽¹⁾

HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes and EDS Senior Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes and EDS Senior Notes are senior unsecured debt.

⁽²⁾

Other, including capital lease obligations includes $184 million and $123 million as of January 31, 2015 and October 31, 2014, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings.

        As disclosed in Note 11, HP uses interest rate swaps to mitigate the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar

41

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 12: Borrowings (Continued)

LIBOR-based floating interest expense. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.

        In May 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. This shelf registration statement will expire in May 2015.

        HP's Board of Directors has authorized the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper. HP maintains two commercial paper programs, and a wholly-owned subsidiary maintains a third program. HP's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $16.0 billion. HP's euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $16.0 billion authorized by HP's Board of Directors. The HP subsidiary's Euro Commercial Paper/Certificate of Deposit Programme provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $500 million.

        HP maintains senior unsecured committed credit facilities primarily to support the issuance of commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a $4.5 billion five-year credit facility that expires in April 2019. Both facilities support the U.S. commercial paper program and the euro commercial paper program. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. HP's ability to have an outstanding U.S. commercial paper balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance. In addition, the $3.0 billion five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and British pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively.

        HP's and the HP subsidiary's resources available to obtain short- or long-term financing were as follows:

	As of January 31, 2015
	In millions
2012 Shelf Registration Statement(1)		Unspecified
Commercial paper programs	$	16,194
Uncommitted lines of credit	$	1,535

⁽¹⁾

HP has the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 12: Borrowings (Continued)

        The extent to which HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as sources of liquidity at any given time is subject to a number of factors, including market demand for HP securities and commercial paper, HP's financial performance, HP's credit ratings and market conditions generally.

        Interest expense on borrowings recognized in the Consolidated Condensed Statements of Earnings was as follows:

		Three months ended January 31
Expense	Location	2015		2014
		In millions
Financing interest	Financing interest	$	63	$	72
Interest expense	Interest and other, net		67		99
Total interest expense		$	130	$	171

Note 13: Stockholders' Equity

Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In the three months ended January 31, 2015, HP executed share repurchases of 36 million shares. Repurchases of 41 million shares, which include 7 million shares executed in the fourth quarter of fiscal 2014, were settled for $1.6 billion in the first quarter of fiscal 2015. HP had approximately 2 million shares executed in the first quarter of fiscal 2015 that will be settled in the second quarter of fiscal 2015. HP paid $565 million in connection with repurchases of 21 million shares during the three month ended January 31, 2014. The shares repurchased and settled in the three months ended January 31, 2015 and 2014 were all open market transactions. As of January 31, 2015, HP had remaining authorization of $3.3 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on July 21, 2011.

43

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 13: Stockholders' Equity (Continued)

Taxes related to Other Comprehensive Income

	Three months ended January 31
	2015			2014
	In millions
Taxes on change in unrealized gains (losses) on available-for-sale securities:
Tax (provision) benefit on unrealized gains (losses) arising during the period	$	(15	)	$	1
		(15	)		1
Taxes on change in unrealized gains on cash flow hedges:
Tax provision on unrealized gains arising during the period		(201	)		(40	)
Tax provision (benefit) on (gains) losses reclassified into earnings		98			(34	)
		(103	)		(74	)
Taxes on change in unrealized components of defined benefit plans:
Tax benefit on amortization of actuarial loss and prior service benefit		(14	)		(12	)
		(14	)		(12	)
Tax provision on change in cumulative translation adjustment		(47	)		(20	)
Tax provision on other comprehensive income	$	(179	)	$	(105	)

44

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 13: Stockholders' Equity (Continued)

Changes and reclassifications related to Other Comprehensive Income, net of taxes

	Three months ended January 31
	2015			2014
	In millions
Other comprehensive income, net of taxes:
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period	$	31		$	—
Gains reclassified into earnings		—			(1	)
		31			(1	)
Change in unrealized gains on cash flow hedges:
Unrealized gains arising during the period		430			30
(Gains) losses reclassified into earnings(1)		(236	)		75
		194			105
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit(2)		98			51
Curtailments, settlements and other		(2	)		—
		96			51
Change in cumulative translation adjustment		(115	)		(44	)
Other comprehensive income, net of taxes	$	206		$	111

⁽¹⁾

Reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated Condensed Statements of Earnings was as follows:

	Three months ended January 31
	2015			2014
	In millions
Net revenue	$	(334	)	$	63
Cost of products		26			23
Other operating expenses		4			4
Interest and other, net		(30	)		19
	$	(334	)	$	109

⁽²⁾

These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4.

45

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 13: Stockholders' Equity (Continued)

        The components of accumulated other comprehensive loss, net of taxes and changes were as follows:

	Net unrealized gains on available- for-sale securities		Net unrealized gains on cash flow hedges			Unrealized components of defined benefit plans			Cumulative translation adjustment			Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	81	$	108		$	(5,376	)	$	(694	)	$	(5,881	)
Other comprehensive income (loss) before reclassifications		31		430			(2	)		(115	)		344
Reclassifications of (gains) losses into earnings		—		(236	)		98			—			(138	)
Balance at end of period	$	112	$	302		$	(5,280	)	$	(809	)	$	(5,675	)

Note 14: Net Earnings Per Share

        HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards, stock options, performance-based awards and shares purchased under the 2011 ESPP.

        The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

	Three months ended January 31
	2015		2014
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,366	$	1,425
Denominator:
Weighted-average shares used to compute basic net EPS		1,833		1,907
Dilutive effect of employee stock plans		28		28
Weighted-average shares used to compute diluted net EPS		1,861		1,935
Net earnings per share:
Basic	$	0.75	$	0.75
Diluted	$	0.73	$	0.74
Anti-dilutive weighted average options(2)		17		37

⁽¹⁾

There were no participating securities for net earnings allocation for the three months ended January 31, 2015. The net earnings allocated to participating securities were not significant for the

46

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 14: Net Earnings Per Share (Continued)

three months ended January 31, 2014. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities.

⁽²⁾

HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits.

Note 15: Litigation and Contingencies

        HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of January 31, 2015, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP's financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies.

Litigation, Proceedings and Investigations

        Copyright Levies.    As described below, proceedings are ongoing or have been concluded involving HP in certain European Union ("EU") member countries, including litigation in Germany, Belgium and Austria, seeking to impose or modify levies upon equipment (such as multi-function devices ("MFDs"), PCs and printers) and alleging that these devices enable producing private copies of copyrighted materials. Descriptions of some of the ongoing proceedings are included below. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some EU member countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them to extend existing levy schemes, while some other EU member countries have phased out levies or are expected to limit the scope of levy schemes and applicability in the digital hardware environment, particularly with respect to sales to business users. HP, other companies and various industry associations have opposed the extension of levies to the digital environment and have advocated alternative models of compensation to rights holders.

        VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted legal proceedings against HP in the Stuttgart Civil Court seeking to impose levies on printers. On December 22, 2004, the court held that HP is liable for payments regarding all printers using ASCII code sold in Germany but did not determine the amount payable per unit. HP appealed this decision in January 2005 to the Stuttgart Court of Appeals. On May 11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June 6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December 6, 2007, the German Federal Supreme

47

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

Court issued a judgment that printers are not subject to levies under existing law. VG Wort appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. On September 21, 2010, the Constitutional Court published a decision holding that the German Federal Supreme Court erred by not referring questions on interpretation of German copyright law to the Court of Justice of the European Union ("CJEU") and therefore revoked the German Federal Supreme Court decision and remitted the matter to it. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on this matter with other cases relating to reprographic levies on printers and PCs that was held on October 31, 2013. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due where the printer is used with a PC to make permitted reprographic copies in a single process under the control of the same person, but no levies are due on a printer for reprographic copies made with a "scanner-PC-printer" product chain. The case has been remitted to the Stuttgart Court to assess the amount to be paid per printer unit.

        In September 2003, VG Wort filed a lawsuit against Fujitsu Technology Solutions GmbH ("Fujitsu") in the Munich Civil Court in Munich, Germany seeking to impose levies on PCs. This is an industry test case in Germany, and HP has agreed not to object to the delay if VG Wort sues HP for such levies on PCs following a final decision against Fujitsu. On December 23, 2004, the Munich Civil Court held that PCs are subject to a levy and that Fujitsu must pay €12 plus compound interest for each PC sold in Germany since March 2001. Fujitsu appealed this decision in January 2005 to the Munich Court of Appeals. On December 15, 2005, the Munich Court of Appeals affirmed the Munich Civil Court decision. Fujitsu filed an appeal with the German Federal Supreme Court in February 2006. On October 2, 2008, the German Federal Supreme Court issued a judgment that PCs were not photocopiers within the meaning of the German copyright law that was in effect until December 31, 2007 and, therefore, were not subject to the levies on photocopiers established by that law. VG Wort subsequently filed a claim with the German Federal Constitutional Court challenging that ruling. In January 2011, the Constitutional Court published a decision holding that the German Federal Supreme Court decision was inconsistent with the German Constitution and revoking the German Federal Supreme Court decision. The Constitutional Court also remitted the matter to the German Federal Supreme Court for further action. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on that matter with other cases relating to reprographic levies on printers that was held on October 31, 2013. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due for audio-visual copying of standing text and pictures using a PC as the last device in a single reproduction process under the control of the same person, but no levies are due on a PC for reprographic copies made using a "PC-printer" or a "scanner-PC-printer" chain. The case has been remitted to the Munich Court of Appeals to assess the amount to be paid per PC unit.

48

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

        Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested by extra-judicial means that HP amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated based on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with EU law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. On October 23, 2013, the Court of Appeal in Brussels stayed the proceedings and referred several questions to the CJEU relating to whether the Belgian reprographic copyright levies system is in conformity with EU law. The case was heard by the CJEU on January 29, 2015 and the Advocate General has announced that a non-binding opinion will be delivered on April 30, 2015.

        Based on industry opposition to the extension of levies to digital products, HP's assessments of the merits of various proceedings and HP's estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the matters described above. However, the ultimate resolution of these matters and the associated financial impact on HP, including the number of units impacted and the amount of levies imposed, remains uncertain.

        Fair Labor Standards Act Litigation.    HP is involved in several lawsuits in which the plaintiffs are seeking unpaid overtime compensation and other damages based on allegations that various employees of Electronic Data Systems Corporation ("EDS") or HP have been misclassified as exempt employees under the Fair Labor Standards Act and/or in violation of the California Labor Code or other state laws. Those matters include the following:

•

Cunningham and Cunningham, et al. v. Electronic Data Systems Corporation is a purported collective action filed on May 10, 2006 in the United States District Court for the Southern District of New York claiming that current and former EDS employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Another purported collective action, Steavens, et al. v. Electronic Data Systems Corporation, was filed on October 23, 2007 in the same court alleging similar facts. The Steavens case has been consolidated for pretrial purposes with the Cunningham case. On December 14, 2010, the court granted conditional certification of a class consisting of employees in 20 legacy EDS job codes in the consolidated Cunningham and Steavens matter. On December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter, and the Salva matter described below, mediated these cases and reached a settlement agreement. The court

49

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015.

•

Salva v. Hewlett-Packard Company is a purported collective action filed on June 15, 2012 in the United States District Court for the Western District of New York alleging that certain information technology employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees under the Fair Labor Standards Act. On December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter and the Salva matter mediated these cases and reached a settlement agreement. The court consolidated the Salva matter into the Cunningham/Steavens matter and preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015.

•

Karlbom, et al. v. Electronic Data Systems Corporation is a class action filed on March 16, 2009 in California Superior Court alleging facts similar to the Cunningham and Steavens matters. The parties are engaged in discovery.

•

Benedict v. Hewlett-Packard Company is a purported collective action filed on January 10, 2013 in the United States District Court for the Northern District of California alleging that certain technical support employees allegedly involved in installing, maintaining and/or supporting computer software and/or hardware for HP were misclassified as exempt employees under the Fair Labor Standards Act. The plaintiff has also alleged that HP violated California law by, among other things, allegedly improperly classifying these employees as exempt. On February 13, 2014, the court granted the plaintiff's motion for conditional class certification. The parties are engaged in discovery.

        State of South Carolina Department of Social Services Contract Dispute.    In October 2012, the State of South Carolina Department of Social Services and related government agencies ("SCDSS") filed a proceeding before South Carolina's Chief Procurement Officer ("CPO") against Hewlett-Packard State & Local Enterprise Services, Inc., a subsidiary of HP ("HPSLES"). The dispute arose from a contract between SCDSS and HPSLES for the design, implementation and maintenance of a Child Support Enforcement and a Family Court Case Management System (the "CFS System"). SCDSS sought aggregate damages of approximately $275 million, a declaration that HPSLES was in material breach of the contract and, therefore, that termination of the contract for cause by SCDSS would be appropriate, and a declaration that HPSLES would be required to perform certain additional disputed work that expands the scope of the original contract. In November 2012, HPSLES filed responsive pleadings asserting defenses and seeking payment of past-due invoices totaling more than $12 million. On July 10, 2013, SCDSS terminated the contract with HPSLES for cause, and, in its termination notice, SCDSS asserted that HPSLES was responsible for all future federal penalties until the CFS System achieves federal certification, sought an immediate order requiring HPSLES to transfer to SCDSS all work completed and in progress, and indicated that it intended to seek suspension and debarment of HPSLES from contracting with the State of South Carolina. HPSLES disputed the termination as improper and defective. In addition, on August 9, 2013, HPSLES filed its own affirmative claim within the proceeding alleging that SCDSS materially breached the contract by its improper termination and that SCDSS was a primary and material cause of the project delays. On September 4, 2013, the CPO denied SCDSS's motion for injunctive relief seeking immediate transfer of

50

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

the system assets to SCDSS and indicated that the CPO would address that request following a hearing on the merits. The hearing on the merits before the CPO concluded on February 25, 2014 and closing briefs were submitted on July 18, 2014. On August 15, 2014, the CPO agreed to the parties' joint request that the CPO not issue an order unless and until the parties, with the guidance of the mediator, report to the CPO that their ongoing mediation has reached a final impasse.

        On September 10, 2014, the parties reached an agreement in principle to resolve this matter and on December 15, 2014, the parties submitted a settlement agreement and time and materials agreement to the CPO for approval. On January 20, 2015, the CPO entered an order approving the settlement and dismissing the matter with prejudice. Pursuant to the terms of the settlement agreement, SCDSS's termination letter dated July 10, 2013 was withdrawn, the SCDSS's payment to HP in the amount of approximately $5.1 million for outstanding invoices and retainage was received on January 23, 2015 and HP's payment to the SCDSS in the amount of approximately $44.1 million was made on February 2, 2015.

        India Directorate of Revenue Intelligence Proceedings.    On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HPI"), a subsidiary of HP, seven then-current HP employees and one former HP employee alleging that HP underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP products and spare parts and to not interrupt the transaction of business by HP in India.

        On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million, of which HPI had already deposited $9 million. On December 11, 2012, HPI voluntarily deposited an additional $10 million in connection with the products-related show cause notice.

        On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HPI and certain of the named individuals of approximately $17 million, of which HPI had already deposited $7 million. After the order, HPI deposited an additional $3 million in connection with the parts-related show cause notice so as to avoid certain penalties.

        HPI filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HPI to deposit an additional $24 million against the products order, which HPI deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HPI filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals

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(Unaudited)

Note 15: Litigation and Contingencies (Continued)

of the Commissioner's orders. The Customs Tribunal rejected HP's request to remand the matter to the Commissioner on procedural grounds, and is scheduled to reconvene hearings on the merits beginning on April 6, 2015.

        Russia GPO and Other FCPA Investigations.    The German Public Prosecutor's Office ("German PPO") has been conducting an investigation into allegations that current and former employees of HP engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary of HP, and the General Prosecutor's Office of the Russian Federation. The approximately €35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO also requested that HP be made an associated party to the case, and, if that request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees. The Polish Central Anti-Corruption Bureau is also conducting an investigation into potential corruption violations by an employee of Hewlett-Packard Polska Sp. z o.o., an indirect subsidiary of HP, in connection with certain public-sector transactions in Poland. HP is cooperating with these investigating agencies.

        The DOJ and the SEC also conducted an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). In addition, the same U.S. enforcement agencies conducted investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States and Mexico, among other countries. On April 9, 2014, HP announced a resolution of the DOJ and SEC FCPA investigations. Pursuant to the terms of the resolution of the DOJ and SEC FCPA investigation announced in April 2014, on September 11, 2014, an HP subsidiary in Russia, ZAO Hewlett Packard A.O., entered a guilty plea in the United States District Court, Northern District of California, to criminal violations of the FCPA. HP paid the SEC approximately $31 million, and paid approximately $77 million in fines and penalties pursuant to its agreements with the DOJ. HP also agreed to undertake certain compliance, reporting and cooperation obligations.

        On December 2, 2014, plaintiffs Petroleos Mexicanos and Pemex Exploracion filed a complaint against HP and HP Mexico in the United States District Court for the Northern District of California alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act), fraudulent concealment, tortious interference, and violations of the California Unfair Competition Law in connection with alleged improper payments provided to Pemex officials by third-parties retained by HP Mexico. These allegations arise from the same subject-matter as a previously disclosed 2014 Non-Prosecution Agreement between HP Mexico and the DOJ and a simultaneous cease-and-desist order against HP issued by the SEC. On February 9, 2015, HP and HP Mexico filed a motion to dismiss the complaint in its entirety. The hearing on the motion to dismiss is scheduled for May 21, 2015. HP does not believe that the resolution of this matter will have a material impact on its financial statements.

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

        ECT Proceedings.    In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified an HP subsidiary in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case. HP expects the decision to be issued in 2015 and any subsequent appeal on the merits to last several years.

        Abstrax Proceeding.    On February 28, 2014, Abstrax, Inc. ("Abstrax"), a company with a principal place of business in Mesa, Arizona, filed a patent infringement lawsuit against HP. Abstrax claims to market software for sales operations and manufacturing operations for configurable products, including those in the customer shutter industry. The case is pending in U.S. District Court for the Eastern District of Texas, Marshall Division. Abstrax has asserted one patent, U.S. Patent 6,240,328, which is directed generally to a method of generating assembly instructions. In its complaint, Abstrax claims that HP's methods and processes of manufacturing configurable servers, storage, networking devices, PCs, laptops, imaging and printing devices and their sub-systems infringe its patent, as do the products made by the accused processes. Abstrax also claims that HP's alleged infringement is willful and that the case is exceptional. On November 14, 2014, HP filed a petition with the U.S. Patent and Trademark Office challenging the validity of the Abstrax patent based on prior art. In late January 2015, Abstrax dropped its infringement allegations against the manufacturing of PCs and imaging and printing devices from its expert reports. On March 4, 2015, the court heard HP's motion challenging the subject matter of the patent under 35 U.S.C. Section 101. Trial is scheduled for May 11, 2015.

        Stockholder Litigation.    As described below, HP is involved in various stockholder litigation matters commenced against certain current and former HP executive officers and/or certain current and former members of HP's Board of Directors in which the plaintiffs are seeking to recover damages related to HP's allegedly inflated stock price, certain compensation paid by HP to the defendants, other damages and/or injunctive relief:

•

A.J. Copeland v. Raymond J. Lane, et al. ("Copeland I") is a lawsuit filed on March 7, 2011 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's alleged violations of the FCPA, HP's severance payments made to Mark Hurd (a

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

former Chairman of HP's Board of Directors and HP's Chief Executive Officer), and HP's acquisition of 3PAR Inc. The lawsuit also alleges violations of Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") in connection with HP's 2010 and 2011 proxy statements. On February 8, 2012, the defendants filed a motion to dismiss the lawsuit. On October 10, 2012, the court granted the defendants' motion to dismiss with leave to file an amended complaint. On November 1, 2012, the plaintiff filed an amended complaint adding an unjust enrichment claim and claims that the defendants violated Section 14(a) of the Exchange Act and breached their fiduciary duties in connection with HP's 2012 proxy statement. On December 13, 14 and 17, 2012, the defendants moved to dismiss the amended complaint. On December 28, 2012, the plaintiff moved for leave to file a third amended complaint. On May 6, 2013, the court denied the motion for leave to amend, granted the motions to dismiss with prejudice and entered judgment in the defendants' favor. On May 31, 2013, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit. The appeal has been fully briefed, but a date has not yet been set for oral argument.

•

A.J. Copeland v. Léo Apotheker, et al. ("Copeland II") is a lawsuit filed on February 10, 2014 in the United States District Court for the Northern District of California alleging, among other things, that the defendants used their control over HP and its corporate suffrage process in effectuating, directly participating in and/or aiding and abetting violations of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, and violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The complaint asserts claims for breach of fiduciary duty, waste of corporate assets, unjust enrichment, and breach of the duty of candor. The claims arise out of the circumstances at HP relating to its 2013 and 2014 proxy statements, the departure of Mr. Hurd as Chairman of HP's Board of Directors and HP's Chief Executive Officer, alleged violations of the FCPA, and HP's acquisition of 3PAR Inc. and Autonomy Corporation plc ("Autonomy"). On February 25, 2014, the court issued an order granting HP's administrative motion to relate Copeland II to Copeland I. On April 8, 2014, the court granted the parties' stipulation to stay the action pending resolution of Copeland I by the United States Court of Appeals for the Ninth Circuit.

•

Ernesto Espinoza v. Léo Apotheker, et al. and Larry Salat v. Léo Apotheker, et al. are consolidated lawsuits filed on September 21, 2011 in the United States District Court for the Central District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched when they authorized HP's repurchases of its own stock on August 29, 2010 and July 21, 2011. These lawsuits were previously stayed pending developments in the Gammel matter, but those stays have been lifted. The plaintiffs filed an amended consolidated complaint on August 21, 2013, and, on October 28, 2013, the defendants filed a motion to stay these matters. In an order dated February 13, 2014, the court granted the motion to stay. At the August 11, 2014 status conference, the stay was lifted. The plaintiffs informed the court that they would move forward with their complaint. HP filed a motion to dismiss on November 21, 2014. On February 12, 2015, the plaintiffs advised HP that they intended to voluntarily dismiss these actions, and, on February 23, 2015, the parties filed a Joint Stipulation for Voluntary Dismissal

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

of the Action (the "Dismissal"). On February 25, 2015, the court entered an order approving the Dismissal. HP provided notice of the Dismissal by filing it with the SEC on March 10, 2015 and posting it on HP's website. The action will be dismissed unless another stockholder moves to intervene by April 9, 2015.

•

Luis Gonzalez v. Léo Apotheker, et al. and Richard Tyner v. Léo Apotheker, et al. are consolidated lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business and by authorizing HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending resolution of the Espinoza/Salat consolidated action in federal court. On February 23, 2015, the parties filed a Joint Stipulation for Voluntary Dismissal of the Action. On February 25, 2015, the court entered an order approving the Dismissal. HP provided notice of the Dismissal by filing it with the SEC on March 10, 2015 and posting it on HP's website. The action will be dismissed unless another stockholder moves to intervene by April 9, 2015.

•

Cement & Concrete Workers District Council Pension Fund v. Hewlett-Packard Company, et al. is a putative securities class action filed on August 3, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 13, 2007 to August 6, 2010 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by making statements regarding HP's Standards of Business Conduct ("SBC") that were false and misleading because Mr. Hurd, who was serving as HP's Chairman and Chief Executive Officer during that period, had been violating the SBC and concealing his misbehavior in a manner that jeopardized his continued employment with HP. On February 7, 2013, the defendants moved to dismiss the amended complaint. On August 9, 2013, the court granted the defendants' motion to dismiss with leave to amend the complaint by September 9, 2013. The plaintiff filed an amended complaint on September 9, 2013, and the defendants moved to dismiss that complaint on October 24, 2013. On June 25, 2014, the court issued an order granting the defendants' motions to dismiss and on July 25, 2014, plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. On November 4, 2014, the plaintiff-appellant filed its opening brief in the Court of Appeals for the Ninth Circuit. HP filed its answering brief on January 16, 2015 and the plaintiff-appellant's reply brief was filed on March 2, 2015. Oral argument has not yet been scheduled.

Autonomy-Related Legal Matters

        Investigations.    As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the DOJ and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy. On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy. On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy. On January 19, 2015, the U.K. Serious Fraud Office

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

notified HP that it was closing its investigation and had decided to cede jurisdiction of the investigation to the U.S. authorities. HP is cooperating with the DOJ and the SEC, whose investigations are ongoing.

        Litigation.    As described below, HP is involved in various stockholder litigation relating to, among other things, its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP's statements that, based on HP's findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of HP's Board of Directors, and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. These matters include the following:

•

In re HP Securities Litigation consists of two consolidated putative class actions filed on November 26 and 30, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 19, 2011 to November 20, 2012, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging that, during that same period, all of the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5(b) by concealing material information and making false statements related to HP's acquisition of Autonomy and that certain defendants violated SEC Rule 10b-5(a) and (c) by engaging in a "scheme" to defraud investors. On July 2, 2013, HP filed a motion to dismiss the lawsuit. On November 26, 2013, the court granted in part and denied in part HP's motion to dismiss, allowing claims to proceed against HP and Margaret C. Whitman based on alleged statements and/or omissions made on or after May 23, 2012. The court dismissed all of the plaintiff's claims that were based on alleged statements and/or omissions made between August 19, 2011 and May 22, 2012. The lead plaintiff filed a motion for class certification on November 4, 2014 and, on December 15, 2014, defendants filed their opposition to the motion. The hearing on the motion for class certification is scheduled for March 20, 2015.

•

In re Hewlett-Packard Shareholder Derivative Litigation consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP's acquisition of Autonomy and Autonomy's Intelligent Data Operating Layer technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in "abuse of control" over HP, corporate waste and were unjustly enriched. The litigation was stayed until June 2014. The lead plaintiff filed a stipulation of proposed settlement on June 30, 2014. The court declined to grant preliminary approval to this settlement, and, on December 19, 2014, also declined to grant preliminary approval to a revised version of the settlement. On January 22, 2015, the lead plaintiff moved for preliminary approval of a further revised version of the settlement. The hearing on that motion for preliminary approval and any objections thereto is currently scheduled for April 3, 2015, however an administrative motion that would move the hearing date to April 24, 2015 is pending. In addition, related motions to intervene, to seek a preliminary injunction (filed by the Copeland plaintiff), and to sever (filed by plaintiffs who have filed a substantially similar lawsuit captioned Steinberg and Vogel v. Apotheker, et. al.) are currently scheduled to be heard on March 20, 2015. The aforementioned administrative motion also seeks to move the hearing date on these related motions to April 24, 2015.

•

In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 18, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP's 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP's enterprise services business and by failing to restrict participants from investing in HP stock. On August 16, 2013, HP filed a motion to dismiss the lawsuit. On March 31, 2014, the court granted HP's motion to dismiss this action with leave to amend. On July 16, 2014, the plaintiffs filed a second amended complaint containing substantially similar allegations and seeking substantially similar relief as the first amended complaint. HP moved to dismiss the second amended complaint and a hearing on the motion was held on February 13, 2015. HP is awaiting a ruling from the court.

•

Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. On April 22, 2013, the court stayed the lawsuit pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter in federal court. Two additional derivative actions, James Gould v. Margaret C. Whitman, et al. and Leroy Noel v. Margaret C. Whitman, et al., were filed in California Superior Court on July 26, 2013 and August 16, 2013, respectively, containing substantially similar allegations and seeking substantially similar relief. Those actions also have been stayed pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the settlement of the federal derivative case is approved, it will result in a

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Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 15: Litigation and Contingencies (Continued)

release of the claims asserted in all three actions other than claims asserted against Michael Lynch, the former chief executive officer of Autonomy.

•

Cook v. Whitman, et al. is a lawsuit filed on March 18, 2014 in the Delaware Chancery Court, alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy. On May 15, 2014, HP moved to dismiss or stay the Cook matter. On July 22, 2014, the Delaware Chancery Court stayed the motion pending the United States District Court's hearing on preliminary approval of the proposed settlement in the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the District Court approves the settlement, it will result in a release of all the claims asserted in the Cook matter other than those asserted against Michael Lynch, Sushovan Hussain, the former chief financial officer of Autonomy, and Deloitte LLP.

Environmental

        HP's operations and products are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of HP's products and the recycling, treatment and disposal of those products. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, and the energy consumption associated with those products, including requirements relating to climate change. HP is also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). HP could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.

        HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or state laws similar to CERCLA, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. HP is also conducting environmental investigations or remediations at several current or former operating sites pursuant to administrative orders or consent agreements with state environmental agencies.

Note 16: Guarantees

Guarantees

        In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third

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(Unaudited)

Note 16: Guarantees (Continued)

parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote.

        HP has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of HP's non-performance under the contract or failure to comply with the terms of the financing arrangement, HP could, under certain circumstances, be required to acquire certain assets related to the service contract. HP believes the likelihood of having to acquire a material amount of assets under these arrangements is remote.

Indemnifications

        In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of IP infringement made by third parties arising from the vendors' and customers' use of HP's software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial.

Warranty

        HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation.

        HP's aggregate product warranty liabilities and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	1,956
Accruals for warranties issued		394
Adjustments related to pre-existing warranties (including changes in estimates)		(17	)
Settlements made (in cash or in kind)		(426	)
Balance at end of period	$	1,907

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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of
Financial Condition and Results of Operations

        This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is organized as follows:

•

Overview.  A discussion of our business and overall analysis of financial and other highlights affecting the company to provide context for the remainder of this MD&A. The overview analysis compares the three months ended January 31, 2015 to the prior-year period.

•

Critical Accounting Policies and Estimates.  A discussion of accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.

•

Results of Operations.  An analysis of our financial results comparing the three months ended January 31, 2015 to the prior-year period. A discussion of the results of operations at the consolidated level is followed by a more detailed discussion of the results of operations by segment.

•

Liquidity and Capital Resources.  An analysis of changes in our cash flows and a discussion of our financial condition and liquidity.

•

Contractual and Other Obligations.  An overview of contractual obligations, retirement and post-retirement benefit plan funding, restructuring plans, separation costs, uncertain tax positions and off-balance sheet arrangements.

        We intend the discussion of our financial condition and results of operations that follows to provide information that will assist the reader in understanding our Consolidated Condensed Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Consolidated Condensed Financial Statements. This discussion should be read in conjunction with our Consolidated Condensed Financial Statements and the related notes that appear elsewhere in this document.

October 2014 Announcement of HP Separation Transaction

        On October 6, 2014, we announced plans to separate into two independent publicly-traded companies: one comprising our enterprise technology infrastructure, software, services and financing businesses, which will conduct business as Hewlett-Packard Enterprise and one that will comprise our printing and personal systems businesses, which will conduct business as HP Inc. The separation is subject to certain conditions, including, among others, obtaining final approval from HP's Board of Directors, receipt of a favorable opinion and/or rulings with respect to the tax-free nature of the transaction for federal income tax purposes and the effectiveness of a Form 10 filing with the SEC. The separation is expected to be completed by the end of fiscal 2015. Under the separation plan, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. The following chart provides an overview of the planned separation and segment revenues of the respective businesses based on HP's fiscal 2014 financial results, excluding Corporate Investments and intercompany eliminations.

        We will incur separation charges and foreign tax expenses associated with separating into two companies. These charges include finance, IT, consulting and legal fees, real estate, and other items

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that are incremental and one-time in nature. We expect the total separation charges to be approximately $1.3 billion for fiscal 2015 and approximately $500 million for fiscal 2016. In addition, we will incur gross incremental foreign tax expenses related to the separation of foreign legal entities which are estimated to be approximately $950 million in fiscal 2015, we anticipate foreign tax credits of approximately $200 million in fiscal 2015 with additional amounts expected over several years. We also expect separation-related capital expenditures of approximately $300 million in fiscal 2015.

        The following Overview, Results of Operations and Liquidity discussions and analysis compare the three months ended January 31, 2015 to the prior-year period, unless otherwise noted. The Capital Resources and Contractual and Other Obligations discussions present information as of January 31, 2015, unless otherwise noted.

OVERVIEW

        We are a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses ("SMBs") and large enterprises, including customers in the government, health and education sectors. Our offerings span the following:

•

personal computing and other access devices;

•

imaging- and printing-related products and services;

•

enterprise information technology ("IT") infrastructure, including enterprise server and storage technology, networking products and solutions, technology support and maintenance;

•

multi-vendor customer services, including technology consulting, outsourcing and support services across infrastructure, applications and business process domains; and

•

software, products and solutions, including application testing and delivery, big data analytics, enterprise security, information governance, IT operations management, and marketing optimization.

We have seven segments for financial reporting purposes: Personal Systems, Printing, the Enterprise Group ("EG"), Enterprise Services ("ES"), Software, HP Financial Services ("HPFS") and Corporate Investments.

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        The following provides an overview of our key financial metrics by segment:

				Printing and Personal Systems Group
	HP Consolidated			Personal Systems			Printing			Total			Enterprise Group			Enterprise Services			Software			HPFS			Corporate Investments(3)
	In millions, except per share amounts
Three Months Ended January 31, 2015
Net revenue(1)	$	26,839		$	8,544		$	5,543		$	14,087		$	6,981		$	4,993		$	871		$	803		$	16
Year-over-year change %		(4.7	)%		0.2	%		(4.7	)%		(1.8	)%		0.2	%		(10.8	)%		(4.9	)%		(7.7	)%		(94.4	)%
Earnings from operations(2)	$	1,920		$	313		$	1,067		$	1,380		$	1,090		$	148		$	157		$	90		$	(124	)
Earnings from operations as a % of net revenue		7.1	%		3.7	%		19.2	%		9.8	%		15.6	%		3.0	%		18.0	%		11.2	%		NM
Year-over-year change percentage points		0.0pts			0.4pts			2.4pts			1.0pts			1.2pts			1.9pts			2.2pts			(0.4)pts			NM
Net earnings	$	1,366
Net earnings per share
Basic	$	0.75
Diluted	$	0.73

⁽¹⁾

HP Consolidated net revenue excludes intersegment net revenue and other.

⁽²⁾

Segment earnings from operations exclude corporate and unallocated costs, stock-based compensation expense, amortization of intangible assets, restructuring charges, acquisition-related charges and separation costs.

⁽³⁾

"NM" represents not meaningful.

        Net revenue declined 4.7% (declined 2.5% on a constant currency basis) in the three months ended January 31, 2015, as compared to the prior-year period. The leading contributors to the net revenue decline were unfavorable currency impacts, key account runoff in ES, lower Printing supplies volume and the prior-year period benefiting from a sale of intellectual property ("IP"). Partially offsetting the net revenue decline was growth in Personal Systems from notebooks, and growth in EG from Industry Standard Servers ("ISS"). HP's gross margin increased by 0.6 percentage points in the three months ended January 31, 2015 as compared to the prior-year period, due primarily to the combination of favorable graphics and ink supplies mix and currency impacts in Printing and service delivery efficiencies and improvements in underperforming contracts in ES. We continue to experience gross margin pressures resulting from a competitive pricing environment across our hardware portfolio. HP's operating margin for the three months ended January 31, 2015 was unchanged as compared to the prior-year period, due to the gross margin increase, improved business performance across our major business segments, lower selling, general and administrative ("SG&A") expenses and lower intangible asset amortization, partially offset by the impact from the IP sale in the prior-year period, separation costs, higher restructuring charges and investments in research and development ("R&D").

        As of January 31, 2015, cash and cash equivalents and short- and long-term investments were $13.3 billion, representing a decrease of approximately $2.2 billion from the October 31, 2014 balance of $15.5 billion. In the first quarter of fiscal 2015, we repurchased $1.6 billion of common stock and paid dividends of $304 million to stockholders, invested $817 million in property, plant and equipment net of proceeds from sales and made net debt payments of $612 million. Cash flow from operations generated $744 million.

        As we entered fiscal 2015, we continue to experience challenges that are representative of trends and uncertainties that may affect our business and results of operations. One set of challenges relates to continuing dynamic and accelerating market trends such as the growth in mobility and transition to cloud computing. Another set of challenges relates to changes in the competitive landscape. Our major competitors are expanding their product and service offerings with integrated products and solutions, our business-specific competitors are exerting increased competitive pressure in targeted areas and are entering new markets, our emerging competitors are introducing new technologies and business models, and our alliance partners in some businesses are increasingly becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution. The

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macroeconomic weakness we have experienced has moderated in some geographic regions but remains an overall challenge. A discussion of some of these challenges at the segment level is set forth below.

•

In Personal Systems, we have been negatively impacted by the market shift towards tablet products within mobility products, which has reduced the demand for personal computers ("PCs"), particularly consumer notebooks. If benefits from our new product investments in this area do not materialize, we will continue to be negatively impacted by this trend. However, the pace of the market decline is slowing with signs of stabilization and HP is gaining market share. In Personal Systems, we are maintaining our strategic focus on profitable growth through improved market segmentation with respect to multi-operating system, multi-architecture, geography, customer segments and other key attributes.

•

In Printing, we are experiencing the impact of the growth in mobility and demand challenges in consumer and commercial markets, as well as an overall competitive pricing environment. To be successful in addressing these challenges, we need to continue to execute on our key initiatives of focusing on products targeted at high usage categories, developing emerging market opportunities and introducing new revenue delivery models to consumer customers. In the consumer market, our Ink in the Office products are driving unit volume due to demand for our OfficeJet Pro product lines, particularly our OfficeJet Pro X printers which leverage our Page-Wide Array technology. The Ink in the Office initiative targets shifting ink into SMBs more profitably. In the commercial market, our focus is on placing higher value printer units which also offers a positive annuity of toner and accelerating growth in graphics. We are accomplishing this in several growth areas: in multi-function printers with recently introduced products that are increasing demand, in managed print services, which presents a strong after-market supplies opportunity, and in graphics with product innovation in our Indigo product line. We plan to continue this focus on replenishing the installed base with value-added units, and expanding our innovative ink, laser and graphics programs.

•

In EG, we are experiencing challenges due to multiple market trends, including the increasing demand for hyperscale computing infrastructure products, the transition to cloud computing and a highly competitive pricing environment. In addition, demand for our Business Critical Systems ("BCS") products continues to weaken along with the overall market for UNIX products. The effect of lower BCS revenue is impacting Technology Services ("TS"). To be successful in overcoming these challenges, we must address business model shifts and go-to-market execution challenges, while continuing to pursue new product innovation that build on our existing capabilities in areas such as cloud and data center computing, software-defined networking, storage, blade servers and wireless networking.

•

In ES, we are facing challenges, including managing the revenue runoff from several large contracts, pressured public sector spending, a competitive pricing environment and market pressures from a mixed economic recovery in Europe, the Middle East and Africa ("EMEA"). To be successful in addressing these challenges, we must execute on the ES multi-year turnaround plan, which includes a cost reduction initiative to align our costs to our revenue trajectory, a focus on new logo wins and Strategic Enterprise Services ("SES") and initiatives to improve execution in sales performance and accountability, contracting practices and pricing.

•

In Software, we are facing challenges, including the market shift to software-as-a-service ("SaaS") and go-to-market execution challenges. To be successful in addressing these challenges, we must improve our go-to-market execution with multiple product delivery models which better address customer needs and achieve broader integration across our overall product portfolio as we work to capitalize on important market opportunities in cloud, big data and security.

        To address these challenges, we continue to pursue innovation with a view towards developing new products and services aligned with market demand, industry trends and the needs of our customers and

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partners. In addition, we need to continue to improve our operations, with a particular focus on enhancing our end-to-end processes and efficiencies. We also need to continue to optimize our sales coverage models, align our sales incentives with our strategic goals, improve channel execution, strengthen our capabilities in our areas of strategic focus, and develop and capitalize on market opportunities.

        For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled "Risk Factors" in Item 1A, which is incorporated herein by reference.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

        Management's Discussion and Analysis of Financial Condition and Results of Operations is based on our Consolidated Condensed Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses, and disclosure of contingent liabilities. Our management believes that there have been no significant changes during the three months ended January 31, 2015 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2014.

ACCOUNTING PRONOUNCEMENTS

        For a summary of recent accounting pronouncements applicable to our consolidated condensed financial statements see Note 1 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference.

RESULTS OF OPERATIONS

        Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue. As a result, our revenue growth has been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. In order to provide a framework for assessing performance excluding the impact of foreign currency fluctuations, we present the year-over-year percentage change in revenue on a constant currency basis, which assumes no change in foreign currency exchange rates from the prior-year period. This information is provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our revenue results and trends. This constant currency disclosure is provided in addition to, and not as a substitute for, the year-over-year percentage change in revenue on a GAAP basis. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

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        Results of operations in dollars and as a percentage of net revenue were as follows:

	Three months ended January 31
	2015						2014
	Dollars			% of Revenue			Dollars			% of Revenue
	Dollars in millions
Net revenue	$	26,839			100.0	%	$	28,154			100.0	%
Cost of sales(1)		20,571			76.6	%		21,736			77.2	%
Gross profit		6,268			23.4	%		6,418			22.8	%
Research and development		825			3.1	%		811			2.9	%
Selling, general and administrative		3,071			11.5	%		3,210			11.4	%
Amortization of intangible assets		222			0.9	%		283			1.0	%
Restructuring charges		146			0.5	%		114			0.4	%
Acquisition-related charges		4			—			3			—
Separation costs		80			0.3	%		—			—
Earnings from operations		1,920			7.1	%		1,997			7.1	%
Interest and other, net		(174	)		(0.6	)%		(163	)		(0.6	)%
Earnings before taxes		1,746			6.5	%		1,834			6.5	%
Provision for taxes		(380	)		(1.4	)%		(409	)		(1.4	)%
Net earnings	$	1,366			5.1	%	$	1,425			5.1	%

⁽¹⁾

Cost of products, cost of services and financing interest.

Net Revenue

        For the three months ended January 31, 2015, total net revenue decreased 4.7% (decreased 2.5% on a constant currency basis). U.S. net revenue decreased 2.5% to $9.4 billion, while net revenue from outside of the United States decreased 5.8% to $17.4 billion.

        The components of the weighted net revenue change by segment were as follows:

	Three months ended January 31, 2015
	Percentage Points
Enterprise Services		(2.1	)
Corporate Investments/Other		(1.2	)
Printing		(1.0	)
Software		(0.2	)
HP Financial Services		(0.2	)
Enterprise Group		—
Personal Systems		—
Total HP		(4.7	)

        From a segment perspective, the primary factors contributing to the change in HP net revenue are summarized as follows:

•

ES net revenue declined due primarily to revenue runoff in key accounts, weak growth in new and existing accounts, particularly in EMEA, and unfavorable currency impacts;

•

Corporate Investments net revenue decreased due primarily to the sale of IP in the prior-year period;

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•

Printing net revenue decreased due primarily to a decline in Supplies and unfavorable currency impacts;

•

Software net revenue decreased due primarily to declines in licenses and professional services;

•

HPFS net revenue decreased due primarily to lower asset management activity and lower portfolio revenue;

•

EG net revenue increased slightly due to growth in ISS and Storage, partially offset by unfavorable currency impacts; and

•

Personal Systems net revenue increased slightly due primarily to growth in notebooks, partially offset by unfavorable currency impacts and a decline in desktops.

        A more detailed discussion of segment revenue is included under "Segment Information" below.

Gross Margin

        For the three months ended January 31, 2015, total HP gross margin increased 0.6 percentage points. From a segment perspective, the primary factors impacting gross margin performance are summarized as follows:

•

ES gross margin increased due primarily to service delivery efficiencies and improving profit performance in under-performing contracts;

•

Printing gross margin increased due primarily to a favorable mix from a higher proportion of graphics and ink supplies, favorable currency impacts from the Japanese Yen and a lower mix of home printers;

•

EG gross margin increased due primarily to higher average unit prices ("AUPs") in ISS, and improved cost management in TS;

•

Personal Systems gross margin increased due primarily to operational cost improvements;

•

Software gross margin decreased due primarily to a lower margin in licenses;

•

HPFS gross margin decreased due primarily to lower margins on asset management activity as a result of lower customer buyouts; and

•

Corporate Investments gross margin decreased due to the sale of IP in the prior-year period.

        A more detailed discussion of segment gross margins and operating margins is included under "Segment Information" below.

Operating Expenses

        Research and Development

        R&D expense increased 2% for the three months ended January 31, 2015, due primarily to increases in Personal Systems, EG and Software as we make investments in our strategic focus areas of cloud, security, big data and mobility. The increase was partially offset by favorable currency impacts.

        Selling, General and Administrative

        SG&A expense decreased 4% for the three months ended January 31, 2015, due primarily to favorable currency impacts, lower investments in systems and tools, declines in go-to-market cost as a result of lower commissions and productivity initiatives, and lower litigation related charges. The decrease was partially offset by higher administrative expenses due to the prior-year period containing a gain from the sale of real estate.

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        Amortization of Intangible Assets

        Amortization of intangible assets decreased for the three months ended January 31, 2015, due primarily to certain intangible assets associated with prior acquisitions reaching the end of their respective amortization periods.

        Restructuring Charges

        Restructuring charges increased for the three months ended January 31, 2015, due primarily to higher charges in connection with the multi-year restructuring plan initially announced in May 2012 (the "2012 Plan") and from increases to the 2012 Plan announced in May 2014.

        Separation Costs

        Separation costs for the current period were primarily related to third-party consulting fees.

Interest and Other, Net

        Interest and other, net expense increased by $11 million for the three months ended January 31, 2015. The increase was due primarily to higher foreign currency transaction losses partially offset by lower interest expense primarily from a lower average debt balance.

Provision for Taxes

        Our effective tax rate was 21.8% and 22.3% for the three months ended January 31, 2015 and January 31, 2014, respectively. Our effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from our operations in lower tax jurisdictions throughout the world. We have not provided U.S. taxes for all foreign earnings because we plan to reinvest some of those earnings indefinitely outside the U.S.

        In the three months ended January 31, 2015, we recorded $81 million of net tax benefits related to discrete items. These amounts included a tax benefit of $47 million arising from the retroactive research and development credit provided by the Tax Increase Prevention Act of 2014 signed into law in December 2014, a tax benefit of $29 million on separation charges and a tax benefit of $21 million on restructuring charges. These tax benefits were partially offset by various tax charges of $16 million.

        In the three months ended January 31, 2014, we recorded $22 million of net tax charges related to discrete items. These amounts included $37 million of various tax charges and $15 million of tax benefits on restructuring charges.

Segment Information

        A description of the products and services for each segment can be found in Note 2 to the Consolidated Condensed Financial Statements in Item 1, which is incorporated herein by reference. Future changes to this organizational structure may result in changes to the segments disclosed.

        Effective at the beginning of our first quarter of fiscal 2015, we implemented an organizational change to align our segment financial reporting more closely with our current business structure. This organizational change resulted in the transfer of third-party multi-vendor support arrangements from the TS business unit within the EG segment to the Infrastructure Technology Outsourcing business unit within the ES segment.

Printing and Personal Systems Group

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). We describe the results of the segments within PPS below.

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Personal Systems

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	8,544		$	8,530			0.2	%
Earnings from operations	$	313		$	279			12.2	%
Earnings from operations as a % of net revenue		3.7	%		3.3	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended January 31, 2015
	Percentage Points
Notebook PCs		4.6
Workstations		(0.1	)
Other		(0.5	)
Desktop PCs		(3.8	)
Total Personal Systems		0.2

        Personal Systems net revenue increased 0.2% (increased 2.6% on a constant currency basis) for the three months ended January 31, 2015. The revenue increase in Personal Systems was due primarily to growth in notebooks, partially offset by unfavorable currency impacts, a decline in desktops and the impact of the sale of IP in the prior-year period. Net revenue for Notebook PCs increased 9%, Desktop PCs declined 10%, Workstations declined 1% and Other net revenue declined 11%. From a regional perspective, Personal Systems experienced revenue growth in EMEA and the Americas, the effects of which were partially offset by a revenue decline in Asia Pacific due to demand weakness in Japan. The Personal Systems net revenue increase was driven by a 9.1% increase in unit volume, partially offset by an 8.2% decline in average selling prices ("ASPs"). The unit volume increase was primarily led by growth in notebooks, both consumer and commercial. The decline in ASPs was due primarily to the shift in consumer PCs to low-end products, unfavorable currency impacts and an unfavorable mix of consumer PCs. Net revenue for commercial clients decreased 0.8% due primarily to unfavorable currency impacts and a decline in commercial desktops and thin client products, the effects of which were partially offset by growth in commercial notebooks. Net revenue for consumer clients increased 1.8% due primarily to growth in consumer notebooks, partially offset by a decline in consumer desktops and unfavorable currency impacts. The net revenue decline in Other was due primarily to the sale of IP in the prior-year period, the effect of which was partially offset by increased sales of extended warranties in the current period.

        Personal Systems earnings from operations as a percentage of net revenue increased 0.4 percentage points for the three months ended January 31, 2015. The growth was driven by an increase in gross margin, partially offset by an increase in operating expenses as a percentage of net revenue. The increase in gross margin was due primarily to operational cost improvements, partially offset by unfavorable currency impacts and a higher mix of consumer products. Operating expenses as a percentage of net revenue increased due primarily to higher administrative expenses as a result of lower bad debt recoveries as compared to the prior-year period and higher R&D expenses due primarily to our investments in commercial, mobility and immersive computing products, the effects of which were partially offset by a decline in field selling costs as a result of favorable currency impacts and operational cost improvements.

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Printing

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	5,543		$	5,815			(4.7	)%
Earnings from operations	$	1,067		$	979			9.0	%
Earnings from operations as a % of net revenue		19.2	%		16.8	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended January 31, 2015
	Percentage Points
Supplies		(3.3	)
Consumer Hardware		(0.8	)
Commercial Hardware		(0.6	)
Total Printing		(4.7	)

        Printing net revenue decreased 4.7% (decreased 3.5% on a constant currency basis) for the three months ended January 31, 2015. The decline in net revenue was primarily driven by a decline in Supplies, unfavorable currency impacts and a decline in Inkjet printers, the effects of which were partially offset by growth in graphics products. Net revenue for Supplies decreased 5% due primarily to demand weakness, with a strong revenue decline in Russia, partially offset by growth in graphics supplies. Printer unit volumes decreased 4% while the average revenue per unit ("ARU") remained flat. Printer unit volume decreased due primarily to our continued efforts to target high-value areas of the market, which resulted in a decline in home and single-function mono laser printer units, the effects of which were partially offset by increased units in multifunction laser and graphics printers. Printer ARU remained flat due primarily to the combination of a higher mix of and an ARU improvement in graphics printers, the effects of which were offset by a highly competitive pricing environment and unfavorable currency impacts in LaserJet and Inkjet printers. Net revenue for Commercial Hardware decreased 2% driven by a 1% decline in ARU and flat unit volume, combined with a decline in other peripheral printing solutions. The flat unit volume in Commercial Hardware was due primarily to growth in multifunction laser and graphics printers offset by a unit volume decline in value laser printers. The ARU decline in Commercial Hardware was due primarily to an ARU decline in LaserJet printers driven by a highly competitive pricing environment combined with unfavorable currency impacts, the effects of which were partially offset by an increase in graphics printers. Net revenue for Consumer Hardware decreased 7% due to a 6% decline in printer unit volume and a 4% decline in ARU, the effects of which were partially offset by growth in other peripheral printing solutions. The unit volume decline in Consumer Hardware was due primarily to lower sales of home and SMB printers. The ARU decline in Consumer Hardware was due primarily to increased discounting for SMB printers driven by a highly competitive pricing environment, particularly in the Americas, and unfavorable currency impacts, the effects of which were partially offset by a favorable mix of high-value home printers.

        Printing earnings from operations as a percentage of net revenue increased by 2.4 percentage points for the three months ended January 31, 2015 due to an increase in gross margin combined with lower operating expenses as a percentage of net revenue. The gross margin increase was due primarily to a favorable mix from a higher proportion of graphics and ink supplies, favorable currency impacts from the Japanese Yen, a lower mix of home printers, and rate improvements in graphics products, the effects of which were partially offset by a competitive pricing environment and a lower mix of toner

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sales. Operating expenses as a percentage of net revenue decreased due primarily to a decline in SG&A expenses as a result of our cost saving initiatives, lower R&D expenses and favorable currency impacts.

Enterprise Group

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	6,981		$	6,970			0.2	%
Earnings from operations	$	1,090		$	1,003			8.7	%
Earnings from operations as a % of net revenue		15.6	%		14.4	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended January 31, 2015
	Percentage Points
Industry Standard Servers		3.0
Storage		—
Business Critical Systems		(0.3	)
Networking		(1.0	)
Technology Services		(1.5	)
Total Enterprise Group		0.2

        EG net revenue increased 0.2% (increased 2.7% on a constant currency basis) for the three months ended January 31, 2015. We continued to experience challenges due to market trends, including the transition to cloud computing, as well as product and technology transitions, along with a highly competitive pricing environment. The increase in EG net revenue was due to growth in ISS and Storage partially offset by declines in TS, Networking and BCS. Net revenue growth was also negatively impacted by foreign currency fluctuations across all regions, primarily weakness in the euro.

        ISS net revenue increased 7% due primarily to a higher AUP in rack and blade server products driven by higher option attach rates for memory, processors and hard drives. The AUP increase for rack products was also driven by a mix shift to the higher end HP ProLiant Gen9 server portfolio. Storage net revenue increased 0.4% due to revenue growth in Converged Storage solutions, primarily in the 3PAR StoreServ products and StoreOnce, the effect of which was partially offset by revenue declines in traditional storage products. BCS net revenue decreased 9% as a result of ongoing pressures from the overall UNIX market contraction, partially offset by revenue growth in non-stop products. Networking net revenue decreased 11% due primarily to lower switching revenue, particularly in the Americas and China as a result of execution challenges and competitive pressure, partially offset by growth in our data center switching products. TS net revenue decreased 5% due primarily to a reduction in support for BCS, traditional storage products, and networking services along with lower revenue from consulting services, the effects of which were partially offset by growth in support solutions for converged storage solutions and ISS.

        EG earnings from operations as a percentage of net revenue increased by 1.2 percentage points for the three months ended January 31, 2015 due to an increase in gross margin coupled with a decrease in operating expenses as a percentage of net revenue. The gross margin increase was due primarily to higher AUPs in ISS, and improved cost management in TS, the effects of which were partially offset by an unfavorable mix and competitive pricing. The decrease in operating expenses as a percentage of net

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revenue was driven by favorable currency impacts and lower sales program spending, partially offset by higher R&D investments.

Enterprise Services

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	4,993		$	5,595			(10.8	)%
Earnings from operations	$	148		$	60			146.7	%
Earnings from operations as a % of net revenue		3.0	%		1.1	%

        The components of the weighted net revenue change by business unit were as follows:

	Three months ended January 31, 2015
	Percentage Points
Infrastructure Technology Outsourcing		(6.6	)
Application and Business Services		(4.2	)
Total Enterprise Services		(10.8	)

        ES net revenue decreased 10.8% (decreased 7.9% on a constant currency basis) for the three months ended January 31, 2015. Performance in ES remained challenged by the impact of several large contracts winding down and lower public sector spending in EMEA, particularly in the United Kingdom. The net revenue decrease in ES was due primarily to revenue runoff in several key accounts, weak growth in new and existing accounts, particularly in EMEA, unfavorable currency impacts and contractual price declines. Net revenue in Infrastructure Technology Outsourcing ("ITO") decreased by 11%, due to revenue runoff in key accounts, weak growth in new and existing accounts, particularly in EMEA and unfavorable currency impacts. Net revenue in Application and Business Services ("ABS") decreased by 11%, due to weak growth in new and existing accounts and unfavorable currency impacts.

        ES earnings from operations as a percentage of net revenue increased 1.9 percentage points for the three months ended January 31, 2015. The increase in operating margin was due to an increase in gross margin coupled with a decrease in operating expenses as a percentage of net revenue. Gross margin increased due primarily to service delivery efficiencies and improving profit performance in under-performing contracts, partially offset by unfavorable impacts from revenue runoff in key accounts and contractual price declines. The decrease in operating expenses as a percentage of net revenue was primarily driven by lower field selling costs, partially offset by the size of the revenue decline. The decrease in field selling costs was due to our sales transformation initiatives.

Software

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	871		$	916			(4.9	)%
Earnings from operations	$	157		$	145			8.3	%
Earnings from operations as a % of net revenue		18.0	%		15.8	%

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        Software net revenue decreased 4.9% (decreased 2.9% on a constant currency basis) for the three months ended January 31, 2015. Revenue growth in Software was challenged by the overall market and customer shift to SaaS solutions, which impacted growth in license and support revenue.

        For the three months ended January 31, 2015, net revenue from licenses and professional services decreased by 16% and 7% respectively, while net revenue growth from support and SaaS was flat. Net revenue growth was negatively impacted by foreign currency fluctuations across all regions, primarily weakness in the euro. The decline in license net revenue was impacted by the market and customer shift to SaaS solutions and sales execution challenges. Professional services net revenue decreased as we continue our focus on higher-margin engagements. Support net revenue was flat as growth in support solutions for security products was offset by lower support for IT management products due to past license declines. SaaS net revenue growth was flat due in part to sales execution issues, with growth in IT management offset by revenue declines in big data solutions.

        For the three months ended January 31, 2015, Software earnings from operations as a percentage of net revenue increased by 2.2 percentage points due to a decrease in operating expenses as a percentage of net revenue, partially offset by a decrease in gross margin. The decrease in gross margin was due primarily to a lower margin in licenses. The decrease in operating expenses as a percentage of net revenue was due to lower SG&A expenses as a result of lower field selling costs driven by cost management, partially offset by continued R&D investments in security and big data.

HP Financial Services

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	803		$	870			(7.7	)%
Earnings from operations	$	90		$	101			(10.9	)%
Earnings from operations as a % of net revenue		11.2	%		11.6	%

        HPFS net revenue decreased by 7.7% (decreased 4.4% on a constant currency basis) for the three months ended January 31, 2015. The net revenue decrease was due primarily to lower asset management activity as a result of lower customer buyouts and lower portfolio revenue as a result of unfavorable currency impacts and lower interest rate yield.

        HPFS earnings from operations as a percentage of net revenue decreased by 0.4 percentage points for the three months ended January 31, 2015 due primarily to a decrease in gross margin coupled with an increase in operating expenses as a percentage of net revenue. The decrease in gross margin was the result of lower margins on asset management activity due primarily from lower customer buyouts, partially offset by higher margins from asset recovery services and remarketing sales. The increase in operating expenses as a percentage of net revenue was due to higher field selling costs.

Financing Volume

	Three months ended January 31
	2015		2014
	Dollars in millions
Total financing volume	$	1,565	$	1,372

        New financing volume, which represents the amount of financing provided to customers for equipment and related software and services, including intercompany activity, increased 14.1% for the three months ended January 31, 2015. The increase was driven by higher financing associated with HP product sales and related services offerings, partially offset by unfavorable currency impacts.

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Portfolio Assets and Ratios

        The HPFS business model is asset intensive and uses certain internal metrics to measure its performance against other financial services companies, including a segment balance sheet that is derived from our internal management reporting system. The accounting policies used to derive HPFS amounts are substantially the same as those used by HP. However, intercompany loans and certain accounts that are reflected in the segment balances are eliminated in the Consolidated Condensed Financial Statements.

        The portfolio assets and ratios derived from the segment balance sheet for HPFS were as follows:

	January 31, 2015			October 31, 2014
	Dollars in millions
Financing receivables, gross	$	6,430		$	6,670
Net equipment under operating leases		2,525			2,595
Capitalized profit on intercompany equipment transactions(1)		809			783
Intercompany leases(1)		2,118			2,199
Gross portfolio assets		11,882			12,247
Allowance for doubtful accounts(2)		102			111
Operating lease equipment reserve		60			68
Total reserves		162			179
Net portfolio assets	$	11,720		$	12,068
Reserve coverage		1.4	%		1.5	%
Debt-to-equity ratio(3)		7.0x			7.0x

⁽¹⁾

Intercompany activity is eliminated in consolidation.

⁽²⁾

Allowance for doubtful accounts for financing receivables includes both the short- and long-term portions.

⁽³⁾

Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries. Debt attributable to HPFS totaled $10.9 billion and $10.7 billion at January 31, 2015 and October 31, 2014, respectively. HPFS equity at January 31, 2015 and October 31, 2014 was $1.6 billion and $1.5 billion respectively. We believe the HPFS debt-to-equity ratio is comparable to that of other similar financing companies.

        At January 31, 2015 and October 31, 2014, HPFS cash balances were approximately $1.1 billion and $0.8 billion, respectively.

        Net portfolio assets at January 31, 2015 decreased 2.9% from October 31, 2014. The decrease generally resulted from unfavorable currency impacts, partially offset by new financing volume in excess of portfolio runoff.

        HPFS recorded net bad debt expenses and operating lease equipment reserves of $8 million for both three month periods ended January 31, 2015 and 2014.

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Corporate Investments

	Three months ended January 31
	2015			2014			% Change
	Dollars in millions
Net revenue	$	16		$	288			(94.4	)%
(Loss) earnings from operations	$	(124	)	$	121			NM
(Loss) earnings from operations as a % of net revenue(1)		NM			42.0	%

⁽¹⁾

"NM" represents not meaningful.

        Net revenue in Corporate Investments decreased due primarily to the sale of IP related to the Palm acquisition in the prior-year period.

        The decrease in earnings from operations in Corporate Investments was due primarily to the sale of IP in the prior-year period and higher expenses associated with cloud-related incubation activities, HP Labs and corporate strategy.

LIQUIDITY AND CAPITAL RESOURCES

        We use cash generated by operations as our primary source of liquidity. We believe that internally generated cash flows are generally sufficient to support our operating businesses, capital expenditures, restructuring activities, separation activities, maturing debt, income tax payments and the payment of stockholder dividends, in addition to investments and share repurchases. We are able to supplement this short-term liquidity, if necessary, with broad access to capital markets and credit facilities made available by various domestic and foreign financial institutions. While our access to capital markets may be constrained and our cost of borrowing may increase under certain business, market and economic conditions, our access to a variety of funding sources to meet our liquidity needs is designed to facilitate continued access to capital resources under all such conditions. Our liquidity is subject to various risks including the risks identified in the section entitled "Risk Factors" in Item 1A of Part II and the market risks identified in the section entitled "Quantitative and Qualitative Disclosures about Market Risk" in Item 3 of Part I, which are incorporated herein by reference.

        Our cash balances are held in numerous locations throughout the world, with substantially all of those amounts held outside of the U.S. We utilize a variety of planning and financing strategies in an effort to ensure that our worldwide cash is available when and where it is needed. Our cash position remains strong, and we expect that our cash balances, anticipated cash flow generated from operations and access to capital markets will be sufficient to cover our expected near-term cash outlays.

        Amounts held outside of the U.S. are generally utilized to support non-U.S. liquidity needs, although a portion of those amounts may from time to time be subject to short-term intercompany loans into the U.S. Most of the amounts held outside of the U.S. could be repatriated to the U.S. but, under current law, some would be subject to U.S. federal income taxes, less applicable foreign tax credits. Repatriation of some foreign earnings is restricted by local law. Except for foreign earnings that are considered indefinitely reinvested outside of the U.S., we have provided for the U.S. federal tax liability on these earnings for financial statement purposes. Repatriation could result in additional income tax payments in future years. Where local restrictions prevent an efficient intercompany transfer of funds, our intent is that cash balances would remain outside of the U.S. and we would meet liquidity needs through ongoing cash flows, external borrowings, or both. We do not expect restrictions or potential taxes incurred on repatriation of amounts held outside of the U.S. to have a material effect on our overall liquidity, financial condition or results of operations.

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Liquidity

	Three months ended January 31
	2015			2014
	In millions
Net cash provided by operating activities	$	744		$	2,990
Net cash used in investing activities		(838	)		(217	)
Net cash (used in) provided by financing activities		(2,120	)		1,229
Net (decrease) increase in cash and cash equivalents	$	(2,214	)	$	4,002

Operating Activities

        Compared to the corresponding period in fiscal 2014, net cash provided by operating activities decreased by $2.2 billion for the three months ended January 31, 2015. The decrease was due primarily to lower cash from working capital management activities and financing receivables.

        In the first quarter of fiscal 2015, the cash conversion cycle increased one day sequentially as compared to a sequential decrease of one day in the first quarter of fiscal 2014. As a result, we generated less cash flow from operations from working capital activities in the current quarter as compared to the same period last year.

        Our working capital metrics and cash conversion cycle along with sequential and year-over-year impacts were as follows:

	As of Jan. 31, 2015			Q/Q change			As of Jan. 31, 2014			Q/Q change			Y/Y change
Days of sales outstanding in accounts receivable		41			(3	)		43			(6	)		(2	)
Days of supply in inventory		29			2			25			1			4
Days of purchases outstanding in accounts payable		(65	)		2			(52	)		4			(13	)
Cash conversion cycle		5			1			16			(1	)		(11	)

January 31, 2015 as compared to January 31, 2014

        Days of sales outstanding in accounts receivable ("DSO") measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for doubtful accounts, by a 90-day average of net revenue. Compared to the corresponding period in fiscal 2014, the decrease in DSO was due primarily to revenue linearity, currency impacts and the expansion of our factoring programs.

        Days of supply in inventory ("DOS") measures the average number of days from procurement to sale of our product. DOS is calculated by dividing ending inventory by a 90-day average of cost of goods sold. Compared to the corresponding period in fiscal 2014, the increase in DOS was due to a higher inventory balance in Personal Systems due in part to strategic buys and higher in-transit inventory shipments by boat versus shipments by air, coupled with a decline in cost of goods sold.

        Days of purchases outstanding in accounts payable ("DPO") measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average of cost of goods sold. Compared to the corresponding period in fiscal 2014, the increase in DPO was primarily the result of an extension of payment terms with our product suppliers.

        The cash conversion cycle is the sum of DSO and DOS less DPO. The cash conversion cycle for the first quarter of fiscal 2015 ended below what we expect to be a long-term sustainable rate. Items which may cause the cash conversion cycle in a particular period to differ from a long-term sustainable

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rate include, but are not limited to, changes in business mix, changes in payment terms, extent of receivables factoring, seasonal trends and the timing of revenue recognition and inventory purchases within the period.

Investing Activities

        Compared to the corresponding period in fiscal 2014, net cash used in investing activities increased by $0.6 billion for the three months ended January 31, 2015, due primarily to lower proceeds from sales of available-for-sale securities and other investments, and lower proceeds from sales of property, plant and equipment.

Financing Activities

        Compared to the corresponding period in fiscal 2014, net cash from financing activities decreased by $3.3 billion for the three months ended January 31, 2015. The decrease was due primarily to higher proceeds from the issuance of U.S. Dollar Global Notes in the corresponding prior-year period and higher repurchases of common stock in the current period. For more information on our share repurchase programs, see Note 13 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

Capital Resources

Debt Levels

        We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital and targeted capital structure.

        Outstanding borrowings decreased to $19.1 billion as of January 31, 2015, as compared to $19.5 billion at October 31, 2014, bearing weighted-average interest rates of 2.7% for both periods. During the first three months of fiscal 2015, we repaid $650 million of U.S. Dollar Global Notes.

        During the next twelve months, $2.5 billion of U.S. Dollar Global Notes are scheduled to mature, of which $750 million is scheduled to mature in March 2015. For more information on our borrowings, see Note 12 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

        Our weighted-average interest rate reflects the average effective rate on our borrowings prevailing during the period and reflects the impact of interest rate swaps. For more information on our interest rate swaps, see Note 11 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

Available Borrowing Resources

        We had the following resources available to obtain short- or long-term financing:

	As of January 31, 2015
	In millions
2012 Shelf Registration Statement		Unspecified
Commercial paper programs	$	16,194
Uncommitted lines of credit	$	1,535

        For more information on our available borrowings resources, see Note 12 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

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Credit Ratings

        Our credit risk is evaluated by major independent rating agencies based on publicly available information as well as information obtained in our ongoing discussions with them. Our credit ratings as of January 31, 2015, were as follows:

	Standard & Poor's Ratings Services		Moody's Investors Service		Fitch Ratings Services
Short-term debt ratings		A-2		Prime-2		F2
Long-term debt ratings		BBB+		Baa1		A–

        After the announcement of our separation in October 2014, Standard & Poor's Rating Services and Fitch Rating Services placed us on negative watch. Additionally, Moody's Investors Service placed us under review for downgrade. While we do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, previous downgrades have increased the cost of borrowing under our credit facilities, have reduced market capacity for our commercial paper and have required the posting of additional collateral under some of our derivative contracts. In addition, any further downgrade to our credit ratings by any of these rating agencies may further impact us in a similar manner, and, depending on the extent of any such downgrade, could have a negative impact on our liquidity and capital position. We can rely on alternative sources of funding, including drawdowns under our credit facilities, if necessary, to offset potential reductions in the market capacity for our commercial paper.

CONTRACTUAL AND OTHER OBLIGATIONS

Contractual Obligations

        For contractual obligations see "Contractual and Other Obligations" in Item 7 of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2014, which is incorporated herein by reference. Our contractual obligations have not changed materially since October 31, 2014.

Retirement and Post-Retirement Benefit Plan Funding

        For the remainder of fiscal 2015, we anticipate making contributions of approximately $632 million to our non-U.S. pension plans, and approximately $27 million to cover benefit payments to U.S. non-qualified pension plan participants. We also expect to pay approximately $35 million to cover benefit claims for our post-retirement benefit plans. Our policy is to fund our pension plans so that we meet at least the minimum contribution requirements, as established by local government, funding and taxing authorities. For more information on our retirement and post-retirement benefit plans, see Note 4 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

Restructuring Plans

        As of January 31, 2015, we expect future cash payments of approximately $1.2 billion in connection with our approved restructuring plans which includes $0.6 billion expected to be paid in the remainder of fiscal 2015 and $0.6 billion expected to be paid through fiscal 2021. For more information on our restructuring activities, see Note 3 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

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Separation Costs

        As of January 31, 2015, we expect future cash payments of approximately $1.7 billion in connection with our separation charges, of which $1.2 billion is expected to be paid in the remainder of fiscal 2015 and approximately $500 million in fiscal 2016. In addition, we will incur gross incremental foreign cash tax expenditures related to the separation of foreign legal entities which are estimated to be approximately $950 million in fiscal 2015, and we anticipate associated foreign tax credits of approximately $200 million. We also expect separation-related capital expenditures of approximately $300 million in fiscal 2015.

Uncertain Tax Positions

        As of January 31, 2015, we had approximately $3.6 billion of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. These liabilities and related interest and penalties include $29 million expected to be paid within one year. For the remaining amount, we are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these obligations would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 6 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

Off-Balance Sheet Arrangements

        As part of our ongoing business, we have not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

        We have third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. The total aggregate maximum capacity of the financing arrangements was $2.8 billion as of January 31, 2015, including an aggregate maximum capacity of $1.0 billion in non-recourse financing arrangements and an aggregate maximum capacity of $1.8 billion in partial-recourse facilities. For more information on our third-party revolving short-term financing arrangements, see Note 7 to the Consolidated Condensed Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

FACTORS THAT COULD AFFECT FUTURE RESULTS

        Because of the following factors, as well as other variables affecting our results of operations, past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods.

If we are unsuccessful at addressing our business challenges, our business and results of operations may be adversely affected and our ability to invest in and grow our business could be limited.

        We are in the process of addressing many challenges facing our business. One set of challenges relates to dynamic and accelerating market trends, such as the decline in the PC market, the growth of multi-architecture devices running competing operating systems, the market shift towards tablets within mobility, the market shift to cloud-related infrastructure, software, and services, and the growth in software-as-a-service business models. Another set of challenges relates to changes in the competitive landscape. Our major competitors are expanding their product and service offerings with integrated products and solutions; our business-specific competitors are exerting increased competitive pressure in targeted areas and are going after new markets; our emerging competitors are introducing new technologies and business models; and our alliance partners in some businesses are increasingly

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becoming our competitors in others. A third set of challenges relates to business model and go-to-market execution. In addition, we are facing a series of significant macroeconomic challenges, including weakness across many geographic regions, particularly in the United States, Central Eastern Europe and Russia, and certain countries and businesses in Asia. We may experience delays in the anticipated timing of activities related to these efforts and higher than expected or unanticipated execution costs. In addition, we are vulnerable to increased risks associated with these efforts given our large portfolio of businesses, the broad range of geographic regions in which we and our customers and partners operate, and the integration of acquired businesses. If we do not succeed in these efforts, or if these efforts are more costly or time-consuming than expected, our business and results of operations may be adversely affected, which could limit our ability to invest in and grow our business.

        In May 2012, we announced a company-wide restructuring plan. The restructuring plan includes both voluntary early retirement programs and non-voluntary workforce reductions. Significant risks associated with these actions that may impair our ability to achieve anticipated cost reductions or that may otherwise harm our business include delays in implementation of anticipated workforce reductions in highly regulated locations outside of the United States, particularly in Europe and Asia, decreases in employee morale and the failure to meet operational targets due to the loss of employees. In addition, our ability to achieve the anticipated cost savings and other benefits from these actions within the expected time frame is subject to many estimates and assumptions. These estimates and assumptions are subject to significant economic, competitive and other uncertainties, some of which are beyond our control. If these estimates and assumptions are incorrect, if we experience delays, or if other unforeseen events occur, our business and financial results could be adversely affected.

Competitive pressures could harm our revenue, gross margin and prospects.

        We encounter aggressive competition from numerous and varied competitors in all areas of our business, and our competitors may target our key market segments. We compete primarily on the basis of technology, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use of our products, account relationships, customer training, service and support, security, availability of application software, and internet infrastructure offerings. If our products, services, support and cost structure do not enable us to compete successfully based on any of those criteria, our results of operations and prospects could be harmed.

        We have a large portfolio of businesses and must allocate resources across all of those businesses while competing with companies that have much smaller portfolios or specialize in one or more of these product lines. As a result, we may invest less in certain areas of our businesses than our competitors do, and these competitors may have greater financial, technical and marketing resources available to them than our businesses that compete against them. Industry consolidation also may affect competition by creating larger, more homogeneous and potentially stronger competitors in the markets in which we compete, and our competitors also may affect our business by entering into exclusive arrangements with existing or potential customers or suppliers.

        Companies with whom we have alliances in some areas may be competitors in other areas. In addition, companies with whom we have alliances also may acquire or form alliances with our competitors, which could reduce their business with us. If we are unable to effectively manage these complicated relationships with alliance partners, our cash flows and results of operations could be adversely affected.

        We face aggressive price competition for our products and services and, as a result, we may have to continue lowering the prices of many of our products and services to stay competitive, while at the same time trying to maintain or improve revenue and gross margin. In addition, competitors who have a greater presence in some of the lower-cost markets in which we compete may be able to offer lower

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prices than we are able to offer. Our cash flows, results of operations and financial condition may be adversely affected by these and other industry-wide pricing pressures.

        Because our business model is based on providing innovative and high-quality products, we may spend a proportionately greater amount on research and development than some of our competitors. If we cannot proportionately decrease our cost structure on a timely basis in response to competitive price pressures, our gross margin and, therefore, our profitability could be adversely affected. In addition, if our pricing and other factors are not sufficiently competitive, or if there is an adverse reaction to our product decisions, we may lose market share in certain areas, which could adversely affect our revenue and prospects.

        Even if we are able to maintain or increase market share for a particular product, revenue could decline because the product is in a maturing industry or market segment or contains technology that is becoming obsolete. For example, our Storage business unit is experiencing the effects of a market transition towards converged products and solutions, which has led to a decline in demand for our traditional storage products. In addition, the performance of our Business Critical Systems business unit has been affected by the decline in demand for UNIX servers and concerns about the development of new versions of software to support our Itanium-based products. Revenue and margins also could decline due to increased competition from other types of products. For example, growing demand for an increasing array of mobile computing devices and the development of cloud-based solutions has reduced demand for some of our existing hardware products. In addition, refill and remanufactured alternatives for some of HP's LaserJet toner and inkjet cartridges compete with our printing supplies business.

If we cannot successfully execute on our strategy and continue to develop, manufacture and market products, services and solutions that meet customer requirements for innovation and quality, our revenue and gross margin may suffer.

        Our long-term strategy is focused on leveraging our portfolio of hardware, software and services as we adapt to a changing and hybrid model of IT delivery and consumption driven by the growing adoption of cloud computing and increased demand for integrated IT solutions. To successfully execute on this strategy, we need to continue evolving our focus towards the delivery of integrated IT solutions for our customers and to continue to invest and expand into cloud computing, security, big data and mobility. Any failure to successfully execute this strategy, including any failure to invest sufficiently in strategic growth areas, could adversely affect our business, results of operation and financial results.

        The process of developing new high-technology products, software, services and solutions and enhancing existing hardware and software products, services and solutions is complex, costly and uncertain, and any failure by us to anticipate customers' changing needs and emerging technological trends accurately could significantly harm our market share and results of operations. For example, as the transition to an environment characterized by cloud-based computing and software being delivered as a service progresses, we must continue to successfully develop and deploy cloud-based solutions for our customers. We must make long-term investments, develop or obtain, and protect, appropriate intellectual property, and commit significant research and development and other resources before knowing whether our predictions will accurately reflect customer demand for our products, services and solutions. In addition, after we develop a product, we must be able to manufacture appropriate volumes quickly while also managing costs and preserving margins. To accomplish this, we must accurately forecast volumes, mixes of products and configurations that meet customer requirements, and we may not succeed at doing so within a given product's life cycle or at all. Any delay in the development, production or marketing of a new product, service or solution could result in us not being among the first to market, which could further harm our competitive position.

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        In the course of conducting our business, we must adequately address quality issues associated with our products, services and solutions, including defects in our engineering, design and manufacturing processes and unsatisfactory performance under service contracts, as well as defects in third-party components included in our products and unsatisfactory performance or even malicious acts by third-party contractors or subcontractors or the employees of those contractors or subcontractors. In order to address quality issues, we work extensively with our customers and suppliers and engage in product testing to determine the causes of problems and to develop and implement appropriate solutions. However, the products, services and solutions that we offer are complex, and our regular testing and quality control efforts may not be effective in controlling or detecting all quality issues or errata, particularly with respect to faulty components manufactured by third-parties. If we are unable to determine the cause, find an appropriate solution or offer a temporary fix (or "patch") to address quality issues with our products, we may delay shipment to customers, which would delay revenue recognition and could adversely affect our revenue and reported results. Addressing quality issues can be expensive and may result in additional warranty, replacement and other costs, adversely affecting our profits. If new or existing customers have difficulty operating our products or are dissatisfied with our services or solutions, our results of operations could be adversely affected, and we could face possible claims if we fail to meet our customers' expectations. In addition, quality issues can impair our relationships with new or existing customers and adversely affect our brand and reputation, which could, in turn, adversely affect our results of operations.

Our plan to separate into two independent publicly-traded companies is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timeline, or at all, and will involve significant time and expense, which could disrupt or adversely affect our business.

        On October 6, 2014, we announced plans to separate into two independent publicly-traded companies. The separation, which is currently targeted to be completed by the end of fiscal 2015, is subject to approval by our Board of Directors of the final terms of the separation and market, regulatory and certain other conditions. Unanticipated developments, including changes in the competitive conditions of Hewlett-Packard Enterprise's and HP Inc.'s respective markets, possible delays in obtaining various tax opinions or rulings, regulatory approvals or clearances, the uncertainty of the financial markets and challenges in executing the separation, could delay or prevent the completion of the proposed separation, or cause the proposed separation to occur on terms or conditions that are different or less favorable than expected.

        We have established a Separation Management Office tasked with driving the separation process. We expect that the process of completing the proposed separation will be time-consuming and involve significant costs and expenses, which may be significantly higher than what we currently anticipate and may not yield a discernible benefit if the separation is not completed. Executing the proposed separation will require significant time and attention from our senior management and employees, which could adversely affect our business, financial results and results of operations. We may also experience increased difficulties in attracting, retaining and motivating employees during the pendency of the separation and following its completion, which could harm our businesses.

The separation may not achieve some or all of the anticipated benefits.

        We may not realize some or all of the anticipated strategic, financial, operational, marketing or other benefits from the separation. As independent publicly-traded companies, Hewlett-Packard Enterprise and HP Inc. will be smaller, less diversified companies with a narrower business focus and may be more vulnerable to changing market conditions, which could materially and adversely affect their respective business, financial condition and results of operations. Further, there can be no assurance that the combined value of the common stock of the two publicly-traded companies will be

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equal to or greater than what the value of our common stock would have been had the proposed separation not occurred.

The proposed separation may result in disruptions to, and negatively impact our relationships with, our customers and other business partners.

        Uncertainty related to the proposed separation may lead customers and other parties with which we currently do business or may do business in the future to terminate or attempt to negotiate changes in existing business relationships, or consider entering into business relationships with parties other than us. These disruptions could have a material and adverse effect on our businesses, financial condition, results of operations and prospects. The effect of such disruptions could be exacerbated by any delays in the completion of the separation.

The separation could result in substantial tax liability.

        We intend to obtain an opinion of outside counsel to the effect that, for U.S. federal income tax purposes, the separation will qualify, for both HP and its stockholders, as a reorganization within the meaning of Sections 368(a)(1)(D) and 355 of the U.S. Internal Revenue Code of 1986, as amended. In addition, we intend to obtain a private letter ruling from the Internal Revenue Service (the "IRS") and/or one or more opinions of outside counsel regarding certain matters impacting the U.S. federal income tax treatment of the separation for HP, and certain related transactions, as transactions that are generally tax-free for U.S. federal income tax purposes. The opinions of outside counsel and any IRS private letter ruling will be based, among other things, on various factual assumptions we have authorized and representations we have made to outside counsel or the IRS. If any of these assumptions or representations are, or become, inaccurate or incomplete, reliance on the opinions and/or IRS private letter ruling may be affected. An opinion of outside counsel represents their legal judgment but is not binding on the IRS or any court. Accordingly, there can be no assurance that the IRS will not challenge the conclusions reflected in the opinions or that a court would not sustain such a challenge. In addition, we may incur certain tax costs in connection with the separation, including non-U.S. tax expense resulting from separations in multiple non-U.S. jurisdictions that do not legally provide for tax-free separations, which may be material.

Economic weakness and uncertainty could adversely affect our revenue, gross margin and expenses.

        Our revenue and gross margin depend significantly on worldwide economic conditions and the demand for technology hardware, software and services in the markets in which we compete. Economic weakness and uncertainty have resulted, and may result in the future, in decreased revenue, gross margin, earnings or growth rates and in increased expenses and difficulty in managing inventory levels. For example, we are continuing to experience macroeconomic weakness across many geographic regions, particularly in EMEA region, China and other high-growth markets. Ongoing U.S. federal government spending limits may continue to reduce demand for our products, services and solutions from organizations that receive funding from the U.S. government, and could negatively affect macroeconomic conditions in the United States, which could further reduce demand for our products, services and solutions. Economic weakness and uncertainty may adversely affect demand for our products, services and solutions, may result in increased expenses due to higher allowances for doubtful accounts and potential goodwill and asset impairment charges, and may make it more difficult for us to make accurate forecasts of revenue, gross margin, cash flows and expenses.

        We also have experienced, and may experience in the future, gross margin declines in certain businesses, reflecting the effect of items such as competitive pricing pressures and increases in component and manufacturing costs resulting from higher labor and material costs borne by our manufacturers and suppliers that, as a result of competitive pricing pressures or other factors, we are unable to pass on to our customers. In addition, our business may be disrupted if we are unable to

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obtain equipment, parts or components from our suppliers—and our suppliers from their suppliers—due to the insolvency of key suppliers or the inability of key suppliers to obtain credit.

        Economic weakness and uncertainty could cause our expenses to vary materially from our expectations. Any financial turmoil affecting the banking system and financial markets or any significant financial services institution failures could negatively impact our treasury operations, as the financial condition of such parties may deteriorate rapidly and without notice in times of market volatility and disruption. Poor financial performance of asset markets combined with lower interest rates and the adverse effects of fluctuating currency exchange rates could lead to higher pension and post-retirement benefit expenses. Interest and other expenses could vary materially from expectations depending on changes in interest rates, borrowing costs, currency exchange rates, costs of hedging activities and the fair value of derivative instruments. Economic downturns also may lead to restructuring actions and associated expenses.

The revenue and profitability of our operations have historically varied, which makes our future financial results less predictable.

        Our revenue, gross margin and profit vary among our products and services, customer groups and geographic markets and therefore will likely be different in future periods than our current results. Our revenue depends on the overall demand for our products and services. Delays or reductions in customer IT spending could have a material adverse effect on demand for our products and services, which could result in a significant decline in our revenue. In addition, revenue declines in some of our businesses, particularly our services businesses, may affect revenue in our other businesses as we may lose cross-selling opportunities. Overall gross margins and profitability in any given period are dependent partially on the product, service, customer and geographic mix reflected in that period's net revenue. Competition, lawsuits, investigations and other risks affecting those businesses therefore may have a significant impact on our overall gross margin and profitability. Certain segments have a higher fixed cost structure and more variation in gross margins across their business units and product portfolios than others and may therefore experience significant operating profit volatility on a quarterly basis. In addition, newer geographic markets may be relatively less profitable due to investments associated with entering those markets and local pricing pressures, and we may have difficulty establishing and maintaining the operating infrastructure necessary to support the high growth rate associated with some of those markets. Market trends, industry shifts, competitive pressures, commoditization of products, seasonal rebates, increased component or shipping costs, regulatory impacts and other factors may result in reductions in revenue or pressure on gross margins of certain segments in a given period, which may lead to adjustments to our operations. Moreover, our efforts to address the challenges facing our business could increase the level of variability in our financial results because the rate at which we are able to realize the benefits from those efforts may vary from period to period.

If we fail to manage the distribution of our products and services properly, our revenue, gross margins and profitability could suffer.

        We use a variety of distribution methods to sell our products and services, including third-party resellers and distributors and both direct and indirect sales to enterprise accounts and consumers. Successfully managing the interaction of our direct and indirect channel efforts to reach various potential customer segments for our products and services is a complex process. Moreover, since each distribution method has distinct risks and gross margins, our failure to implement the most advantageous balance in the delivery model for our products and services could adversely affect our revenue and gross margins and therefore our profitability. Other distribution risks are described below.

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Our financial results could be materially adversely affected due to channel conflicts or if the financial conditions of our channel partners were to weaken.

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Our results of operations may be adversely affected by any conflicts that might arise between our various sales channels, the loss or deterioration of any alliance or distribution arrangement or the loss of retail shelf space. Moreover, some of our wholesale and retail distributors may have insufficient financial resources and may not be able to withstand changes in business conditions, including economic weakness and industry consolidation. Many of our significant distributors operate on narrow product margins and have been negatively affected by business pressures. Considerable trade receivables that are not covered by collateral or credit insurance are outstanding with our distribution and retail channel partners. Revenue from indirect sales could suffer, and we could experience disruptions in distribution, if our distributors' financial conditions, abilities to borrow funds in the credit markets or operations weaken.

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Our inventory management is complex as we continue to sell a significant mix of products through distributors.

We must manage inventory effectively, particularly with respect to sales to distributors, which involves forecasting demand and pricing issues. Distributors may increase orders during periods of product shortages, cancel orders if their inventory is too high or delay orders in anticipation of new products. Distributors also may adjust their orders in response to the supply of our products and the products of our competitors and seasonal fluctuations in end-user demand. Our reliance upon indirect distribution methods may reduce our visibility into demand and pricing issues, and therefore make forecasting more difficult. If we have excess or obsolete inventory, we may have to reduce our prices and write down inventory. Moreover, our use of indirect distribution channels may limit our willingness or ability to adjust prices quickly and otherwise to respond to pricing changes by competitors. We also may have limited ability to estimate future product rebate redemptions in order to price our products effectively.

We depend on third-party suppliers, and our financial results could suffer if we fail to manage suppliers properly.

        Our operations depend on our ability to anticipate our needs for components, products and services, as well as our suppliers' ability to deliver sufficient quantities of quality components, products and services at reasonable prices and in time for us to meet critical schedules. Given the wide variety of systems, products and services that we offer, the large number of our suppliers and contract manufacturers that are located around the world, and the long lead times required to manufacture, assemble and deliver certain components and products, problems could arise in production, planning, and inventory management that could seriously harm us. In addition, our ongoing efforts to optimize the efficiency of our supply chain could cause supply disruptions and be more expensive, time-consuming and resource intensive than expected. Other supplier problems that we could face include component shortages, excess supply, risks related to the terms of our contracts with suppliers, risks associated with contingent workers, and risks related to our relationships with single source suppliers, as described below.

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Shortages.  Occasionally we may experience a shortage of, or a delay in receiving, certain components as a result of strong demand, capacity constraints, supplier financial weaknesses, inability of suppliers to borrow funds in the credit markets, disputes with suppliers (some of whom are also customers), disruptions in the operations of component suppliers, other problems experienced by suppliers or problems faced during the transition to new suppliers. For example, our PC business relies heavily upon outsourced manufacturers ("OMs") to manufacture its products and is therefore dependent upon the continuing operations of those OMs to fulfill demand for our PC products. We represent a substantial portion of the business of some of these OMs, and any changes to the nature or volume of our business transactions with a particular OM could adversely affect the operations and financial condition of the OM and lead to shortages or delays in receiving products from that OM. If shortages or delays persist, the

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price of certain components may increase, and we may be exposed to quality issues or the components may not be available at all. We may not be able to secure enough components at reasonable prices or of acceptable quality to build products or provide services in a timely manner in the quantities or according to the specifications needed. Accordingly, our revenue and gross margin could suffer as we could lose time-sensitive sales, incur additional freight costs or be unable to pass on price increases to our customers. If we cannot adequately address supply issues, we might have to reengineer some products or services offerings, which could result in further costs and delays.

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Oversupply.  In order to secure components for the provision of products or services, at times we may make advance payments to suppliers or enter into non-cancelable commitments with vendors. In addition, we may purchase components strategically in advance of demand to take advantage of favorable pricing or to address concerns about the availability of future components. If we fail to anticipate customer demand properly, a temporary oversupply could result in excess or obsolete components, which could adversely affect our gross margin.

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Contractual terms.  As a result of binding price or purchase commitments with vendors, we may be obligated to purchase components or services at prices that are higher than those available in the current market and be limited in our ability to respond to changing market conditions. If we commit to purchasing components or services for prices in excess of the then-current market price, we may be at a disadvantage to competitors who have access to components or services at lower prices, our gross margin could suffer, and we could incur additional charges relating to inventory obsolescence. In addition, many of our competitors obtain products or components from the same OMs and suppliers that we utilize. Our competitors may obtain better pricing, more favorable contractual terms and conditions, and more favorable allocations of products and components during periods of limited supply, and our ability to engage in relationships with certain OMs and suppliers could be limited. The practice employed by our PC business of purchasing product components and transferring those components to its OMs may create large supplier receivables with the OMs that, depending on the financial condition of the OMs, may create collectability risks. In addition, certain of our OMs and suppliers may decide to discontinue conducting business with us. Any of these actions by our competitors, OMs or suppliers could adversely affect our future results of operations and financial condition.

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Contingent workers.  We also rely on third-party suppliers for the provision of contingent workers, and our failure to manage our use of such workers effectively could adversely affect our results of operations. We have been exposed to various legal claims relating to the status of contingent workers in the past and could face similar claims in the future. We may be subject to shortages, oversupply or fixed contractual terms relating to contingent workers. Our ability to manage the size of, and costs associated with, the contingent workforce may be subject to additional constraints imposed by local laws.

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Single source suppliers.  Our use of single source suppliers for certain components could exacerbate any supplier issues. We obtain a significant number of components from single sources due to technology, availability, price, quality or other considerations. For example, we rely on Intel to provide us with a sufficient supply of processors for many of our PCs, workstations and servers and AMD to provide us with a sufficient supply of processors for other products. Some of those processors are customized for our products. New products that we introduce may utilize custom components obtained from only one source initially until we have evaluated whether there is a need for additional suppliers. Replacing a single source supplier could delay production of some products as replacement suppliers may be subject to capacity constraints or other output limitations. For some components, such as customized components and some of the processors that we obtain from Intel, alternative sources either may not exist or may be unable to produce the quantities of those components necessary to satisfy our

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production requirements. In addition, we sometimes purchase components from single source suppliers under short-term agreements that contain favorable pricing and other terms but that may be unilaterally modified or terminated by the supplier with limited notice and with little or no penalty. The performance of such single source suppliers under those agreements (and the renewal or extension of those agreements upon similar terms) may affect the quality, quantity and price of components to us. The loss of a single source supplier, the deterioration of our relationship with a single source supplier, or any unilateral modification to the contractual terms under which we are supplied components by a single source supplier could adversely affect our revenue, gross margin and cash flows.

Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses.

        Our worldwide operations could be disrupted by earthquakes, telecommunications failures, power or water shortages, tsunamis, floods, hurricanes, typhoons, fires, extreme weather conditions, medical epidemics or pandemics and other natural or manmade disasters or catastrophic events, for which we are predominantly self-insured. The occurrence of any of these business disruptions could result in significant losses, seriously harm our revenue, profitability and financial condition, adversely affect our competitive position, increase our costs and expenses, and require substantial expenditures and recovery time in order to fully resume operations. Our corporate headquarters and a portion of our research and development activities are located in California, and other critical business operations and some of our suppliers are located in California and Asia, near major earthquake faults known for seismic activity. In addition, six of our principal worldwide IT data centers are located in the southern United States, making our operations more vulnerable to natural disasters or other business disruptions occurring in that geographical area. The manufacture of product components, the final assembly of our products and other critical operations are concentrated in certain geographic locations, including Shanghai, Singapore and India. We also rely on major logistics hubs primarily in Asia to manufacture and distribute our products and in the southwestern United States to import products into the Americas region. Our operations could be adversely affected if manufacturing, logistics or other operations in these locations are disrupted for any reason, including natural disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, regulatory or political issues. The ultimate impact on us, our significant suppliers and our general infrastructure of being located near locations more vulnerable to the occurrence of the aforementioned business disruptions and being consolidated in certain geographical areas is unknown and remains uncertain.

Our sales cycle makes planning and inventory management difficult and future financial results less predictable.

        In some of our segments, our quarterly sales often have reflected a pattern in which a disproportionate percentage of each quarter's total sales occurs towards the end of such quarter. This uneven sales pattern makes predicting revenue, earnings, cash flow from operations and working capital for each financial period difficult, increases the risk of unanticipated variations in quarterly results and financial condition and places pressure on our inventory management and logistics systems. If predicted demand is substantially greater than orders, there may be excess inventory. Alternatively, if orders substantially exceed predicted demand, we may not be able to fulfill all of the orders received in the last few weeks of each quarter. Depending on when they occur in a quarter, developments such as a systems failure, component pricing movements, component shortages or global logistics disruptions, could adversely impact inventory levels and results of operations in a manner that is disproportionate to the number of days in the quarter affected.

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        We experience some seasonal trends in the sale of our products that also may produce variations in quarterly results and financial condition. For example, sales to governments (particularly sales to the U.S. government) are often stronger in the third calendar quarter, consumer sales are often stronger in the fourth calendar quarter, and many customers whose fiscal and calendar years are the same spend their remaining capital budget authorizations in the fourth calendar quarter prior to new budget constraints in the first calendar quarter of the following year. European sales are often weaker during the summer months. Demand during the spring and early summer also may be adversely impacted by market anticipation of seasonal trends. Moreover, to the extent that we introduce new products in anticipation of seasonal demand trends, our discounting of existing products may adversely affect our gross margin prior to or shortly after such product launches. Typically, our third fiscal quarter is our weakest and our fourth fiscal quarter is our strongest. Many of the factors that create and affect seasonal trends are beyond our control.

Due to the international nature of our business, political or economic changes or other factors could harm our future revenue, costs and expenses, and financial condition.

        Sales outside the United States make up approximately 65% of our net revenue. In addition, an increasing portion of our business activity is being conducted in emerging markets, including Brazil, Russia, India and China. Our future revenue, gross margin, expenses and financial condition could suffer due to a variety of international factors, including:

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ongoing instability or changes in a country's or region's economic or political conditions, including inflation, recession, interest rate fluctuations and actual or anticipated military or political conflicts;

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longer collection cycles and financial instability among customers;

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trade regulations and procedures and actions affecting production, pricing and marketing of products;

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local labor conditions and regulations, including local labor issues faced by specific HP suppliers and OMs;

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managing a geographically dispersed workforce;

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changes in the regulatory or legal environment;

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differing technology standards or customer requirements;

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import, export or other business licensing requirements or requirements relating to making foreign direct investments, which could increase our cost of doing business in certain jurisdictions, prevent us from shipping products to particular countries or markets, affect our ability to obtain favorable terms for components, increase our operating costs or lead to penalties or restrictions;

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difficulties associated with repatriating earnings generated or held abroad in a tax-efficient manner and changes in tax laws; and

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fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points of exit and entry for our products and shipments.

        The factors described above also could disrupt our product and component manufacturing and key suppliers located outside of the United States. For example, we rely on manufacturers in Taiwan for the production of notebook computers and other suppliers in Asia for product assembly and manufacture.

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        Currencies other than the U.S. dollar, including the euro, the British pound, Chinese yuan renminbi and the Japanese Yen, can have an impact on our results (expressed in U.S. dollars). In particular, the economic uncertainties relating to European sovereign and other debt obligations and the related European financial restructuring efforts may cause the value of the euro to fluctuate. Currency variations also contribute to variations in sales of products and services in impacted jurisdictions. For example, in the event that one or more European countries were to replace the euro with another currency, our sales into such countries, or into Europe generally, would likely be adversely affected until stable exchange rates are established. Accordingly, fluctuations in foreign currency rates, most notably the strengthening of the dollar against the euro, could adversely affect our revenue growth in future periods. In addition, currency variations can adversely affect margins on sales of our products in countries outside of the United States and margins on sales of products that include components obtained from suppliers located outside of the United States. We use a combination of forward contracts and options designated as cash flow hedges to protect against foreign currency exchange rate risks. The effectiveness of our hedges depends on our ability to accurately forecast future cash flows, which is particularly difficult during periods of uncertain demand for our products and services and highly volatile exchange rates. We may incur significant losses from our hedging activities due to factors such as volatility and currency variations. In addition, our hedging activities may be ineffective or may not offset any or more than a portion of the adverse financial impact resulting from currency variations. Losses associated with hedging activities also may impact our revenue and to a lesser extent our cost of sales and financial condition.

        In many foreign countries, particularly in those with developing economies, it is common to engage in business practices that are prohibited by laws and regulations applicable to us, such as the Foreign Corrupt Practices Act (the "FCPA"). For example, as discussed in Note 15 to the Consolidated Financial Statements, the German Public Prosecutor's Office has been investigating allegations that certain current and former employees of HP engaged in bribery, embezzlement and tax evasion. In addition, the Polish Central Anti-Corruption Bureau is conducting investigations into potential FCPA violations by a former employee of an HP subsidiary in connection with certain public-sector transactions in Poland. Although we implement policies and procedures designed to facilitate compliance with these laws, our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, may take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have an adverse effect on our business and reputation.

Any failure by us to identify, manage, complete and integrate acquisitions, divestitures and other significant transactions successfully could harm our financial results, business and prospects, and the costs, expenses and other financial and operational effects associated with managing, completing and integrating acquisitions may result in financial results that are different than expected.

        As part of our business strategy, we may acquire companies or businesses, divest businesses or assets, enter into strategic alliances and joint ventures and make investments to further our business (collectively, "business combination and investment transactions"). In order to pursue this strategy successfully, we must identify candidates for and successfully complete business combination and investment transactions, some of which may be large or complex, and manage post-closing issues such as the integration of acquired businesses, products, services or employees. Risks associated with business combination and investment transactions include the following, any of which could adversely affect our revenue, gross margin, profitability and financial results:

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Managing business combination and investment transactions requires varying levels of management resources, which may divert our attention from other business operations.

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We may not fully realize all of the anticipated benefits of any business combination and investment transaction, and the timeframe for realizing benefits of a business combination and investment transaction may depend partially upon the actions of employees, advisors, suppliers or other third-parties.

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Business combination and investment transactions have resulted, and in the future may result, in significant costs and expenses and charges to earnings, including those related to severance pay, early retirement costs, employee benefit costs, goodwill and asset impairment charges, charges from the elimination of duplicative facilities and contracts, asset impairment charges, inventory adjustments, assumed litigation and other liabilities, legal, accounting and financial advisory fees, and required payments to executive officers and key employees under retention plans.

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Any increased or unexpected costs, unanticipated delays or failure to meet contractual obligations could make business combination and investment transactions less profitable or unprofitable.

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Our ability to conduct due diligence with respect to business combination and investment transactions, and our ability to evaluate the results of such due diligence, is dependent upon the veracity and completeness of statements and disclosures made or actions taken by third-parties or their representatives.

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Our due diligence process may fail to identify significant issues with the acquired company's product quality, financial disclosures, accounting practices or internal control deficiencies.

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The pricing and other terms of our contracts for business combination and investment transactions require us to make estimates and assumptions at the time we enter into these contracts, and, during the course of our due diligence, we may not identify all of the factors necessary to estimate accurately our costs, timing and other matters or we may incur costs if a business combination is not consummated.

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In order to complete a business combination and investment transaction, we may issue common stock, potentially creating dilution for existing stockholders.

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We may borrow to finance business combination and investment transactions, and the amount and terms of any potential future acquisition-related or other borrowings, as well as other factors, could affect our liquidity and financial condition.

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Our effective tax rate on an ongoing basis is uncertain, and business combination and investment transactions could adversely impact our effective tax rate.

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An announced business combination and investment transaction may not close timely or at all, which may cause our financial results to differ from expectations in a given quarter.

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Business combination and investment transactions may lead to litigation.

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If we fail to identify and successfully complete and integrate business combination and investment transactions that further our strategic objectives, we may be required to expend resources to develop products, services and technology internally, which may put us at a competitive disadvantage.

        We have incurred and will incur additional depreciation and amortization expense over the useful lives of certain assets acquired in connection with business combination and investment transactions, and, to the extent that the value of goodwill or intangible assets acquired in connection with a business combination and investment transaction becomes impaired, we may be required to incur additional material charges relating to the impairment of those assets. For example, in our third fiscal quarter of 2012, we recorded an $8.0 billion impairment charge relating to the goodwill associated with our enterprise services reporting unit within our former Services segment and a $1.2 billion impairment

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charge as a result of an asset impairment analysis of the "Compaq" trade name acquired in 2002. In addition, in our fourth fiscal quarter of 2012, we recorded an $8.8 billion impairment charge relating to the goodwill and intangible assets associated with Autonomy. If there are future decreases in our stock price or significant changes in the business climate or results of operations of our reporting units, we may incur additional charges, which may include goodwill impairment or intangible asset charges.

        Integration issues are often complex, time-consuming and expensive and, without proper planning and implementation, could significantly disrupt our business and the acquired business. The challenges involved in integration include:

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combining product and service offerings and entering or expanding into markets in which we are not experienced or are developing expertise;

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convincing customers and distributors that the transaction will not diminish client service standards or business focus, persuading customers and distributors to not defer purchasing decisions or switch to other suppliers (which could result in our incurring additional obligations in order to address customer uncertainty), minimizing sales force attrition and expanding and coordinating sales, marketing and distribution efforts;

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consolidating and rationalizing corporate IT infrastructure, which may include multiple legacy systems from various acquisitions and integrating software code and business processes;

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minimizing the diversion of management attention from ongoing business concerns;

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persuading employees that business cultures are compatible, maintaining employee morale and retaining key employees, engaging with employee works councils representing an acquired company's non-U.S. employees, integrating employees into HP, correctly estimating employee benefit costs and implementing restructuring programs;

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coordinating and combining administrative, manufacturing, research and development and other operations, subsidiaries, facilities and relationships with third-parties in accordance with local laws and other obligations while maintaining adequate standards, controls and procedures;

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achieving savings from supply chain integration; and

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managing integration issues shortly after or pending the completion of other independent transactions.

        While we do not currently plan to divest any of our major businesses, we do regularly evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives. When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives. We may also dispose of a business at a price or on terms that are less desirable than we had anticipated. In addition, we may experience greater dis-synergies than expected, and the impact of the divestiture on our revenue growth may be larger than projected. After reaching an agreement with a buyer or seller for the acquisition or disposition of a business, we are subject to satisfaction of pre-closing conditions as well as to necessary regulatory and governmental approvals on acceptable terms, which, if not satisfied or obtained, may prevent us from completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions outside of our control could affect our future financial results.

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Our revenue, cost of sales, and expenses may suffer if we cannot continue to license or enforce the intellectual property rights on which our businesses depend or if third parties assert that we violate their intellectual property rights.

        We rely upon patent, copyright, trademark and trade secret laws in the United States, similar laws in other countries, and agreements with our employees, customers, suppliers and other parties, to establish and maintain intellectual property rights in the products and services we sell, provide or otherwise use in our operations. However, any of our intellectual property rights could be challenged, invalidated, infringed or circumvented, or such intellectual property rights may not be sufficient to permit us to take advantage of current market trends or to otherwise provide competitive advantages, either of which could result in costly product redesign efforts, discontinuance of certain product offerings or other harm to our competitive position. Further, the laws of certain countries do not protect proprietary rights to the same extent as the laws of the United States. Therefore, in certain jurisdictions we may be unable to protect our proprietary technology adequately against unauthorized third-party copying or use; this, too, could adversely affect our competitive position.

        Because of the rapid pace of technological change in the information technology industry, much of our business and many of our products rely on key technologies developed or licensed by third-parties. We may not be able to obtain or continue to obtain licenses and technologies from these third-parties at all or on reasonable terms, or such third-parties may demand cross-licenses to our intellectual property. In addition, it is possible that as a consequence of a merger or acquisition, third-parties may obtain licenses to some of our intellectual property rights or our business may be subject to certain restrictions that were not in place prior to the transaction. Consequently, we may lose a competitive advantage with respect to these intellectual property rights or we may be required to enter into costly arrangements in order to terminate or limit these rights.

        Third-parties also may claim that we or customers indemnified by us are infringing upon their intellectual property rights. For example, individuals and groups may purchase intellectual property assets for the purpose of asserting claims of infringement and attempting to extract settlements from companies such as HP and its customers. The number of these claims has increased in recent periods and may continue to increase in the future. If we cannot or do not license infringed intellectual property at all or on reasonable terms, or if we are required to substitute similar technology from another source, our operations could be adversely affected. Even if we believe that intellectual property claims are without merit, they can be time-consuming and costly to defend against and may divert management's attention and resources away from our business. Claims of intellectual property infringement also might require us to redesign affected products, enter into costly settlement or license agreements, pay costly damage awards, or face a temporary or permanent injunction prohibiting us from importing, marketing or selling certain of our products. Even if we have an agreement to indemnify us against such costs, the indemnifying party may be unable or unwilling to uphold its contractual obligations to us.

        Finally, our results of operations and cash flows have been and could continue to be affected in certain periods and on an ongoing basis by the imposition, accrual and payment of copyright levies or similar fees. In certain countries (primarily in Europe), proceedings are ongoing or have been concluded involving HP in which groups representing copyright owners have sought or are seeking to impose upon and collect from HP levies upon equipment (such as PCs, MFDs and printers) alleged to be copying devices under applicable laws. Other such groups have also sought to modify existing levy schemes to increase the amount of the levies that can be collected from us. Other countries that have not imposed levies on these types of devices are expected to extend existing levy schemes, and countries that do not currently have levy schemes may decide to impose copyright levies on these types of devices. The total amount of the copyright levies will depend on the types of products determined to be subject to the levy, the number of units of those products sold during the period covered by the levy, and the per unit fee for each type of product, all of which are affected by several factors, including the

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outcome of ongoing litigation involving us and other industry participants and possible action by the legislative bodies in the applicable countries, and could be substantial. Consequently, the ultimate impact of these copyright levies or similar fees, and our ability to recover such amounts through increased prices, remains uncertain.

Our revenue and profitability could suffer if we do not manage the risks associated with our services business properly.

        The risks that accompany our services business differ from those of our other businesses and include the following:

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The success of our services business is to a significant degree dependent on our ability to retain our significant services clients and maintain or increase the level of revenues from these clients. We may lose clients due to their merger or acquisition, business failure, contract expiration or their selection of a competing service provider or decision to in-source services. In addition, we may not be able to retain or renew relationships with our significant clients. As a result of business downturns or for other business reasons, we are also vulnerable to reduced processing volumes from our clients, which can reduce the scope of services provided and the prices for those services. We may not be able to replace the revenue and earnings from any such lost clients or reductions in services. In addition, our contracts may allow a client to terminate the contract for convenience, and we may not be able to fully recover our investments in such circumstances.

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The pricing and other terms of some of our IT services agreements, particularly our long-term IT outsourcing services agreements, require us to make estimates and assumptions at the time we enter into these contracts that could differ from actual results. Any increased or unexpected costs or unanticipated delays in connection with the performance of these engagements, including delays caused by factors outside our control, could make these agreements less profitable or unprofitable, which could have an adverse effect on the profit margin of our IT services business.

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Some of our IT services agreements require significant investment in the early stages that is expected to be recovered through billings over the life of the agreement. These agreements often involve the construction of new IT systems and communications networks and the development and deployment of new technologies. Substantial performance risk exists in each agreement with these characteristics, and some or all elements of service delivery under these agreements are dependent upon successful completion of the development, construction and deployment phases. Any failure to perform satisfactorily under these agreements may expose us to legal liability, result in the loss of customers and harm our reputation, which could decrease the revenues and profitability of our IT services business.

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Some of our outsourcing services agreements contain pricing provisions that permit a client to request a benchmark study by a mutually acceptable third-party. The benchmarking process typically compares the contractual price of our services against the price of similar services offered by other specified providers in a peer comparison group, subject to agreed upon adjustment and normalization factors. Generally, if the benchmarking study shows that our pricing has a difference outside a specified range, and the difference is not due to the unique requirements of the client, then the parties will negotiate in good faith any appropriate adjustments to the pricing. This may result in the reduction of our rates for the benchmarked services performed after the implementation of those pricing adjustments, which could decrease the cash flows of our IT services business.

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If we do not hire, train, motivate and effectively utilize employees with the right mix of skills and experience in the right geographic regions to meet the needs of our services clients, our

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profitably could suffer. For example, if our employee utilization rate is too low, our profitability and the level of engagement of our employees could suffer. If that utilization rate is too high, it could have an adverse effect on employee engagement and attrition and the quality of the work performed, as well as our ability to staff projects. If we are unable to hire and retain a sufficient number of employees with the skills or backgrounds to meet current demand, we might need to redeploy existing personnel, increase our reliance on subcontractors or increase employee compensation levels, all of which could also negatively affect our profitability. In addition, if we have more employees than we need with certain skill sets or in certain geographies, we may incur increased costs as we work to rebalance our supply of skills and resources with client demand in those geographies.

Failure to comply with our customer contracts or government contracting regulations could adversely affect our revenue and results of operations.

        Our contracts with our customers may include unique and specialized performance requirements. In particular, our contracts with federal, state, provincial and local governmental customers are subject to various procurement regulations, contract provisions and other requirements relating to their formation, administration and performance. Any failure by us to comply with the specific provisions in our customer contracts or any violation of government contracting regulations could result in the imposition of various civil and criminal penalties, which may include termination of contracts, forfeiture of profits, suspension of payments and, in the case of our government contracts, fines and suspension from future government contracting. In addition, we have in the past been, and may in the future be, subject to qui tam litigation brought by private individuals on behalf of the government relating to our government contracts, which could include claims for up to treble damages. Further, any negative publicity related to our customer contracts or any proceedings surrounding them, regardless of its accuracy, may damage our business by affecting our ability to compete for new contracts. If our customer contracts are terminated, if we are suspended or disbarred from government work, or if our ability to compete for new contracts is adversely affected, we could suffer a reduction in expected revenue.

HP's stock price has historically fluctuated and may continue to fluctuate, which may make future prices of HP's stock difficult to predict.

        HP's stock price, like that of other technology companies, can be volatile. Some of the factors that could affect our stock price are:

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speculation, coverage or sentiment in the media or the investment community about, or actual changes in, our business, strategic position, market share, organizational structure, operations, financial condition, financial reporting and results, effectiveness of cost-cutting efforts, value or liquidity of our investments, exposure to market volatility, prospects, business combination or investment transactions, future stock price performance, board of directors, executive team, our competitors or our industry in general;

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the announcement of new, planned or contemplated products, services, technological innovations, acquisitions, divestitures or other significant transactions by HP or its competitors;

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quarterly increases or decreases in revenue, gross margin, earnings or cash flows, changes in estimates by the investment community or financial outlook provided by HP and variations between actual and estimated financial results;

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announcements of actual and anticipated financial results by HP's competitors and other companies in the IT industry;

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developments relating to pending investigations, claims and disputes; and

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the timing and amount of share repurchases by HP.

        General or industry specific market conditions or stock market performance or domestic or international macroeconomic and geopolitical factors unrelated to HP's performance also may affect the price of HP stock. For these reasons, investors should not rely on recent or historical trends to predict future stock prices, financial condition, results of operations or cash flows. In addition, as discussed in Note 15 to the Consolidated Financial Statements, we are involved in several securities class action litigation matters. Additional volatility in the price of our securities could result in the filing of additional securities class action litigation matters, which could result in substantial costs and the diversion of management time and resources.

Failure to maintain our credit ratings could adversely affect our liquidity, capital position, borrowing costs and access to capital markets.

        Our credit risk is evaluated by the major independent rating agencies. Two of those rating agencies, Moody's Investors Service and Standard & Poor's Ratings Services, downgraded our ratings once during fiscal 2012, and a third rating agency, Fitch Ratings, downgraded our ratings twice during that fiscal year. In addition, Moody's Investors Service downgraded our ratings again in November 2012. Past downgrades have increased the cost of borrowing under our credit facilities, have reduced market capacity for our commercial paper, and may require the posting of additional collateral under some of our derivative contracts. There can be no assurance that we will be able to maintain our current credit ratings, and any additional actual or anticipated changes or downgrades in our credit ratings, including any announcement that our ratings are under further review for a downgrade, may further impact us in a similar manner and may have a negative impact on our liquidity, capital position and access to capital markets.

We make estimates and assumptions in connection with the preparation of HP's Consolidated Financial Statements, and any changes to those estimates and assumptions could adversely affect our results of operations.

        In connection with the preparation of HP's Consolidated Financial Statements, we use certain estimates and assumptions based on historical experience and other factors. Our most critical accounting estimates are described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of this report. In addition, as discussed in Note 15 to the Consolidated Financial Statements, we make certain estimates, including decisions related to provisions for legal proceedings and other contingencies. While we believe that these estimates and assumptions are reasonable under the circumstances, they are subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could adversely affect our results of operations.

Unanticipated changes in our tax provisions, the adoption of new tax legislation or exposure to additional tax liabilities could affect our profitability.

        We are subject to income and other taxes in the United States and numerous non-U.S. jurisdictions. Our tax liabilities are affected by the amounts we charge in intercompany transactions for inventory, services, licenses, funding and other items. We are subject to ongoing tax audits in various jurisdictions. Tax authorities may disagree with our intercompany charges, cross-jurisdictional transfer pricing or other matters and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits, and the amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax expense and therefore could have a material impact on our tax provision, net income and cash flows. In addition, our effective tax rate in the future could be adversely affected by changes to

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our operating structure, changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, changes in tax laws and the discovery of new information in the course of our tax return preparation process. In particular, the carrying value of deferred tax assets, which are predominantly in the United States, is dependent on our ability to generate future taxable income in the United States. In addition, proposals for tax legislation have been introduced or are being considered that could have significant adverse effects on our tax rate, the carrying value of deferred tax assets, or our deferred tax liabilities. Any of these changes could affect our profitability.

In order to be successful, we must attract, retain, train, motivate, develop and transition key employees, and failure to do so could seriously harm us.

        In order to be successful, we must attract, retain, train, motivate, develop and transition qualified executives and other key employees, including those in managerial, technical, sales, marketing and IT support positions. Identifying, developing internally or hiring externally, training and retaining qualified executives, engineers, skilled solutions providers in the IT support business and qualified sales representatives are critical to our future, and competition for experienced employees in the IT industry can be intense. In order to attract and retain executives and other key employees in a competitive marketplace, we must provide a competitive compensation package, including cash- and share-based compensation. Our share-based incentive awards include stock options, restricted stock units and performance-based restricted units, some of which contain conditions relating to HP's stock price performance and HP's long-term financial performance that make the future value of those awards uncertain. If the anticipated value of such share-based incentive awards does not materialize, if our share-based compensation otherwise ceases to be viewed as a valuable benefit, if our total compensation package is not viewed as being competitive, or if we do not obtain the shareholder approval needed to continue granting share-based incentive awards in the amounts we believe are necessary, our ability to attract, retain, and motivate executives and key employees could be weakened. The failure to successfully hire executives and key employees or the loss of any executives and key employees could have a significant impact on our operations. Further, changes in our management team may be disruptive to our business, and any failure to successfully transition and assimilate key new hires or promoted employees could adversely affect our business and results of operations.

System security risks, data protection breaches, cyber attacks and systems integration issues could disrupt our internal operations or information technology services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.

        Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of third-parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and deploy viruses, worms, and other malicious software programs that attack our products or otherwise exploit any security vulnerabilities of our products. In addition, sophisticated hardware and operating system software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the system. The costs to us to eliminate or alleviate cyber or other security problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing or potential customers that may impede our sales, manufacturing, distribution or other critical functions.

        We manage and store various proprietary information and sensitive or confidential data relating to our business. In addition, our outsourcing services business routinely processes, stores and transmits

95

large amounts of data for our clients, including sensitive and personally identifiable information. Breaches of our security measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us, our clients or customers, including the potential loss or disclosure of such information or data as a result of fraud, trickery or other forms of deception, could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation and potential liability for us, damage our brand and reputation or otherwise harm our business. We also could lose existing or potential customers of outsourcing services or other IT solutions or incur significant expenses in connection with our customers' system failures or any actual or perceived security vulnerabilities in our products and services. In addition, the cost and operational consequences of implementing further data protection measures could be significant.

        Portions of our IT infrastructure also may experience interruptions, delays or cessations of service or produce errors in connection with systems integration or migration work that takes place from time to time. We may not be successful in implementing new systems and transitioning data, which could cause business disruptions and be more expensive, time-consuming, disruptive and resource intensive. Such disruptions could adversely impact our ability to fulfill orders and respond to customer requests and interrupt other processes. Delayed sales, lower margins or lost customers resulting from these disruptions could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.

Terrorist acts, conflicts, wars and geopolitical uncertainties may seriously harm our business and revenue, costs and expenses and financial condition and stock price.

        Terrorist acts, conflicts or wars (wherever located around the world) may cause damage or disruption to our business, our employees, facilities, partners, suppliers, distributors, resellers or customers or adversely affect our ability to manage logistics, operate our transportation and communication systems or conduct certain other critical business operations. The potential for future attacks, the national and international responses to attacks or perceived threats to national security, and other actual or potential conflicts or wars have created many economic and political uncertainties. In addition, as a major multinational company with headquarters and significant operations located in the United States, actions against or by the United States may impact our business or employees. Although it is impossible to predict the occurrences or consequences of any such events, if they occur, they could result in a decrease in demand for our products, make it difficult or impossible to provide services or deliver products to our customers or to receive components from our suppliers, create delays and inefficiencies in our supply chain and result in the need to impose employee travel restrictions. We are predominantly uninsured for losses and interruptions caused by terrorist acts, conflicts and wars.

Unforeseen environmental costs could adversely affect our business and results of operations.

        We are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of our products and the recycling, treatment and disposal of our products, including batteries. In particular, we face increasing complexity in our product design and procurement operations as we adjust to new and future requirements relating to the chemical and materials composition of our products, their safe use, the energy consumption associated with those products, climate change laws and regulations, and product take-back legislation. If we were to violate or become liable under environmental laws or if our products become non-compliant with environmental laws, we could incur substantial costs or face other sanctions, which may include restrictions on our products entering certain jurisdictions. Our potential exposure includes fines and civil or criminal sanctions,

96

third-party property damage, personal injury claims and clean-up costs. Further, liability under some environmental laws relating to contaminated sites can be imposed retroactively, on a joint and several basis, and without any finding of noncompliance or fault. The amount and timing of costs to comply with environmental laws are difficult to predict.

Some anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.

        We have provisions in our certificate of incorporation and bylaws, each of which could have the effect of rendering more difficult or discouraging an acquisition of HP deemed undesirable by our Board of Directors. These include provisions:

•

authorizing blank check preferred stock, which we could issue with voting, liquidation, dividend and other rights superior to our common stock;

•

limiting the liability of, and providing indemnification to, our directors and officers;

•

specifying that our stockholders may take action only at a duly called annual or special meeting of stockholders and otherwise in accordance with our bylaws and limiting the ability of our stockholders to call special meetings;

•

requiring advance notice of proposals by our stockholders for business to be conducted at stockholder meetings and for nominations of candidates for election to our Board of Directors; and

•

controlling the procedures for conduct of our Board of Directors and stockholder meetings and election, appointment and removal of our directors.

        These provisions, alone or together, could deter or delay hostile takeovers, proxy contests and changes in control or our management. As a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the Delaware General Corporation Law, which prevents some stockholders from engaging in certain business combinations without approval of the holders of substantially all of our outstanding common stock.

        Any provision of our certificate of incorporation or bylaws or Delaware law that has the effect of delaying or deterring a change in control of HP could limit the opportunity for our stockholders to receive a premium for their shares of our stock and also could affect the price that some investors are willing to pay for our stock.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

        For quantitative and qualitative disclosures about market risk affecting HP, see "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2014, which is incorporated herein by reference. Our exposure to market risk has not changed materially since October 31, 2014.

Item 4.    Controls and Procedures.

        Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report (the "Evaluation Date"). Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information relating to HP, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified

97

in SEC rules and forms, and (ii) is accumulated and communicated to HP's management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

        Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recently completed fiscal quarter. Based on that evaluation, our principal executive officer and principal financial officer concluded that there has not been any change in our internal control over financial reporting during that quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.    Legal Proceedings.

        Information with respect to this item may be found in Note 15 to the Consolidated Condensed Financial Statements in Item 1of Part I, which is incorporated herein by reference.

Item 1A.    Risk Factors.

        A description of factors that could materially affect our business, financial condition or operating results is included under "Factors that Could Affect Future Results" in "Management's Discussion and Analysis of Financial Condition and Results of Operations," contained in Item 2 of Part I of this report. This description includes any material changes to the risk factor disclosure in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended October 31, 2014 and is incorporated herein by reference.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Securities

        There were no unregistered sales of equity securities during the period covered by this report.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs
	In thousands, except per share amounts
Month #1 (November 2014)		14,169	$	36.15		14,169	$	4,404,516
Month #2 (December 2014)		13,605	$	39.01		13,605	$	3,873,795
Month #3 (January 2015)		13,349	$	39.55		13,349	$	3,345,881
Total		41,123	$	38.20		41,123

        On July 21, 2011, HP's Board of Directors authorized a $10.0 billion share repurchase program. HP may choose to repurchase shares when sufficient liquidity exists and the shares are trading at a discount relative to estimated intrinsic value. This program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions. All share repurchases settled in the first quarter of fiscal 2015 were open market transactions. As of January 31, 2015, HP had remaining authorization of $3.3 billion for future share repurchases.

Item 5.    Other Information.

        None.

Item 6.    Exhibits.

        The Exhibit Index beginning on page 101 of this report sets forth a list of exhibits.

99

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HEWLETT-PACKARD COMPANY

/s/ CATHERINE A. LESJAK
Catherine A. Lesjak
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Authorized Signatory)

Date: March 11, 2015

100

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
EXHIBIT INDEX

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
2(a)	Agreement and Plan of Merger, dated as of March 2, 2015, among the Registrant, Aspen Acquisition Sub, Inc. and Aruba Networks, Inc.**	8-K	001-04423	2.1	March 2, 2015
3(a)	Registrant's Certificate of Incorporation.	10-Q	001-04423	3(a)	June 12, 1998
3(b)	Registrant's Amendment to the Certificate of Incorporation.	10-Q	001-04423	3(b)	March 16, 2001
3(c)	Registrant's Amended and Restated Bylaws effective November 20, 2013.	8-K	001-04423	3.1	November 26, 2013
4(a)	Senior Indenture between the Registrant and The Bank of New York Mellon Trust Company, National Association, as successor in interest to J.P. Morgan Trust Company, National Association (formerly known as Chase Manhattan Bank and Trust Company, National Association), as Trustee, dated June 1, 2000.	S-3	333-134327	4.9	June 7, 2006
4(b)	Form of Subordinated Indenture.	S-3	333-30786	4.2	March 17, 2000
4(c)	Form of Registrant's 5.40% Global Note due March 1, 2017.	8-K	001-04423	4.3	February 28, 2007
4(d)	Form of Registrant's 5.50% Global Note due March 1, 2018.	8-K	001-04423	4.3	February 29, 2008
4(e)	Form of Registrant's 2.125% Global Note due September 13, 2015 and form of related Officers' Certificate.	8-K	001-04423	4.3 and 4.4	September 13, 2010
4(f)	Form of Registrant's 2.200% Global Note due December 1, 2015 and 3.750% Global Note due December 1, 2020 and form of related Officers' Certificate.	8-K	001-04423	4.1, 4.2 and 4.3	December 2, 2010
4(g)	Form of Registrant's 2.650% Global Note due June 1, 2016 and 4.300% Global Note due June 1, 2021 and form of related Officers' Certificate.	8-K	001-04423	4.4, 4.5 and 4.6	June 1, 2011

101

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
4(h)	Form of Registrant's 2.350% Global Note due March 15, 2015, 3.000% Global Note due September 15, 2016, 4.375% Global Note due September 15, 2021 and 6.000% Global Note due September 15, 2041 and form of related Officers' Certificate.	8-K	001-04423	4.2, 4.3, 4.4, 4.5 and 4.6	September 19, 2011
4(i)	Form of Registrant's 3.300% Global Note due December 9, 2016, 4.650% Global Note due December 9, 2021 and related Officers' Certificate.	8-K	001-04423	4.2, 4.3 and 4.4	December 12, 2011
4(j)	Form of Registrant's 2.600% Global Note due September 15, 2017 and 4.050% Global Note due September 15, 2022 and related Officers' Certificate.	8-K	001-04423	4.1, 4.2 and 4.3	March 12, 2012
4(k)	Form of Registrant's 2.750% Global Note due January 14, 2019 and Floating Rate Global Note due January 14, 2019 and related Officers' Certificate.	8-K	001-04423	4.1, 4.2 and 4.3	January 14, 2014
4(l)	Specimen certificate for the Registrant's common stock.	8-A/A	001-04423	4.1	June 23, 2006
10(a)	Registrant's 2004 Stock Incentive Plan.*	S-8	333-114253	4.1	April 7, 2004
10(b)	Registrant's 2000 Stock Plan, amended and restated effective September 17, 2008.*	10-K	001-04423	10(b)	December 18, 2008
10(c)	Registrant's Excess Benefit Retirement Plan, amended and restated as of January 1, 2006.*	8-K	001-04423	10.2	September 21, 2006
10(d)	Hewlett-Packard Company Cash Account Restoration Plan, amended and restated as of January 1, 2005.*	8-K	001-04423	99.3	November 23, 2005
10(e)	Registrant's 2005 Pay-for-Results Plan, as amended.*	10-K	001-04423	10(h)	December 14, 2011
10(f)	Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	8-K	001-04423	10.1	September 21, 2006
10(g)	First Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(q)	June 8, 2007

102

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(h)	Registrant's Executive Severance Agreement.*	10-Q	001-04423	10(u)(u)	June 13, 2002
10(i)	Registrant's Executive Officers Severance Agreement.*	10-Q	001-04423	10(v)(v)	June 13, 2002
10(j)	Form letter regarding severance offset for restricted stock and restricted units.*	8-K	001-04423	10.2	March 22, 2005
10(k)	Form of Restricted Stock Agreement for Registrant's 2004 Stock Incentive Plan, Registrant's 2000 Stock Plan, as amended, and Registrant's 1995 Incentive Stock Plan, as amended.*	10-Q	001-04423	10(b)(b)	June 8, 2007
10(l)	Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(c)(c)	June 8, 2007
10(m)	Second Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-K	001-04423	10(l)(l)	December 18, 2007
10(n)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California).*	8-K	001-04423	10.2	January 24, 2008
10(o)	Form of Agreement Regarding Confidential Information and Proprietary Developments (Texas).*	10-Q	001-04423	10(o)(o)	March 10, 2008
10(p)	Form of Restricted Stock Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(p)(p)	March 10, 2008
10(q)	Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(q)(q)	March 10, 2008
10(r)	Form of Stock Option Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(r)(r)	March 10, 2008
10(s)	Form of Option Agreement for Registrant's 2000 Stock Plan.*	10-Q	001-04423	10(t)(t)	June 6, 2008
10(t)	Form of Common Stock Payment Agreement for Registrant's 2000 Stock Plan.*	10-Q	001-04423	10(u)(u)	June 6, 2008
10(u)	Third Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-K	001-04423	10(v)(v)	December 18, 2008

103

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(v)	Form of Stock Notification and Award Agreement for awards of restricted stock units.*	10-K	001-04423	10(w)(w)	December 18, 2008
10(w)	Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*	10-K	001-04423	10(y)(y)	December 18, 2008
10(x)	Form of Stock Notification and Award Agreement for awards of restricted stock.*	10-K	001-04423	10(z)(z)	December 18, 2008
10(y)	Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.*	10-Q	001-04423	10(a)(a)(a)	March 10, 2009
10(z)	First Amendment to the Hewlett-Packard Company Excess Benefit Retirement Plan.*	10-Q	001-04423	10(b)(b)(b)	March 10, 2009
10(a)(a)	Fourth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(c)(c)(c)	June 5, 2009
10(b)(b)	Fifth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(d)(d)(d)	September 4, 2009
10(c)(c)	Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan.*	8-K	001-04423	10.2	March 23, 2010
10(d)(d)	Form of Stock Notification and Award Agreement for awards of restricted stock units.*	10-K	001-04423	10(f)(f)(f)	December 15, 2010
10(e)(e)	Form of Stock Notification and Award Agreement for awards of performance-based restricted units.*	10-K	001-04423	10(g)(g)(g)	December 15, 2010
10(f)(f)	Form of Stock Notification and Award Agreement for awards of restricted stock.*	10-K	001-04423	10(h)(h)(h)	December 15, 2010
10(g)(g)	Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*	10-K	001-04423	10(i)(i)(i)	December 15, 2010
10(h)(h)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California—new hires).*	10-K	001-04423	10(j)(j)(j)	December 15, 2010

104

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(i)(i)	Form of Agreement Regarding Confidential Information and Proprietary Developments (California—current employees).*	10-K	001-04423	10(k)(k)(k)	December 15, 2010
10(j)(j)	First Amendment to the Registrant's Executive Deferred Compensation Plan, as amended and restated effective October 1, 2004.*	10-Q	001-04423	10(o)(o)(o)	September 9, 2011
10(k)(k)	Sixth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(p)(p)(p)	September 9, 2011
10(l)(l)	Employment offer letter, dated September 27, 2011, between the Registrant and Margaret C. Whitman.*	8-K	001-04423	10.2	September 29, 2011
10(m)(m)	Seventh Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-K	001-04423	10(e)(e)(e)	December 14, 2011
10(n)(n)	Registrant's Severance Plan for Executive Officers, as amended and restated September 18, 2013.*	10-K	001-04423	10(q)(q)	December 30, 2013
10(o)(o)	Aircraft Time Sharing Agreement, dated March 16, 2012, between the Registrant and Margaret C. Whitman.*	10-Q	001-04423	10(h)(h)(h)	June 8, 2012
10(p)(p)	Second Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan, as amended effective February 28, 2013.*	8-K	001-04423	10.2	March 21, 2013
10(q)(q)	Aircraft Time Sharing Agreement, dated April 22, 2013, between the Registrant and John M. Hinshaw.*	10-Q	001-04423	10(t)(t)	June 6, 2013
10(r)(r)	Form of Stock Notification and Award Agreement for awards of restricted stock units.*	10-Q	001-04423	10(u)(u)	March 11, 2014
10(s)(s)	Form of Stock Notification and Award Agreement for awards of foreign stock appreciation rights.*	10-Q	001-04423	10(v)(v)	March 11, 2014
10(t)(t)	Form of Stock Notification and Award Agreement for long-term cash awards.*	10-Q	001-04423	10(w)(w)	March 11, 2014

105

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(u)(u)	Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*	10-Q	001-04423	10(x)(x)	March 11, 2014
10(v)(v)	Form of Grant Agreement for grants of performance-adjusted restricted stock units.*	10-Q	001-04423	10(y)(y)	March 11, 2014
10(w)(w)	Form of Stock Notification and Award Agreement for awards of restricted stock.*	10-Q	001-04423	10(z)(z)	March 11, 2014
10(x)(x)	Form of Stock Notification and Award Agreement for awards of performance-contingent non-qualified stock options.*	10-Q	001-04423	10(a)(a)(a)	March 11, 2014
10(y)(y)	Form of Grant Agreement for grants of performance-contingent non-qualified stock options.*	10-Q	001-04423	10(b)(b)(b)	March 11, 2014
10(z)(z)	Eighth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(c)(c)(c)	March 11, 2014
10(a)(a)(a)	Ninth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-Q	001-04423	10(d)(d)(d)	March 11, 2014
10(b)(b)(b)	Tenth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan, as amended and restated effective October 1, 2006.*	10-K	001-0442	10(e)(e)(e)	December 17, 2014
10(c)(c)(c)	Form of Grant Agreement for grants of restricted stock units.*‡
10(d)(d)(d)	Form of Grant Agreement for grants of foreign stock appreciation rights.*‡
10(e)(e)(e)	Form of Grant Agreement for grants of long-term cash awards.*‡
10(f)(f)(f)	Form of Grant Agreement for grants of non-qualified stock options.*‡
10(g)(g)(g)	Form of Grant Agreement for grants of performance-adjusted restricted stock units.*‡
10(h)(h)(h)	Form of Grant Agreement for grants of restricted stock awards.*‡

106

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
10(i)(i)(i)	Form of Grant Agreement for grants of performance-contingent non-qualified stock options.*‡
10(j)(j)(j)	Registrant's Severance Plan for Executive Officers, as amended and restated November 19, 2014.*‡
10(k)(k)(k)	Voting Agreement, dated as of March 2, 2015, among the Registrant and the listed stockholders of Aruba Networks, Inc.	8-K	001-04423	10.1	March 2, 2015
11	None.
12	Statements of Computation of Ratio of Earnings to Fixed Charges.‡
15	None.
18-19	None.
22-24	None.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.‡
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.‡
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
101.INS	XBRL Instance Document.‡
101.SCH	XBRL Taxonomy Extension Schema Document.‡
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.‡
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.‡
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.‡

107

		Incorporated by Reference
Exhibit Number
	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.‡

*

Indicates management contract or compensatory plan, contract or arrangement.

**

Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(b)(2) of Registration S-K. A copy of any omitted schedule and/or exhibit will be furnished supplementally to the SEC upon request.

‡

Filed herewith.

†

Furnished herewith.

        The registrant agrees to furnish to the Commission supplementally upon request a copy of (1) any instrument with respect to long-term debt not filed herewith as to which the total amount of securities authorized thereunder does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis and (2) any omitted schedules to any material plan of acquisition, disposition or reorganization set forth above.

        Microsoft® and Windows® are U.S.-registered trademarks of Microsoft Corporation. Intel® and Intel Itanium® are trademarks of Intel Corporation in the United States and other countries. AMD is a trademark of Advanced Micro Devices, Inc. ARM® is a registered trademark of ARM Limited. UNIX® is a registered trademark of The Open Group. Other names and brands may be claimed as the property of others.

108

EX-10.(C)(C)(C)

Exhibit 10(c)(c)(c)

GRANT AGREEMENT

Name: Employee ID:

Grant Date:

Grant ID:

Amount:

Plan:

Vesting Schedule:

Restricted Stock Units

THIS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware Corporation (“Company”), and the employee named above (“Employee”), is entered into as follows:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this grant and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegates (“Committee”) has determined that the Employee shall be granted restricted stock units representing hypothetical shares of the Company’s common stock (“RSUs”), with each RSU equal in value to one share of the Company’s $0.01 par value common stock (“Shares”), subject to the restrictions stated below and in accordance with the terms and conditions of the Plan named above (“Plan”), a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus.  The Plan and the related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of Restricted Stock Units.

Subject to the terms and conditions of this Grant Agreement and of the Plan, the Company hereby grants to the Employee the number of RSUs set forth above.

2.Vesting Schedule.

The interest of the Employee in the RSUs shall vest according to the vesting schedule set forth above, or if earlier, in accordance with Section 8, below, except to the extent a severance plan applicable to the Employee provides otherwise. Unless, the provisions of Section 8 apply, the Employee must remain in the employ of the Company on a continuous basis through the close of business on the last Vesting Date, as set forth above, and the Employee must be in compliance with the requirements and conditions provided for in the Plan and this Grant Agreement for the interest of the Employee in the RSUs to become fully vested on that date.

3.Benefit Upon Vesting.

Within 75 days of each vesting date set forth on the above vesting schedule, the Company shall deliver or pay, as applicable, to the Employee Shares or a combination of cash and Shares, as the Company determines in its sole discretion, with a value equal to:

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(a)the number of RSUs that have become vested as of such vesting date, multiplied by the fair market value (as defined in the Plan) of a Share on the date on which such RSUs vested; plus

(b)   a dividend equivalent payment determined by:

(1)Multiplying, separately, the number of RSUs that became vested as determined in Section 3(a) by the dividend per Share on each dividend payment date between the Grant Date and the applicable vesting date to determine the dividend equivalent amount for each applicable dividend payment date;

(2)dividing the amount determined in (1) above by the fair market value of a Share on the dividend payment to determine the number of additional whole and fractional RSUs to be credited to the Employee; and

(3)multiplying the number of additional RSUs determined in (2) above by the fair market value of a Share on the vesting date to determine the aggregate value of dividend equivalent payments for such vested RSUs;

provided, however, that if any aggregated dividend equivalent payments in paragraph (b)(3) above to be delivered in Shares results in a payment of a fractional share, such fractional share shall be rounded up to the nearest whole share.

4.Restrictions.

Except as otherwise provided for in this Grant Agreement, the RSUs or rights granted hereunder may not be sold, pledged or otherwise transferred until the RSUs become vested in accordance with the vesting schedule set forth above.  The period of time between the date hereof and the date the RSUs become fully vested is referred to herein as the “Restriction Period.”

5.Custody of Restricted Stock Units.

The RSUs subject hereto shall be recorded in an account with the Plan broker in the name of the Employee.  Upon termination of the Restriction Period, if the Company determines, in its sole discretion, to deliver Shares pursuant to Section 3 above, such Shares shall be released into the Employee’s brokerage account; provided, however, that a portion of such Shares shall be surrendered in payment of required withholding taxes in accordance with Section 12 below, unless the Company, in its sole discretion, establishes alternative procedures for the payment of required withholding taxes.

6.No Stockholder Rights.

RSUs represent hypothetical Shares.  During the Restriction Period, the Employee shall not be entitled to any of the rights or benefits generally accorded to stockholders.

7.Termination of Employment.

Except as otherwise provided for in this Grant Agreement, if the Employee’s employment with the Company is terminated at any time for any reason prior to the lapse of the Restriction Period, all unvested RSUs granted hereunder shall be forfeited by the Employee, except to the extent a severance plan applicable to the Employee provides otherwise.

8.Disability or Retirement of the Employee.

If the Employee’s termination of employment is due to the Employee’s total and permanent disability or retirement, in accordance with the applicable retirement policy, all outstanding and unvested RSUs shall immediately vest subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

9.Death of the Employee.

In the event of the Employee’s death prior to the end of the Restriction Period, then within 75 days of the Employee’s death the Employee’s estate or designated beneficiary shall have the right to receive a pro rata payment of cash, Shares or combination of cash and Shares, as the Company determines in its sole discretion.  In the event of the Employee’s death after the vesting date but prior to the payment associated with such RSUs, then within 75 days of the Employee’s death payment for such RSUs shall be made to the Employee’s estate or designated beneficiary.

10.Deferral of Compensation.

Payments made pursuant to this Plan and this Grant Agreement are intended to comply with or qualify for an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Grant Agreement to ensure that all RSUs are made in a manner that complies with Section 409A (including, without limitation, the avoidance of penalties thereunder), provided however, that the Company makes no representations that the RSUs will be exempt from any penalties that may apply under Section 409A and makes no undertaking to preclude Section 409A from applying to this RSU.

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11.Accelerated or Delayed Delivery.

Notwithstanding anything in this Grant Agreement to the contrary, the Company, in its sole discretion may accelerate or delay the delivery of any RSUs. If the RSUs are subject to Section 409A, such acceleration or delay shall be only under the circumstances, and to the extent, permitted by Section 409A.  Further, in the event the Company elects to accelerate delivery of any RSUs subject to Section 409A or pay cash in exchange for the cancellation of any RSUs subject to Section 409A as the result of a Change in Control pursuant to the Plan such acceleration or exchange shall only be effective to the extent the event constitutes a change in control event for purposes of Section 409A. In all other circumstances delivery will be made in accordance with the normal vesting schedule.

12.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account, employer taxes or other tax-related items related to the Employee’s participation in the Plan and legally applicable to or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer (the “Employer”) whether incurred at grant, vesting, sale, prior to vesting or at any other time (“Tax-Related Items”).  In the event that the Company or the Employer is required, allowed or permitted to withhold taxes as a result of the grant or vesting of RSUs, or subsequent sale of Shares acquired pursuant to such RSUs, or due upon receipt of dividend equivalent payments, the Employee shall surrender a sufficient number of whole Shares, make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, or, if permissible under local law, the Company may sell or arrange for the sale of Shares that Employee acquires as necessary to cover all applicable required withholding taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the restrictions on the RSUs lapse, unless the Company, in its sole discretion, has established alternative procedures for such payment. However, with respect to any RSUs subject to Section 409A, the Employer shall limit the surrender of Shares to the minimum number of Shares permitted to avoid a prohibited acceleration under Section 409A. The Employee will receive a cash refund for any fraction of a surrendered Share or Shares in excess of any and all Tax-Related Items.  To the extent that any surrender of Shares or payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-related Items.  The Employee agrees to pay any Tax-Related Items that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

To avoid negative accounting treatment, the Company and/or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Employee is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Employee’s participation in the Plan.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Employee further acknowledges that the Company and/or the Employer: (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this grant of RSUs, including, but not limited to, the grant, vesting or settlement of RSUs, the subsequent delivery of Shares and/or cash upon settlement of such RSUs or the subsequent sale of any Shares acquired pursuant to such RSUs and receipt of any dividends or dividend equivalent payments; and (ii)  notwithstanding Section 10, do not commit to and are under no obligation to structure the terms or any aspect of this grant of RSUs to reduce or eliminate the Employee’s liability for Tax-Related Items or to achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable or tax withholding event, as applicable, the Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan or the Employee’s receipt of RSUs that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit described in Section 3 if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

(c)In accepting the RSUs, the Employee consents and agrees that in the event the RSUs become subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the RSUs.  Further, by accepting the RSUs, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 12.  The Employee further agrees to execute any other consents or elections required to accomplish the above, promptly upon request of the Company.

13.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance

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number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSUs, options or any other entitlement to shares of stock granted, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s Data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to the Employee’s Data are bound to handle such data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

14.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Long-term Incentives website and stockholder information, including copies of any annual report, proxy and Form 10-K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary. The Employee hereby consents to receive any documents related to current or future participation in the Plan by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

15.Acknowledgment and Waiver.

By accepting this grant of RSUs, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and, subject to Section 18(d), may be modified, amended, suspended or terminated by the Company at any time; (ii) the grant of RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Shares or RSUs, or benefits in lieu of Shares or RSUs, even if Shares or RSUs have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company and/or the Committee; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v)  the Employee is participating voluntarily in the Plan; (vi)  RSUs and their resulting benefits are extraordinary items that are outside the scope of the Employee’s employment contract, if any; (vii) RSUs and their resulting benefits are not intended to replace any pension rights or compensation; (viii) RSUs and their resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments insofar as permitted by law and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary or Affiliate; (ix) this grant of RSUs will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this grant of RSUs will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate;  (x) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (xi) no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the RSUs to which the Employee is otherwise not entitled, the Employee irrevocably agrees never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Employee shall be deemed irrevocably to have agreed not to pursue such claim and to have agreed to execute any and all documents necessary to request dismissal or withdrawal of such claims; (xii) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); (xiii) the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of the RSUs; and (xiv) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from RSUs vested up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding RSUs, and (c) take any other action required or permitted by applicable law.

16.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s acquisition or sale of the underlying Shares.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

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17.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire vesting period and through the date the RSU is to be granted or settled. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date or such other date as of which the Company shall require in its discretion, this RSU shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

18.Miscellaneous.

(a)The Company shall not be required to treat as owner of RSUs and any associated benefits hereunder, any transferee to whom such RSUs or benefits shall have been transferred in violation of any of the provisions of this Grant Agreement.

(b)The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Grant Agreement.

(c)Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at his address then on file with the Company.

(d)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, other than the terms of any severance plan applicable to the Employee that provides more favorable vesting, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which an Award properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(e)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(f)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(g)Notwithstanding Section 18(f), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(h)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

(i)Appendix.

Notwithstanding any provisions in this Grant Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in the Appendix to this Grant Agreement for the Employee’s country.  Moreover, if the Employee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Employee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Grant Agreement.

(j)Imposition of Other Requirements.

The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(k)All rights granted and/or Shares delivered under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

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HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your grant is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your grant, please discuss them with your manager.

6

EX-10.(D)(D)(D)

Exhibit 10(d)(d)(d)

GRANT AGREEMENT

Name: Employee ID:

Grant Date:
Grant ID:
Grant Price:
Amount:
Expiration Date:	The 8th anniversary of the Grant Date
Plan:
Vesting Schedule:

Foreign Stock Appreciation Rights

THIS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware corporation (“Company”), and the Employee named above, is entered into as follows:

WHEREAS, the Company has adopted the Hewlett-Packard Company Foreign Employees Stock Appreciation Rights Plan (“Plan”), a copy of which is attached hereto as Exhibit “A” and made a part hereof, under which the HR and Compensation Committee or its delegates (“Committee”) is authorized to grant Stock Appreciation Rights (“SARs”) to certain foreign national employees of the Company’s eligible subsidiaries; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this grant and to participate in the affairs of the Company, the Committee has determined that the Employee shall be granted SARs as hereinafter set forth;

THEREFORE, the parties agree as follows:

1.The Company hereby grants the Employee the number of SARs noted above upon the following terms and conditions:

(a)Grant of SARs.

These SARs are granted under and pursuant to the Plan and are subject to each and all provisions thereof.

(b)Grant Price.

The Grant Price is the price per share set forth above, representing the fair market value of a share of the Company’s Common Stock (“Share(s)”) on the Grant Date.

(c)Restrictions on Transfer.

These SARs are not transferable by the Employee otherwise than by will or the laws of descent and distribution and are exercisable during the Employee’s lifetime only by him or her.  These SARs may not be transferred, assigned, pledged, or hypothecated by the Employee during his or her lifetime, whether by operation of law or otherwise, and are not subject to execution, attachment or similar process.

(d)Vesting Schedule.

These SARs will vest and become exercisable according to the vesting schedule set forth above except to the extent a severance plan applicable to the Employee provides otherwise, and the Employee must be in compliance with the requirements and conditions provided for in the Plan and this Grant Agreement.  Notwithstanding the foregoing, these SARs shall vest and become exercisable in full upon the retirement of the Employee, in accordance with the applicable retirement policy, the Employee’s total and permanent disability, or upon his death.

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(e)Expiration Date.

These SARs will expire on the 8th anniversary of the Grant Date set forth above, unless sooner terminated or canceled in accordance with the provisions of the Plan.  The Employee must exercise your grant, if at all, on a day the New York Stock Exchange is open for trading and on or before the expiration date herein.  The Employee shall be solely responsible for exercising these SARs, if at all, prior to the expiration date.  The Company shall have no obligation to notify the Employee of the expiration of these SARs.

(f)Termination of Employment.

Upon termination of the Employee’s employment for any reason other than death, retirement, in accordance with the applicable retirement policy, or permanent and total disability, all unvested shares shall be forfeited by the Employee and he or she may exercise the SAR to the extent that it is then vested before the New York Stock Exchange closes on the date of termination, except to the extent a severance plan applicable to the Employee provides otherwise.

(g)Death of Employee.

In the event of the Employee’s death, his legal representative or designated beneficiary shall have the right to exercise all or a portion of the Employee’s rights under this Grant Agreement within the time prescribed for exercise after the death of the Employee as provided herein.  The representative or designee must exercise these SARs within one (1) year after the death of the Employee and shall be bound by the provisions of the Plan.  In all cases, however, the SARs will expire no later than the expiration date set forth above.

(h)Disability or Retirement of Employee.

In the event of the Employee’s termination due to retirement, in accordance with the applicable retirement policy, or permanent and total disability, the Employee may exercise his rights under this Grant Agreement within three (3) years from the date of termination. In all cases, however, the SARs will expire no later than the expiration date set forth above. The Company’s obligation to vest the SAR under this paragraph is subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

(i)Method of Exercise.

The Employee may exercise SARs through an administrator designated by the Company or by any other method the Committee has approved.

2.Benefit Upon Exercise.

The SARs granted hereunder shall entitle the Employee to receive from the Company upon exercise of the SARs or portion thereof an amount equal to 100% of the excess of the fair market value of one Share on the date when the SARs granted under the Plan are exercised over the fair market value of a Share on the Grant Date, multiplied by the number of SARs exercised.  Fair market value for the relevant dates shall be the closing price for the Shares as reported on the online edition of NYSE.com on the date on which determination of such fair market value is to be made.  The amount payable upon exercise of the SARs may be paid in US dollars or foreign currency equivalent at the election of the Company.  Payments made upon exercise will be subject to any required withholding taxes or social security contributions.

3.Acknowledgement and Waiver.

By accepting the grant of these SARs, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Grant Agreement; (ii) the grant of these SARs is voluntary and occasional and does not create any contractual or other right to receive future SARs, or benefits in lieu of SARs, even if SARs have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time with or without cause and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v) the Employee is participating voluntarily in the Plan; (vi)  these SARs are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and is outside the scope of the Employee’s employment contract, if any; (vii) these SARs are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law;  (viii) in the event that the Employee is not an employee of the Company, this SAR will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this grant will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate of the

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Company;  (ix) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (x) if the underlying Shares do not increase in value, these SARs will have no value;  (xi) in consideration of the grant of these SARs, no claim or entitlement to compensation or damages shall arise from termination of these SARs resulting from termination of the Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and the Employee irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this Grant Agreement, the Employee shall be deemed irrevocably to have waived any entitlement to pursue such claim; and (xii) notwithstanding any terms or conditions of the Plan to the contrary, in the event of involuntary termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive SARs and vest in SARs under the Plan, if any, will terminate effective as of the date that the Employee is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of involuntary termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to exercise these SARs after termination of employment, if any, will be measured by the date of termination of the Employee’s active employment and will not be extended by any notice period mandated under local law; the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of these SARs, and (xiii) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from SARs exercised up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding SARs whether or not vested, and (c) take any other action required or permitted by applicable law.

4.Taxes.

Regardless of any action the Company or the Employee’s employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account, fringe benefit tax or other tax-related items that the Employer is legally required, allowed or permitted to recover from the Employee whether incurred at grant, vesting, exercise, sale, prior to vesting or at any other time (“Tax-Related Items”), the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items legally due by him is and remains the Employee’s responsibility and that the Company and or the Employer (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these SARs, including the grant, vesting or exercise of these SARs; and (ii)  do not commit to structure the terms or the grant or any aspect of these SARs to reduce or eliminate the Employee’s liability for Tax-Related Items.  The Employee shall pay or make adequate arrangements satisfactory to the Company and or the Employer to withhold all applicable Tax-Related Items legally recoverable from the Employee from the Employee’s wages or other cash compensation paid to the Employee by the Company and or the Employer.  The Employee Acknowledges that taxes may be due in more than one jurisdiction and that the Company or the Employer may withhold applicable taxes for multiple jurisdictions.  The Company may refuse to honor the exercise of these SARs if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items. The Employee acknowledges that taxes may be due in more than one jurisdiction and that the Company or the Employer may withhold applicable taxes for multiple jurisdictions.

In accepting these SARs, the Employee consents and agrees that in the event the SARs become subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the SARs.  Further, by accepting the SARs, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 4.  The Employee further agrees to execute any other consents or elections required to accomplish the above, promptly upon request of the Company.

5.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all SARs, options or any other entitlement to shares of stock granted, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of your personal data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to your personal data are bound to handle your data in a manner consistent with the HP Privacy Policy and law. We also perform due diligence and audits on our vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the data by contacting the local human resources representative. The Employee understands that data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

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6.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire vesting period. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date set forth above or such other date as of which the Company shall require in its discretion, this SAR shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

7.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s exercise of the SARs.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

8.Plan Information.

The Employee agrees to receive a copy of the Plan, any Plan prospectus and other Plan information, including information prepared to comply with laws outside of the United States, from the Long-term Incentives website and stockholder information, including copies of any annual report, proxy and Form 10K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary.

9.Miscellaneous.

(a)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which a SAR properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(b)The Employee shall acquire no rights as a stockholder with respect to his SARs.

(c)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control.

(d)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(e)Notwithstanding Section 9(d), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(f)The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the any benefits acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(g)All rights granted under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

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RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your grant is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your grant, please discuss them with your manager.

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Exhibit A

HEWLETT-PACKARD COMPANY FOREIGN EMPLOYEES STOCK APPRECIATION RIGHTS PLAN

(Amended & Restated July 17, 2003)

The following constitute the provisions of the Hewlett-Packard Company (“HP” or “Company”) Foreign Employees Stock Appreciation Rights Plan (the “Plan”):

1.DEFINITIONS: In this plan,

(a)“Employee Stock Option Plan” means any of the Company’s incentive stock option plans pursuant to which participating employees are offered and purchase shares of HP Common Stock, which have been registered under the Securities Act of 1933.

(b)“Foreign Subsidiary” means any corporation which is organized and exists under the laws of a country other than the United States of America and 1) whose accounts are consolidated with the accounts of the Company for reporting purposes; or 2) which is an affiliate of HP and designated by the Committee as a “foreign subsidiary” for purposes of this Plan.

(c)“Foreign national employee” means an employee of a foreign subsidiary who is a national of a country other than the United States of America.

(d)“Unfavorable foreign law” means any law or governmental regulation of a country other than the United States of America which has the effect of prohibiting, restricting or inhibiting the acquisition or ownership of HP stock by a foreign national employee, or requires the payment of currency premiums with respect to the purchase of HP stock with funds supplied by a foreign national employee and his employer.

(e)“Eligible foreign subsidiary” means a foreign subsidiary any of whose foreign national employees is subject to unfavorable foreign laws.

(f)“Employee” means a foreign national employee of an eligible foreign subsidiary.

(g)“Employer” means an eligible foreign subsidiary as to its employees.

(h)“Stock appreciation right” means a right granted pursuant to Section 5 of the Plan.

(i)“Committee” means the Human Resources and Compensation Committee of the Company.

(j)“Common shares” means Common Shares, US $0.01 par value, of the Company.

(k)“Fair market value” of Common Shares on any relevant date shall, for purposes of the Plan, be the mean of the highest and lowest quoted selling prices for the Common Shares as reported for New York Stock Exchange on the date on which determination of such fair market value is to be made, or if no Common Shares are traded on that date, then the reported closing price on the next preceding day on which trading was reported.

(l)“Discounted value” means the value fixed by the Committee with respect to any stock appreciation right, which value shall be used in place of fair market value and which may represent a discount of up to 25% off of fair market value on the date the stock appreciation right is granted.

(m)“Spread” means the excess of the fair market value (or discounted value, if applicable) of a Common Share on the date when a stock appreciation right granted pursuant to the Plan is exercised over the fair market value of a Common Share on the date when the stock appreciation right was granted under the Plan.

2.PURPOSE.

The purpose of the Plan is to provide a means whereby foreign national employees who are subject to unfavorable foreign laws may realize the benefits intended to have been provided by granting of stock options under the Company’s Employee Stock Option Plans. The Plan is designed to foster continued cordial employee relations.

3.PARTICIPATION IN THE PLAN.

Foreign national employees, excluding officers and directors of the Company, who are employed by an eligible foreign subsidiary, shall be eligible to participate in the Plan.

4.ADMINISTRATION.

The Committee shall supervise and administer the Plan. All questions of interpretation of the Plan or of any stock appreciation right issued under it shall be determined by the Committee and such determination shall be final and binding upon all persons.

The Committee shall have the authority, in its discretion to:  1) select the Employees to whom stock appreciation rights may be granted, 2) approve forms of agreement for use under the Plan, 3) determine the terms and conditions, not inconsistent with the terms of the Plan, 4) adopt rules and procedures relating to the operation and administration of the Plan to accommodate the

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specific requirements of local laws and procedures, 5) prescribe, amend and rescind rules and regulations relating to the Plan, 6) authorize any person to execute on behalf of the Company any instrument required to effect the grant of a stock appreciation right previously granted by the Committee, and 7) make all other determinations deemed necessary or advisable for administering the Plan and any stock appreciation right granted hereunder.

Except to the extent prohibited by applicable law or applicable rules of a stock exchange, the Board or any of its committees as shall be administering the Plan may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. The delegation may be revoked at any time.

5.DEFINITION AND VALUATION OF STOCK APPRECIATION RIGHTS.

Stock appreciation rights shall entitle the employee to receive from the Company upon exercise of the stock appreciation rights or portion thereof, an amount equal to 100% of the spread (as defined in Section 1 above) at the time of the exercise of the stock appreciation rights, multiplied by the number of stock appreciation rights exercised.  Such amount may be paid by the Company in U.S. dollars or foreign currency equivalent.

6.TERMS, CONDITIONS AND FORMS OF STOCK APPRECIATION RIGHTS.

Each stock appreciation right granted under this Plan shall be authorized by the action of a) the Committee; or b) the Executive Committee of the HP Board of Directors, and shall be evidenced by a written agreement in such form as the Committee shall from time to time approve, which agreement shall comply with and be subject to the following terms and conditions:

(a)Stock Appreciation Rights are Non-Transferable. Each stock appreciation right granted under the Plan by its terms shall not be transferable by the holder otherwise than by will or by laws of descent and distribution, and shall be exercised during the lifetime of the Employees only by him. No stock appreciation right or interest therein may be transferred, assigned, pledged or hypothecated by the holder during its lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process.

(b)Terms of Stock Appreciation Right. Unless a different vesting schedule is specified by the Committee at the time a stock appreciation right is granted, no stock appreciation right may be exercised before the first anniversary of the date upon which it was granted, nor may it be exercised as to more than one-fourth the number of rights covered herein before the second anniversary of the date of grant, nor may it be exercised as to more than one-half the number of rights covered herein before the third anniversary of the date of grant, nor may it be exercised as to more than three-fourths the number of rights covered herein before the fourth anniversary of the date of grant. Unless a different term is specified in the written agreement evidencing the stock appreciation right, the stock appreciation rights will expire ten (10) years from the grant date unless sooner terminated or cancelled in accordance with the provisions of the Plan. In the event of the Employee’s death, all unexpired stock appreciation rights shall become immediately exercisable in full by the Employee’s beneficiary designated in accordance with Section 6 (d).

(c)Exercise of Stock Appreciation Rights. The holder of a stock appreciation right may exercise the same by (1) filing with the Secretary of the Company a written election specifying the stock appreciation rights or portion thereof to be exercised and (2) surrendering such stock appreciation rights for cancellation or partial cancellation, as the case may be. The stock appreciation right shall be deemed to have been exercised on the date on which the holder completed all acts required of him by this paragraph to exercise the stock appreciation right.

(d)Termination of Stock Appreciation Rights. All rights of an employee in a stock appreciation right, to the extent that it has not been exercised, shall terminate upon the death of the Employee (except as herein after provided), or the termination of his employment for any reason other than retirement because of age or total and permanent disability, and in case of such retirement three (3) years from the date thereof or upon expiration of the stock appreciation right, whichever shall first occur; provided, however, that the employee by written notice to the Company, may designate one or more persons (and from time to time change such designation), including his legal representative, who, by reason of his death, shall acquire the right to exercise all or a portion of his stock appreciation rights. In the event that the Employee does not designate a beneficiary, the stock appreciation rights may be exercised in accordance with his will or, in the absence of a will, in accordance with applicable law governing intestate succession. The person or persons so designated or so empowered must exercise any portion of the stock appreciation rights, within one (1) year after the death of employee, and such exercise shall be subject to the provisions of this Plan.

(e)Conversion of Existing Option; Grant Date. The Committee may authorize the conversion of existing stock options held by an Employee into stock appreciation rights. Any such grant of stock appreciation rights shall be subject to the surrender for cancellation of said stock options. Stock appreciation rights granted in substitution for existing stock options shall be deemed to have the same grant date, term, and vesting as the cancelled stock option.

(f)[reserved]

(g)Buyout Provisions. At any time, the Committee may, but shall not be required to, authorize the Company to offer to buy out for a payment in cash or Common Shares a stock appreciation right previously granted based on such terms and conditions as the Committee shall establish and communicate to the holder of such stock appreciation rights in connection with such offer.

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7.LIMITATION OF RIGHTS.

Nothing in the Plan shall be construed to give any eligible employee any right to be granted a stock appreciation right. Neither the Plan nor the granting of a stock appreciation right nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Company or any foreign subsidiary will employ the holder of a stock appreciation right for any period of time or in any position or at any particular rate of compensation. The holder of stock appreciation right shall have no rights as a stockholder with respect to his stock appreciation right.

8.CHANGES IN PRESENT COMMON SHARES.

In the event of any merger, consolidation, reorganization, recapitalization, stock dividend, stock splits or other change in the corporate structure or capitalization affecting the Company’s present Common Shares, appropriate adjustment shall be made by the Board of Directors of the Company in the number of stock appreciation rights granted hereunder and their valuation.

In the event there is a change of control of the Company, as determined by the Board of Directors of the Company, the Board of Directors of the Company may, in its discretion, 1) provide for the assumption or substitution of, or adjustment to, each outstanding stock appreciation right; 2) accelerate the vesting of such stock appreciation right; and 3) provide for the cancellation of stock appreciation rights for a cash payment.

9.AMENDMENT, SUSPENSION OR TERMINATION OF STOCK APPRECIATION RIGHTS.

The Committee may at any time amend, suspend or terminate the Plan and any stock appreciation rights theretofore granted under the Plan. In addition, stock appreciation rights shall terminate and may no longer be exercised upon any termination date specified by the Committee at the time of grant of such stock appreciation rights.

10.EFFECTIVE DATE OF THE PLAN.

The Plan shall take effect on the date of adoption by the Committee. Stock appreciation rights may be granted under the Plan at any time after the adoption of the Plan and prior to the termination of the Plan.

11.GENDER.

Wheresoever used in this Plan, the masculine gender shall be deemed to include the feminine.

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EX-10.(E)(E)(E)

Exhibit 10(e)(e)(e)

GRANT AGREEMENT

Name: Employee ID:

Manager Name:

Country:

Grant Date:

Grant Number:

Award Amount:

Plan:

Vesting Schedule:

Long-Term Cash Award

THIS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware Corporation (“Company”), and the employee named above (“Employee”), is entered into as follows:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this award and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegates (“Committee”) has determined that the Employee shall be granted a long term cash award (“LT Cash Award”) in the amount set forth above, subject to the restrictions stated below and in accordance with the terms and conditions of the Plan named above (“Plan”), a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus.  The Plan and the related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of LT Cash Award.

Subject to the terms and conditions of this Grant Agreement and of the Plan, the Company hereby grants to the Employee the amount of cash set forth above.

2.Vesting Schedule.

The interest of the Employee in the LT Cash Award shall vest according to the vesting schedule set forth above, or if earlier, in accordance with Section 6, below, except to the extent a severance plan applicable to the Employee provides otherwise. Unless, the provisions of Section 6 apply, the Employee must remain in the employ of the Company on a continuous basis through the close of business on the last Vesting Date, as set forth above, and the Employee must be in compliance with the requirements and conditions provided for in the Plan and this Grant Agreement for the interest of the Employee in the LT Cash Award to become fully vested on that date.

3.Benefit Upon Vesting.

Within 75 days of each vesting date set forth on the above vesting schedule, the Company shall deliver or pay, as applicable, to the Employee cash in the amount equal to the LT Cash Award that has become vested as of such vesting date.

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4.Restrictions.

Except as otherwise provided for in this Grant Agreement, the LT Cash Award granted hereunder may not be sold, pledged or otherwise transferred until the award has become vested in accordance with the vesting schedule set forth above.  The period of time between the date hereof and the date the award becomes fully vested is referred to herein as the “Restriction Period.”

5.Termination of Employment.

Except as otherwise provided for in this Grant Agreement, if the Employee’s employment with the Company is terminated at any time for any reason prior to the lapse of the Restriction Period, all of the unvested LT Cash Award granted hereunder shall be forfeited by the Employee, except to the extent a severance plan applicable to the Employee provides otherwise.

6.Disability or Retirement of the Employee.

If the Employee’s termination of employment is due to the Employee’s total and permanent disability or retirement, in accordance with the applicable retirement policy, all outstanding and unvested portions of the LT Cash Award shall immediately vest subject to the condition that, if requested by the Company, the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

7.Death of the Employee.

In the event of the Employee’s death prior to the end of the Restriction Period, then within 75 days of the Employee’s death the Employee’s estate or designated beneficiary shall have the right to receive a pro rata portion of the LT Cash Award.  In the event of the Employee’s death after the vesting date but prior to the payment associated with such the LT Cash Award, then within 75 days of the Employee’s death payment shall be made to the Employee’s estate or designated beneficiary.

8.Deferral of Compensation.

Payments made pursuant to the Plan and this Grant Agreement are intended to comply with or qualify for an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Grant Agreement to ensure that all LT Cash Awards are made in a manner that complies with Section 409A (including, without limitation, the avoidance of penalties thereunder), provided however, that the Company makes no representations that the LT Cash Awards will be exempt from any penalties that may apply under Section 409A and makes no undertaking to preclude Section 409A from applying to this LT Cash Award.

9.Accelerated or Delayed Delivery.

Notwithstanding anything in this Grant Agreement to the contrary, the Company, in its sole discretion may accelerate or delay the delivery of cash. If the LT Cash Award is subject to Section 409A, such acceleration or delay shall be only under the circumstances, and to the extent, permitted by Section 409A.  Further, in the event the Company elects to accelerate delivery of any cash subject to Section 409A as the result of a Change in Control pursuant to the Plan such acceleration or exchange shall only be effective to the extent the event constitutes a change in control event for purposes of Section 409A. In all other circumstances payment will be made in accordance with the normal vesting schedule.

10.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account, employer taxes or other tax-related items related to the Employee’s participation in the Plan and legally applicable to or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer (the “Employer”) whether incurred at grant, vesting, prior to vesting or at any other time (“Tax-Related Items”).  In the event that the Company or the Employer is required, allowed or permitted to withhold taxes as a result of the grant or vesting of the LT Cash Award, the Employee shall make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, as necessary to cover all applicable required withholding taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the restrictions on the LT Cash Award lapse, unless the Company, in its sole discretion, has established alternative procedures for such payment. To the extent that any surrender of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-related Items.  The Employee agrees to pay any Tax-Related Items that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Employee further acknowledges that the Company and/or the Employer: (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this grant of a LT Cash Award, including, but not limited to, the grant, vesting or settlement of the LT Cash Award; and (ii)  notwithstanding Section 8, do not commit to and are under no obligation to structure the terms or any aspect of this LT Cash Award to reduce or eliminate the Employee’s liability for Tax-Related Items or to

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achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable or tax withholding event, as applicable, the Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan or the Employee’s receipt of this LT Cash Award that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit described in Section 3 if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

(c)In accepting the LT Cash Award, the Employee consents and agrees that in the event the LT Cash Award becomes subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the LT Cash Award.  Further, by accepting the LT Cash Award, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 10.  The Employee further agrees to execute any other consents or elections required to accomplish the above, promptly upon request of the Company.

11.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, details of all LT Cash Awards or any other award granted, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s Data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to the Employee’s Data are bound to handle such data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

12.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Long-term Incentives website referenced above and stockholder information, including copies of any annual report, proxy and Form 10-K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary. The Employee hereby consents to receive any documents related to current or future participation in the Plan by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

13.Acknowledgment and Waiver.

By accepting this LT Cash Award, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and, subject to Section 16(d), may be modified, amended, suspended or terminated by the Company at any time; (ii) the grant of a LT Cash Award is voluntary and occasional and does not create any contractual or other right to receive future grants of LT Cash Awards, or benefits in lieu of LT Cash Awards, even if LT Cash Awards have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company and/or the Committee; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v)  the Employee is participating voluntarily in the Plan; (vi)  LT Cash Awards and their resulting benefits are extraordinary items that are outside the scope of the Employee’s employment contract, if any; (vii) LT Cash Awards and their resulting benefits are not intended to replace any pension rights or compensation; (viii) LT Cash Awards and their resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments insofar as permitted by law and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary or Affiliate; (ix) this grant of a LT Cash Award will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this grant of a LT Cash Award will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate;  (x) no claim or entitlement to compensation or damages shall arise from forfeiture of the LT Cash Award resulting from termination of Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the LT Cash Award to which the Employee is otherwise not entitled, the Employee irrevocably agrees

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never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Employee shall be deemed irrevocably to have agreed not to pursue such claim and to have agreed to execute any and all documents necessary to request dismissal or withdrawal of such claims; (xi) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); (xii) the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of the LT Cash Award, and (xiii) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from LT Cash Awards that vested up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding LT Cash Awards, and (c) take any other action required or permitted by applicable law.

14.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

15.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire vesting period and through the date the LT Cash Award is to be settled. If such separate documents are required by the Company and the Employee does not accept  within 75 days of the Grant Date or such other date as of which the Company shall require in its discretion, this LT Cash Award shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

16.Miscellaneous.

(a)The Company shall not be required to treat as owner of the LT Cash Award and any associated benefits hereunder, any transferee to whom such LT Cash Award or benefits shall have been transferred in violation of any of the provisions of this Grant Agreement.

(b)The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Grant Agreement.

(c)Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at his address then on file with the Company.

(d)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, other than the terms of any severance plan applicable to the Employee that provides more favorable vesting, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which an Award properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(e)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(f)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(g)Notwithstanding Section 16(f), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(h)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

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(i)Appendix.

(j)Notwithstanding any provisions in this Grant Agreement, the grant of the LT Cash Award shall be subject to any special terms and conditions set forth in the Appendix to this Grant Agreement for the Employee’s country.  Moreover, if the Employee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Employee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Grant Agreement.

(k)Imposition of Other Requirements.

The Company reserves the right to impose other requirements on the Employee’s participation in the Plan and on the LT Cash Award to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(k)All rights granted under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

(l)The Employee agrees to comply with all applicable exchange control rules and/or tax reporting requirements.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your award is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your award, please discuss them with your manager.

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EX-10.(F)(F)(F)

Exhibit 10(f)(f)(f)

GRANT AGREEMENT

Name: Employee ID:

Grant Date:

Grant ID:

Grant Price:

Amount:

Plan:

Vesting Schedule:

Non-Qualified Stock Option

THIS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware corporation (“Company”), and the employee named above (“Employee”), is entered into as follows:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this grant and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegates (“Committee”) has determined that the Employee shall be granted a non-qualified stock option to purchase the number of shares stated above of its $0.01 par value voting Common Stock (“Shares”) upon the terms and conditions set forth herein and in accordance with the terms and conditions of the Plan named above, a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus.  The Plan and the related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of Stock Options.

This non-qualified Stock Option is granted under and pursuant to the Plan and is subject to each and all of the provisions thereof.

2.Grant Price.

The Grant Price is the price per Share set forth above.

3.Restrictions on Transfer.

This Stock Option is not transferable by the Employee otherwise than by will or the laws of descent and distribution, and is exercisable only by the Employee during his lifetime.  This Stock Option may not be transferred, assigned, pledged or hypothecated by the Employee during his lifetime, whether by operation of law or otherwise, and is not subject to execution, attachment or similar process.

4.Vesting Schedule.

This Stock Option will vest and become exercisable according to the vesting schedule set forth above except to the extent a severance plan applicable to the Employee provides otherwise, subject to the Employee’s compliance with the requirements and conditions provided for in the Plan and this Grant Agreement.

5.Expiration Date.

This Stock Option will expire on the 8th anniversary of the Grant Date set forth above, unless sooner terminated or canceled in accordance with the provisions of the Plan and this Grant Agreement.  The Employee must exercise this Stock Option, if at all, on a day the New York Stock Exchange is open for trading and on or before the expiration date noted above.   The Employee shall be solely responsible for exercising this Stock Option, if at all, prior to its expiration date.  The Company shall have no obligation to notify the Employee of this Stock Option’s expiration.

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6.Method of Exercise.

This Stock Option may be exercised through a broker designated by the Company or by any other method the Committee has approved; provided, however, that no such exercise shall be with respect to fewer than twenty-five (25) Shares or the remaining Shares covered by the Stock Option if less than twenty-five.  The exercise must be accompanied by the payment of the full Grant Price of such Shares.  Payment may be in cash or Shares or a combination thereof to the extent permissible under applicable law, or a broker-assisted cashless exercise; provided, however, that any payment in Shares shall be in strict compliance with all procedural rules established by the Committee.

7.Termination of Employment.

Upon termination of the Employee’s employment for any reason other than death, retirement, in accordance with the applicable retirement policy, or permanent and total disability, then, except as provided in Section 16(a), all unvested shares shall be forfeited by the Employee and he or she may exercise the Stock Option, to the extent that it is then vested, before the New York Stock Exchange closes on the date of termination, except to the extent a severance plan applicable to the Employee provides otherwise.

8.Death of Employee.

Notwithstanding the provisions in paragraph 4 of this Grant Agreement, in the event of the Employee’s death this Stock Option shall vest in full and the Employee’s legal representative or designated beneficiary shall have the right to exercise all or a portion of the Employee’s rights under this Grant Agreement within one (1) year after the death of the Employee, and shall be bound by the provisions of the Plan.  In all cases, however, this Stock Option will expire no later than the expiration date set forth above.

9.Disability or Retirement of the Employee.

Notwithstanding the provisions in paragraph 4 of this Grant Agreement, in the event of the Employee’s termination due to retirement, in accordance with the applicable retirement policy, or permanent and total disability this Stock Option shall vest in full and the Employee may exercise his rights under this Grant Agreement within three (3) years from the date of termination. In all cases, however, this Stock Option will expire no later than the expiration date set forth above. The Company’s obligation to vest the Stock Option under this paragraph is subject to the condition that the Employee shall have executed a current ARCIPD that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

10.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Employee’s participation in the Plan and legally applicable or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer whether incurred at grant, vesting, exercise, sale, prior to vesting or at any other time (the “Employer”) (“Tax-Related Items”).  In the event that the Company or the Employer is required, allowed or permitted to withhold taxes as a result of the grant, vesting or exercise of Stock Options, or subsequent sale of Shares acquired pursuant to such Stock Options, the Employee shall make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, or, if permissible under local law, the Company may sell or arrange for the sale of Shares that Employee acquires as necessary to cover all applicable required withholding taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the Stock Options are exercised, unless the Company, in its sole discretion, has established alternative procedures for such payment.  To the extent that any payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-Related Items.  The Employee agrees to pay any amounts that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

To avoid negative accounting treatment, the Company and/or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Employee further acknowledges that the Company and/or the Employer (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this Stock Option, including, but not limited to, the grant, vesting, exercise or settlement of Stock Options, the subsequent issuance of Shares and/or cash upon settlement of such Stock Options or the subsequent sale of any Shares acquired pursuant to such Stock Options and receipt of any dividends; and (ii)  do not commit to and are under no obligation to structure the terms or any aspect of this grant of Stock Options to reduce or eliminate the Employee’s liability for Tax-Related Items or to achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable or tax withholding event, as applicable, the Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan or the Employee’s receipt or exercise of Stock Options that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit described herein if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

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(c)In accepting the Stock Option, the Employee consents and agrees that in the event the Stock Option becomes subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the Stock Option.  Further, by accepting the Stock Option, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 10.  The Employee further agrees to execute any other consents or elections required to accomplish the above promptly upon request of the Company.

11.Acknowledgement and Waiver.

By accepting this Stock Option, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time; (ii) the grant of Stock Options is voluntary and occasional and does not create any contractual or other right to receive future grants of Stock Options, or benefits in lieu of Stock Options, even if Stock Options have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v)  the Employee is participating voluntarily in the Plan; (vi) Stock Options and their resulting benefits are not intended to replace any pension rights or compensation; (vii) Stock Options and their resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments insofar as permitted by law and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary or Affiliate; (viii) this grant of Stock Options will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this Stock Option will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate;  (ix) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (x) no claim or entitlement to compensation or damages shall arise from forfeiture of the Stock Options resulting from termination of Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the Stock Options to which the Employee is otherwise not entitled, the Employee irrevocably agrees never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Employee shall be deemed irrevocably to have agreed not to pursue such claim and to have agreed to execute any and all documents necessary to request dismissal or withdrawal of such claims; (xi) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of the Stock Options; and (xii) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from Stock Options exercised up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding Stock Options whether or not vested, and (c) take any other action required or permitted by applicable law.

12.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all stock options or any other entitlement to shares of stock granted, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s personal data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to the Employee’s personal data are bound to handle such data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the data by contacting the local human resources representative. The Employee understands that data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

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13.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s acquisition or sale of the underlying Shares.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

14.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Long-term Incentives website and stockholder information, including copies of any annual report, proxy and Form 10K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary.

15.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire vesting period. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date set forth above or such other date as of which the Company shall require in its discretion, this Stock Option shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

16.Miscellaneous.

(a)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof other than the terms of any severance plan applicable to the Employee that provides more favorable vesting or extended post-termination exercise periods, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which an Award properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(b)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(c)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(d)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

(e)Notwithstanding Section 16(c), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(f)Notwithstanding any provisions in this Grant Agreement, the grant of the Stock Options shall be subject to any special terms and conditions set forth in the Appendix to this Grant Agreement for the Employee’s country.  Moreover, if the Employee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Employee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Grant Agreement.

(g)The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the Stock Options and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(h)All rights granted and/or Shares issued under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your grant is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your grant, please discuss them with your manager.

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EX-10.(G)(G)(G)

Exhibit 10(g)(g)(g)

GRANT AGREEMENT

Name: Employee ID:

Grant Date:

Grant ID:

Target Amount:

Plan:

Performance-Adjusted Restricted Stock Units

GRANT SUMMARY

Target Amount	0 Shares
Performance Period	01 November 2014 – 31 October 2017
Segment 1	01 November 2014 – 31 October 2016
Segment 2	01 November 2014 – 31 October 2017

THIS PERFORMANCE-ADJUSTED RESTRICTED STOCK UNITS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware Corporation (“Company”), and the Employee named above, is entered into as follows:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this grant and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegates (“Committee”) has determined that the Employee shall be granted performance-adjusted restricted stock units (“PARSUs”) representing hypothetical shares of the Company’s common stock (the “Grant”) and dividend equivalents.  The target amount stated above reflects the target number of PARSUs that may be granted to you (the “Target Amount”).  The number of PARSUs achieved will be determined at the end of each Segment.  Each PARSU will be equal in value to one share of the Company’s $0.01 par value common stock (“Shares”), subject to the restrictions stated below and in accordance with the terms and conditions of the Hewlett-Packard Company 2004 Stock Incentive Plan, as amended (the “Plan”), a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus.  The Plan and the related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of Performance-Adjusted Restricted Stock Units.

Subject to the terms and conditions of this Grant Agreement and of the Plan, the Company hereby grants to the Employee a PARSU together with dividend equivalent units, as set forth below.

2.Performance Criteria and Performance Periods.

The Grant is divided into two separate segments, each with a different performance period, as set forth in the Grant Summary above.  1/2 of the Target Amount of the units are subject to performance criteria for Segment 1 (defined above), which is two fiscal years (the “Segment 1 Units”) and 1/2 of the Target Amount of the units are subject to performance criteria for Segment 2 (defined above) which is three fiscal years (the “Segment 2 Units”).

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For each segment, the Employee may be credited with PARSUs based on (a) the Company’s achieving goals for that segment related to return on invested capital (“ROIC”) (weighted 50% of the PARSUs for each segment) and relative total shareholder return (“TSR”) (weighted 50% of the PARSUs for each segment), (b) the Employee’s continued employment through the last business day of the relevant Segment, and (c) the Employee’s compliance with the requirements and conditions provided for in the Plan and this Grant Agreement.

The goals associated with this PARSU shall be established by the Committee, and will be communicated separately to the Employee by the Company.  Shares delivered at the end of the Performance Period with respect to this PARSU will range from 0% to 200% of the Target Amount of PARSUs, based upon the Company’s performance against the ROIC and TSR goals as certified by the Committee.  No PARSUs will be achieved for a segment if performance is below minimum levels.

3.Crediting of Units For Each Segment.

(a)ROIC Units.  50% of the Target Amount of units for each Segment (i.e., 25% of the total Target Amount of units) will be determined based upon performance against the ROIC goals for that Segment, as certified by the Committee (the “Segment ROIC Units”).  The relevant number of Segment ROIC Units shall be credited in the Employee’s name, based on the Company’s performance during the relevant Segment as follows: 0% if performance is below minimum level, 50% if performance is at minimum level, 100% if performance is at target level and 200% if performance is at or above maximum level.  For performance between the minimum level and target level or between target level and the maximum level, a proportionate percentage will be applied based on straight-line interpolation between levels.

If ROIC goals are met for the relevant Segment, the ROIC Units that are achieved for that Segment will be credited to the Employee even if the TSR goals for the Segment are not met.

(b)TSR Units.  50% of the Target Amount of units for each Segment (i.e., 25% of the total Target Amount of units) will be determined based upon performance against the TSR goal for that Segment, as certified by the Committee (the “Segment TSR Units”).  The Segment TSR Units shall be credited in the Employee’s name based on the Company’s performance during the relevant Segment as follows: 0% if performance is below the minimum level, 50% if performance is at the minimum level, 100% if performance is at target level and 200% if performance is at or above the maximum level.  For performance between minimum and target, or between target and the maximum levels, a proportionate percentage will be applied based on straight-line interpolation between levels.

If TSR goals are met for the relevant Segment, the TSR Units that are achieved for that Segment will be credited to the Employee even if the ROIC goals for the Segment are not met.

(c)Service Requirement.  Notwithstanding (a) and (b) above, the Employee must be employed on the last day of the relevant Segment in order to be credited with any PARSUs for that Segment.

4.Payout of Performance-Adjusted Restricted Stock Units and Dividend Equivalents.

Following the Committee’s certification (if any) at the end of the relevant Segment that the goals associated with this PARSU have been met, and that the terms and conditions set forth in this Grant Agreement are otherwise fulfilled, then the units credited to the Employee under this PARSU, as determined under Section 3, shall no longer be restricted, and HP Common Shares will be transferred to the Employee’s account within 90 days following the end of the relevant Segment, together with a number HP Common Shares representing dividend equivalents.  The number of HP Common Shares representing dividend equivalents shall be equal to the value (without interest) of the regular cash dividends declared on HP Common Shares for which the record date is between the Grant Date and the vesting date, on a number of HP Common Shares equal to the number earned under this PARSU, divided by the closing price of an HP Common Share on the dividend payment date.  The Shares so transferred will be in an amount equal to the number of PARSUs achieved pursuant to Section 3 above plus the number of dividend equivalents payable pursuant to this Section 4, rounded up to the nearest whole share, net of applicable withholdings.

5.Restrictions.

Except as otherwise provided for in this Grant Agreement, the PARSUs or rights granted hereunder may not be sold, pledged or otherwise transferred until paid (if at all) in accordance with this Grant Agreement.

6.Custody of Performance-Adjusted Restricted Stock Units.

The PARSUs subject hereto shall be held in a restricted book entry account in the name of the Employee.  Upon completion of the relevant Segment, any Shares deliverable pursuant to Section 4 above shall be released into an unrestricted brokerage account in the name of the Employee; provided, however, that a portion of such Shares shall be surrendered in payment of taxes in accordance with Section 14 below, unless the Company, in its sole discretion, establishes alternative procedures for the payment of such taxes.  Any Shares not deliverable pursuant to Section 4 above shall be forfeited from the Employee’s account.

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7.No Stockholder Rights.

PARSUs and dividend equivalents represent hypothetical Shares.  Until Shares are delivered to the Employee, the Employee shall not be entitled to any of the rights or benefits generally accorded to stockholders, including, without limitation, the receipt of dividends.

8.Termination of Employment.

Except in the case of a termination of employment due to the Employee’s death, retirement or total and permanent disability, the Employee must remain in the employ of the Company on a continuous basis through the last business day of the relevant Segment in order to be eligible to receive any amount of the PARSU except to the extent a severance plan applicable to the Employee provides otherwise, subject to the terms and conditions of this Grant Agreement.

9.Benefit in Event of Death of the Employee.

In the event termination of employment is due to the death of the Employee, the beneficiary of the Employee shall receive a pro-rata amount of the PARSU and the applicable dividend equivalents, payable at the end of relevant Segment. For each Segment or part of a Segment that the Employee works during the Performance Period, the amount credited will be determined by multiplying the amount credited at the end of the relevant Segment by a fraction equal to the number of whole months worked by the Employee during such Segment, divided by the number of months in the Segment.

10.Retirement of the Employee.

If the Employee’s termination is due to retirement in accordance with the applicable retirement policy, the Employee shall receive a pro rata amount of the PARSU and dividend equivalents (not more than 100%), payable at the end of the relevant Segment.  For each Segment or part of a Segment that the Employee works during the Performance Period, the amount credited will be determined by multiplying the amount credited at the end of the relevant Segment by a fraction equal to the number of whole months worked by the Employee during such Segment, divided by the number of months in the Segment.  The Company’s obligation to deliver the pro rata amount due is subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and during the portion of the Performance Period following termination of the Employee’s active employment shall be in compliance with any-post employment restrictions in the ARCIPD and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

11.Total and Permanent Disability of the Employee.

In the event termination of employment is due to the total and permanent disability of the Employee, the Employee (or a legally designated guardian or representative if the Employee is legally incompetent) shall receive a pro rata amount of the PARSU and dividend equivalents, payable at the end of the relevant Segment.  For each Segment or part of a Segment that the Employee works during the Performance Period, the amount credited will be determined by multiplying the amount credited at the end of the relevant Segment by a fraction equal to the number of whole months worked by the Employee during such Segment, divided by the number of months in the Segment. The Company’s obligation to deliver the amount due under the PARSU and the dividend equivalents is subject to the condition that the Employee shall have executed a current ARCIPD that is satisfactory to the Company, and during the portion of the Performance Period following termination of the Employee’s active employment shall be in compliance with any-post employment restrictions in the ARCIPD and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

12.Deferral of Compensation.

Payments made pursuant to this Plan and this Grant Agreement are intended to comply with or qualify for an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Grant Agreement to ensure that all PARSU and dividend equivalent payments are made in a manner that complies with Section 409A (including, without limitation, the avoidance of penalties thereunder), provided however, that the Company makes no representations that the PARSU or the dividend equivalents will be exempt from any penalties that may apply under Section 409A and makes no undertaking to preclude Section 409A from applying to this PARSU or the dividend equivalents. Any PARSUs or dividend equivalents the settlement of which is triggered by “separation from service” (within the meaning of Section 409A) of a “specified employee” (as defined under Section 409A) shall not be made until a date that is on or after the date which is 6 months after the date of separation from service, or if earlier, upon the Employee’s death.

13.Accelerated or Delayed Delivery.

Notwithstanding anything in this Grant Agreement to the contrary, the Committee, in its sole discretion may accelerate or delay the delivery of any Shares. To the extent the PARSUs or the dividend equivalents are subject to Section 409A, such acceleration of delay shall only occur under the circumstances, and to the extent, permitted by Section 409A.  Further, in the event the Company elects to accelerate delivery of any Shares subject to Section 409A or pay cash in exchange for the cancellation of any PARSUs or dividend equivalents subject to Section 409A pursuant to a Change in Control pursuant to the Plan, such acceleration or exchange shall only be effective to the extent the event constitutes a change in ownership or effective control or a change in the ownership of a substantial portion of the assets for purposes of Section 409A.  In all other circumstances delivery will be made in accordance with Section 4 above.

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14.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account, employer taxes or other tax-related items related to the Employee’s participation in the Plan and legally applicable to or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer (the “Employer”) whether incurred at grant, vesting, sale, or at any other time (“Tax-Related Items”). In the event that the Company or the Employer is liable for taxes that are legally permitted to be recovered from the Employee or is required to withhold taxes as a result of the grant or vesting of PARSUs (including dividend equivalents) or the issuance or subsequent sale of Shares acquired pursuant to such PARSUs and dividend equivalents, the Employee shall surrender a sufficient number of whole Shares, make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from the Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, or, if permissible under local law, the Company may sell or arrange for the sale of Shares that Employee acquires as necessary to cover all applicable required withholding taxes, taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the restrictions on the PARSUs and dividend equivalents lapse, unless the Company, in its sole discretion, has established alternative procedures for such payment. However, with respect to any PARSUs or dividend equivalents subject to Section 409A whose Shares vest prior to delivery, the Company shall limit the surrender of Shares at vesting to the minimum number of Shares permitted to avoid a prohibited acceleration under Section 409A.  The Employee will receive a cash refund for any fraction of a surrendered Share or Shares in excess of any required Tax-Related Items.  To the extent that any surrender of Shares or payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, the Employer, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-Related Items.  The Employee agrees to pay any amount or Tax-Related Items that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

The Company and/or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, then the Employee will be deemed to have been issued the full number of Shares subject to the vested PARSUs and dividend equivalents, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Employee’s participation in the Plan.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount withheld by the Company and/or the Employer.  The Employee further acknowledges that the Company and or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these PARSUs or dividend equivalents, including the grant, vesting or settlement of PARSUs or dividend equivalents and the subsequent sale of any Shares acquired pursuant to such PARSUs or dividend equivalents; and (ii) notwithstanding Section 12, do not commit to structure the terms or any aspect of this grant of PARSUs and/or dividend equivalents to reduce or eliminate the Employee’s liability for Tax-Related Items or to achieve any particular tax result. The Employee acknowledges that the Company and/or the Employer may be required to withhold and/or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount for Tax-Related Items that the Company or the Employer may be required to withhold as a result of the Employee’s participation in the Plan or the Employee’s receipt of PARSUs and dividend equivalents that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit described herein if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

(c)In accepting the PARSU, the Employee consents and agrees that in the event the PARSU or the dividend equivalents become subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the PARSU and dividend equivalents.  Further, by accepting the PARSU, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 14.  The Employee further agrees to execute any other consents or elections required to accomplish the above, promptly upon request of the Company.

15.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all PARSUs, options or any other entitlement to shares of stock awarded, cancelled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s Data in such cases. By contract with both the HP affiliate and with HP vendors, the people and

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companies that have access to the Employee’s Data are bound to handle such Data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

16.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Long-term Incentives website and stockholder information, including copies of any annual report, proxy and Form 10-K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary. The Employee hereby consents to receive any documents related to current or future participation in the Plan by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

17.Acknowledgment and Waiver.

By accepting this grant of PARSUs, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and, subject to Section 19(d), may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Grant Agreement; (ii) the grant of PARSUs and related benefits is voluntary and occasional and does not create any contractual or other right to receive future grants of Shares or PARSUs, or benefits in lieu of Shares or PARSUs, even if Shares or PARSUs have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company and/or the Committee; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time with or without cause, and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law; (v) the Employee is participating voluntarily in the Plan; (vi) PARSUs and their resulting or related benefits are an extraordinary item that is outside the scope of the Employee’s employment contract, if any; (vii) PARSUs and their resulting benefits are not intended to replace any pension rights or compensation; (viii) PARSUs and resulting or related benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law; (ix) in the event that the Employee is not an employee of the Company, this Grant Agreement will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this Grant Agreement will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate of the Company; (x) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (xi) no claim or entitlement to compensation or damages shall arise from termination of this grant of PARSUs and related benefits or diminution in value of this grant of PARSUs or related benefits resulting from termination of the Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and the Employee irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this Grant Agreement, the Employee shall be deemed irrevocably to have waived any entitlement to pursue such claim; (xii) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of the Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); (xiii) the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of this Grant Agreement; (xiv) if the Company’s performance is below minimum levels as set forth in this Grant Agreement, no PARSUs or dividend equivalents will vest and no Shares will be delivered to the Employee; and (xv) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from PARSUs and dividend equivalents vested up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding Grant Agreements, and (c) take any other action required or permitted by applicable law.

18.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire Performance Period. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date or such other date as of which the Company shall require in its discretion, this PARSU shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

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19.Miscellaneous.

(a)The Company shall not be required to treat as owner of PARSUs and associated benefits hereunder any transferee to whom such PARSUs or benefits shall have been transferred in violation of any of the provisions of this Grant Agreement.

(b)The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Grant Agreement.

(c)Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at his address then on file with the Company.

(d)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, other than the terms of any severance plan applicable to the Employee that provides more favorable vesting, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which an Award properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee, including without limitation, any agreement that imposes restrictions during or after employment regarding confidential information and proprietary developments.  This Grant Agreement is governed by the laws of the state of Delaware.

(e)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control.

(f)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(g)Notwithstanding Section 19(f), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(h)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

(i)The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the PARSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(j)All rights granted and/or Shares delivered under this Grant Agreement are subject to claw back under the Company policy in effect from time to time.

(k)The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s acquisition or sale of the underlying Shares.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your grant is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your grant, please discuss them with your manager.

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EX-10.(H)(H)(H)

Exhibit 10(h)(h)(h)

GRANT AGREEMENT

Name: Employee ID:

Manager Name:

Country:

Grant Date:

Grant Number:

Grant Price:

Award Amount:

Award Type/Sub Type:

Expiration Date:

Plan:

Vesting Schedule:

Restricted Stock Award

THIS GRANT AGREEMENT, as of the Grant Date noted above (“Grant Date”) between Hewlett-Packard Company, a Delaware Corporation (“Company”), and the employee named above (“Employee”), is entered into as follows:

WITNESSETH:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this award and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegates (“Committee”) has determined that the Employee shall be granted shares of the Company’s $0.01 par value Common Stock (“Share(s)”) subject to the restrictions stated below and in accordance with the terms and conditions of the Plan named above (“Plan”), a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus.  The Plan and related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of Restricted Stock Award.

Subject to the terms and conditions of this Grant Agreement and of the Plan, the Company hereby grants to the Employee the number of Shares stated above (“Restricted Stock Award” or “RSA”).

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2.Vesting Schedule.

The interest of the Employee in the RSA shall vest according to the vesting schedule set forth above except to the extent a severance plan applicable to the Employee provides otherwise.   Provided the Employee remains in the employ of the Company on a continuous, basis through the close of business on a vesting date set forth above, the interest of the Employee in the portion of the RSA associated with such vesting date shall become fully vested on that date.

3.Restrictions.

(a)The Shares or rights granted hereunder may not be sold, pledged or otherwise transferred until the RSA becomes vested in accordance with Section 2.  The period of time between the date hereof and the date the particular portion of the RSA becomes fully vested is referred to herein as the “Restriction Period” for such portion

(b)Except as otherwise provided for in this Grant Agreement, if the Employee’s employment with the Company is terminated at any time for any reason prior to the lapse of the Restriction Period, the portion of the RSA associated with such Restriction Period shall be forfeited by the Employee, and ownership transferred back to the Company, except to the extent a severance plan applicable to the Employee provides otherwise.

4.Legend.

All certificates representing any Shares subject to the provisions of this Grant Agreement shall have endorsed thereon the following legend:

“The shares represented by this certificate are subject to an agreement between the Corporation and the registered holder, a copy of which is on file at the principal office of this Corporation.”

5.Escrow.

The Shares subject hereto shall be held in escrow in a restricted book entry account with the Company’s transfer agent in the name of the Employee.  Upon termination of the Restriction Period applicable to any portion of the Shares, such Shares shall be released into an unrestricted book entry account with the Company’s transfer agent; provided, however, that a portion of such Shares shall be surrendered in payment of required withholding taxes in accordance with Section 9 below, unless the Company, in its sole discretion, establishes alternative procedures for the payment of required withholding taxes.

6.The Employee’s Stockholder Rights.

During the Restriction Period, the Employee shall have all the rights of a stockholder with respect to the portion of the RSA subject to such Restriction Period, except for the right to transfer such Shares, as set forth in Section 3.  Accordingly, the Employee shall have the right to vote the Shares and to receive any dividends with respect to the Shares.

7.Disability or Retirement of the Employee.

Notwithstanding Section 3 but subject to the terms of Section 14(h), if the Employee’s termination of employment is due to the Employee’s total and permanent disability or retirement, in accordance with the applicable retirement policy, all outstanding and unvested RSAs shall immediately vest subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

8.Death of the Employee.

Notwithstanding Section 3 but subject to the terms of Section 14(h), in the event of the Employee’s death prior to the end of all Restriction Periods, the Employee’s estate or designated beneficiary shall have the right to receive a pro rata number of Shares determined by the Company in its discretion.  In the event of the Employee’s death after the vesting date but prior to the payment of Shares, said Shares shall be paid to the Employee’s estate or designated beneficiary.

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9.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account, employer taxes  or other tax-related items related to the Employee’s participation in the Plan and legally applicable to or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer (the “Employer”) whether incurred at grant, vesting, sale, prior to vesting or at any other time (“Tax-Related Items”).  In the event that the Company or the Employer is required, allowed or permitted to withhold taxes as a result of the grant or vesting of RSAs, or subsequent sale of Shares acquired pursuant to such RSAs, the Employee shall surrender a sufficient number of whole Shares, make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, or, if permissible under local law, the Company may sell or arrange for the sale of Shares that Employee acquires as necessary to cover all applicable required withholding taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the restrictions on the RSAs lapse, unless the Company, in its sole discretion, has established alternative procedures for such payment.  However, with respect to any RSAs subject to Section 409A whose Shares vest prior to delivery, the Company shall limit the surrender of Shares to the minimum number of Shares permitted to avoid a prohibited acceleration under Section 409A.  The Employee will receive a cash refund for any fraction of a surrendered Share or Shares in excess of any and all Tax-Related Items.  To the extent that any surrender of Shares or payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, the Employer, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-Related Items.  The Employee agrees to pay any amount or Tax-Related Items that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount withheld.  The Employee further acknowledges that the Company and/or the Employer: (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this grant of RSAs, including, but not limited to, the grant, vesting or settlement of RSAs, the subsequent delivery of Shares and/or cash upon settlement of such RSAs or the subsequent sale of any Shares acquired pursuant to such RSAs and receipt of any dividends or dividend equivalent payments; and (ii) do not commit to and are under no obligation to structure the terms or any aspect of this grant of RSAs to reduce or eliminate the Employee’s liability for Tax-Related Items or to achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable or tax withholding event, as applicable, the Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan or the Employee’s receipt of RSAs that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit described herein if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

(c)In accepting the RSAs, the Employee consents and agrees that in the event the RSAs become subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the RSAs.  Further, by accepting the RSAs, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in this Section 9.  The Employee further agrees to execute any other consents or elections required to accomplish the above, promptly upon request of the Company.

10.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSAs, options or any other entitlement to shares of stock awarded, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and

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that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s Data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to the Employee’s Data are bound to handle such Data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

11.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Stock Incentive Program website referenced above and stockholder information, including copies of any annual report, proxy and Form 10-K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary. The Employee hereby consents to receive any documents related to current or future participation in the Plan by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

12.Acknowledgment and Waiver.

By accepting this grant of RSAs, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and, subject to Section 14(d), may be modified, amended, suspended or terminated by the Company at any time; (ii) the grant of RSAs is voluntary and occasional and does not create any contractual or other right to receive future grants of Shares or RSAs, or benefits in lieu of Shares or RSAs, even if Shares or RSAs have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company or the Committee; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v)  the Employee is participating voluntarily in the Plan; (vi) RSAs and their resulting benefits are not intended to replace any pension rights or compensation; (vii) RSUs and their resulting benefits are extraordinary items that are outside the scope of the Employee’s employment contract, if any; (viii) RSAs and their resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments insofar as permitted by law and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary or Affiliate; (ix) this grant of RSAs will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this grant of RSAs will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate;  (x) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (xi) no claim or entitlement to compensation or damages shall arise from forfeiture of the RSAs resulting from termination of Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the RSAs to which the Employee is otherwise not entitled, the Employee irrevocably agrees never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Employee shall be deemed irrevocably to have agreed not to pursue such claim and to have agreed to execute any and all documents necessary to request dismissal or withdrawal of such claims; (xii) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); (xiii) the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of the RSAs, and (xiii) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it

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determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from RSAs vested up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding RSAs whether or not vested, and (c) take any other action required or permitted by applicable law.

13.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s acquisition or sale of the underlying Shares. The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

14.Miscellaneous.

(a)The Company shall not be required (i) to transfer on its books any Shares which shall have been sold or transferred in violation of any of the provisions set forth in this Grant Agreement, or (ii) to treat as owner of such Shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such Shares shall have been so transferred.

(b)The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Grant Agreement.

(c)Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at his address then on file with the Company.

(d)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, other than the terms of any severance plan applicable to the Employee that provides more favorable vesting, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which an Award properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(e)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control.

(f)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(g)Notwithstanding Section 14(f), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

(h)In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire vesting period. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date or such other date as of which the Company shall require in its discretion, this RSA shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

(i)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

(j)Appendix.

Notwithstanding any provisions in this Grant Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in the Appendix to this Grant Agreement for the Employee’s country.

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Moreover, if the Employee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Employee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Grant Agreement.

(k)Imposition of Other Requirements.

The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the RSAs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(l)All rights granted and/or Shares delivered under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your award is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your award, please discuss them with your manager.

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EX-10.(I)(I)(I)

Exhibit (i)(i)(i)

GRANT AGREEMENT

Name: Employee ID:

Grant Date:

Grant Number:

Grant Price:

Award Amount:

Plan:

Performance-Contingent Non-Qualified Stock Option

THIS GRANT AGREEMENT, as of the Grant Date noted above between Hewlett-Packard Company, a Delaware corporation (“Company”), and the employee named above (“Employee”), is entered into as follows:

WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company’s continued growth; and

WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company (or its Affiliates or Subsidiaries), to accept ancillary agreements designed to protect the legitimate business interests of the Company that are made a condition of this award and to participate in the affairs of the Company, the HR and Compensation Committee of the Board of Directors of the Company or its delegate (“Committee”) has determined that the Employee shall be granted a non-qualified stock option to purchase the number of shares stated above of its $0.01 par value voting Common Stock (“Shares”) upon the terms and conditions set forth herein and in accordance with the terms and conditions of the Plan named above (“Plan”), a copy of which can be found on the Long-term Incentives website along with a copy of the related prospectus. The Plan and the related prospectus can also be obtained by written or telephonic request to the Company Secretary.

THEREFORE, the parties agree as follows:

1.Grant of Stock Options.

This non-qualified Stock Option is granted under and pursuant to the Plan and is subject to each and all of the provisions thereof.

2.Grant Price.

The Grant Price is the price per Share set forth above.

3.Restrictions on Transfer.

This Stock Option is not transferable by the Employee otherwise than by will or the laws of descent and distribution, and is exercisable only by the Employee during his or her lifetime.  This Stock Option may not be transferred, assigned, pledged or hypothecated by the Employee during his or her lifetime, whether by operation of law or otherwise, and is not subject to execution, attachment or similar process.

4.Vesting Schedule.

This Stock Option will vest and become exercisable according to the vesting schedule set forth below except to the extent a severance plan applicable to the Employee provides otherwise, subject to the Employee’s compliance with the requirements and conditions provided for in the Plan and this Grant Agreement.

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(a)           This Stock Option shall vest, if at all, as to one-third of the Shares thereunder (“First Tranche”) upon the satisfaction of both of the following criteria prior to the expiration of the Stock Option: (i) the Employee’s continued employment on the first anniversary of the Grant Date (“First Tranche Service Component”), and (ii) subject to the Employee’s continued employment on such date, the first date that the closing Share price on the New York Stock Exchange has met or exceeded 110% of the Grant Price set forth above for at least twenty (20) consecutive trading days within two years after the Grant Date (“First Tranche Share Price Component”); and

(b)           This Stock Option shall vest, if at all, as to one-third of the Shares thereunder (“Second Tranche”) upon the satisfaction of both of the following criteria prior to the expiration of the Stock Option: (i) the Employee’s continued employment on the second anniversary of the Grant Date (“Second Tranche Service Component”), and (ii) subject to the Employee’s continued employment on such date, the first date that the closing Share price on the New York Stock Exchange has met or exceeded 120% of the Grant Price set forth above for at least twenty (20) consecutive trading days within three years after the Grant Date (“Second Tranche Share Price Component”); and

(c)           This Stock Option shall vest, if at all, as to one-third of the Shares thereunder (“Third Tranche”) upon the satisfaction of both of the following criteria prior to the expiration of the Stock Option: (i) the Employee’s continued employment on the third anniversary of the Grant Date (“Third Tranche Service Component”), and (ii) the first date that the closing Share price on the New York Stock Exchange has met or exceeded 130% of the Grant Price set forth above for at least twenty (20) consecutive trading days within four years after the Grant Date, subject to the Employee’s continued employment on such date (“Third Tranche Share Price Component”);

If none of the specified performance measures set forth above are met by the date specified in (a), (b), or (c) as applicable, the Stock Option will not vest and will not be exercisable at any time.

5.Expiration Date.

This Stock Option will expire on the 8th anniversary of the Grant Date set forth above (“Expiration Date”), unless sooner terminated or cancelled in accordance with the provisions of the Plan and this Grant Agreement.  The Employee must exercise this Stock Option, if at all, on a day the New York Stock Exchange is open for trading and on or before the Expiration Date.   The Employee shall be solely responsible for exercising this Stock Option, if at all, prior to the Expiration Date.  The Company shall have no obligation to notify the Employee of this Stock Option’s expiration.

6.Method of Exercising.

This Stock Option, to the extent it is then vested and exercisable, may be exercised through a broker designated by the Company or by any other method the Committee has approved; provided, however, that no such exercise shall be with respect to fewer than twenty-five (25) Shares or the remaining Shares covered by the Stock Option if less than twenty-five.  The exercise must be accompanied by the payment of the full Grant Price of such Shares.  Payment may be in cash or Shares or a combination thereof to the extent permissible under applicable law or through a broker-assisted cashless exercise; provided, however, that any payment in Shares shall be in strict compliance with all procedural rules established by the Committee.

7.Termination of Employment.

Upon termination of the Employee’s employment prior to the Expiration Date for any reason other than death, retirement in accordance with the applicable retirement policy, or permanent and total disability, all unvested Shares subject to this Stock Option shall be forfeited by the Employee and he or she may exercise the Stock Option to the extent that it is then vested before the New York Stock Exchange closes on the date of termination, except to the extent a severance plan applicable to the Employee provides otherwise.

8.Death of Employee.

Notwithstanding the provisions in Section 4 of this Grant Agreement but subject to the terms of Section 15, in the event of the Employee’s termination of employment by death prior to the fourth anniversary of the Grant Date, this Stock Option shall vest in full, to the extent not previously vested or forfeited. In the event of the Employee’s death at any time prior to the Expiration Date, the Employee’s legal representative or designated beneficiary shall have the right to exercise all or a portion of the Employee’s vested rights under this Grant Agreement within one (1) year after the death of the Employee, and shall be bound by the provisions of the Plan.  In all cases, however, this Stock Option will expire no later than the Expiration Date.

9.Disability of the Employee.

Notwithstanding the provisions in Section 4 of this Grant Agreement but subject to the terms of Section 15, in the event of the Employee’s termination prior to the fourth anniversary of the Grant Date due to permanent and total disability, this Stock Option shall vest in full, to the extent not previously vested or forfeited.  In the event of the Employee’s termination due to permanent and total disability at any time prior to the Expiration Date, the Employee may exercise his or her vested rights under this Grant Agreement within three (3) years from the date of termination. In all cases, however, this Stock Option will expire no later than the Expiration Date.  The Company’s obligation to vest the Stock Option under this paragraph is subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

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10.Retirement of the Employee.

Notwithstanding the provisions in Section 4 of this Grant Agreement but subject to the terms of Section 15, in the event of the Employee’s termination of employment prior to the fourth anniversary of the Grant Date due to retirement in accordance with the applicable retirement policy, this Stock Option, to the extent not previously vested or forfeited, shall vest and become exercisable as follows:

(a)Provided the First Tranche Share Price Component is timely satisfied, a portion (no more than 100%) of the First Tranche shall vest (as of the later of the date the First Tranche Share Price Component is satisfied or the date of Employee’s termination of employment) equal to the number of full months of Employee’s employment after the Grant Date (i) divided by 12 if the First Tranche Share Price Component is satisfied in the first 12 months after the grant date, or (ii) divided by 24 if the First Tranche Share Price Component is satisfied after the twelfth and prior to the twenty-fifth month after the grant date, and;

(b)Provided the Second Tranche Share Price Component is timely satisfied, a portion (no more than 100%) of the Second Tranche shall vest (as of the later of the date the Second Tranche Share Price Component is satisfied or the date of the Employee’s termination of employment) equal to the number of full months of Employee’s employment after the Grant Date (i) divided by 12 if the Second Tranche Share Price Component is satisfied in the first 12 months after the grant date,  (ii) divided by 24 if the Second Tranche Share Price Component is satisfied after the twelfth and prior to the twenty-fifth month after the grant date, divided by 24; and (iii) divided by 36 if the Second Tranche Share Price Component is satisfied after the 24th month and prior to the 37th month after the Grant Date.

(c)Provided the Third Tranche Share Price Component is timely satisfied, a portion (no more than 100%) of the Third Tranche shall vest (as of the later of the date the Third Tranche Share Price Component is satisfied or the date of the Employee’s termination of employment) equal to the number of full months of Employee’s employment after the Grant Date  (i) divided by 12 if the Third Tranche Share Price Component is satisfied in the first 12 months after the grant date,  (ii) divided by 24 if the Third Tranche Share Price Component is satisfied after the twelfth and prior to the twenty-fifth month after the grant date, divided by 24; (iii) divided by 36 if the Third Tranche Share Price Component is satisfied after the 24th month and prior to the 37th month after the Grant Date; and (iv) divided by 48 if the Third Tranche Share Price Component is satisfied after the 36th month after the Grant Date and prior to the 49th month after the Grant Date.

(d)In the event of the Employee’s termination due to retirement in accordance with the applicable retirement policy at any time prior to the Expiration Date, the Employee may exercise his or her vested rights, if any,  under this Stock Option within three (3) years from the date of termination, or vesting if later. In all cases, however, this Stock Option will expire no later than the Expiration Date.  The Company’s obligation to vest the Stock Option under this paragraph is subject to the condition that the Employee shall have executed a current Agreement Regarding Confidential Information and Proprietary Developments (“ARCIPD”) that is satisfactory to the Company, and shall not engage in any conduct that creates a conflict of interest in the opinion of the Company.

11.Taxes.

(a)The Employee shall be liable for any and all taxes, including income tax, social insurance, payroll tax, payment on account, employer taxes, or other tax-related items related to the Employee’s participation in the Plan and legally applicable or otherwise recoverable from the Employee (such as fringe benefit tax) by the Company and/or the Employee’s employer (the “Employer”) whether incurred at grant, vesting, exercise, sale, prior to vesting or at any other time (“Tax-Related Items”).  In the event that the Company or the Employer is required, allowed or permitted to withhold taxes as a result of the grant or vesting of Stock Options, exercise or subsequent sale of Shares acquired pursuant to such Stock Options, or at any other time, the Employee shall make a cash payment or make adequate arrangements satisfactory to the Company and/or the Employer to withhold such taxes from Employee’s wages or other cash compensation paid to the Employee by the Company and/or the Employer at the election of the Company, in its sole discretion, or, if permissible under local law, the Company may sell or arrange for the sale of Shares that Employee acquires as necessary to cover all applicable required withholding taxes that are legally recoverable from the Employee (such as fringe benefit tax) and required social security contributions at the time the Stock Options are exercised, unless the Company, in its sole discretion, has established alternative procedures for such payment.  The Employee will receive a cash refund for any fraction of a surrendered Share or Shares in excess of any required Tax-Related Items.  To the extent that any payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, its Affiliates and Subsidiaries, which are qualified to deduct tax at source, to deduct from the Employee’s compensation all Tax-Related Items.  The Employee agrees to pay any Tax-Related Items that cannot be satisfied from wages or other cash compensation, to the extent permitted by law.

To avoid negative accounting treatment, the Company and/or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.

(b)Regardless of any action the Company or the Employer takes with respect to any or all Tax-Related Items, the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items is and remains the Employee’s responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Employee further acknowledges that the

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Company and/or the Employer (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this grant of Stock Options, including, but not limited to, the grant, vesting or settlement of Stock Options, the subsequent delivery of Shares and/or cash upon settlement of such Stock Options or the subsequent sale of any Shares acquired pursuant to such Stock Options and receipt of any dividends; and (ii)  do not commit to and are under no obligation to structure the terms or any aspect of this grant of Stock Options to reduce or eliminate the Employee’s liability for Tax-Related Items or to achieve any particular tax result.  Further, if the Employee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable or tax withholding event, as applicable, the Employee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Employee shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Employee’s participation in the Plan or the Employee’s receipt, vesting or exercise of Stock Options or subsequent sate of the Shares acquired on exercise, or at any other time, that cannot be satisfied by the means previously described.  The Company may refuse to deliver the benefit of the Stock Option if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items.

12.In accepting the Stock Option, the Employee consents and agrees that in the event the Stock Option becomes subject to an employer tax that is legally permitted to be recovered from the Employee, as may be determined by the Company and/or the Employer at their sole discretion, and whether or not the Employee’s employment with the Company and/or the Employer is continuing at the time such tax becomes recoverable, the Employee will assume any liability for any such taxes that may be payable by the Company and/or the Employer in connection with the Stock Option.  Further, by accepting the Stock Option, the Employee agrees that the Company and/or the Employer may collect any such taxes from the Employee by any of the means set forth in Section 11.  The Employee further agrees to execute any other consents or elections required to accomplish the above promptly upon request of the Company.

13.Acknowledgement and Waiver.

By accepting this Stock Option grant, the Employee acknowledges and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and, subject to Section 18(d), may be modified, amended, suspended or terminated by the Company at any time; (ii) the grant of Stock Options is voluntary and occasional and does not create any contractual or other right to receive future grants of Stock Options, or benefits in lieu of Stock Options, even if Stock Options have been granted repeatedly in the past; (iii) all decisions with respect to future grants, if any, will be at the sole discretion of the Company and/or the Committee; (iv) the Employee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Employee’s employment relationship at any time and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law;  (v)  the Employee is participating voluntarily in the Plan; (vi) Stock Options and their resulting benefits are extraordinary items that are outside the scope of the Employee’s employment contract, if any; (vii) Stock Options and their resulting benefits are not intended to replace any pension rights or compensation; (viii) Stock Options and their resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments insofar as permitted by law and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Subsidiary or Affiliate; (ix) this grant of Stock Options will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this Stock Option grant will not be interpreted to form an employment contract with the Employer or any Subsidiary or Affiliate;  (x) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (xi) no claim or entitlement to compensation or damages shall arise from forfeiture of the Stock Options resulting from termination of Employee’s employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the Stock Options to which the Employee is otherwise not entitled, the Employee irrevocably agrees never to institute any claim against the Company or the Employer, waives his or her ability, if any, to bring any such claim, and releases the Company and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Employee shall be deemed irrevocably to have agreed not to pursue such claim and to have agreed to execute any and all documents necessary to request dismissal or withdrawal of such claims; (xii) notwithstanding any terms or conditions of the Plan to the contrary, in the event of termination of the Employee’s employment (whether or not in breach of local labor laws), the Employee’s right to receive benefits under this Grant Agreement after termination of employment, if any, will be measured by the date of termination of Employee’s active employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); the Committee shall have the exclusive discretion to determine when the Employee is no longer actively employed for purposes of the Stock Options; and (xiii) if the Company determines that the Employee has engaged in misconduct prohibited by applicable law or any applicable policy of the Company, as in effect from time to time, or the Company is required to make recovery from the Employee under applicable law or a Company policy adopted to comply with applicable legal requirements, then the Company may, in its sole discretion, to the extent it determines appropriate and to the extent permitted under applicable law, (a) recover from the Employee the proceeds from Stock Options exercised up to three years prior to the Employee’s termination of employment or any time thereafter, (b) cancel the Employee’s outstanding Stock Options whether or not vested, and (c) take any other action required or permitted by applicable law.

14.Data Privacy Consent.

The Employee understands that the Company, its Affiliates, its Subsidiaries and the Employer hold certain personal information about the Employee, including, but not limited to, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all stock options or any other entitlement to shares of stock awarded, canceled, purchased, exercised, vested, unvested or outstanding in the Employee’s favor for the exclusive purpose of implementing, managing and administering the Plan (“Data”). The

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Employee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Employee’s country or elsewhere and that the recipient country may have different data privacy laws and protections than the Employee’s country. HP is committed to protecting the privacy of the Employee’s Data in such cases. By contract with both the HP affiliate and with HP vendors, the people and companies that have access to the Employee’s Data are bound to handle such Data in a manner consistent with the HP Privacy Policy and law. HP also performs due diligence and audits on its vendors in accordance with good commercial practices to ensure their capabilities and compliance with those commitments.

The Employee may request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.

15.Additional Eligibility Requirements Permitted.

In addition to any other eligibility criteria provided for in the Plan, the Company may require that the Employee execute a separate document agreeing to the terms of a current arbitration agreement and/or a current ARCIPD, each in a form acceptable to the Company and/or that the Employee be in compliance with the ARCIPD throughout the entire term of the Stock Option. If such separate documents are required by the Company and the Employee does not accept them within 75 days of the Grant Date or such other date as of which the Company shall require in its discretion, this Stock Option Award shall be cancelled and the Employee shall have no further rights under this Grant Agreement.

16.No Advice Regarding Grant.

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Employee’s participation in the Plan, or the Employee’s acquisition or sale of the underlying Shares.  The Employee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

17.Plan Information.

The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan information, including information prepared to comply with laws outside the United States, from the Long-term Incentives website referenced above and stockholder information, including copies of any annual report, proxy and Form 10K, from the investor relations section of the HP website at www.hp.com.  The Employee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder information are available upon written or telephonic request to the Company Secretary. The Employee hereby consents to receive any documents related to current or future participation in the Plan by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

18.Miscellaneous.

(a)The Company shall not be required to treat as owner of Stock Options, or to provide any associated benefits hereunder, any transferee to whom such Stock Options or benefits shall have been transferred in violation of any of the provisions of this Grant Agreement.

(b)The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this Grant Agreement.

(c)Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at his address then on file with the Company.

(d)The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof other than the terms of any severance plan applicable to Employee that provides more favorable vesting, or extended exercise periods, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.  Notwithstanding the foregoing, nothing in the Plan or this Grant Agreement shall affect the validity or interpretation of any duly authorized written agreement between the Company and the Employee under which a Stock Option properly granted under and pursuant to the Plan serves as any part of the consideration furnished to the Employee.  This Grant Agreement is governed by the laws of the state of Delaware.

(e)If the Employee has received this or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

(f)The provisions of this Grant Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

(g)Notwithstanding Section 18(f), the Company’s obligations under this Grant Agreement and the Employee’s agreement to the terms of an arbitration agreement and/or an ARCIPD, if any, are mutually dependent.  In the event that the Employee breaches the arbitration agreement or the Employee’s ARCIPD is breached or found not to be binding upon the Employee for any reason by a court of law, then the Company will have no further obligation or duty to perform under the Plan or this Grant Agreement.

5

(h)Any capitalized terms not defined herein shall have the same meaning they have in the Plan.

(i)Notwithstanding any provisions in this Grant Agreement, the grant of the Stock Options shall be subject to any special terms and conditions set forth in the Appendix to this Grant Agreement for the Employee’s country.  Moreover, if the Employee relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Employee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Grant Agreement.

(j)The Company reserves the right to impose other requirements on the Employee’s participation in the Plan, on the Stock Options and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Employee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(k)All rights granted and/or Shares delivered under this Grant Agreement are subject to claw back under the Company policy as in effect from time to time.

HEWLETT-PACKARD COMPANY

Meg Whitman

CEO and President

Tracy Keogh

Executive Vice President, Human Resources

RETAIN THIS GRANT AGREEMENT FOR YOUR RECORDS

Important Note:  Your Stock Option is subject to the terms and conditions of this Grant Agreement and to HP obtaining all necessary government approvals.  If you have questions regarding your Stock Option, please discuss them with your manager.

6

EX-10.(J)(J)(J)

Exhibit 10(j)(j)(j)

Hewlett-Packard Company

Severance Plan for Executive Officers

As amended and restated November 19, 2014

1.             Eligibility.  This plan is applicable to individuals who are Executive Officers (within the meaning of Section 16 of the Securities and Exchange Act of 1934, as amended) of Hewlett-Packard Company (“HP”), or who were Executive Officers of HP within 90 days before their termination of HP employment, effective for terminations occurring on or after November 1, 2011.

2.             Severance Benefits.  In the event of a Qualifying Termination (as defined below), and subject to his or her execution of a full release of claims in a form satisfactory to HP (“Release of Claims”) within 45 days following termination of employment, and provided there has been no revocation or attempted revocation thereof (the date after the lapse of such revocation period, the “Release Effective Date”) and subject to the terms of this plan, an Executive Officer will be eligible for severance benefits consisting of (a) a cash severance payment, (b) a pro-rata annual bonus payment, (c) pro-rata vesting on any outstanding long-term incentive awards, and (d) a health benefit payment, as more fully described below:

(a)Cash Severance:  The cash severance payment shall be calculated as a multiple of the sum of the Executive Officer’s (i) annual base salary as in effect immediately before termination of employment, and (ii) the average of the actual annual cash bonuses paid under the applicable annual bonus plan for three fiscal years most recently completed (or actual completed fiscal years, if less) prior to termination of employment.

·For an Executive Officer who holds the title of Chief Executive Officer within 90 days before termination, the multiple shall be two; and

·For an Executive Officer who holds the title of Executive Vice President within 90 days before termination, the multiple shall be 1.5; and

·For an Executive Officer who holds the title of Senior Vice President within 90 days before termination, the multiple shall be one.

(b)Pro-Rata Annual Bonus:  The pro-rata annual bonus payment shall be calculated as a pro-rata portion of the current fiscal year annual (short-term) bonus based on the number of days worked in the fiscal year in which termination occurs through the date of termination, divided by 365, and subject to actual performance on the applicable metrics, and to discretionary adjustments permitted under the applicable plan, as certified by the HR & Compensation Committee of the Board (the “Committee”) following the end of the fiscal year.

(c)Long-Term Incentive Awards:

·Each separately-granted long-term incentive award held by an Executive Officer at the time of his or her Qualifying Termination that vests solely based on service will receive pro-rata vesting based on the number of full months worked during the vesting period applicable to such award, but only if the Executive Officer was actively employed for at least 25% of such vesting period.  Pro-rata vesting, where applicable, shall be applied separately to each separately-granted award in its entirety and thus shall take into account amounts previously vested.

·Each separately-granted long-term incentive award held by an Executive Officer at the time of his or her Qualifying Termination that vests solely based on performance will be deemed earned as of the end of the applicable performance period based on actual results as certified by the Committee, and subject to discretionary adjustments permitted under the applicable plan, if any, and will receive pro-rata vesting as described in the preceding sentence, including the requirement of active employment for at least 25% of the performance period and application of the pro-rata vesting to the entire separately-granted award, taking into account amounts, if any, previously vested.

·Vesting for awards not specifically addressed above, including awards subject to both time-based and performance-based vesting, may be illustrated in Appendix A, as amended from time to time.  Awards not specifically illustrated in Appendix A will be pro-rated by analogy to those illustrations.  Pro rata vesting will apply only if the Executive Officer was in active employment for at least 25% of the longer of the performance period or the service vesting period.

·Vested stock options may be exercised until one year after the later of (i) termination of employment or (ii) if under the terms of the option, performance after termination of employment will be applied to determine the amount of pro ration, the date the applicable performance is certified; but in either case no later than the applicable expiration date.

·In determining whether 25% of the longer of the service period or the performance period has elapsed, months are counted from the date of grant to the date of termination of employment (e.g., January 15-March 31 is two months.).  Pro-rata vesting is based on the number of full calendar months worked during the vesting period applicable to such award, counting the month of grant as one full month (i.e., January 15-March 31 is three months).

(d)Health Benefit Stipend:  The health benefit stipend shall consist of the payment in a lump sum of an amount equal to the excess of 18 months’ COBRA premiums for continued group medical coverage (for the Executive Officer and his or her eligible dependents covered by the applicable HP group medical plan immediately prior to termination of employment) over the amount payable by active employees in the same plan with the same level of coverage for such premiums for a period of 18 months.

3.             Qualifying Termination.  An Executive Officer will be deemed to have incurred a Qualifying Termination for purposes of this plan if he or she is involuntarily terminated, as determined by the Committee, other than for Cause while holding Executive Officer status or within 90 days of having held Executive Officer status.  For purposes of this plan, the term “Cause” shall mean an Executive Officer’s:

·Material neglect (other than as a result of illness or disability) of his or her duties or responsibilities to HP; or

·Conduct (including action or failure to act) that is not in the best interest of, or is injurious to, HP.

2

An Executive Officer shall not be deemed to have engaged in conduct constituting Cause under this plan except by a majority vote of the members of HP’s Board of Directors or an independent committee thereof.

4.             Form and Time of Payment.  Subject to Section 5, the timely execution of the required Release of Claims, and the occurrence of the Release Effective Date,

a.The cash severance shall be paid in installments as follows:  25% no later than 75 days after termination, and then 25% after each of six, 12 and 18 months following termination.

b.The pro-rata annual bonus shall be paid at the time such bonuses are otherwise paid to participants in the applicable bonus plan; provided that if the Release Effective Date is after the date that the bonus would otherwise have been paid, such payment shall be made as soon as administratively practicable after the Release Effective Date, but in no event later than March 15 of the year following the year in which the bonus performance period ended.

c.The Health Benefit Stipend shall be paid with the first installment of the cash severance.

d.Any pro-rata long-term incentive award that vests solely based on the performance of service will be paid, or in the case of an option, vesting will be accelerated, as soon as administratively practicable after the Release Effective Date, but no later than the 75th day after termination.

e.Any pro-rata long-term incentive award that vests, in whole or in part, based on performance for which the applicable performance period has not ended on or prior to the Executive Officer’s termination will be paid (or in the case of options vesting will be accelerated) at the time such bonuses are otherwise paid to other holders of such long-term incentive awards; provided that if the Release Effective Date is after the date that the long-term incentive would otherwise have been paid, such payment shall be made as soon as administratively practicable after the Release Effective Date, but in no event later than March 15 of the calendar year following the calendar year in which the applicable performance period ended.

All payments under this plan shall be subject to, and made net of, applicable deductions and withholdings.  Any payments under this plan shall be reduced by any severance benefit payable to the Executive Officer under any other HP plan, program or agreement.

All payments are subject to the Executive Officer’s continuing compliance with the HP Agreement Regarding Confidential Information and Proprietary Developments (as reflected in the Release of Claims), and to HP’s policies on recoupment, as in effect from time to time.

3

5.             409A Provisions.  Any amounts payable solely on account of an involuntary separation from service within the meaning of Section 409A of the Internal Revenue code of 1986 (“Section 409A”) shall be, to the maximum extent possible, excludible from the requirements of Section 409A, either as involuntary separation pay or as short-term deferral amounts.  For purposes of Section 409A, each payment of compensation under the plan shall be treated as a separate payment of compensation.

Any reimbursements or in-kind benefits provided under the plan shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (a) any reimbursement is for expenses incurred during the period of time specified in the Agreement, (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (c) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and (d) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

If payment of any amount of nonqualified deferred compensation is triggered by a separation from service that occurs while the Executive Officer is a specified employee (as such terms are defined in Section 409A), and if such amount is scheduled to be paid within six months after such separation from service, the amount shall accrue without interest and shall be paid the first business day after the end of such six-month period, or, if earlier, within 15 days after the appointment of the personal representative or executor of the Executive Officer’s estate following the Executive Officer’s death.

If the maximum period within which the Executive Officer must sign and not revoke the Release of Claims would begin in one calendar year and expire in the following calendar year, then any payments contingent on the occurrence of the Release Effective Date shall be made in such following calendar year (regardless of the year of execution of such release) if payment in such following calendar year is required in order to comply with Section 409A.  If the Release Effective Date has not occurred by the 53rd day following termination of employment, the Executive Officer will not be entitled to any amounts that are subject to the timely execution of the Release of Claims and the occurrence of the Release Effective Date.

Notwithstanding the foregoing, HP does not make any guarantees or other assurances of any kind with respect to the tax consequences or treatment of any amounts paid or payable to him under this plan.

6.             Effect on Other Benefits; At-Will Status.  Payments under this plan shall not be considered compensation for purposes of any other compensation or benefit plan, program, or agreement of HP or its affiliates.  All other compensation and benefit plans and programs shall be governed by the applicable HP plan or agreement. This plan does not create an employment relationship for any fixed term.

7.             Effective Date; Administration of Plan.  This plan was originally effective October 31, 2003, was amended and restated effective for terminations occurring after November 1, 2011, and is further amended for clarification and restated as set forth herein, effective for terminations occurring after November 1, 2011.  The plan may be amended or terminated at any time by the Committee or the Board, in their discretion.  The Committee shall have full authority, in its discretion to interpret and apply the provisions of the plan, to establish rules and procedures

4

applicable to the plan, to resolve any ambiguity, correct any defect or supply any omission; to make such adjustments or modifications as the Committee deems appropriate for Executive Officers who are working outside the United States as are advisable to fulfill the purposes of the plan or to comply with applicable local law’ and to take any other action it deems necessary or advisable for administration of the plan.

This plan is intended to be consistent with the Board’s policy regarding severance agreements for senior executives, as adopted by resolutions dated July 18, 2003 (the “Resolutions”), and the benefits provided for hereunder, exclusive of “permitted benefits” (as defined in the Resolutions), do not exceed 2.99 times the sum of any eligible executive’s base salary plus bonus as in effect immediately prior to separation from employment.  The Committee may take such action as is necessary to implement and administer this plan consistent with such intent of the Board.

5

EX-12

Exhibit 12

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

	Three months ended January 31, 2015		Fiscal years ended October 31
			2014			2013			2012			2011		2010
	In millions, except ratios
Earnings (loss):
Earnings (loss) before taxes	$	1,746	$	6,557		$	6,510		$	(11,933	)	$	8,982	$	10,974
Adjustments:
Non-controlling interests in the income of subsidiaries with fixed charges		13		46			69			102			75		108
Undistributed loss (earnings) of equity method investees		2		(5	)		(4	)		(2	)		3		12
Fixed charges		219		1,017			1,162			1,297			1,027		868
	$	1,980	$	7,615		$	7,737		$	(10,536	)	$	10,087	$	11,962
Fixed charges:
Total interest expense, including interest expense on borrowings, amortization of debt discount, premium on all indebtedness and other	$	136	$	665		$	769		$	865		$	551	$	417
Interest included in rent		83		352			393			432			476		451
Total fixed charges	$	219	$	1,017		$	1,162		$	1,297		$	1,027	$	868
Ratio of earnings to fixed charges (excess of fixed charges over earnings)		9.0x		7.5x			6.7x		$	(11,833	)		9.8x		13.8x

⁽¹⁾

HP computed the ratio of earnings to fixed charges by dividing earnings (earnings (loss) before taxes, adjusted for non-controlling interests in the income of subsidiaries with fixed charges, undistributed loss (earnings) of equity method investees, and fixed charges) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings, amortization of debt discount, premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rent expense.

EX-31.1

Exhibit 31.1

CERTIFICATION

        I, Margaret C. Whitman, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Hewlett-Packard Company;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 11, 2015

/s/ MARGARET C. WHITMAN
Margaret C. Whitman
Chairman, President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

        I, Catherine A. Lesjak, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Hewlett-Packard Company;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 11, 2015

/s/ CATHERINE A. LESJAK
Catherine A. Lesjak
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION
OF
CHIEF EXECUTIVE OFFICER
AND
CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        I, Margaret C. Whitman, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett-Packard Company for the first quarter ended January 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett-Packard Company.

March 11, 2015

By: /s/ MARGARET C. WHITMAN
Margaret C. Whitman
Chairman, President and Chief Executive Officer

        I, Catherine A. Lesjak, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett-Packard Company for the first quarter ended January 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett-Packard Company.

March 11, 2015

By: /s/ CATHERINE A. LESJAK
Catherine A. Lesjak
Executive Vice President and Chief Financial Officer

        A signed original of this written statement required by Section 906 has been provided to Hewlett-Packard Company and will be retained by Hewlett-Packard Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	$ 143	$ 97
Available-for-sale securities, Gross Unrealized Loss	(14)	(14)
Cost
Cash equivalents and available-for-sale investments
Cash equivalents	10,245	12,687
Available-for-sale securities, Cost	694	634
Total cash equivalents and available-for-sale investments	10,939	13,321
Fair Value
Cash equivalents and available-for-sale investments
Cash equivalents	10,245	12,687
Available-for-sale securities, Estimated Fair Value	823	717
Total cash equivalents and available-for-sale investments	11,068	13,404
Debt securities:
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	93	90
Available-for-sale securities, Gross Unrealized Loss	(14)	(14)
Debt securities: | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	502	492
Debt securities: | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	581	568
Time deposits | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	186	145
Time deposits | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	186	145
Foreign bonds.
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	93	90
Foreign bonds. | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	257	286
Foreign bonds. | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	350	376
Other Debt Securities
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Loss	(14)	(14)
Other Debt Securities | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	59	61
Other Debt Securities | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	45	47
Marketable equity securities
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	50	7
Marketable equity securities | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	192	142
Marketable equity securities | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	242	149
Mutual funds
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	5
Mutual funds | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	134	134
Mutual funds | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	139	134
Equity securities in public companies
Cash equivalents and available-for-sale investments
Available-for-sale securities, Gross Unrealized Gain	45	7
Equity securities in public companies | Cost
Cash equivalents and available-for-sale investments
Available-for-sale securities, Cost	58	8
Equity securities in public companies | Fair Value
Cash equivalents and available-for-sale investments
Available-for-sale securities, Estimated Fair Value	103	15
Time deposits | Cost
Cash equivalents and available-for-sale investments
Cash equivalents	2,492	2,720
Time deposits | Fair Value
Cash equivalents and available-for-sale investments
Cash equivalents	2,492	2,720
Money market funds | Cost
Cash equivalents and available-for-sale investments
Cash equivalents	7,632	9,857
Money market funds | Fair Value
Cash equivalents and available-for-sale investments
Cash equivalents	7,632	9,857
Mutual funds | Cost
Cash equivalents and available-for-sale investments
Cash equivalents	121	110
Mutual funds | Fair Value
Cash equivalents and available-for-sale investments
Cash equivalents	$ 121	$ 110

XML

Financing Receivables and Operating Leases (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Financing Receivables and Operating Leases
Financing receivable term, low end of range	2 years
Financing receivable term, high end of range	5 years
Minimum lease payments receivable	$ 6,729	$ 6,982
Unguaranteed residual value	229	235
Unearned income	(528)	(547)
Financing receivables, gross	6,430	6,670
Allowance for doubtful accounts	(102)	(111)
Financing receivables, net	6,328	6,559
Less: current portion	(2,907)	(2,946)
Amounts due after one year, net	$ 3,421	$ 3,613

XML

Financial Instruments (Details 2) (USD $) In Millions, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Cost
Due in one year	$ 171
Due in one to five years	3
Due in more than five years	328
Total	502
Fair Value
Due in one year	171
Due in one to five years	3
Due in more than five years	407
Total	581
Equity securities in privately held companies | Long-term Financing Receivables and Other Assets
Investment Holdings
Investment amount	$ 23	$ 97

XML

Balance Sheet Details (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Accounts Receivable, Net
Accounts receivable, gross	$ 12,513	$ 14,064
Allowance for doubtful accounts	(218)
Accounts receivable, net	12,295	13,832
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of year	232
Provision for doubtful accounts, net of recoveries	(3)
Deductions	(11)
Balance at end of year	218
Non-recourse arrangements
Maximum program capacity	1,045	1,083
Utilized capacity	(406)	(613)
Available capacity	639	470
Partial-recourse arrangement
Maximum program capacity	1,769	1,877
Utilized capacity	(1,337)	(1,500)
Available capacity	432	377
Total arrangements
Maximum program capacity	2,814	2,960
Utilized Capacity Non Recourse and Partial Recourse Facility	(1,743)	(2,113)
Available capacity	1,071	847
Amounts due from third parties for transferred trade receivables
Non recourse arrangements	1	78
Partial-recourse arrangements	293	381
Total arrangements	294
Trade receivables sold and cash received
Balance at beginning of period	459
Trade receivables sold	2,760
Cash receipts	(2,893)
Foreign currency and other	(32)
Balance at end of period	294
Inventory
Finished goods	4,103	3,973
Purchased parts and fabricated assemblies	2,472	2,442
Inventory, net	$ 6,575	$ 6,415

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Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2015

Financial Instruments

Schedule of cash equivalents and available-for-sale investments

	As of January 31, 2015									As of October 31, 2014
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	2,492	$	—	$	—		$	2,492	$	2,720	$	—	$	—		$	2,720
Money market funds		7,632		—		—			7,632		9,857		—		—		$	9,857
Mutual funds		121		—		—			121		110		—		—			110
Total cash equivalents		10,245		—		—			10,245		12,687		—		—			12,687
Available-for-Sale Investments:
Debt securities:
Time deposits		186		—		—			186		145		—		—			145
Foreign bonds		257		93		—			350		286		90		—			376
Other debt securities		59		—		(14	)		45		61		—		(14	)		47
Total debt securities		502		93		(14	)		581		492		90		(14	)		568
Equity securities:
Mutual funds		134		5		—			139		134		—		—			134
Equity securities in public companies		58		45		—			103		8		7		—			15
Total equity securities		192		50		—			242		142		7		—			149
Total available-for-sale investments		694		143		(14	)		823		634		97		(14	)		717
Total cash equivalents and available-for-sale investments	$	10,939	$	143	$	(14	)	$	11,068	$	13,321	$	97	$	(14	)	$	13,404

Schedule of contractual maturities of short- and long-term investments in available-for-sale debt securities

	As of January 31, 2015
	Amortized Cost		Fair Value
	In millions
Due in one year	$	171	$	171
Due in one to five years		3		3
Due in more than five years		328		407
	$	502	$	581

Schedule of gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets

	As of January 31, 2015										As of October 31, 2014
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	10,800	$	4	$	187	$	—	$	—	$	10,800	$	3	$	102	$	—	$	55
Cash flow hedges:
Foreign currency contracts		19,310		1,050		292		181		138		20,196		539		124		131		94
Net investment hedges:
Foreign currency contracts		1,934		105		87		7		6		1,952		44		47		10		8
Total derivatives designated as hedging instruments		32,044		1,159		566		188		144		32,948		586		273		141		157
Derivatives not designated as hedging instruments
Foreign currency contracts		14,235		98		43		149		33		21,384		82		32		82		25
Other derivatives		297		5		1		—		—		361		6		1		—		—
Total derivatives not designated as hedging instruments		14,532		103		44		149		33		21,745		88		33		82		25
Total derivatives	$	46,576	$	1,262	$	610	$	337	$	177	$	54,693	$	674	$	306	$	223	$	182

Schedule of information related to the potential effect of entity's master netting agreements and collateral security agreements

	As of January 31, 2015
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	1,872	$	—	$	1,872	$	484	$	1,141		$	247
Derivative liabilities	$	514	$	—	$	514	$	484	$	27	(1)	$	3

(1) Collateral posted through re-use of counterparty cash collateral.

	As of October 31, 2014
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	980	$	—	$	980	$	361	$	452		$	167
Derivative liabilities	$	405	$	—	$	405	$	361	$	29	(1)	$	15

(1) Collateral posted through re-use of counterparty cash collateral.

Schedule of pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
		Three months ended January 31							Three months ended January 31
							Hedged Item
Derivative Instrument	Location	2015		2014				Location	2015			2014
		In millions							In millions
Interest rate contracts	Interest and other, net	$	141	$	(24	)	Fixed-rate debt	Interest and other, net	$	(141	)	$	24

Schedule of pre-tax effect of derivative instruments in cash flow and net investment hedging relationships

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)
	Three months ended January 31							Three months ended January 31
	2015			2014			Location	2015			2014
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	737		$	175		Net revenue	$	334		$	(63	)
Foreign currency contracts		(138	)		(87	)	Cost of products		(26	)		(23	)
Foreign currency contracts		(3	)		—		Other operating expenses		(4	)		(4	)
Foreign currency contracts		35			(18	)	Interest and other, net		30			(19	)
Total cash flow hedges	$	631		$	70			$	334		$	(109	)
Net investment hedges:
Foreign currency contracts	$	129		$	66		Interest and other, net	$	—		$	—

Schedule of pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Earnings

	Gain (Loss) Recognized in Earnings on Derivatives
		Three months ended January 31,
	Location	2015			2014
		In millions
Foreign currency contracts	Interest and other, net	$	247		$	190
Other derivatives	Interest and other, net		(3	)		(10	)
Total		$	244		$	180

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Financial Instruments (Details 4) (USD $) In Millions, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Derivative assets
Gross Amount Recognized	$ 1,872	$ 980
Net Amount Presented	1,872	980
Gross Amounts Not Offset
Derivatives	484	361
Financial Collateral	1,141	452
Net Amount	247	167
Derivative liabilities
Gross Amount Recognized	514	405
Net Amount Presented	514	405
Gross Amounts Not Offset
Derivatives	484	361
Financial Collateral	27	29
Net Amount	$ 3	$ 15

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Restructuring Charges (Tables)

3 Months Ended

Jan. 31, 2015

Restructuring

Summary of Restructuring Plans

			Three months ended January 31, 2015											As of January 31, 2015
	Balance, October 31, 2014		Charges			Cash Payments			Other Adjustments and Non-Cash Settlements			Balance, January 31, 2015		Total Costs Incurred to Date		Total Expected Costs to Be Incurred
	In millions
Fiscal 2012 Plan
Severance and EER	$	955	$	133		$	(439	)	$	(45	)	$	604	$	4,526	$	5,000
Infrastructure and other		98		17			(39	)		(3	)		73		532		540
Total 2012 Plan		1,053		150			(478	)		(48	)		677		5,058		5,540
Other Plans:
Severance		7		—			—			(1	)		6		2,629		2,629
Infrastructure		54		(4	)		(5	)		(1	)		44		1,429		1,433
Total Other Plans		61		(4	)		(5	)		(2	)		50		4,058		4,062
Total restructuring plans	$	1,114	$	146		$	(483	)	$	(50	)	$	727	$	9,116	$	9,602
Reflected in Consolidated Balance Sheets:
Accrued restructuring	$	898										$	559
Other liabilities	$	216										$	168

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Goodwill and Intangible Assets (Details) (USD $)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Goodwill
Balance at the beginning of year	$ 31,139,000,000
Goodwill adjustments	(31,000,000)
Balance at the end of year	31,108,000,000
Accumulated impairment loss	14,500,000,000	14,500,000,000
Personal Systems
Goodwill
Balance at the beginning of year		2,588,000,000
Balance at the end of year	2,588,000,000	2,588,000,000
Printing
Goodwill
Balance at the beginning of year		2,591,000,000
Balance at the end of year	2,591,000,000	2,591,000,000
Enterprise Group
Goodwill
Balance at the beginning of year	16,867,000,000
Goodwill adjustments	(30,000,000)
Balance at the end of year	16,837,000,000
Enterprise Services segment
Goodwill
Balance at the beginning of year	97,000,000
Goodwill adjustments	(1,000,000)
Balance at the end of year	96,000,000
Accumulated impairment loss	8,000,000,000	8,000,000,000
Number of reporting units within ES segment	2
Software
Goodwill
Balance at the beginning of year		8,852,000,000
Balance at the end of year	8,852,000,000	8,852,000,000
Accumulated impairment loss	5,700,000,000	5,700,000,000
HP Financial Services
Goodwill
Balance at the beginning of year		144,000,000
Balance at the end of year	144,000,000	144,000,000
Corporate Investments
Goodwill
Accumulated impairment loss	$ 800,000,000	$ 800,000,000

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Restructuring Charges (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Oct. 31, 2014
Restructuring Reserve
Balance at the beginning of the period	$ 1,114
Charges	146	114
Cash Payments	(483)
Other Adjustments and Non-Cash Settlements	(50)
Balance at the end of the period	727
Short-term portion of restructuring reserve, recorded in Accrued restructuring	559		898
Long-term portion of restructuring reserve, recorded in Other liabilities	168		216
Total Costs Incurred to Date	9,116
Expected cost of the plan	9,602
Fiscal 2012 Restructuring Plan
Restructuring Reserve
Balance at the beginning of the period	1,053
Charges	150
Cash Payments	(478)
Other Adjustments and Non-Cash Settlements	(48)
Balance at the end of the period	677
Total Costs Incurred to Date	5,058
Expected cost of the plan	5,540
Expected positions to be eliminated	55,000
Positions eliminated	43,700
Restructuring and Related Activities, Completion Date	Oct. 31, 2021
Fiscal 2012 Restructuring Plan | Severance and EER
Restructuring Reserve
Balance at the beginning of the period	955
Charges	133
Cash Payments	(439)
Other Adjustments and Non-Cash Settlements	(45)
Balance at the end of the period	604
Total Costs Incurred to Date	4,526
Expected cost of the plan	5,000
Fiscal 2012 Restructuring Plan | Infrastructure and other items
Restructuring Reserve
Balance at the beginning of the period	98
Charges	17
Cash Payments	(39)
Other Adjustments and Non-Cash Settlements	(3)
Balance at the end of the period	73
Total Costs Incurred to Date	532
Expected cost of the plan	540
Other Plans
Restructuring Reserve
Balance at the beginning of the period	61
Charges	(4)
Cash Payments	(5)
Other Adjustments and Non-Cash Settlements	(2)
Balance at the end of the period	50
Total Costs Incurred to Date	4,058
Expected cost of the plan	4,062
Restructuring and Related Activities, Completion Date	Oct. 31, 2019
Other Plans | Severance and workforce reductions
Restructuring Reserve
Balance at the beginning of the period	7
Other Adjustments and Non-Cash Settlements	(1)
Balance at the end of the period	6
Total Costs Incurred to Date	2,629
Expected cost of the plan	2,629
Other Plans | Infrastructure
Restructuring Reserve
Balance at the beginning of the period	54
Charges	(4)
Cash Payments	(5)
Other Adjustments and Non-Cash Settlements	(1)
Balance at the end of the period	44
Total Costs Incurred to Date	1,429
Expected cost of the plan	$ 1,433

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Guarantees (Tables)

3 Months Ended

Jan. 31, 2015

Guarantees

Changes in aggregate product warranty liabilities

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	1,956
Accruals for warranties issued		394
Adjustments related to pre-existing warranties (including changes in estimates)		(17	)
Settlements made (in cash or in kind)		(426	)
Balance at end of period	$	1,907

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Goodwill and Intangible Assets (Details 3) (USD $) In Millions, unless otherwise specified	Jan. 31, 2015
Estimated future amortization expense related to finite-lived purchased intangible assets
2015 (remaining 9 months)	$ 651
2016	653
2017	244
2018	147
2019	110
2020	97
Thereafter	4
Amortizable intangible assets, net	$ 1,906

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Borrowings (Details 3) (USD $)	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Sep. 30, 2012
Interest expense on borrowings recognized in Consolidated Condensed Statements of Earnings
Financing interest	$ 63,000,000	$ 72,000,000
Interest expense	67,000,000	99,000,000
Total interest expense	130,000,000	171,000,000
Credit facilities
Debt instruments
Amount available under credit facility	7,500,000,000
Available borrowing resources, other than 2012 Shelf Registration	1,535,000,000
Credit facility expiring March 2017
Debt instruments
Amount available under credit facility	3,000,000,000
Term of credit facility	5 years
Credit facility expiring March 2017 | Euro
Debt instruments
Commercial paper authorization by HP			2,200,000,000
Credit facility expiring March 2017 | GBP
Debt instruments
Commercial paper authorization by HP			300,000,000
Credit facility expired February 2015
Debt instruments
Amount available under credit facility	4,500,000,000
Term of credit facility	5 years
Commercial paper
Debt instruments
Number of commercial paper programs	2
Commercial paper authorization by HP	16,000,000,000
Amount of additional commercial paper authorization for subsidiaries	1,000,000,000
Available borrowing resources, other than 2012 Shelf Registration	16,194,000,000
Commercial paper | U.S. program
Debt instruments
Commercial paper authorization by HP	16,000,000,000
Commercial paper | Euro program
Debt instruments
Commercial paper authorization by HP			3,000,000,000
Hewlett-Packard International Bank PLC | Commercial paper | Euro Commercial Paper/Certificate of Deposit Programme
Debt instruments
Commercial paper authorization by HP	$ 500,000,000

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Balance Sheet Details (Detail 2) (USD $)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 25,567,000,000	$ 26,252,000,000
Accumulated depreciation	(14,537,000,000)	(14,912,000,000)
Property, plant and equipment, net	11,030,000,000	11,340,000,000
Purchase of property, plant and equipment	800,000,000
Sale and retirement of gross Property, Plant and Equipment	1,000,000,000
Unfavorable currency impacts of gross property plant and equipment	300,000,000
Accumulated depreciation on sale and retirement of property, plant and equipment	900,000,000
Land
Property, Plant and Equipment, Net
Property, plant and equipment, gross	540,000,000	540,000,000
Buildings and leasehold improvements
Property, Plant and Equipment, Net
Property, plant and equipment, gross	9,068,000,000	9,048,000,000
Machinery and equipment
Property, Plant and Equipment, Net
Property, plant and equipment, gross	$ 15,959,000,000	$ 16,664,000,000

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Restructuring

3 Months Ended

Jan. 31, 2015

Restructuring

Restructuring

Note 3: Restructuring

Summary of Restructuring Plans

        HP's restructuring activities summarized by plan were as follows:

			Three months ended January 31, 2015											As of January 31, 2015
	Balance, October 31, 2014		Charges			Cash Payments			Other Adjustments and Non-Cash Settlements			Balance, January 31, 2015		Total Costs Incurred to Date		Total Expected Costs to Be Incurred
	In millions
Fiscal 2012 Plan
Severance and EER	$	955	$	133		$	(439	)	$	(45	)	$	604	$	4,526	$	5,000
Infrastructure and other		98		17			(39	)		(3	)		73		532		540
Total 2012 Plan		1,053		150			(478	)		(48	)		677		5,058		5,540
Other Plans:
Severance		7		—			—			(1	)		6		2,629		2,629
Infrastructure		54		(4	)		(5	)		(1	)		44		1,429		1,433
Total Other Plans		61		(4	)		(5	)		(2	)		50		4,058		4,062
Total restructuring plans	$	1,114	$	146		$	(483	)	$	(50	)	$	727	$	9,116	$	9,602
Reflected in Consolidated Balance Sheets:
Accrued restructuring	$	898										$	559
Other liabilities	$	216										$	168

Fiscal 2012 Restructuring Plan

        On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP estimates that it will eliminate approximately 55,000 positions in connection with the 2012 Plan through fiscal 2015, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. As of October 31, 2014 HP estimated that it will recognize approximately $5.5 billion in aggregate charges in connection with the 2012 Plan. HP expects approximately $5.0 billion to relate to workforce reductions, including the EER programs, and approximately $0.5 billion to relate to infrastructure, including data center and real estate consolidation, and other items. As of January 31, 2015, HP had recorded $5.1 billion in aggregate charges of which $4.5 billion related to workforce reductions and $532 million related to infrastructure, including data center and real estate consolidation, and other items. HP expects to record the remaining charges through the end of HP's 2015 fiscal year as the accounting recognition criteria are met. As of January 31, 2015, HP had eliminated approximately 43,700 positions for which a severance payment has been or will be made as part of the 2012 Plan. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021.

Other Plans

        Restructuring plans initiated by HP in fiscal 2008 and 2010 were substantially completed as of January 31, 2015. Severance- and infrastructure-related cash payments associated with the other plans are expected to be paid out through fiscal 2019.

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Stockholders' Equity (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended			12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014	Jan. 31, 2014	Oct. 31, 2011
Stockholders' Equity
Repurchases of common stock (in shares)	36	7	21
Share repurchases settled	41
Payment in connection with repurchases of shares	$ 1,571,000,000		$ 565,000,000
Share repurchases that will be settled in the second quarter of 2015	2
Share repurchase authorization remaining	3,300,000,000
Taxes on change in unrealized gains (losses) on available- for-sale securities:
Tax (provision) benefit on unrealized gains (losses) arising during the period	(15,000,000)		1,000,000
Tax (provision) benefit on unrealized gains (losses) arising during the period	(15,000,000)		1,000,000
Taxes on change in unrealized gains on cash flow hedges:
Tax provision on unrealized gains arising during the period	(201,000,000)		(40,000,000)
Tax provision (benefit) on (gains) losses reclassified into earnings	98,000,000		(34,000,000)
Tax provision on unrealized gains (losses) arising during the period	(103,000,000)		(74,000,000)
Taxes on change in unrealized components of defined benefit plans:
Tax benefit on amortization of actuarial loss and prior service benefit	(14,000,000)		(12,000,000)
Tax benefit on change in unrealized components of defined benefit plans	(14,000,000)		(12,000,000)
Tax provision on change in cumulative translation adjustment	(47,000,000)		(20,000,000)
Tax provision on other comprehensive income	(179,000,000)		(105,000,000)
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income	(138,000,000)
Other comprehensive income (loss), before reclassification	344,000,000
Other comprehensive income (loss), net of taxes	206,000,000		111,000,000
Net revenue	(26,839,000,000)		(28,154,000,000)
Cost of products	14,075,000,000		14,525,000,000
Interest and other, net	174,000,000		163,000,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax, Total	334,000,000		(109,000,000)
Share repurchase authorization increase after balance sheet date				10,000,000,000
Change in unrealized gains (losses) on available-for-sale securities
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Other comprehensive income (loss), before reclassification	31,000,000
Other comprehensive income (loss), net of taxes	31,000,000		(1,000,000)
Change in unrealized gains (losses) on available-for-sale securities | Reclassifications of losses (gains) into earnings
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income			(1,000,000)
Change in unrealized gains on cash flow hedges
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income	(236,000,000)
Other comprehensive income (loss), before reclassification	430,000,000		30,000,000
Other comprehensive income (loss), net of taxes	194,000,000		105,000,000
Change in unrealized gains on cash flow hedges | Reclassifications of losses (gains) into earnings
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income	(236,000,000)		75,000,000
Net revenue	334,000,000		(63,000,000)
Cost of products	26,000,000		23,000,000
Other operating expenses	4,000,000		4,000,000
Interest and other, net	(30,000,000)		19,000,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax, Total	334,000,000		(109,000,000)
Change in unrealized components of defined benefit plans
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income	98,000,000
Other comprehensive income (loss), before reclassification	(2,000,000)
Other comprehensive income (loss), net of taxes	96,000,000		51,000,000
Amortization of actuarial loss and prior service benefit | Reclassifications of losses (gains) into earnings
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Amounts reclassified from accumulated other comprehensive income	98,000,000		51,000,000
Curtailments, settlements and other
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Other comprehensive income (loss), net of taxes	(2,000,000)
Change in cumulative translation adjustment
Changes and reclassifications related to Other Comprehensive Income, net of taxes
Other comprehensive income (loss), before reclassification	(115,000,000)
Other comprehensive income (loss), net of taxes	$ (115,000,000)		$ (44,000,000)

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Retirement and Post-Retirement Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Oct. 31, 2014
U.S. Defined Benefit Plans
Net benefit costs
Interest cost	$ 143	$ 142
Expected return on plan assets	(217)	(203)
Amortization and deferrals:
Actuarial loss (gain)	13	4
Net periodic benefit (credit) cost	(61)	(57)
Net benefit (credit) cost	(61)	(57)
Non-U.S. Defined Benefit Plans
Net benefit costs
Service cost	86	78
Interest cost	163	183
Expected return on plan assets	(305)	(282)
Amortization and deferrals:
Actuarial loss (gain)	112	78
Prior service benefit	(5)	(6)
Net periodic benefit (credit) cost	51	51
Special termination benefits	6	6
Net benefit (credit) cost	57	57
Employer Contributions and Funding Policy
Defined Benefit Plan, Contributions by Employer	54
Expected contribution to defined benefit plans in fiscal 2015			686
Expected contribution to benefit plans as of balance sheet date	632
U.S. non-qualified plan participants
Employer Contributions and Funding Policy
Defined Benefit Plan, Contributions by Employer	8
Expected contribution to defined benefit plans in fiscal 2015			35
Expected contribution to benefit plans as of balance sheet date	27
Post-Retirement Benefit Plans
Net benefit costs
Service cost	1	1
Interest cost	7	8
Expected return on plan assets	(9)	(8)
Amortization and deferrals:
Actuarial loss (gain)	(3)	(3)
Prior service benefit	(5)	(10)
Net periodic benefit (credit) cost	(9)	(12)
Special termination benefits		(11)
Net benefit (credit) cost	(9)	(23)
Employer Contributions and Funding Policy
Defined Benefit Plan, Contributions by Employer	12
Expected contribution to defined benefit plans in fiscal 2015			47
Expected contribution to benefit plans as of balance sheet date	$ 35

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Balance Sheet Details (Table)

3 Months Ended

Jan. 31, 2015

Balance Sheet Details

Accounts Receivable, Net

	As of
	January 31, 2015			October 31, 2014
	In millions
Accounts receivable	$	12,513		$	14,064
Allowance for doubtful accounts		(218	)		(232	)
	$	12,295		$	13,832

Schedule of allowance for doubtful accounts related to accounts receivable

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	232
Provision for doubtful accounts, net of recoveries		(3	)
Deductions		(11	)
Balance at end of period	$	218

Schedule of maximum program capacity and available program capacity under revolving short-term financing arrangements

	As of
	January 31, 2015			October 31, 2014
	In millions
Non-recourse arrangements:
Maximum program capacity	$	1,045		$	1,083
Utilized capacity(1)(2)		(406	)		(613	)
Available capacity	$	639		$	470
Partial-recourse arrangements:
Maximum program capacity	$	1,769		$	1,877
Utilized capacity(1)(2)		(1,337	)		(1,500	)
Available capacity	$	432		$	377
Total arrangements:
Maximum program capacity	$	2,814		$	2,960
Utilized capacity(1)(2)		(1,743	)		(2,113	)
Available capacity	$	1,071		$	847

(1)	Utilized capacity represents the receivables sold to third parties, but not collected from the customer by the third parties.
(2)	HP reflects the amounts transferred to but not yet collected from third parties in accounts receivable in the Consolidated Condensed Balance Sheets. These amounts, included in the utilized capacity are as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Non-recourse arrangements	$	1	$	78
Partial-recourse arrangements		293		381
Total arrangements	$	294	$	459

Schedule of transferred trade receivables not collected from the third parties

	As of
	January 31, 2015		October 31, 2014
	In millions
Non-recourse arrangements	$	1	$	78
Partial-recourse arrangements		293		381
Total arrangements	$	294	$	459

Schedule of revolving short-term financing arrangements

	Three months ended January 31, 2015
	In millions
Balance at beginning of period(1)	$	459
Trade receivables sold		2,760
Cash receipts		(2,893	)
Foreign currency and other		(32	)
Balance at end of period(1)	$	294

(1) Beginning and ending balance represents amounts for trade receivables sold but not yet collected.

Inventory

	As of
	January 31, 2015		October 31, 2014
	In millions
Finished goods	$	4,103	$	3,973
Purchased parts and fabricated assemblies		2,472		2,442
	$	6,575	$	6,415

Property, Plant and Equipment

	As of
	January 31, 2015			October 31, 2014
	In millions
Land	$	540		$	540
Buildings and leasehold improvements		9,068			9,048
Machinery and equipment, including equipment held for lease		15,959			16,664
		25,567			26,252
Accumulated depreciation		(14,537	)		(14,912	)
	$	11,030		$	11,340

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Taxes on Earnings (Tables)

3 Months Ended

Jan. 31, 2015

Taxes on Earnings

Schedule of current and long-term deferred tax assets and liabilities

	As of
	January 31, 2015			October 31, 2014
	In millions
Current deferred tax assets	$	3,093		$	2,754
Current deferred tax liabilities		(401	)		(284	)
Long-term deferred tax assets		953			740
Long-term deferred tax liabilities		(1,594	)		(1,124	)
Net deferred tax assets net of deferred tax liabilities	$	2,051		$	2,086

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Financial Instruments (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Financial Instruments
Period within which the funds held as collateral and posted as collateral are transferred from or to counterparties	2 days
Collateralized arrangements in net liability position	$ 27	$ 38
Derivatives, Fair Value
Total derivatives, gross notional amount	46,576	54,693
Derivative asset, fair value	1,872	980
Derivative liability, fair value	514	405
Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	1,262	674
Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	610	306
Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	337	223
Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	177	182
Cash flow hedges
Derivatives, Fair Value
Maturity period of foreign currency cash flow hedges	12 months
Cash flow hedges | Minimum
Derivatives, Fair Value
Duration of lease term for which lease-related forward contracts and intercompany lease loan forward contracts can be extended	2 years
Cash flow hedges | Maximum
Derivatives, Fair Value
Duration of lease term for which lease-related forward contracts and intercompany lease loan forward contracts can be extended	5 years
Derivatives designated as hedging instruments
Derivatives, Fair Value
Total derivatives, gross notional amount	32,044	32,948
Derivatives designated as hedging instruments | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	1,159	586
Derivatives designated as hedging instruments | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	566	273
Derivatives designated as hedging instruments | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	188	141
Derivatives designated as hedging instruments | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	144	157
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts
Derivatives, Fair Value
Total derivatives, gross notional amount	10,800	10,800
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	4	3
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	187	102
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value		55
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts
Derivatives, Fair Value
Total derivatives, gross notional amount	19,310	20,196
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	1,050	539
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	292	124
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	181	131
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	138	94
Derivatives designated as hedging instruments | Net investment hedges | Foreign currency contracts
Derivatives, Fair Value
Total derivatives, gross notional amount	1,934	1,952
Derivatives designated as hedging instruments | Net investment hedges | Foreign currency contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	105	44
Derivatives designated as hedging instruments | Net investment hedges | Foreign currency contracts | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	87	47
Derivatives designated as hedging instruments | Net investment hedges | Foreign currency contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	7	10
Derivatives designated as hedging instruments | Net investment hedges | Foreign currency contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	6	8
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Total derivatives, gross notional amount	14,532	21,745
Derivatives not designated as hedging instruments | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	103	88
Derivatives not designated as hedging instruments | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	44	33
Derivatives not designated as hedging instruments | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	149	82
Derivatives not designated as hedging instruments | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	33	25
Derivatives not designated as hedging instruments | Foreign currency contracts
Derivatives, Fair Value
Total derivatives, gross notional amount	14,235	21,384
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	98	82
Derivatives not designated as hedging instruments | Foreign currency contracts | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	43	32
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	149	82
Derivatives not designated as hedging instruments | Foreign currency contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	33	25
Derivatives not designated as hedging instruments | Other derivatives
Derivatives, Fair Value
Total derivatives, gross notional amount	297	361
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	5	6
Derivatives not designated as hedging instruments | Other derivatives | Long-term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	$ 1	$ 1

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Stock-Based Compensation (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Stock-Based Compensation
Stock-based compensation expense	$ 187	$ 170
Income tax benefit	(60)	(53)
Stock-based compensation expense, net of tax	127	117
Restricted Stock Awards
Shares
Outstanding at the beginning of the period (in shares)	40,808
Granted (in shares)	14,738
Vested (in shares)	(15,749)
Forfeited (in shares)	(733)
Outstanding at the end of the period (in shares)	39,064
Weighted-Average Grant Date Fair Value Per Share
Outstanding at the beginning of the period (in dollars per share)	$ 24
Granted (in dollars per share)	$ 37
Vested (in dollars per share)	$ 23
Forfeited (in dollars per share)	$ 25
Outstanding at the end of the period (in dollars per share)	$ 30
Unrecognized pre-tax stock-based compensation expense and recognition period
Unrecognized pre-tax stock-based compensation expense	852
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized	1 year 7 months 6 days
Stock Options
Unrecognized pre-tax stock-based compensation expense and recognition period
Unrecognized pre-tax stock-based compensation expense	90
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized	2 years 2 months 12 days
Weighted-average fair value and the assumptions used to measure fair value
Weighted- average fair value (in dollars per share)	$ 8.04	$ 7.45
Expected volatility (as a percent)	26.30%	33.60%
Risk-free interest rate (as a percent)	1.70%	1.80%
Expected dividend yield (as a percent)	1.70%	2.20%
Expected term in years	5 years 9 months 18 days	5 years 8 months 12 days
Shares
Outstanding at beginning of period (in shares)	57,853
Granted (in shares)	7,869
Exercised (in shares)	(6,977)
Forfeited/cancelled/expired (in shares)	(14,375)
Outstanding at end of period (in shares)	44,370
Vested and expected to vest at end of period (in shares)	40,827
Exercisable at the end of period (in shares)	20,921
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 27
Granted (in dollars per share)	$ 37
Exercised (in dollars per share)	$ 20
Forfeited/cancelled/expired (in dollars per share)	$ 41
Outstanding at end of period (in dollars per share)	$ 25
Vested and expected to vest at the end of period (in dollars per share)	$ 25
Exercisable at the end of the period (in dollars per share)	$ 24
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	5 years 7 months 6 days
Vested and expected to vest at the end of the period	5 years 6 months
Exercisable at the end of the period	4 years 6 months
Aggregate Intrinsic Value
Outstanding at the end of the period	514
Vested and expected to vest at the end of the period	478
Exercisable at the end of the period	278
Options exercised	$ 134

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Financing Receivables and Operating Leases (Tables)

3 Months Ended

Jan. 31, 2015

Financing Receivables and Operating Leases

Components of financing receivables

	As of
	January 31, 2015			October 31, 2014
	In millions
Minimum lease payments receivable	$	6,729		$	6,982
Unguaranteed residual value		229			235
Unearned income		(528	)		(547	)
Financing receivables, gross		6,430			6,670
Allowance for doubtful accounts		(102	)		(111	)
Financing receivables, net		6,328			6,559
Less: current portion(1)		(2,907	)		(2,946	)
Amounts due after one year, net(1)	$	3,421		$	3,613

(1) HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets.

Credit risk profile of gross financing receivables

	As of
	January 31, 2015		October 31, 2014
	In millions
Risk Rating:
Low	$	3,374	$	3,536
Moderate		2,967		3,022
High		89		112
Total	$	6,430	$	6,670

Schedule of changes in allowance for doubtful accounts related to financing receivables

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts		1
Deductions, net of recoveries		(10	)
Balance at end of period	$	102

Allowance and related gross financing receivables collectively and individually evaluated for loss

	As of
	January 31, 2015		October 31, 2014
	In millions
Gross financing receivables collectively evaluated for loss	$	6,143	$	6,378
Gross financing receivables individually evaluated for loss		287		292
Total	$	6,430	$	6,670
Allowance for financing receivables collectively evaluated for loss	$	82	$	92
Allowance for financing receivables individually evaluated for loss		20		19
Total	$	102	$	111

Summary of the aging and non-accrual status of gross financing receivables

	As of
	January 31, 2015		October 31, 2014
	In millions
Billed(1):
Current 1-30 days	$	231	$	243
Past due 31-60 days		44		46
Past due 61-90 days		25		12
Past due >90 days		54		49
Unbilled sales-type and direct-financing lease receivables		6,076		6,320
Total gross financing receivables	$	6,430	$	6,670
Gross financing receivables on non-accrual status(2)	$	131	$	130
Gross financing receivables 90 days past due and still accruing interest(2)	$	156	$	162

(1)	Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.
(2)	Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

Schedule of operating lease assets included in machinery and equipment

	As of
	January 31, 2015			October 31, 2014
	In millions
Equipment leased to customers	$	3,867		$	3,977
Accumulated depreciation		(1,342	)		(1,382	)
	$	2,525		$	2,595

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets

Goodwill

	Three months ended January 31, 2015
	Personal Systems		Printing		Enterprise Group			Enterprise Services(2)			Software		HP Financial Services		Corporate Investments		Total
	In millions
Balance at beginning of period(1)	$	2,588	$	2,591	$	16,867		$	97		$	8,852	$	144	$	—	$	31,139
Goodwill adjustments		—		—		(30	)		(1	)		—		—		—		(31	)
Balance at end of period(1)	$	2,588	$	2,591	$	16,837		$	96		$	8,852	$	144	$	—	$	31,108

(1)	Goodwill at January 31, 2015 and October 31, 2014 is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments.
(2)	Goodwill relates to the MphasiS Limited reporting unit.

Intangible Assets

	As of January 31, 2015										As of October 31, 2014
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,282	$	(3,361	)	$	(856	)	$	1,065	$	5,289	$	(3,228	)	$	(856	)	$	1,205
Developed and core technology and patents		4,244		(1,341	)		(2,138	)		765		4,266		(1,301	)		(2,138	)		827
Trade name and trade marks		1,693		(281	)		(1,336	)		76		1,693		(261	)		(1,336	)		96
Total intangible assets	$	11,219	$	(4,983	)	$	(4,330	)	$	1,906	$	11,248	$	(4,790	)	$	(4,330	)	$	2,128

Estimated future amortization expense related to finite-lived purchased intangible assets

        As of January 31, 2015, the estimated future amortization expense related to finite-lived intangible assets was as follows:

Fiscal year:	In millions
2015 (remaining 9 months)	$	651
2016		653
2017		244
2018		147
2019		110
2020		97
Thereafter		4
Total	$	1,906

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Segment Information

3 Months Ended

Jan. 31, 2015

Segment Information

Segment Information

Note 2: Segment Information

        HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses ("SMBs") and large enterprises, including customers in the government, health and education sectors. HP's offerings span the following:

• personal computing and other access devices;

• imaging- and printing-related products and services;

• enterprise information technology ("IT") infrastructure, including enterprise server and storage technology, networking products and solutions, and technology support and maintenance;

• multi-vendor customer services, including technology consulting, outsourcing and support services across infrastructure, applications and business process domains; and

• software, products and solutions, including application testing and delivery, big data analytics, enterprise security, information governance, IT operations management, and marketing optimization.

        HP's operations are organized into seven segments for financial reporting purposes: Personal Systems, Printing, EG, Enterprise Services ("ES"), Software, HP Financial Services ("HPFS") and Corporate Investments. HP's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP's management to evaluate segment results.

        The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). While PPS is not a reportable segment, HP may provide financial data aggregating the Personal Systems and the Printing segments in order to provide a supplementary view of its business.

        A summary description of each segment follows.

        The Printing and Personal Systems Group's mission is to leverage the respective strengths of the Personal Systems business and the Printing business by creating a unified organization that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the segments within PPS is described below.

Personal Systems provides commercial personal computers ("PCs"), consumer PCs, workstations, thin clients, tablets, retail point-of-sale systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops, commercial tablets, workstations and thin clients into commercial clients and consumer notebooks, consumer desktops and consumer tablets into consumer clients when describing performance in these markets. Described below are HP's global business capabilities within Personal Systems.

• Commercial PCs are optimized for use by customers, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments.

• Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion, HP Chromebook, HP Split, HP Slate and HP Stream series of multi-media consumer notebooks, consumer tablets, hybrids and desktops.

Printing provides consumer and commercial printer hardware, supplies, media, software and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial markets. HP groups LaserJet, large format printers and commercial inkjet printers into Commercial Hardware and consumer inkjet printers into Consumer Hardware when describing performance in these markets. Described below are HP's global business capabilities within Printing.

• LaserJet and Enterprise Solutions deliver HP's LaserJet and enterprise products, services and solutions to the SMB and enterprise segments. Managed Print Services provides printing equipment, supplies, support, workflow optimization and security services for SMB and enterprise customers around the world, utilizing proprietary HP tools and fleet management solutions as well as third-party software.

• Inkjet and Printing Solutions deliver HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). Ongoing initiatives and programs such as Ink in the Office and Ink Advantage and newer initiatives such as Instant Ink provide innovative printing solutions to consumers and SMBs.

• Graphics Solutions deliver large format printers (Designjet, Large Format Production, and Scitex Industrial), specialty printing, digital press solutions (Indigo and Inkjet Webpress), supplies and services to print service providers and design and rendering customers.

• Software and Web Services delivers a suite of solutions and services, including photo-storage, printing offerings such as Snapfish and web-connected printing services.

        The Enterprise Group provides servers, storage, networking and technology services that, when combined with HP's Cloud solutions, enable customers to manage applications across public cloud, virtual private cloud, private cloud and traditional IT environments. Described below are HP's business units and capabilities within EG.

• Industry Standard Servers offers a range of products from entry-level servers through premium ProLiant servers, which run primarily Windows, Linux and virtualization platforms from software providers such as Microsoft Corporation ("Microsoft") and VMware, Inc. ("VMware") and open sourced software from other major vendors while leveraging x86 processors from Intel Corporation ("Intel") and Advanced Micro Devices, Inc. ("AMD").

• Business Critical Systems offers HP Integrity servers based on the Intel® Itanium® processor, HP Integrity NonStop solutions and mission-critical x86 ProLiant servers.

• Storage offers traditional storage and Converged Storage solutions. Traditional storage includes tape, storage networking and legacy external disk products such as EVA and XP. Converged Storage solutions include 3PAR StoreServ, StoreOnce and StoreVirtual products.

• Networking offers switches, routers, wireless local area network and network management products that span the data center, campus and branch environments and deliver software-defined networking and unified communications capabilities.

• Technology Services provides support services and technology consulting optimizing EG's hardware platforms, and focuses on cloud, mobility and big data. These services are available in the form of service contracts, pre-packaged offerings or on a customized basis.

Enterprise Services provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. ES is comprised of the Infrastructure Technology Outsourcing ("ITO") and the Application and Business Services ("ABS") business units.

• Infrastructure Technology Outsourcing delivers comprehensive services that encompass the management of data centers, IT security, cloud computing, workplace technology, networks, unified communications and enterprise service management.

• Application and Business Services helps clients develop, revitalize and manage their applications and information assets.

Software provides application testing and delivery, big data analytics, enterprise security, information governance, IT operations management, and marketing optimization solutions for businesses and enterprises of all sizes. Our software offerings include licenses, support, professional services and software-as-a-service ("SaaS").

HP Financial Services provides flexible investment solutions, such as leasing, financing, utility programs and asset management services, for customers to enable the creation of unique technology deployment models and acquire complete IT solutions, including hardware, software and services from HP and others. Providing flexible services and capabilities that support the entire IT lifecycle, HPFS partners with customers globally to help build investment strategies that enhance their business agility and support their business transformation. HPFS offers a wide selection of investment solution capabilities for large enterprise customers and channel partners, along with an array of financial options to SMBs and educational and governmental entities.

Corporate Investments includes HP Labs and certain cloud-related business incubation projects amongst others.

Segment Policy

        HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive segment results are substantially the same as those the consolidated company uses. Management measures the performance of each segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the segments.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by HPFS. HP's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.

        HP periodically engages in intercompany advanced royalty payment and licensing arrangements that may result in advance payments between subsidiaries. Revenues from these intercompany arrangements are deferred and recognized as earned over the term of the arrangement by the HP legal entities involved in such transactions; however, these advanced payments are eliminated from revenues as reported by HP and its business segments. As disclosed in Note 6, in the first quarter of fiscal 2015, HP executed an intercompany advanced royalty payment arrangement resulting in advanced payments of $8.2 billion, while during fiscal 2014 HP executed a multi-year intercompany licensing arrangement and intercompany advanced royalty payment arrangement which resulted in combined advanced payments of $11.5 billion. In these transactions, the payments were received in the U.S. from a foreign consolidated affiliate, with a deferral of intercompany revenues over the term of the arrangements, approximately 5 years and 15 years, respectively. The impact of these intercompany arrangements is eliminated from both HP consolidated and segment revenues.

        Financing interest in the Consolidated Condensed Statements of Earnings reflects interest expense on debt attributable to HPFS. Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries.

        HP does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate governance costs, stock-based compensation expense, amortization of intangible assets, restructuring charges, separation costs and acquisition-related charges.

Segment Realignment

        Effective at the beginning of its first quarter of fiscal 2015, HP implemented an organizational change to align its segment financial reporting more closely with its current business structure. This organizational change resulted in the transfer of third-party multi-vendor support arrangements from the Technology Services ("TS") business unit within the EG segment to the Infrastructure Technology Outsourcing business unit within the ES segment.

        HP has reflected this change to its segment information retrospectively to the earliest period presented, which has resulted in the removal of intersegment revenue from the Technology Services business unit within the EG segment and the related corporate intersegment revenue eliminations, and the transfer of operating profit from the TS business unit within the EG segment to the Infrastructure Technology Outsourcing business unit within the ES segment. This change had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

        There have been no material changes to the total assets of HP's individual segments since October 31, 2014.

Segment Operating Results

	Personal Systems and Printing Group
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
	In millions
Three months ended January 31, 2015
Net revenue	$	8,286	$	5,485	$	6,680	$	4,780	$	811	$	781	$	16		$	26,839
Intersegment net revenue and other		258		58		301		213		60		22		—			912
Total segment net revenue	$	8,544	$	5,543	$	6,981	$	4,993	$	871	$	803	$	16		$	27,751
Earnings from operations	$	313	$	1,067	$	1,090	$	148	$	157	$	90	$	(124	)	$	2,741
Three months ended January 31, 2014
Net revenue	$	8,310	$	5,782	$	6,791	$	5,283	$	846	$	854	$	288		$	28,154
Intersegment net revenue and other		220		33		179		312		70		16		—			830
Total segment net revenue	$	8,530	$	5,815	$	6,970	$	5,595	$	916	$	870	$	288		$	28,984
Earnings from operations	$	279	$	979	$	1,003	$	60	$	145	$	101	$	121		$	2,688

        The reconciliation of segment operating results to HP consolidated results was as follows:

	Three months ended January 31
	2015			2014
	In millions
Net Revenue:
Total segments	$	27,751		$	28,984
Elimination of intersegment net revenue and other		(912	)		(830	)
Total HP consolidated net revenue	$	26,839		$	28,154
Earnings before taxes:
Total segment earnings from operations	$	2,741		$	2,688
Corporate and unallocated costs and eliminations		(182	)		(121	)
Stock-based compensation expense		(187	)		(170	)
Amortization of intangible assets		(222	)		(283	)
Restructuring charges		(146	)		(114	)
Acquisition-related charges		(4	)		(3	)
Separation costs		(80	)		—
Interest and other, net		(174	)		(163	)
Total HP consolidated earnings before taxes	$	1,746		$	1,834

        Net revenue by segment and business unit was as follows:

	Three months ended January 31
	2015			2014
	In millions
Notebooks	$	4,724		$	4,335
Desktops		2,949			3,274
Workstations		526			533
Other		345			388
Personal Systems		8,544			8,530
Supplies		3,601			3,795
Commercial Hardware		1,316			1,347
Consumer Hardware		626			673
Printing		5,543			5,815
Total Printing and Personal Systems Group		14,087			14,345
Industry Standard Servers		3,387			3,178
Technology Services		1,987			2,100
Storage		837			834
Networking		562			630
Business Critical Systems		208			228
Enterprise Group		6,981			6,970
Infrastructure Technology Outsourcing		3,132			3,501
Application and Business Services		1,861			2,094
Enterprise Services		4,993			5,595
Software		871			916
HP Financial Services		803			870
Corporate Investments		16			288
Total segment net revenue		27,751			28,984
Eliminations of intersegment net revenue and other		(912	)		(830	)
Total net revenue	$	26,839		$	28,154

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Fair Value (Tables)

3 Months Ended

Jan. 31, 2015

Fair Value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	As of January 31, 2015								As of October 31, 2014
	Fair Value Measured Using								Fair Value Measured Using
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	In millions
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	2,678	$	—	$	2,678	$	—	$	2,865	$	—	$	2,865
Money market funds		7,632		—		—		7,632		9,857		—		—		9,857
Mutual funds		—		260		—		260		—		244		—		244
Marketable equity securities		12		95		—		107		14		5		—		19
Foreign bonds		8		342		—		350		9		367		—		376
Other debt securities		—		1		44		45		—		1		46		47
Derivatives:
Interest rate contracts		—		191		—		191		—		105		—		105
Foreign currency contracts		—		1,670		5		1,675		—		862		6		868
Other derivatives		—		6		—		6		—		7		—		7
Total assets	$	7,652	$	5,243	$	49	$	12,944	$	9,880	$	4,456	$	52	$	14,388
Liabilities
Derivatives:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	55	$	—	$	55
Foreign currency contracts		—		512		2		514		—		348		2		350
Total liabilities	$	—	$	512	$	2	$	514	$	—	$	403	$	2	$	405

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Segment Information (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Segment Reporting Information
Net Revenue	$ 26,839	$ 28,154
Earnings from operations	1,920	1,997
Stock-based compensation expense	(187)	(170)
Amortization of intangible assets	(222)	(283)
Restructuring charges	(146)	(114)
Acquisition-related charges	(4)	(3)
Separation costs	(80)
Interest and other, net	(174)	(163)
Earnings (loss) before taxes	1,746	1,834
Operating segments
Segment Reporting Information
Net Revenue	27,751	28,984
Earnings from operations	2,741	2,688
Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net Revenue	(912)	(830)
Significant Reconciling Items
Segment Reporting Information
Corporate and unallocated costs and eliminations	(182)	(121)
Stock-based compensation expense	(187)	(170)
Amortization of intangible assets	(222)	(283)
Restructuring charges	(146)	(114)
Acquisition-related charges	(4)
Separation costs	(80)
Interest and other, net	$ (174)	$ (163)

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Fair Value (Details) (USD $)	Jan. 31, 2015	Oct. 31, 2014
Fair Value and Carrying Value of Debt
Fair value, short- and long-term debt	$ 19,600,000,000	$ 19,900,000,000
Carrying value, short- and long-term debt	19,100,000,000	19,500,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,652,000,000	9,880,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,632,000,000	9,857,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	12,000,000	14,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	8,000,000	9,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	5,243,000,000	4,456,000,000
Total Liabilities, measured at fair value on a recurring basis	512,000,000	403,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Time deposits
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	2,678,000,000	2,865,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Mutual funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	260,000,000	244,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	95,000,000	5,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	342,000,000	367,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	1,000,000	1,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Interest rate contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	191,000,000	105,000,000
Total Liabilities, measured at fair value on a recurring basis		55,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign currency contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	1,670,000,000	862,000,000
Total Liabilities, measured at fair value on a recurring basis	512,000,000	348,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other derivatives
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	6,000,000	7,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	49,000,000	52,000,000
Total Liabilities, measured at fair value on a recurring basis	2,000,000	2,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	44,000,000	46,000,000
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Foreign currency contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	5,000,000	6,000,000
Total Liabilities, measured at fair value on a recurring basis	2,000,000	2,000,000
Fair Value, Measurements, Recurring | Fair Value
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	12,944,000,000	14,388,000,000
Total Liabilities, measured at fair value on a recurring basis	514,000,000	405,000,000
Fair Value, Measurements, Recurring | Fair Value | Time deposits
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	2,678,000,000	2,865,000,000
Fair Value, Measurements, Recurring | Fair Value | Money market funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	7,632,000,000	9,857,000,000
Fair Value, Measurements, Recurring | Fair Value | Mutual funds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	260,000,000	244,000,000
Fair Value, Measurements, Recurring | Fair Value | Marketable equity securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	107,000,000	19,000,000
Fair Value, Measurements, Recurring | Fair Value | Foreign bonds
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	350,000,000	376,000,000
Fair Value, Measurements, Recurring | Fair Value | Other Debt Securities
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	45,000,000	47,000,000
Fair Value, Measurements, Recurring | Fair Value | Interest rate contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	191,000,000	105,000,000
Total Liabilities, measured at fair value on a recurring basis		55,000,000
Fair Value, Measurements, Recurring | Fair Value | Foreign currency contracts
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	1,675,000,000	868,000,000
Total Liabilities, measured at fair value on a recurring basis	514,000,000	350,000,000
Fair Value, Measurements, Recurring | Fair Value | Other derivatives
Financial assets and liabilities measured at fair value on a recurring basis
Total Assets, measured at fair value on a recurring basis	$ 6,000,000	$ 7,000,000

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Consolidated Condensed Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Net revenue:
Products	$ 18,161	$ 18,770
Services	8,583	9,281
Financing income	95	103
Total net revenue	26,839	28,154
Costs and expenses:
Cost of products	14,075	14,525
Cost of services	6,433	7,139
Financing interest	63	72
Research and development	825	811
Selling, general and administrative	3,071	3,210
Amortization of intangible assets	222	283
Restructuring charges	146	114
Acquisition-related charges	4	3
Separation Costs	80
Total operating expenses	24,919	26,157
Earnings (loss) from operations	1,920	1,997
Interest and other, net	(174)	(163)
Earnings (loss) before taxes	1,746	1,834
Provision for taxes	(380)	(409)
Net earnings (loss)	$ 1,366	$ 1,425
Net earnings (loss) per share:
Basic (in dollars per share)	$ 0.75	$ 0.75
Diluted (in dollars per share)	$ 0.73	$ 0.74
Cash dividends declared per share (in dollars per share)	$ 0.32	$ 0.29
Weighted-average shares used to compute net earnings (loss) per share:
Basic (in shares)	1,833	1,907
Diluted (in shares)	1,861	1,935

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Taxes on Earnings (Details) (USD $)	3 Months Ended		12 Months Ended
	Jan. 31, 2015 item	Jan. 31, 2014	Oct. 31, 2014
Taxes on Earnings
Tax benefit from the retroactive research and development credit	$ 47,000,000
Differences between the U.S. federal statutory income tax rate and HP's effective tax rate
Effective tax rate (as a percent)	21.80%	22.30%
U.S. federal statutory income tax rate (as a percent)	35.00%
Net tax (benefits) charges related to discrete items	(81,000,000)	22,000,000
Various tax charges related to discrete items	16,000,000	37,000,000
Tax benefits from separation costs	29,000,000
Tax benefits from restructuring charges	21,000,000	15,000,000
Number of countries other than the United States where the entity is subject to income tax	105
Income tax examination, proposed assessment amount	680,000,000
Unrecognized Tax Benefits	4,200,000,000
Unrecognized tax benefits that would affect effective tax rate if realized	2,300,000,000
Accrued income tax payable for interest and penalties	244,000,000
Likelihood of no resolution period	12 months
Likelihood of conclusion period for certain federal, foreign and state tax issues	12 months
Reasonably possible reduction in existing unrecognized tax benefits within the next 12 months	1,500,000,000
Current and long-term deferred tax assets and deferred tax liabilities
Current deferred tax assets	3,093,000,000		2,754,000,000
Current deferred tax liabilities	(401,000,000)		(284,000,000)
Long-term deferred tax assets	953,000,000		740,000,000
Long-term deferred tax liabilities	(1,594,000,000)		(1,124,000,000)
Net deferred tax assets net of deferred tax liabilities	2,051,000,000		2,086,000,000
Advance royalty proceeds received from intercompany advanced royalty payments and licensing arrangements	8,200,000,000		11,500,000,000
Recognition of net long term deferred tax assets from intercompany licensing arrangement	$ 2,100,000,000		$ 1,700,000,000
Royalty recognition term	5 years		15 years
Number of independent publicly-traded companies	2

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Consolidated Condensed Statements of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Cash flows from operating activities:
Net earnings	$ 1,366	$ 1,425
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,028	1,117
Stock-based compensation expense	187	170
Provision for doubtful accounts	(2)	(4)
Provision for inventory	64	61
Restructuring charges	146	114
Deferred taxes on earnings	(173)	9
Excess tax benefit from stock-based compensation	(109)	(27)
Other, net	138	(33)
Changes in operating assets and liabilities (net of acquisitions)
Accounts receivable	1,540	2,391
Financing receivables	222	296
Inventory	(224)	(19)
Accounts payable	(852)	(1,165)
Taxes on earnings	293	170
Restructuring	(483)	(381)
Other assets and liabilities	(2,397)	(1,134)
Net cash provided by operating activities	744	2,990
Cash flows from investing activities:
Investment in property, plant and equipment	(947)	(997)
Proceeds from sale of property, plant and equipment	130	450
Purchases of available-for-sale securities and other investments	(50)	(135)
Maturities and sales of available-for-sale securities and other investments	30	465
Payments made in connection with business acquisitions	(1)
Net cash used in investing activities	(838)	(217)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net	77	2
Issuance of debt	299	2,005
Payment of debt	(911)	(45)
Issuance of common stock under employee stock plans	181	83
Repurchase of common stock	(1,571)	(565)
Excess tax benefit from stock-based compensation	109	27
Cash dividends paid	(304)	(278)
Net cash (used in) provided by financing activities	(2,120)	1,229
Net (decrease) increase in cash and cash equivalents	(2,214)	4,002
Cash and cash equivalents at beginning of period	15,133	12,163
Cash and cash equivalents at end of period	12,919	16,165
Supplemental schedule of non-cash investing and financing activities:
Purchase of assets under capital leases		$ 95

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Borrowings (Details) (USD $) In Millions, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Notes Payable and Short-Term Borrowings
Current portion of long-term debt	$ 2,677	$ 2,655
Amount outstanding	3,509	3,486
Current portion of long-term debt, weighted average interest rate (as a percent)	2.00%	2.20%
Commercial paper
Notes Payable and Short-Term Borrowings
Short term borrowings	306	298
Weighted average interest rate (as a percent)	0.40%	0.50%
Commercial paper | HP Financial Services
Notes Payable and Short-Term Borrowings
Short term borrowings	306	298
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt
Notes Payable and Short-Term Borrowings
Short term borrowings	526	533
Weighted average interest rate (as a percent)	4.10%	4.00%
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt | HP Financial Services
Notes Payable and Short-Term Borrowings
Short term borrowings	$ 378	$ 404

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Stockholders' Equity (Tables)

3 Months Ended

Jan. 31, 2015

Stockholders' Equity

Schedule of taxes related to changes in Other Comprehensive Income

	Three months ended January 31
	2015			2014
	In millions
Taxes on change in unrealized gains (losses) on available-for-sale securities:
Tax (provision) benefit on unrealized gains (losses) arising during the period	$	(15	)	$	1
		(15	)		1
Taxes on change in unrealized gains on cash flow hedges:
Tax provision on unrealized gains arising during the period		(201	)		(40	)
Tax provision (benefit) on (gains) losses reclassified into earnings		98			(34	)
		(103	)		(74	)
Taxes on change in unrealized components of defined benefit plans:
Tax benefit on amortization of actuarial loss and prior service benefit		(14	)		(12	)
		(14	)		(12	)
Tax provision on change in cumulative translation adjustment		(47	)		(20	)
Tax provision on other comprehensive income	$	(179	)	$	(105	)

Schedule of changes and reclassifications related to items of Other Comprehensive Income, net of taxes

	Three months ended January 31
	2015			2014
	In millions
Other comprehensive income, net of taxes:
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period	$	31		$	—
Gains reclassified into earnings		—			(1	)
		31			(1	)
Change in unrealized gains on cash flow hedges:
Unrealized gains arising during the period		430			30
(Gains) losses reclassified into earnings(1)		(236	)		75
		194			105
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit(2)		98			51
Curtailments, settlements and other		(2	)		—
		96			51
Change in cumulative translation adjustment		(115	)		(44	)
Other comprehensive income, net of taxes	$	206		$	111

(1) Reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated Condensed Statements of Earnings was as follows:

			Three months ended January 31
			2015			2014
			In millions
	Net revenue		$	(334	)	$	63
	Cost of products			26			23
	Other operating expenses			4			4
	Interest and other, net			(30	)		19
			$	(334	)	$	109
(2)		These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4.

Schedule of reclassifications of pre tax (gains) losses on cash flow hedges into the Consolidated Condensed Statements of Earnings

	Three months ended January 31
	2015			2014
	In millions
Net revenue	$	(334	)	$	63
Cost of products		26			23
Other operating expenses		4			4
Interest and other, net		(30	)		19
	$	(334	)	$	109

Schedule of Accumulated Other Comprehensive Loss, net of taxes

	Net unrealized gains on available- for-sale securities		Net unrealized gains on cash flow hedges			Unrealized components of defined benefit plans			Cumulative translation adjustment			Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	81	$	108		$	(5,376	)	$	(694	)	$	(5,881	)
Other comprehensive income (loss) before reclassifications		31		430			(2	)		(115	)		344
Reclassifications of (gains) losses into earnings		—		(236	)		98			—			(138	)
Balance at end of period	$	112	$	302		$	(5,280	)	$	(809	)	$	(5,675	)

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Litigation and Contingencies (Details)	0 Months Ended			0 Months Ended	1 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended							3 Months Ended	72 Months Ended	1 Months Ended	12 Months Ended		9 Months Ended		0 Months Ended								3 Months Ended
	Dec. 23, 2004	Jan. 31, 2015 USD ($)	Dec. 14, 2010 Fair Labor Standards Act Litigation item	Jan. 23, 2015 State of South Carolina Department of Social Services Contract Dispute USD ($)	Oct. 31, 2012 State of South Carolina Department of Social Services Contract Dispute USD ($)	Feb. 02, 2015 State of South Carolina Department of Social Services Contract Dispute Subsequent Event USD ($)	Nov. 30, 2012 State of South Carolina Department of Social Services Contract Dispute Minimum USD ($)	May 10, 2010 India Directorate of Revenue Intelligence Proceedings USD ($)	Apr. 29, 2010 India Directorate of Revenue Intelligence Proceedings USD ($)	Jan. 24, 2013 Bangalore Commissioner of Customs USD ($)	Dec. 11, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 21, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 20, 2012 Bangalore Commissioner of Customs USD ($)	Apr. 11, 2012 Bangalore Commissioner of Customs USD ($)	Jan. 31, 2015 Russia GPO and Other FCPA Investigations USD ($)	Oct. 31, 2006 Russia GPO and Other FCPA Investigations EUR (€)	Jul. 31, 2011 ECT Proceedings	Oct. 31, 2008 ECT Proceedings item	Oct. 31, 2007 ECT Proceedings item	Jul. 31, 2013 ECT Proceedings Minimum	Jul. 31, 2013 ECT Proceedings Maximum	Dec. 06, 2012 Autonomy-Related Legal Matters item	Aug. 16, 2013 Autonomy-Related Legal Matters item	Jul. 30, 2013 Autonomy-Related Legal Matters item	Jul. 26, 2013 Autonomy-Related Legal Matters item	Feb. 06, 2013 Autonomy-Related Legal Matters item	Jan. 22, 2013 Autonomy-Related Legal Matters item	Nov. 30, 2012 Autonomy-Related Legal Matters item	Oct. 31, 2012 Autonomy-Related Legal Matters item	Oct. 31, 2012 Autonomy-Related Legal Matters Software USD ($)	Feb. 28, 2014 Abstrax Proceeding item
Copyright Levies
Levy assessed on a specific vendor on personal computers sold since March 2001 in Germany (euros per unit)	12
Litigation and Contingencies
Copyright levies payable on sales of MFDs in Belgium		$ 0
Number of job codes			20
Aggregate damages sought					275,000,000			370,000,000
Amount of payment to be made for past-due invoices by plaintiff							12,000,000
Loss contingency deposit to prevent interruption of business									16,000,000
Duties and penalties under show cause notices													17,000,000	386,000,000
Amount deposited under show cause notice prior to order													7,000,000	9,000,000
Additional amount deposited against products-related show cause notice											10,000,000
Additional amount deposited against parts-related show cause notice												3,000,000
Additional amount deposited against product order										24,000,000
Transaction of former subsidiary under investigation																35,000,000
Amount payable to U.S. government agencies															77,000,000
Loss contingency damages paid						44,100,000									31,000,000
ETC Proceedings, period to suspend right to bid and contract																	5 years
Number Of Contracts Related To Alleged Improprieties																		3	3
Length of sanctions																				2 years	5 years
Impairment of goodwill and intangible assets																														8,800,000,000
Number of investigating agencies																										3
Number of consolidated putative class action security lawsuits filed																												2
Number of consolidated lawsuits filed																								7
Number of lawsuits alleging insider trading filed																													1
Number of consolidated ERISA lawsuits filed																						3
Additional breach of fiduciary duties lawsuits filed																							2		2
Number of actions other than claims asserted																											3
Outstanding invoices and retainage received for the social services contract dispute				$ 5,100,000
Number of patents asserted																															1

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Guarantees

3 Months Ended

Jan. 31, 2015

Guarantees

Guarantees

Note 16: Guarantees

Guarantees

        In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote.

        HP has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of HP's non-performance under the contract or failure to comply with the terms of the financing arrangement, HP could, under certain circumstances, be required to acquire certain assets related to the service contract. HP believes the likelihood of having to acquire a material amount of assets under these arrangements is remote.

Indemnifications

        In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of IP infringement made by third parties arising from the vendors' and customers' use of HP's software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial.

Warranty

        HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation.

        HP's aggregate product warranty liabilities and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	1,956
Accruals for warranties issued		394
Adjustments related to pre-existing warranties (including changes in estimates)		(17	)
Settlements made (in cash or in kind)		(426	)
Balance at end of period	$	1,907

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Net Earnings Per Share (Tables)

3 Months Ended

Jan. 31, 2015

Net Earnings Per Share

Basic and diluted net Earnings Per Share calculations

	Three months ended January 31
	2015		2014
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,366	$	1,425
Denominator:
Weighted-average shares used to compute basic net EPS		1,833		1,907
Dilutive effect of employee stock plans		28		28
Weighted-average shares used to compute diluted net EPS		1,861		1,935
Net earnings per share:
Basic	$	0.75	$	0.75
Diluted	$	0.73	$	0.74
Anti-dilutive weighted average options(2)		17		37

(1)	There were no participating securities for net earnings allocation for the three months ended January 31, 2015. The net earnings allocated to participating securities were not significant for the three months ended January 31, 2014. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities.
(2)	HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits.

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Segment Information (Tables)

3 Months Ended

Jan. 31, 2015

Segment Information

Schedule of Revenue and Earnings (Loss) from Operations, by Segment

	Personal Systems and Printing Group
	Personal Systems		Printing		Enterprise Group		Enterprise Services		Software		HP Financial Services		Corporate Investments			Total
	In millions
Three months ended January 31, 2015
Net revenue	$	8,286	$	5,485	$	6,680	$	4,780	$	811	$	781	$	16		$	26,839
Intersegment net revenue and other		258		58		301		213		60		22		—			912
Total segment net revenue	$	8,544	$	5,543	$	6,981	$	4,993	$	871	$	803	$	16		$	27,751
Earnings from operations	$	313	$	1,067	$	1,090	$	148	$	157	$	90	$	(124	)	$	2,741
Three months ended January 31, 2014
Net revenue	$	8,310	$	5,782	$	6,791	$	5,283	$	846	$	854	$	288		$	28,154
Intersegment net revenue and other		220		33		179		312		70		16		—			830
Total segment net revenue	$	8,530	$	5,815	$	6,970	$	5,595	$	916	$	870	$	288		$	28,984
Earnings from operations	$	279	$	979	$	1,003	$	60	$	145	$	101	$	121		$	2,688

Schedule of Reconciliation of Revenues and Earnings before Taxes from Segments to Consolidated

	Three months ended January 31
	2015			2014
	In millions
Net Revenue:
Total segments	$	27,751		$	28,984
Elimination of intersegment net revenue and other		(912	)		(830	)
Total HP consolidated net revenue	$	26,839		$	28,154
Earnings before taxes:
Total segment earnings from operations	$	2,741		$	2,688
Corporate and unallocated costs and eliminations		(182	)		(121	)
Stock-based compensation expense		(187	)		(170	)
Amortization of intangible assets		(222	)		(283	)
Restructuring charges		(146	)		(114	)
Acquisition-related charges		(4	)		(3	)
Separation costs		(80	)		—
Interest and other, net		(174	)		(163	)
Total HP consolidated earnings before taxes	$	1,746		$	1,834

Schedule of Revenue by Segment and Business Unit

	Three months ended January 31
	2015			2014
	In millions
Notebooks	$	4,724		$	4,335
Desktops		2,949			3,274
Workstations		526			533
Other		345			388
Personal Systems		8,544			8,530
Supplies		3,601			3,795
Commercial Hardware		1,316			1,347
Consumer Hardware		626			673
Printing		5,543			5,815
Total Printing and Personal Systems Group		14,087			14,345
Industry Standard Servers		3,387			3,178
Technology Services		1,987			2,100
Storage		837			834
Networking		562			630
Business Critical Systems		208			228
Enterprise Group		6,981			6,970
Infrastructure Technology Outsourcing		3,132			3,501
Application and Business Services		1,861			2,094
Enterprise Services		4,993			5,595
Software		871			916
HP Financial Services		803			870
Corporate Investments		16			288
Total segment net revenue		27,751			28,984
Eliminations of intersegment net revenue and other		(912	)		(830	)
Total net revenue	$	26,839		$	28,154

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Basis of Presentation

3 Months Ended

Jan. 31, 2015

Basis of Presentation

Basis of Presentation

Note 1: Basis of Presentation

        In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements of Hewlett-Packard Company and its consolidated subsidiaries ("HP") contain all adjustments, including normal recurring adjustments, necessary to present fairly HP's financial position as of January 31, 2015 and October 31, 2014 and its results of operations and cash flows for the three months ended January 31, 2015 and January 31, 2014.

        The results of operations and cash flows for the three months ended January 31, 2015 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2014, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, included therein.

Principles of Consolidation

        The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of HP and other subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. HP accounts for investments in companies over which HP has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated Condensed Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated Condensed Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Condensed Statements of Earnings and are not presented separately as they were not material for any period presented. HP has eliminated all intercompany accounts and transactions.

Reclassifications

        HP has implemented certain segment and business unit realignments in order to align its segment financial reporting more closely with its current business structure. Reclassifications of certain prior-year segment and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share ("EPS"). See Note 2 for a further discussion of HP's segment realignment.

Use of Estimates

        The preparation of financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates.

Subsequent Event

        On March 2, 2015, HP announced it has entered into a definitive agreement to acquire Aruba Networks Inc. ("Aruba"), a leading provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt is approximately $2.7 billion. Both companies' boards of directors have approved the transaction. This acquisition will be integrated into HP's Networking business unit within the Enterprise Group ("EG") segment. The transaction is expected to close in the second half of HP's fiscal 2015, subject to approval by Aruba's stockholders, regulatory approvals in the US and other countries as well as other customary closing conditions.

Accounting Pronouncements

        In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP is required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. HP is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Condensed Financial Statements.

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Consolidated Condensed Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Consolidated Statements of Comprehensive Income
Net earnings	$ 1,366	$ 1,425
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period	46	(1)
Gains reclassified into earnings		(1)
Change in unrealized gains (losses) on available-for-sale securities	46	(2)
Change in unrealized gains on cash flow hedges:
Unrealized gains arising during the period	631	70
(Gains) losses reclassified into earnings	(334)	109
Change in unrealized gains (losses) on cash flow hedges	297	179
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit	112	63
Curtailments, settlements and other	(2)
Change in unrealized components of defined benefit plans	110	63
Change in cumulative translation adjustment	(68)	(24)
Other comprehensive income before taxes	385	216
Provision for taxes	(179)	(105)
Other comprehensive income, net of taxes	206	111
Comprehensive income	$ 1,572	$ 1,536

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Financial Instruments

3 Months Ended

Jan. 31, 2015

Financial Instruments

Financial Instruments

Note 11: Financial Instruments

Cash Equivalents and Available-for-Sale Investments

        Cash equivalents and available-for-sale investments were as follows:

	As of January 31, 2015									As of October 31, 2014
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	2,492	$	—	$	—		$	2,492	$	2,720	$	—	$	—		$	2,720
Money market funds		7,632		—		—			7,632		9,857		—		—		$	9,857
Mutual funds		121		—		—			121		110		—		—			110
Total cash equivalents		10,245		—		—			10,245		12,687		—		—			12,687
Available-for-Sale Investments:
Debt securities:
Time deposits		186		—		—			186		145		—		—			145
Foreign bonds		257		93		—			350		286		90		—			376
Other debt securities		59		—		(14	)		45		61		—		(14	)		47
Total debt securities		502		93		(14	)		581		492		90		(14	)		568
Equity securities:
Mutual funds		134		5		—			139		134		—		—			134
Equity securities in public companies		58		45		—			103		8		7		—			15
Total equity securities		192		50		—			242		142		7		—			149
Total available-for-sale investments		694		143		(14	)		823		634		97		(14	)		717
Total cash equivalents and available-for-sale investments	$	10,939	$	143	$	(14	)	$	11,068	$	13,321	$	97	$	(14	)	$	13,404

        All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of January 31, 2015 and October 31, 2014, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside the U.S. as of January 31, 2015 and October 31, 2014. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

        Contractual maturities of investments in available-for-sale debt securities were as follows:

	As of January 31, 2015
	Amortized Cost		Fair Value
	In millions
Due in one year	$	171	$	171
Due in one to five years		3		3
Due in more than five years		328		407
	$	502	$	581

        Equity securities in privately held companies include cost basis and equity method investments and are included in Long-term financing receivables and other assets in the Consolidated Condensed Balance Sheets. These amounted to $23 million and $97 million at January 31, 2015 and October 31, 2014, respectively.

Derivative Instruments

        HP is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets. HP classifies cash flows from its derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, HP has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-assessing the creditworthiness of its counterparties. Master netting agreements further mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions.

        To further mitigate credit exposure to counterparties, HP has collateral security agreements that allow HP to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of derivatives with credit contingent features in a net liability position was $27 million and $38 million at January 31, 2015 and October 31, 2014, respectively, all of which were fully collateralized within two business days.

        Under HP's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP's financial position or cash flows as of January 31, 2015 and October 31, 2014.

Fair Value Hedges

        HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial.

        When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges.

        For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.

Cash Flow Hedges

        HP uses a combination of forward contracts and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months; however, hedges related to longer term procurement arrangements extend several years and forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which typically range from two to five years.

        For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of the derivative instrument in Accumulated other comprehensive loss as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item.

Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. HP records the effective portion of such derivative instruments together with changes in the fair value of the hedged items in Cumulative translation adjustment as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets.

Other Derivatives

        Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability.

        For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other net in the Consolidated Condensed Statements of Earnings in the period of change.

Hedge Effectiveness

        For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged instrument with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge in the Consolidated Condensed Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Condensed Statements of Earnings in the period they arise.

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

        The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:

	As of January 31, 2015										As of October 31, 2014
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	10,800	$	4	$	187	$	—	$	—	$	10,800	$	3	$	102	$	—	$	55
Cash flow hedges:
Foreign currency contracts		19,310		1,050		292		181		138		20,196		539		124		131		94
Net investment hedges:
Foreign currency contracts		1,934		105		87		7		6		1,952		44		47		10		8
Total derivatives designated as hedging instruments		32,044		1,159		566		188		144		32,948		586		273		141		157
Derivatives not designated as hedging instruments
Foreign currency contracts		14,235		98		43		149		33		21,384		82		32		82		25
Other derivatives		297		5		1		—		—		361		6		1		—		—
Total derivatives not designated as hedging instruments		14,532		103		44		149		33		21,745		88		33		82		25
Total derivatives	$	46,576	$	1,262	$	610	$	337	$	177	$	54,693	$	674	$	306	$	223	$	182

Offsetting of Derivative Instruments

        HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of January 31, 2015 and October 31, 2014, information related to the potential effect of HP's master netting agreements and collateral security agreements was as follows:

	As of January 31, 2015
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	1,872	$	—	$	1,872	$	484	$	1,141		$	247
Derivative liabilities	$	514	$	—	$	514	$	484	$	27	(1)	$	3

(1) Collateral posted through re-use of counterparty cash collateral.

	As of October 31, 2014
	In the Consolidated Condensed Balance Sheets
												(vi) = (iii)–(iv)–(v)
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	980	$	—	$	980	$	361	$	452		$	167
Derivative liabilities	$	405	$	—	$	405	$	361	$	29	(1)	$	15

(1) Collateral posted through re-use of counterparty cash collateral.

Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

        The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
		Three months ended January 31							Three months ended January 31
							Hedged Item
Derivative Instrument	Location	2015		2014				Location	2015			2014
		In millions							In millions
Interest rate contracts	Interest and other, net	$	141	$	(24	)	Fixed-rate debt	Interest and other, net	$	(141	)	$	24

        The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion)
	Three months ended January 31							Three months ended January 31
	2015			2014			Location	2015			2014
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	737		$	175		Net revenue	$	334		$	(63	)
Foreign currency contracts		(138	)		(87	)	Cost of products		(26	)		(23	)
Foreign currency contracts		(3	)		—		Other operating expenses		(4	)		(4	)
Foreign currency contracts		35			(18	)	Interest and other, net		30			(19	)
Total cash flow hedges	$	631		$	70			$	334		$	(109	)
Net investment hedges:
Foreign currency contracts	$	129		$	66		Interest and other, net	$	—		$	—

        As of January 31, 2015 and January 31, 2014, no portion of the hedging instruments gain or loss was excluded from the assessment of effectiveness for fair value, cash flow or net investment hedges. There was no hedge ineffectiveness for fair value, cash flow and net investment hedges in the three months ended January 31, 2015. Hedge ineffectiveness for fair value, cash flow and net investment hedges was not material in the three months ended January 31, 2014.

        As of January 31, 2015, HP expects to reclassify an estimated net Accumulated other comprehensive gain of approximately $415 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

        The pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings for the three months ended January 31, 2015 and 2014 were as follows:

	Gain (Loss) Recognized in Earnings on Derivatives
		Three months ended January 31,
	Location	2015			2014
		In millions
Foreign currency contracts	Interest and other, net	$	247		$	190
Other derivatives	Interest and other, net		(3	)		(10	)
Total		$	244		$	180

XML

Document and Entity Information	3 Months Ended
	Jan. 31, 2015	Feb. 28, 2015
Document and Entity Information
Entity Registrant Name	HEWLETT PACKARD CO
Entity Central Index Key	0000047217
Document Type	10-Q
Document Period End Date	Jan. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,817,558,730
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

XML

Borrowings

3 Months Ended

Jan. 31, 2015

Borrowings

Borrowings

Note 12: Borrowings

Notes Payable and Short-Term Borrowings

	As of January 31, 2015					As of October 31, 2014
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	2,677		2.0	%	$	2,655		2.2	%
Commercial paper(1)		306		0.4	%		298		0.5	%
Notes payable to banks, lines of credit and other(1)		526		4.1	%		533		4.0	%
	$	3,509				$	3,486

(1) Commercial paper balances of $306 million and $298 million and Notes payable to banks, lines of credit and other includes $378 million and $404 million at January 31, 2015 and October 31, 2014, respectively, of borrowing and funding-related activity associated with HPFS and its subsidiaries.

Long-Term Debt

	As of
	January 31, 2015			October 31, 2014
	In millions
U.S. Dollar Global Notes(1)
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	500		$	500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,100			1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,349			1,349
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		999			999
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,199			1,199
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid December 2014		—			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,496			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
2012 Shelf Registration Statement:
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019		750			750
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019		1,250			1,250
		17,187			17,837
EDS Senior Notes(1)
$300 issued October 1999 at 7.45%, due October 2029		313			313
Other, including capital lease obligations, at 0.00%-8.30%, due in calendar years 2015-2024(2)		475			424
Fair value adjustment related to hedged debt		254			120
Less: current portion		(2,677	)		(2,655	)
Total long-term debt	$	15,552		$	16,039

(1)

HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes and EDS Senior Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes and EDS Senior Notes are senior unsecured debt.

(2)

Other, including capital lease obligations includes $184 million and $123 million as of January 31, 2015 and October 31, 2014, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings.

        As disclosed in Note 11, HP uses interest rate swaps to mitigate the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest expense. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.

        In May 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. This shelf registration statement will expire in May 2015.

        HP's Board of Directors has authorized the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper. HP maintains two commercial paper programs, and a wholly-owned subsidiary maintains a third program. HP's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $16.0 billion. HP's euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $16.0 billion authorized by HP's Board of Directors. The HP subsidiary's Euro Commercial Paper/Certificate of Deposit Programme provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $500 million.

        HP maintains senior unsecured committed credit facilities primarily to support the issuance of commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a $4.5 billion five-year credit facility that expires in April 2019. Both facilities support the U.S. commercial paper program and the euro commercial paper program. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. HP's ability to have an outstanding U.S. commercial paper balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance. In addition, the $3.0 billion five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and British pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively.

        HP's and the HP subsidiary's resources available to obtain short- or long-term financing were as follows:

	As of January 31, 2015
	In millions
2012 Shelf Registration Statement(1)		Unspecified
Commercial paper programs	$	16,194
Uncommitted lines of credit	$	1,535

(1) HP has the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement.

        The extent to which HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as sources of liquidity at any given time is subject to a number of factors, including market demand for HP securities and commercial paper, HP's financial performance, HP's credit ratings and market conditions generally.

        Interest expense on borrowings recognized in the Consolidated Condensed Statements of Earnings was as follows:

		Three months ended January 31
Expense	Location	2015		2014
		In millions
Financing interest	Financing interest	$	63	$	72
Interest expense	Interest and other, net		67		99
Total interest expense		$	130	$	171

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Consolidated Condensed Balance Sheets (USD $) In Millions, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Current assets:
Cash and cash equivalents	$ 12,919	$ 15,133
Accounts receivable	12,295	13,832
Financing receivables	2,907	2,946
Inventory	6,575	6,415
Other current assets	13,502	11,819
Total current assets	48,198	50,145
Property, plant and equipment	11,030	11,340
Long-term financing receivables and other assets	8,619	8,454
Goodwill	31,108	31,139
Intangible assets	1,906	2,128
Total assets	100,861	103,206
Current liabilities:
Notes payable and short-term borrowings	3,509	3,486
Accounts payable	14,873	15,903
Employee compensation and benefits	2,900	4,209
Taxes on earnings	1,565	1,017
Deferred revenue	6,241	6,143
Accrued restructuring	559	898
Other accrued liabilities	12,882	12,079
Total current liabilities	42,529	43,735
Long-term debt	15,552	16,039
Other liabilities	15,876	16,305
Commitments and contingencies
HP stockholders' equity
Preferred stock, $0.01 par value (300 shares authorized; none issued)
Common stock, $0.01 par value (9,600 shares authorized; 1,822 and 1,839 shares issued and outstanding at January 31, 2015 and October 31, 2014, respectively)	18	18
Additional paid-in capital	2,538	3,430
Retained earnings	29,626	29,164
Accumulated other comprehensive loss	(5,675)	(5,881)
Total HP stockholders' equity	26,507	26,731
Non-controlling interests	397	396
Total stockholders' equity	26,904	27,127
Total liabilities and stockholders' equity	$ 100,861	$ 103,206

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Taxes on Earnings

3 Months Ended

Jan. 31, 2015

Taxes on Earnings

Taxes on Earnings

Note 6: Taxes on Earnings

Provision for Taxes

        HP's effective tax rate was 21.8% and 22.3% for the three months ended January 31, 2015 and 2014, respectively. HP's effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from HP's operations in lower-tax jurisdictions throughout the world. HP has not provided U.S. taxes for all foreign earnings because HP plans to reinvest some of those earnings indefinitely outside the U.S.

        In the three months ended January 31, 2015, HP recorded $81 million of net tax benefits related to discrete items. These amounts included a tax benefit of $47 million arising from the retroactive research and development credit provided by the Tax Increase Prevention Act of 2014 signed into law in December 2014, a tax benefit of $29 million on separation charges and a tax benefit of $21 million on restructuring charges. These tax benefits were partially offset by various tax charges of $16 million.

        In the three months ended January 31, 2014, HP recorded $22 million of net tax charges related to discrete items. These amounts included $37 million of various tax charges and $15 million of tax benefits on restructuring charges.

Uncertain Tax Positions

        HP is subject to income tax in the U.S. and approximately 105 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The IRS is conducting an audit of HP's 2009, 2010 and 2011 income tax returns. HP has received from the IRS Notices of Deficiency for its fiscal 1999, 2000, 2003, 2004 and 2005 tax years, and Revenue Agent's Reports ("RAR") for its fiscal 2001, 2002, 2006, 2007 and 2008 tax years. In addition, HP expects the IRS to issue an RAR for 2009 relating to certain tax positions taken on the filed tax returns, including matters related to the U.S. taxation of certain intercompany loans. While the RAR may be material in amount, HP believes it has valid positions supporting its tax returns and, if necessary, it will rigorously defend such matters.

        With respect to major foreign and state tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 1999. HP is subject to a foreign tax audit concerning an intercompany transaction for fiscal 2009. The relevant taxing authority has proposed an assessment of approximately $680 million. HP is contesting this proposed assessment.

        HP believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP's tax provision. HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that HP will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows.

        As of January 31, 2015, the amount of unrecognized tax benefits was $4.2 billion, of which up to $2.3 billion would affect HP's effective tax rate if realized. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Condensed Statements of Earnings. As of January 31, 2015, HP had accrued $244 million for interest and penalties.

        HP engages in continuous discussion and negotiation with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $1.5 billion within the next 12 months.

Deferred Tax Assets and Liabilities

        Current and long-term deferred tax assets and liabilities are presented in the Consolidated Condensed Balance Sheets as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Current deferred tax assets	$	3,093		$	2,754
Current deferred tax liabilities		(401	)		(284	)
Long-term deferred tax assets		953			740
Long-term deferred tax liabilities		(1,594	)		(1,124	)
Net deferred tax assets net of deferred tax liabilities	$	2,051		$	2,086

        HP periodically engages in intercompany advanced royalty payment and licensing arrangements that may result in advance payments between subsidiaries in different tax jurisdictions. When the local tax treatment of the intercompany licensing arrangements differs from U.S. GAAP treatment, deferred taxes are recognized. In the first quarter of fiscal 2015, HP executed an intercompany advanced royalty payment arrangement resulting in advanced payments of $8.2 billion, while during fiscal 2014, HP executed a multi-year intercompany licensing arrangement and an intercompany advanced royalty payment arrangement which resulted in combined advanced payments of $11.5 billion, the result of which was the recognition of net U.S. long-term deferred tax assets of $2.1 billion and $1.7 billion in the respective periods. In these transactions, the payments were received in the U.S. from a foreign consolidated affiliate, with a deferral of intercompany revenues over the term of the arrangements, approximately 5 years and 15 years, respectively. Intercompany royalty revenue and the amortization expense related to the licensing rights are eliminated in consolidation.

Separation costs are expenses associated with HP's plan to separate into two independent publicly-traded companies. These costs include finance, IT, consulting and legal fees, real estate, and other items that are incremental and one-time in nature. HP is recording a deferred tax asset on these costs and expenses as they are incurred through fiscal 2015. We expect a portion of these deferred tax assets associated with separation costs and expenses will be eliminated, as non-deductible expenses, at the time the separation is executed. Furthermore, in future periods we expect to record adjustments to certain deferred tax assets reflecting the impact of separation related activities. HP's results of operations could be materially affected in any particular period by the impact of these matters.

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Stock-Based Compensation

3 Months Ended

Jan. 31, 2015

Stock-Based Compensation

Stock-Based Compensation

Note 5: Stock-Based Compensation

        HP's stock-based compensation plans include HP's principal equity plans as well as various equity plans assumed through business combinations. HP's principal equity plans permit the issuance of restricted stock awards, stock options and performance-based awards.

        Stock-based compensation expense and the resulting tax benefits were as follows:

	Three months ended January 31
	2015			2014
	In millions
Stock-based compensation expense	$	187		$	170
Income tax benefit		(60	)		(53	)
Stock-based compensation expense, net of tax	$	127		$	117

Restricted Stock Awards

        Restricted stock awards are non-vested stock awards that may include grants of restricted stock or restricted stock units. For the three months ended January 31, 2015, HP granted only restricted stock units.

        A summary of restricted stock award activity is as follows:

	Three months ended January 31, 2015
	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at beginning of period		40,808		$	24
Granted		14,738		$	37
Vested		(15,749	)	$	23
Forfeited		(733	)	$	25
Outstanding at end of period		39,064		$	30

        At January 31, 2015, there was $852 million of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expects to recognize over the remaining weighted-average vesting period of 1.6 years.

Stock Options

        HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows:

	Three months ended January 31
	2015			2014
Weighted-average fair value of grants per option(1)	$	8.04		$	7.45
Expected volatility(2)		26.3	%		33.6	%
Risk-free interest rate(3)		1.7	%		1.8	%
Expected dividend yield(4)		1.7	%		2.2	%
Expected term in years(5)		5.8			5.7

(1)	The weighted-average fair value was based on stock options granted during the period.
(2)	For all awards granted in fiscal 2015, expected volatility was estimated using the implied volatility derived from options traded on HP's common stock. For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock.
(3)	The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.
(4)	The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award.
(5)	For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model.

        A summary of stock option activity is as follows:

	Three months ended January 31, 2015
	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at beginning of period		57,853		$	27
Granted		7,869		$	37
Exercised		(6,977	)	$	20
Forfeited/cancelled/expired		(14,375	)	$	41
Outstanding at end of period		44,370		$	25		5.6	$	514
Vested and expected to vest at end of period		40,827		$	25		5.5	$	478
Exercisable at end of period		20,921		$	24		4.5	$	278

        The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of the first quarter of fiscal 2015. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the first quarter of fiscal 2015 and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised for the three months ended January 31, 2015 was $134 million.

        At January 31, 2015, there was $90 million of unrecognized pre-tax, stock-based compensation expense related to unvested stock options, which HP expects to recognize over the remaining weighted-average vesting period of 2.2 years.

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Basis of Presentation Policies (Policies)

3 Months Ended

Jan. 31, 2015

Basis of Presentation

Principle of Consolidation

Principles of Consolidation

The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of HP and other subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. HP accounts for investments in companies over which HP has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated Condensed Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated Condensed Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Condensed Statements of Earnings and are not presented separately as they were not material for any period presented.

Reclassifications

Reclassifications

       HP has implemented certain segment and business unit realignments in order to align its segment financial reporting more closely with its current business structure. Reclassifications of certain prior-year segment and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share ("EPS"). See Note 2 for a further discussion of HP's segment realignment.

Use of Estimates

Use of Estimates

        The preparation of financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates.

Subsequent event

Subsequent Event

        On March 2, 2015, HP announced it has entered into a definitive agreement to acquire Aruba Networks Inc. ("Aruba"), a leading provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt is approximately $2.7 billion. Both companies' boards of directors have approved the transaction. This acquisition will be integrated into HP's Networking business unit within the Enterprise Group ("EG") segment. The transaction is expected to close in the second half of HP's fiscal 2015, subject to approval by Aruba's stockholders, regulatory approvals in the US and other countries as well as other customary closing conditions.

Accounting Pronouncements

Accounting Pronouncements

        In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP is required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. HP is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Condensed Financial Statements.

Segment Reporting Policy

Segment Policy

        HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive segment results are substantially the same as those the consolidated company uses. Management measures the performance of each segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the segments.

        Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by HPFS. HP's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.

        Financing interest in the Consolidated Condensed Statements of Earnings reflects interest expense on debt attributable to HPFS. Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries.

        HP does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate governance costs, stock-based compensation expense, amortization of intangible assets, restructuring charges, separation costs and acquisition-related charges.

Employer Contributions and Funding Policy

Employer Contributions and Funding Policy

        HP's policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.

        HP's pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

Stock-Based Compensation

Stock Options

    HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions.

Taxes on Earnings

HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Condensed Statements of Earnings. HP periodically engages in intercompany advanced royalty payment and licensing arrangements that may result in advance payments between subsidiaries in different tax jurisdictions. When the local tax treatment of the intercompany licensing arrangements differs from U.S. GAAP treatment, deferred taxes are recognized.

Transfers and Servicing Trade Receivables Policy

        HP reflects the amounts transferred to but not yet collected from third parties in accounts receivable in the Consolidated Condensed Balance Sheets.

Credit Quality Indicators

HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets.

Credit Quality Indicators

        Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographic regions. HP evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. HP assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.

Receivables Financing Allowance and Reserves Policy

Allowance for Doubtful Accounts

        The allowance for doubtful accounts for financing receivables is comprised of a general reserve and a specific reserve. HP maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. HP excludes accounts evaluated as part of the specific reserve from the general reserve analysis. HP establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely HP will recover its investment. For individually evaluated receivables, HP determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, HP records a specific reserve. HP generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if HP determines that the receivable is not collectible.

Financing Receivables, Non-Accrual and Past Due Status Policy

Non-Accrual and Past-Due Financing Receivables

        HP considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. HP generally places financing receivables on non-accrual status, which is suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if HP deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status.

Goodwill

Goodwill is tested for impairment at the reporting unit level. HP will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Fair Value

        Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

Fair Value Hierarchy

        HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement:

        Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

        Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.

        Level 3—Unobservable inputs for the asset or liability.

        The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs.

Valuation Techniques

        Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data.

        Derivative Instruments: HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign currency rates, and forward and spot prices for currencies and interest rates.

Other Fair Value Disclosures

        Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of HP's debt that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates.

If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy.

        Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy.

        Non-Marketable Equity Investments and Non-Financial Assets: HP's non-marketable equity investments and non-financial assets, such as goodwill, intangible assets and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Consolidated Condensed Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

Cash equivalents and available-for-sale investments

        All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents.

Derivative Financial Instruments

        Equity securities in privately held companies include cost basis and equity method investments and are included in Long-term financing receivables and other assets in the Consolidated Condensed Balance Sheets.

Derivative Instruments

        As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets. HP classifies cash flows from its derivative programs as operating activities in the Consolidated Condensed Statements of Cash Flows.

        As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, HP has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-assessing the creditworthiness of its counterparties. Master netting agreements further mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions.

        To further mitigate credit exposure to counterparties, HP has collateral security agreements that allow HP to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days.

        Under HP’s derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating.

Fair Value Hedges

        HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial.

        When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges.

        For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.

Cash Flow Hedges

        HP uses a combination of forward contracts and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months; however, hedges related to longer term procurement arrangements extend several years and forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which typically range from two to five years.

        For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of the derivative instrument in Accumulated other comprehensive loss as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item.

Net Investment Hedges

        HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. HP records the effective portion of such derivative instruments together with changes in the fair value of the hedged items in Cumulative translation adjustment as a separate component of stockholders' equity in the Consolidated Condensed Balance Sheets.

Other Derivatives

        Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability.

        For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other net in the Consolidated Condensed Statements of Earnings in the period of change.

Hedge Effectiveness

        For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged instrument with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge in the Consolidated Condensed Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Condensed Statements of Earnings in the period they arise.

Offsetting of Derivatives

Offsetting of Derivative Instruments

        HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements.

Net Earnings per share

        HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards, stock options, performance-based awards and shares purchased under the 2011 ESPP. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities. HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits 

Litigation and Contingencies Policy

 HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies.

Warranty

Warranty

        HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation.

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Stockholders' Equity

3 Months Ended

Jan. 31, 2015

Stockholders' Equity

Stockholders' Equity

Note 13: Stockholders' Equity

Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In the three months ended January 31, 2015, HP executed share repurchases of 36 million shares. Repurchases of 41 million shares, which include 7 million shares executed in the fourth quarter of fiscal 2014, were settled for $1.6 billion in the first quarter of fiscal 2015. HP had approximately 2 million shares executed in the first quarter of fiscal 2015 that will be settled in the second quarter of fiscal 2015. HP paid $565 million in connection with repurchases of 21 million shares during the three month ended January 31, 2014. The shares repurchased and settled in the three months ended January 31, 2015 and 2014 were all open market transactions. As of January 31, 2015, HP had remaining authorization of $3.3 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on July 21, 2011.

Taxes related to Other Comprehensive Income

	Three months ended January 31
	2015			2014
	In millions
Taxes on change in unrealized gains (losses) on available-for-sale securities:
Tax (provision) benefit on unrealized gains (losses) arising during the period	$	(15	)	$	1
		(15	)		1
Taxes on change in unrealized gains on cash flow hedges:
Tax provision on unrealized gains arising during the period		(201	)		(40	)
Tax provision (benefit) on (gains) losses reclassified into earnings		98			(34	)
		(103	)		(74	)
Taxes on change in unrealized components of defined benefit plans:
Tax benefit on amortization of actuarial loss and prior service benefit		(14	)		(12	)
		(14	)		(12	)
Tax provision on change in cumulative translation adjustment		(47	)		(20	)
Tax provision on other comprehensive income	$	(179	)	$	(105	)

Changes and reclassifications related to Other Comprehensive Income, net of taxes

	Three months ended January 31
	2015			2014
	In millions
Other comprehensive income, net of taxes:
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period	$	31		$	—
Gains reclassified into earnings		—			(1	)
		31			(1	)
Change in unrealized gains on cash flow hedges:
Unrealized gains arising during the period		430			30
(Gains) losses reclassified into earnings(1)		(236	)		75
		194			105
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit(2)		98			51
Curtailments, settlements and other		(2	)		—
		96			51
Change in cumulative translation adjustment		(115	)		(44	)
Other comprehensive income, net of taxes	$	206		$	111

(1) Reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated Condensed Statements of Earnings was as follows:

			Three months ended January 31
			2015			2014
			In millions
	Net revenue		$	(334	)	$	63
	Cost of products			26			23
	Other operating expenses			4			4
	Interest and other, net			(30	)		19
			$	(334	)	$	109
(2)		These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4.

        The components of accumulated other comprehensive loss, net of taxes and changes were as follows:

	Net unrealized gains on available- for-sale securities		Net unrealized gains on cash flow hedges			Unrealized components of defined benefit plans			Cumulative translation adjustment			Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	81	$	108		$	(5,376	)	$	(694	)	$	(5,881	)
Other comprehensive income (loss) before reclassifications		31		430			(2	)		(115	)		344
Reclassifications of (gains) losses into earnings		—		(236	)		98			—			(138	)
Balance at end of period	$	112	$	302		$	(5,280	)	$	(809	)	$	(5,675	)

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Goodwill and Intangible Assets

3 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets

Acquisitions, Goodwill and Intangible Assets

Note 9: Goodwill and Intangible Assets

Goodwill

        Goodwill allocated to HP's reportable segments and changes in the carrying amount of goodwill were as follows:

	Three months ended January 31, 2015
	Personal Systems		Printing		Enterprise Group			Enterprise Services(2)			Software		HP Financial Services		Corporate Investments		Total
	In millions
Balance at beginning of period(1)	$	2,588	$	2,591	$	16,867		$	97		$	8,852	$	144	$	—	$	31,139
Goodwill adjustments		—		—		(30	)		(1	)		—		—		—		(31	)
Balance at end of period(1)	$	2,588	$	2,591	$	16,837		$	96		$	8,852	$	144	$	—	$	31,108

(1)	Goodwill at January 31, 2015 and October 31, 2014 is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments.
(2)	Goodwill relates to the MphasiS Limited reporting unit.

        Goodwill is tested for impairment at the reporting unit level. As of January 31, 2015 our reporting units are consistent with the reportable segments identified in Note 2, except for ES, which includes two reporting units: MphasiS Limited; and the remainder of ES.

        HP will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Intangible Assets

        HP's intangible assets are composed of:

	As of January 31, 2015										As of October 31, 2014
	Gross		Accumulated Amortization			Accumulated Impairment Loss			Net		Gross		Accumulated Amortization			Accumulated Impairment Loss			Net
	In millions
Customer contracts, customer lists and distribution agreements	$	5,282	$	(3,361	)	$	(856	)	$	1,065	$	5,289	$	(3,228	)	$	(856	)	$	1,205
Developed and core technology and patents		4,244		(1,341	)		(2,138	)		765		4,266		(1,301	)		(2,138	)		827
Trade name and trade marks		1,693		(281	)		(1,336	)		76		1,693		(261	)		(1,336	)		96
Total intangible assets	$	11,219	$	(4,983	)	$	(4,330	)	$	1,906	$	11,248	$	(4,790	)	$	(4,330	)	$	2,128

        During the first three months of fiscal 2015, $29 million of intangible assets became fully amortized and have been eliminated from gross intangible assets and accumulated amortization.

        As of January 31, 2015, the estimated future amortization expense related to finite-lived intangible assets was as follows:

Fiscal year:	In millions
2015 (remaining 9 months)	$	651
2016		653
2017		244
2018		147
2019		110
2020		97
Thereafter		4
Total	$	1,906

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Borrowings (Details 2) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2014	Jan. 31, 2015	Oct. 31, 2014	Feb. 28, 2007	Mar. 31, 2008	Sep. 30, 2010	Dec. 31, 2010	May 31, 2011	Sep. 30, 2011	Dec. 31, 2011	Mar. 31, 2012	Oct. 31, 1999
Long-term debt
Total		$ 15,552	$ 16,039
Fair value adjustment related to hedged debt		254	120
Less: current portion		(2,677)	(2,655)
U.S. Dollar Global Notes
Long-term debt
Total		17,187	17,837
2006 Shelf Registration Statement-$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017
Long-term debt
Total		500	500
Discount to par (as a percent)		99.694%	99.694%	99.694%
Interest rate (as a percent)		5.40%	5.40%	5.40%
Face amount of debt instrument		500	500	500
2006 Shelf Registration Statement-$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018
Long-term debt
Total		750	750
Discount to par (as a percent)		99.932%	99.932%		99.932%
Interest rate (as a percent)		5.50%	5.50%		5.50%
Face amount of debt instrument		750	750		750
2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015
Long-term debt
Total		1,100	1,100
Discount to par (as a percent)		99.887%	99.887%			99.887%
Interest rate (as a percent)		2.125%	2.125%			2.125%
Face amount of debt instrument		1,100	1,100			1,100
2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015
Long-term debt
Total		650	650
Discount to par (as a percent)		99.911%	99.911%				99.911%
Interest rate (as a percent)		2.20%	2.20%				2.20%
Face amount of debt instrument		650	650				650
2009 Shelf Registration Statement-$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020
Long-term debt
Total		1,349	1,349
Discount to par (as a percent)		99.827%	99.827%				99.827%
Interest rate (as a percent)		3.75%	3.75%				3.75%
Face amount of debt instrument		1,350	1,350				1,350
2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016
Long-term debt
Total		1,000	1,000
Discount to par (as a percent)		99.958%	99.958%					99.958%
Interest rate (as a percent)		2.65%	2.65%					2.65%
Face amount of debt instrument		1,000	1,000					1,000
2009 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021
Long-term debt
Total		1,248	1,248
Discount to par (as a percent)		99.799%	99.799%					99.799%
Interest rate (as a percent)		4.30%	4.30%					4.30%
Face amount of debt instrument		1,250	1,250					1,250
2009 Shelf Registration Statement-$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015
Long-term debt
Total		750	750
Discount to par (as a percent)		99.977%	99.977%						99.977%
Interest rate (as a percent)		2.35%	2.35%						2.35%
Face amount of debt instrument		750	750						750
2009 Shelf Registration Statement-$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016
Long-term debt
Total		1,298	1,298
Discount to par (as a percent)		99.784%	99.784%						99.784%
Interest rate (as a percent)		3.00%	3.00%						3.00%
Face amount of debt instrument		1,300	1,300						1,300
2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021
Long-term debt
Total		999	999
Discount to par (as a percent)		99.816%	99.816%						99.816%
Interest rate (as a percent)		4.375%	4.375%						4.375%
Face amount of debt instrument		1,000	1,000						1,000
2009 Shelf Registration Statement-$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041
Long-term debt
Total		1,199	1,199
Discount to par (as a percent)		99.863%	99.863%						99.863%
Interest rate (as a percent)		6.00%	6.00%						6.00%
Face amount of debt instrument		1,200	1,200						1,200
2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid December 2014
Long-term debt
Total			650
Discount to par (as a percent)		99.946%	99.946%							99.946%
Interest rate (as a percent)		2.625%	2.625%							2.625%
Face amount of debt instrument		650	650							650
2009 Shelf Registration Statement-$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016
Long-term debt
Total		849	849
Discount to par (as a percent)		99.79%	99.79%							99.79%
Interest rate (as a percent)		3.30%	3.30%							3.30%
Face amount of debt instrument		850	850							850
2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021
Long-term debt
Total		1,496	1,496
Discount to par (as a percent)		99.707%	99.707%							99.707%
Interest rate (as a percent)		4.65%	4.65%							4.65%
Face amount of debt instrument		1,500	1,500							1,500
2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017
Long-term debt
Total		1,500	1,500
Discount to par (as a percent)		99.985%	99.985%								99.985%
Interest rate (as a percent)		2.60%	2.60%								2.60%
Face amount of debt instrument		1,500	1,500								1,500
2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022
Long-term debt
Total		499	499
Discount to par (as a percent)		99.771%	99.771%								99.771%
Interest rate (as a percent)		4.05%	4.05%								4.05%
Face amount of debt instrument		500	500								500
2012 Shelf Registration Statement-$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019
Long-term debt
Total		750	750
Face amount of debt instrument	750	750	750
Reference interest rate	three-month Libor	three-month Libor	three-month Libor
Spread on reference interest rate (as a percent)	0.94%	0.94%	0.94%
2012 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019
Long-term debt
Total		1,250	1,250
Discount to par (as a percent)	99.954%	99.954%	99.954%
Interest rate (as a percent)	2.75%	2.75%	2.75%
Face amount of debt instrument	1,250	1,250	1,250
EDS Senior Notes-$300 issued October 1999 at 7.45%, due October 2029
Long-term debt
Total		313	313
Interest rate (as a percent)		7.45%	7.45%									7.45%
Face amount of debt instrument		300	300									300
Other, including capital lease obligations, at 0.00%-8.50%, due in calendar years 2014-2024
Long-term debt
Other, including capital lease obligations		475	424
Minimum interest rate (as a percent)		0.00%	0.00%
Maximum interest rate (as a percent)		8.30%	8.30%
Other, including capital lease obligations, at 0.00%-8.50%, due in calendar years 2014-2024 | HP Financial Services
Long-term debt
Other, including capital lease obligations		$ 184	$ 123

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Balance Sheet Details

3 Months Ended

Jan. 31, 2015

Balance Sheet Details

Balance Sheet Details

Note 7: Balance Sheet Details

        Balance sheet details were as follows:

Accounts Receivable, Net

	As of
	January 31, 2015			October 31, 2014
	In millions
Accounts receivable	$	12,513		$	14,064
Allowance for doubtful accounts		(218	)		(232	)
	$	12,295		$	13,832

        The allowance for doubtful accounts related to accounts receivable and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	232
Provision for doubtful accounts, net of recoveries		(3	)
Deductions		(11	)
Balance at end of period	$	218

        HP has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. The maximum, utilized and available program capacity under these revolving short-term financing arrangements was as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Non-recourse arrangements:
Maximum program capacity	$	1,045		$	1,083
Utilized capacity(1)(2)		(406	)		(613	)
Available capacity	$	639		$	470
Partial-recourse arrangements:
Maximum program capacity	$	1,769		$	1,877
Utilized capacity(1)(2)		(1,337	)		(1,500	)
Available capacity	$	432		$	377
Total arrangements:
Maximum program capacity	$	2,814		$	2,960
Utilized capacity(1)(2)		(1,743	)		(2,113	)
Available capacity	$	1,071		$	847

(1)	Utilized capacity represents the receivables sold to third parties, but not collected from the customer by the third parties.
(2)	HP reflects the amounts transferred to but not yet collected from third parties in accounts receivable in the Consolidated Condensed Balance Sheets. These amounts, included in the utilized capacity are as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Non-recourse arrangements	$	1	$	78
Partial-recourse arrangements		293		381
Total arrangements	$	294	$	459

        The activity related to HP's revolving short-term financing arrangements was as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period(1)	$	459
Trade receivables sold		2,760
Cash receipts		(2,893	)
Foreign currency and other		(32	)
Balance at end of period(1)	$	294

(1) Beginning and ending balance represents amounts for trade receivables sold but not yet collected.

Inventory

	As of
	January 31, 2015		October 31, 2014
	In millions
Finished goods	$	4,103	$	3,973
Purchased parts and fabricated assemblies		2,472		2,442
	$	6,575	$	6,415

Property, Plant and Equipment

	As of
	January 31, 2015			October 31, 2014
	In millions
Land	$	540		$	540
Buildings and leasehold improvements		9,068			9,048
Machinery and equipment, including equipment held for lease		15,959			16,664
		25,567			26,252
Accumulated depreciation		(14,537	)		(14,912	)
	$	11,030		$	11,340

        For the three months ended January 31, 2015, the change in gross property, plant and equipment was due primarily to purchases of $0.8 billion, which were partially offset by sales and retirements totaling $1.0 billion and unfavorable currency impacts of $0.3 billion. Accumulated depreciation associated with the assets sold and retired was $0.9 billion.

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Financing Receivables and Operating Leases

3 Months Ended

Jan. 31, 2015

Financing Receivables and Operating Leases

Financing Receivables and Operating Leases

Note 8: Financing Receivables and Operating Leases

        Financing receivables represent sales-type and direct-financing leases of HP and third-party products. These receivables typically have terms ranging from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The components of financing receivables were as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Minimum lease payments receivable	$	6,729		$	6,982
Unguaranteed residual value		229			235
Unearned income		(528	)		(547	)
Financing receivables, gross		6,430			6,670
Allowance for doubtful accounts		(102	)		(111	)
Financing receivables, net		6,328			6,559
Less: current portion(1)		(2,907	)		(2,946	)
Amounts due after one year, net(1)	$	3,421		$	3,613

(1) HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Condensed Balance Sheets.

Credit Quality Indicators

        Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographic regions. HP evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. HP assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.

        The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Risk Rating:
Low	$	3,374	$	3,536
Moderate		2,967		3,022
High		89		112
Total	$	6,430	$	6,670

        Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. HP classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts for financing receivables is comprised of a general reserve and a specific reserve. HP maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. HP excludes accounts evaluated as part of the specific reserve from the general reserve analysis. HP establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely HP will recover its investment. For individually evaluated receivables, HP determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, HP records a specific reserve. HP generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if HP determines that the receivable is not collectible.

        The allowance for doubtful accounts related to financing receivables and changes were as follows:

	Three months ended January 31, 2015
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts		1
Deductions, net of recoveries		(10	)
Balance at end of period	$	102

        The gross financing receivables and related allowance evaluated for loss were as follows:

	As of
	January 31, 2015		October 31, 2014
	In millions
Gross financing receivables collectively evaluated for loss	$	6,143	$	6,378
Gross financing receivables individually evaluated for loss		287		292
Total	$	6,430	$	6,670
Allowance for financing receivables collectively evaluated for loss	$	82	$	92
Allowance for financing receivables individually evaluated for loss		20		19
Total	$	102	$	111

Non-Accrual and Past-Due Financing Receivables

        HP considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. HP generally places financing receivables on non-accrual status, which is suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if HP deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status.

        The following table summarizes the aging and non-accrual status of gross financing receivables:

	As of
	January 31, 2015		October 31, 2014
	In millions
Billed(1):
Current 1-30 days	$	231	$	243
Past due 31-60 days		44		46
Past due 61-90 days		25		12
Past due >90 days		54		49
Unbilled sales-type and direct-financing lease receivables		6,076		6,320
Total gross financing receivables	$	6,430	$	6,670
Gross financing receivables on non-accrual status(2)	$	131	$	130
Gross financing receivables 90 days past due and still accruing interest(2)	$	156	$	162

(1)	Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.
(2)	Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

Operating Leases

        Operating lease assets included in machinery and equipment in the Consolidated Condensed Balance Sheets were as follows:

	As of
	January 31, 2015			October 31, 2014
	In millions
Equipment leased to customers	$	3,867		$	3,977
Accumulated depreciation		(1,342	)		(1,382	)
	$	2,525		$	2,595

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Fair Value

3 Months Ended

Jan. 31, 2015

Fair Value.

Fair Value

Note 10: Fair Value

        Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

Fair Value Hierarchy

        HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement:

        Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

        Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.

        Level 3—Unobservable inputs for the asset or liability.

        The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs.

        The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis:

	As of January 31, 2015								As of October 31, 2014
	Fair Value Measured Using								Fair Value Measured Using
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	In millions
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	2,678	$	—	$	2,678	$	—	$	2,865	$	—	$	2,865
Money market funds		7,632		—		—		7,632		9,857		—		—		9,857
Mutual funds		—		260		—		260		—		244		—		244
Marketable equity securities		12		95		—		107		14		5		—		19
Foreign bonds		8		342		—		350		9		367		—		376
Other debt securities		—		1		44		45		—		1		46		47
Derivatives:
Interest rate contracts		—		191		—		191		—		105		—		105
Foreign currency contracts		—		1,670		5		1,675		—		862		6		868
Other derivatives		—		6		—		6		—		7		—		7
Total assets	$	7,652	$	5,243	$	49	$	12,944	$	9,880	$	4,456	$	52	$	14,388
Liabilities
Derivatives:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	55	$	—	$	55
Foreign currency contracts		—		512		2		514		—		348		2		350
Total liabilities	$	—	$	512	$	2	$	514	$	—	$	403	$	2	$	405

        For the three months ended January 31, 2015, the transfers between levels within the fair value hierarchy were not material.

Valuation Techniques

        Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data.

        Derivative Instruments: HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign currency rates, and forward and spot prices for currencies and interest rates. See Note 11 for a further discussion of HP's use of derivative instruments.

Other Fair Value Disclosures

        Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of HP's debt that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was $19.6 billion at January 31, 2015, compared to its carrying amount of $19.1 billion at that date. The estimated fair value of HP's short- and long-term debt was $19.9 billion at October 31, 2014, compared to its carrying amount of $19.5 billion at that date. If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy.

        Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy.

        Non-Marketable Equity Investments and Non-Financial Assets: HP's non-marketable equity investments and non-financial assets, such as goodwill, intangible assets and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Consolidated Condensed Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

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Net Earnings Per Share (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Numerator:
Net earnings	$ 1,366	$ 1,425
Denominator:
Weighted-average shares used to compute basic net EPS	1,833,000,000	1,907,000,000
Dilutive effect of employee stock plans (in shares)	28,000,000	28,000,000
Weighted-average shares used to compute diluted net EPS	1,861,000,000	1,935,000,000
Net earnings per share:
Basic (in dollars per share)	$ 0.75	$ 0.75
Diluted (in dollars per share)	$ 0.73	$ 0.74
Antidilutive securities excluded from the calculation of EPS (in shares)	17,000,000	37,000,000
Number of participating securities for net earnings allocation	0

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Guarantees (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015
Changes in aggregated product warranty liabilities
Balance at beginning of year	$ 1,956
Accruals for warranties issued	394
Adjustments related to pre-existing warranties (including changes in estimates)	(17)
Settlements made (in cash or in kind)	(426)
Balance at end of period	$ 1,907

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Stockholders' Equity (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Components of accumulated other comprehensive (loss) income, net of taxes
Balance at the beginning of the period	$ (5,881)
Other comprehensive income (loss) before reclassifications	344
Reclassifications of (gains) losses into earnings	(138)
Balance at the end of the period	(5,675)
Change in unrealized gains (losses) on available-for-sale securities
Components of accumulated other comprehensive (loss) income, net of taxes
Balance at the beginning of the period	81
Other comprehensive income (loss) before reclassifications	31
Balance at the end of the period	112
Change in unrealized gains on cash flow hedges
Components of accumulated other comprehensive (loss) income, net of taxes
Balance at the beginning of the period	108
Other comprehensive income (loss) before reclassifications	430	30
Reclassifications of (gains) losses into earnings	(236)
Balance at the end of the period	302
Change in unrealized components of defined benefit plans
Components of accumulated other comprehensive (loss) income, net of taxes
Balance at the beginning of the period	(5,376)
Other comprehensive income (loss) before reclassifications	(2)
Reclassifications of (gains) losses into earnings	98
Balance at the end of the period	(5,280)
Change in cumulative translation adjustment
Components of accumulated other comprehensive (loss) income, net of taxes
Balance at the beginning of the period	(694)
Other comprehensive income (loss) before reclassifications	(115)
Balance at the end of the period	$ (809)

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Borrowings (Tables)

3 Months Ended

Jan. 31, 2015

Borrowings

Schedule of notes payable and short-term borrowings, including the current portion of long-term debt

	As of January 31, 2015					As of October 31, 2014
	Amount Outstanding		Weighted- Average Interest Rate			Amount Outstanding		Weighted- Average Interest Rate
	In millions					In millions
Current portion of long-term debt	$	2,677		2.0	%	$	2,655		2.2	%
Commercial paper(1)		306		0.4	%		298		0.5	%
Notes payable to banks, lines of credit and other(1)		526		4.1	%		533		4.0	%
	$	3,509				$	3,486

(1) Commercial paper balances of $306 million and $298 million and Notes payable to banks, lines of credit and other includes $378 million and $404 million at January 31, 2015 and October 31, 2014, respectively, of borrowing and funding-related activity associated with HPFS and its subsidiaries.

Schedule of long-term debt

	As of
	January 31, 2015			October 31, 2014
	In millions
U.S. Dollar Global Notes(1)
2006 Shelf Registration Statement:
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017	$	500		$	500
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018		750			750
2009 Shelf Registration Statement:
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015		1,100			1,100
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015		650			650
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020		1,349			1,349
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016		1,000			1,000
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021		1,248			1,248
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015		750			750
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016		1,298			1,298
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021		999			999
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041		1,199			1,199
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid December 2014		—			650
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016		849			849
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021		1,496			1,496
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017		1,500			1,500
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022		499			499
2012 Shelf Registration Statement:
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019		750			750
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019		1,250			1,250
		17,187			17,837
EDS Senior Notes(1)
$300 issued October 1999 at 7.45%, due October 2029		313			313
Other, including capital lease obligations, at 0.00%-8.30%, due in calendar years 2015-2024(2)		475			424
Fair value adjustment related to hedged debt		254			120
Less: current portion		(2,677	)		(2,655	)
Total long-term debt	$	15,552		$	16,039

(1)

HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes and EDS Senior Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes and EDS Senior Notes are senior unsecured debt.

(2)

Other, including capital lease obligations includes $184 million and $123 million as of January 31, 2015 and October 31, 2014, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings.

Schedule of borrowing resources available to obtain short-term or long-term financing

	As of January 31, 2015
	In millions
2012 Shelf Registration Statement(1)		Unspecified
Commercial paper programs	$	16,194
Uncommitted lines of credit	$	1,535

(1) HP has the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement.

Schedule of interest expense on borrowings recognized in the Consolidated Condensed Statements of Earnings

		Three months ended January 31
Expense	Location	2015		2014
		In millions
Financing interest	Financing interest	$	63	$	72
Interest expense	Interest and other, net		67		99
Total interest expense		$	130	$	171

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Goodwill and Intangible Assets (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Intangible assets
Amortizable intangible assets, gross	$ 11,219	$ 11,248
Amortizable intangible assets, accumulated amortization	(4,983)	(4,790)
Intangible Assets, Accumulated Impairment Losses	(4,330)	(4,330)
Amortizable intangible assets, net	1,906
Total Intangible Assets- Net	1,906	2,128
Amount of fully amortized intangible assets	29
Customer contracts, customer lists and distribution agreements
Intangible assets
Amortizable intangible assets, gross	5,282	5,289
Amortizable intangible assets, accumulated amortization	(3,361)	(3,228)
Intangible Assets, Accumulated Impairment Losses	(856)	(856)
Amortizable intangible assets, net	1,065	1,205
Developed and core technology and patents
Intangible assets
Amortizable intangible assets, gross	4,244	4,266
Amortizable intangible assets, accumulated amortization	(1,341)	(1,301)
Intangible Assets, Accumulated Impairment Losses	(2,138)	(2,138)
Amortizable intangible assets, net	765	827
Trade name and trade marks
Intangible assets
Amortizable intangible assets, gross	1,693	1,693
Amortizable intangible assets, accumulated amortization	(281)	(261)
Intangible Assets, Accumulated Impairment Losses	(1,336)	(1,336)
Amortizable intangible assets, net	$ 76	$ 96

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Litigation and Contingencies

3 Months Ended

Jan. 31, 2015

Litigation and Contingencies

Litigation and Contingencies

Note 15: Litigation and Contingencies

        HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of January 31, 2015, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP's financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies.

Litigation, Proceedings and Investigations

Copyright Levies.    As described below, proceedings are ongoing or have been concluded involving HP in certain European Union ("EU") member countries, including litigation in Germany, Belgium and Austria, seeking to impose or modify levies upon equipment (such as multi-function devices ("MFDs"), PCs and printers) and alleging that these devices enable producing private copies of copyrighted materials. Descriptions of some of the ongoing proceedings are included below. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some EU member countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them to extend existing levy schemes, while some other EU member countries have phased out levies or are expected to limit the scope of levy schemes and applicability in the digital hardware environment, particularly with respect to sales to business users. HP, other companies and various industry associations have opposed the extension of levies to the digital environment and have advocated alternative models of compensation to rights holders.

        VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted legal proceedings against HP in the Stuttgart Civil Court seeking to impose levies on printers. On December 22, 2004, the court held that HP is liable for payments regarding all printers using ASCII code sold in Germany but did not determine the amount payable per unit. HP appealed this decision in January 2005 to the Stuttgart Court of Appeals. On May 11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June 6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December 6, 2007, the German Federal Supreme Court issued a judgment that printers are not subject to levies under existing law. VG Wort appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. On September 21, 2010, the Constitutional Court published a decision holding that the German Federal Supreme Court erred by not referring questions on interpretation of German copyright law to the Court of Justice of the European Union ("CJEU") and therefore revoked the German Federal Supreme Court decision and remitted the matter to it. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on this matter with other cases relating to reprographic levies on printers and PCs that was held on October 31, 2013. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due where the printer is used with a PC to make permitted reprographic copies in a single process under the control of the same person, but no levies are due on a printer for reprographic copies made with a "scanner-PC-printer" product chain. The case has been remitted to the Stuttgart Court to assess the amount to be paid per printer unit.

        In September 2003, VG Wort filed a lawsuit against Fujitsu Technology Solutions GmbH ("Fujitsu") in the Munich Civil Court in Munich, Germany seeking to impose levies on PCs. This is an industry test case in Germany, and HP has agreed not to object to the delay if VG Wort sues HP for such levies on PCs following a final decision against Fujitsu. On December 23, 2004, the Munich Civil Court held that PCs are subject to a levy and that Fujitsu must pay €12 plus compound interest for each PC sold in Germany since March 2001. Fujitsu appealed this decision in January 2005 to the Munich Court of Appeals. On December 15, 2005, the Munich Court of Appeals affirmed the Munich Civil Court decision. Fujitsu filed an appeal with the German Federal Supreme Court in February 2006. On October 2, 2008, the German Federal Supreme Court issued a judgment that PCs were not photocopiers within the meaning of the German copyright law that was in effect until December 31, 2007 and, therefore, were not subject to the levies on photocopiers established by that law. VG Wort subsequently filed a claim with the German Federal Constitutional Court challenging that ruling. In January 2011, the Constitutional Court published a decision holding that the German Federal Supreme Court decision was inconsistent with the German Constitution and revoking the German Federal Supreme Court decision. The Constitutional Court also remitted the matter to the German Federal Supreme Court for further action. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on that matter with other cases relating to reprographic levies on printers that was held on October 31, 2013. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due for audio-visual copying of standing text and pictures using a PC as the last device in a single reproduction process under the control of the same person, but no levies are due on a PC for reprographic copies made using a "PC-printer" or a "scanner-PC-printer" chain. The case has been remitted to the Munich Court of Appeals to assess the amount to be paid per PC unit.

        Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested by extra-judicial means that HP amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated based on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with EU law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. On October 23, 2013, the Court of Appeal in Brussels stayed the proceedings and referred several questions to the CJEU relating to whether the Belgian reprographic copyright levies system is in conformity with EU law. The case was heard by the CJEU on January 29, 2015 and the Advocate General has announced that a non-binding opinion will be delivered on April 30, 2015.

        Based on industry opposition to the extension of levies to digital products, HP's assessments of the merits of various proceedings and HP's estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the matters described above. However, the ultimate resolution of these matters and the associated financial impact on HP, including the number of units impacted and the amount of levies imposed, remains uncertain.

Fair Labor Standards Act Litigation.    HP is involved in several lawsuits in which the plaintiffs are seeking unpaid overtime compensation and other damages based on allegations that various employees of Electronic Data Systems Corporation ("EDS") or HP have been misclassified as exempt employees under the Fair Labor Standards Act and/or in violation of the California Labor Code or other state laws. Those matters include the following:

• Cunningham and Cunningham, et al. v. Electronic Data Systems Corporation is a purported collective action filed on May 10, 2006 in the United States District Court for the Southern District of New York claiming that current and former EDS employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Another purported collective action, Steavens, et al. v. Electronic Data Systems Corporation, was filed on October 23, 2007 in the same court alleging similar facts. The Steavens case has been consolidated for pretrial purposes with the Cunningham case. On December 14, 2010, the court granted conditional certification of a class consisting of employees in 20 legacy EDS job codes in the consolidated Cunningham and Steavens matter. On December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter, and the Salva matter described below, mediated these cases and reached a settlement agreement. The court preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015.

• Salva v. Hewlett-Packard Company is a purported collective action filed on June 15, 2012 in the United States District Court for the Western District of New York alleging that certain information technology employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees under the Fair Labor Standards Act. On December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter and the Salva matter mediated these cases and reached a settlement agreement. The court consolidated the Salva matter into the Cunningham/Steavens matter and preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015.

• Karlbom, et al. v. Electronic Data Systems Corporation is a class action filed on March 16, 2009 in California Superior Court alleging facts similar to the Cunningham and Steavens matters. The parties are engaged in discovery.

• Benedict v. Hewlett-Packard Company is a purported collective action filed on January 10, 2013 in the United States District Court for the Northern District of California alleging that certain technical support employees allegedly involved in installing, maintaining and/or supporting computer software and/or hardware for HP were misclassified as exempt employees under the Fair Labor Standards Act. The plaintiff has also alleged that HP violated California law by, among other things, allegedly improperly classifying these employees as exempt. On February 13, 2014, the court granted the plaintiff's motion for conditional class certification. The parties are engaged in discovery.

State of South Carolina Department of Social Services Contract Dispute.    In October 2012, the State of South Carolina Department of Social Services and related government agencies ("SCDSS") filed a proceeding before South Carolina's Chief Procurement Officer ("CPO") against Hewlett-Packard State & Local Enterprise Services, Inc., a subsidiary of HP ("HPSLES"). The dispute arose from a contract between SCDSS and HPSLES for the design, implementation and maintenance of a Child Support Enforcement and a Family Court Case Management System (the "CFS System"). SCDSS sought aggregate damages of approximately $275 million, a declaration that HPSLES was in material breach of the contract and, therefore, that termination of the contract for cause by SCDSS would be appropriate, and a declaration that HPSLES would be required to perform certain additional disputed work that expands the scope of the original contract. In November 2012, HPSLES filed responsive pleadings asserting defenses and seeking payment of past-due invoices totaling more than $12 million. On July 10, 2013, SCDSS terminated the contract with HPSLES for cause, and, in its termination notice, SCDSS asserted that HPSLES was responsible for all future federal penalties until the CFS System achieves federal certification, sought an immediate order requiring HPSLES to transfer to SCDSS all work completed and in progress, and indicated that it intended to seek suspension and debarment of HPSLES from contracting with the State of South Carolina. HPSLES disputed the termination as improper and defective. In addition, on August 9, 2013, HPSLES filed its own affirmative claim within the proceeding alleging that SCDSS materially breached the contract by its improper termination and that SCDSS was a primary and material cause of the project delays. On September 4, 2013, the CPO denied SCDSS's motion for injunctive relief seeking immediate transfer of the system assets to SCDSS and indicated that the CPO would address that request following a hearing on the merits. The hearing on the merits before the CPO concluded on February 25, 2014 and closing briefs were submitted on July 18, 2014. On August 15, 2014, the CPO agreed to the parties' joint request that the CPO not issue an order unless and until the parties, with the guidance of the mediator, report to the CPO that their ongoing mediation has reached a final impasse.

        On September 10, 2014, the parties reached an agreement in principle to resolve this matter and on December 15, 2014, the parties submitted a settlement agreement and time and materials agreement to the CPO for approval. On January 20, 2015, the CPO entered an order approving the settlement and dismissing the matter with prejudice. Pursuant to the terms of the settlement agreement, SCDSS's termination letter dated July 10, 2013 was withdrawn, the SCDSS's payment to HP in the amount of approximately $5.1 million for outstanding invoices and retainage was received on January 23, 2015 and HP's payment to the SCDSS in the amount of approximately $44.1 million was made on February 2, 2015.

India Directorate of Revenue Intelligence Proceedings.    On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HPI"), a subsidiary of HP, seven then-current HP employees and one former HP employee alleging that HP underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP products and spare parts and to not interrupt the transaction of business by HP in India.

        On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million, of which HPI had already deposited $9 million. On December 11, 2012, HPI voluntarily deposited an additional $10 million in connection with the products-related show cause notice.

        On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HPI and certain of the named individuals of approximately $17 million, of which HPI had already deposited $7 million. After the order, HPI deposited an additional $3 million in connection with the parts-related show cause notice so as to avoid certain penalties.

        HPI filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HPI to deposit an additional $24 million against the products order, which HPI deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HPI filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP's request to remand the matter to the Commissioner on procedural grounds, and is scheduled to reconvene hearings on the merits beginning on April 6, 2015.

Russia GPO and Other FCPA Investigations.    The German Public Prosecutor's Office ("German PPO") has been conducting an investigation into allegations that current and former employees of HP engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary of HP, and the General Prosecutor's Office of the Russian Federation. The approximately €35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO also requested that HP be made an associated party to the case, and, if that request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees. The Polish Central Anti-Corruption Bureau is also conducting an investigation into potential corruption violations by an employee of Hewlett-Packard Polska Sp. z o.o., an indirect subsidiary of HP, in connection with certain public-sector transactions in Poland. HP is cooperating with these investigating agencies.

        The DOJ and the SEC also conducted an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). In addition, the same U.S. enforcement agencies conducted investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States and Mexico, among other countries. On April 9, 2014, HP announced a resolution of the DOJ and SEC FCPA investigations. Pursuant to the terms of the resolution of the DOJ and SEC FCPA investigation announced in April 2014, on September 11, 2014, an HP subsidiary in Russia, ZAO Hewlett Packard A.O., entered a guilty plea in the United States District Court, Northern District of California, to criminal violations of the FCPA. HP paid the SEC approximately $31 million, and paid approximately $77 million in fines and penalties pursuant to its agreements with the DOJ. HP also agreed to undertake certain compliance, reporting and cooperation obligations.

        On December 2, 2014, plaintiffs Petroleos Mexicanos and Pemex Exploracion filed a complaint against HP and HP Mexico in the United States District Court for the Northern District of California alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act), fraudulent concealment, tortious interference, and violations of the California Unfair Competition Law in connection with alleged improper payments provided to Pemex officials by third-parties retained by HP Mexico. These allegations arise from the same subject-matter as a previously disclosed 2014 Non-Prosecution Agreement between HP Mexico and the DOJ and a simultaneous cease-and-desist order against HP issued by the SEC. On February 9, 2015, HP and HP Mexico filed a motion to dismiss the complaint in its entirety. The hearing on the motion to dismiss is scheduled for May 21, 2015. HP does not believe that the resolution of this matter will have a material impact on its financial statements.

ECT Proceedings.    In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified an HP subsidiary in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case. HP expects the decision to be issued in 2015 and any subsequent appeal on the merits to last several years.

Abstrax Proceeding.    On February 28, 2014, Abstrax, Inc. ("Abstrax"), a company with a principal place of business in Mesa, Arizona, filed a patent infringement lawsuit against HP. Abstrax claims to market software for sales operations and manufacturing operations for configurable products, including those in the customer shutter industry. The case is pending in U.S. District Court for the Eastern District of Texas, Marshall Division. Abstrax has asserted one patent, U.S. Patent 6,240,328, which is directed generally to a method of generating assembly instructions. In its complaint, Abstrax claims that HP's methods and processes of manufacturing configurable servers, storage, networking devices, PCs, laptops, imaging and printing devices and their sub-systems infringe its patent, as do the products made by the accused processes. Abstrax also claims that HP's alleged infringement is willful and that the case is exceptional. On November 14, 2014, HP filed a petition with the U.S. Patent and Trademark Office challenging the validity of the Abstrax patent based on prior art. In late January 2015, Abstrax dropped its infringement allegations against the manufacturing of PCs and imaging and printing devices from its expert reports. On March 4, 2015, the court heard HP's motion challenging the subject matter of the patent under 35 U.S.C. Section 101. Trial is scheduled for May 11, 2015.

Stockholder Litigation.    As described below, HP is involved in various stockholder litigation matters commenced against certain current and former HP executive officers and/or certain current and former members of HP's Board of Directors in which the plaintiffs are seeking to recover damages related to HP's allegedly inflated stock price, certain compensation paid by HP to the defendants, other damages and/or injunctive relief:

• A.J. Copeland v. Raymond J. Lane, et al. ("Copeland I") is a lawsuit filed on March 7, 2011 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's alleged violations of the FCPA, HP's severance payments made to Mark Hurd (a former Chairman of HP's Board of Directors and HP's Chief Executive Officer), and HP's acquisition of 3PAR Inc. The lawsuit also alleges violations of Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") in connection with HP's 2010 and 2011 proxy statements. On February 8, 2012, the defendants filed a motion to dismiss the lawsuit. On October 10, 2012, the court granted the defendants' motion to dismiss with leave to file an amended complaint. On November 1, 2012, the plaintiff filed an amended complaint adding an unjust enrichment claim and claims that the defendants violated Section 14(a) of the Exchange Act and breached their fiduciary duties in connection with HP's 2012 proxy statement. On December 13, 14 and 17, 2012, the defendants moved to dismiss the amended complaint. On December 28, 2012, the plaintiff moved for leave to file a third amended complaint. On May 6, 2013, the court denied the motion for leave to amend, granted the motions to dismiss with prejudice and entered judgment in the defendants' favor. On May 31, 2013, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit. The appeal has been fully briefed, but a date has not yet been set for oral argument.

• A.J. Copeland v. Léo Apotheker, et al. ("Copeland II") is a lawsuit filed on February 10, 2014 in the United States District Court for the Northern District of California alleging, among other things, that the defendants used their control over HP and its corporate suffrage process in effectuating, directly participating in and/or aiding and abetting violations of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, and violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The complaint asserts claims for breach of fiduciary duty, waste of corporate assets, unjust enrichment, and breach of the duty of candor. The claims arise out of the circumstances at HP relating to its 2013 and 2014 proxy statements, the departure of Mr. Hurd as Chairman of HP's Board of Directors and HP's Chief Executive Officer, alleged violations of the FCPA, and HP's acquisition of 3PAR Inc. and Autonomy Corporation plc ("Autonomy"). On February 25, 2014, the court issued an order granting HP's administrative motion to relate Copeland II to Copeland I. On April 8, 2014, the court granted the parties' stipulation to stay the action pending resolution of Copeland I by the United States Court of Appeals for the Ninth Circuit.

• Ernesto Espinoza v. Léo Apotheker, et al. and Larry Salat v. Léo Apotheker, et al. are consolidated lawsuits filed on September 21, 2011 in the United States District Court for the Central District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched when they authorized HP's repurchases of its own stock on August 29, 2010 and July 21, 2011. These lawsuits were previously stayed pending developments in the Gammel matter, but those stays have been lifted. The plaintiffs filed an amended consolidated complaint on August 21, 2013, and, on October 28, 2013, the defendants filed a motion to stay these matters. In an order dated February 13, 2014, the court granted the motion to stay. At the August 11, 2014 status conference, the stay was lifted. The plaintiffs informed the court that they would move forward with their complaint. HP filed a motion to dismiss on November 21, 2014. On February 12, 2015, the plaintiffs advised HP that they intended to voluntarily dismiss these actions, and, on February 23, 2015, the parties filed a Joint Stipulation for Voluntary Dismissal of the Action (the "Dismissal"). On February 25, 2015, the court entered an order approving the Dismissal. HP provided notice of the Dismissal by filing it with the SEC on March 10, 2015 and posting it on HP's website. The action will be dismissed unless another stockholder moves to intervene by April 9, 2015.

• Luis Gonzalez v. Léo Apotheker, et al. and Richard Tyner v. Léo Apotheker, et al. are consolidated lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business and by authorizing HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending resolution of the Espinoza/Salat consolidated action in federal court. On February 23, 2015, the parties filed a Joint Stipulation for Voluntary Dismissal of the Action. On February 25, 2015, the court entered an order approving the Dismissal. HP provided notice of the Dismissal by filing it with the SEC on March 10, 2015 and posting it on HP's website. The action will be dismissed unless another stockholder moves to intervene by April 9, 2015.

• Cement & Concrete Workers District Council Pension Fund v. Hewlett-Packard Company, et al. is a putative securities class action filed on August 3, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 13, 2007 to August 6, 2010 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by making statements regarding HP's Standards of Business Conduct ("SBC") that were false and misleading because Mr. Hurd, who was serving as HP's Chairman and Chief Executive Officer during that period, had been violating the SBC and concealing his misbehavior in a manner that jeopardized his continued employment with HP. On February 7, 2013, the defendants moved to dismiss the amended complaint. On August 9, 2013, the court granted the defendants' motion to dismiss with leave to amend the complaint by September 9, 2013. The plaintiff filed an amended complaint on September 9, 2013, and the defendants moved to dismiss that complaint on October 24, 2013. On June 25, 2014, the court issued an order granting the defendants' motions to dismiss and on July 25, 2014, plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. On November 4, 2014, the plaintiff-appellant filed its opening brief in the Court of Appeals for the Ninth Circuit. HP filed its answering brief on January 16, 2015 and the plaintiff-appellant's reply brief was filed on March 2, 2015. Oral argument has not yet been scheduled.

Autonomy-Related Legal Matters

Investigations.    As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the DOJ and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy. On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy. On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy. On January 19, 2015, the U.K. Serious Fraud Office notified HP that it was closing its investigation and had decided to cede jurisdiction of the investigation to the U.S. authorities. HP is cooperating with the DOJ and the SEC, whose investigations are ongoing.

Litigation.    As described below, HP is involved in various stockholder litigation relating to, among other things, its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP's statements that, based on HP's findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of HP's Board of Directors, and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. These matters include the following:

• In re HP Securities Litigation consists of two consolidated putative class actions filed on November 26 and 30, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 19, 2011 to November 20, 2012, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging that, during that same period, all of the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5(b) by concealing material information and making false statements related to HP's acquisition of Autonomy and that certain defendants violated SEC Rule 10b-5(a) and (c) by engaging in a "scheme" to defraud investors. On July 2, 2013, HP filed a motion to dismiss the lawsuit. On November 26, 2013, the court granted in part and denied in part HP's motion to dismiss, allowing claims to proceed against HP and Margaret C. Whitman based on alleged statements and/or omissions made on or after May 23, 2012. The court dismissed all of the plaintiff's claims that were based on alleged statements and/or omissions made between August 19, 2011 and May 22, 2012. The lead plaintiff filed a motion for class certification on November 4, 2014 and, on December 15, 2014, defendants filed their opposition to the motion. The hearing on the motion for class certification is scheduled for March 20, 2015.

• In re Hewlett-Packard Shareholder Derivative Litigation consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP's acquisition of Autonomy and Autonomy's Intelligent Data Operating Layer technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in "abuse of control" over HP, corporate waste and were unjustly enriched. The litigation was stayed until June 2014. The lead plaintiff filed a stipulation of proposed settlement on June 30, 2014. The court declined to grant preliminary approval to this settlement, and, on December 19, 2014, also declined to grant preliminary approval to a revised version of the settlement. On January 22, 2015, the lead plaintiff moved for preliminary approval of a further revised version of the settlement. The hearing on that motion for preliminary approval and any objections thereto is currently scheduled for April 3, 2015, however an administrative motion that would move the hearing date to April 24, 2015 is pending. In addition, related motions to intervene, to seek a preliminary injunction (filed by the Copeland plaintiff), and to sever (filed by plaintiffs who have filed a substantially similar lawsuit captioned Steinberg and Vogel v. Apotheker, et. al.) are currently scheduled to be heard on March 20, 2015. The aforementioned administrative motion also seeks to move the hearing date on these related motions to April 24, 2015.

• In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 18, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP's 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP's enterprise services business and by failing to restrict participants from investing in HP stock. On August 16, 2013, HP filed a motion to dismiss the lawsuit. On March 31, 2014, the court granted HP's motion to dismiss this action with leave to amend. On July 16, 2014, the plaintiffs filed a second amended complaint containing substantially similar allegations and seeking substantially similar relief as the first amended complaint. HP moved to dismiss the second amended complaint and a hearing on the motion was held on February 13, 2015. HP is awaiting a ruling from the court.

• Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. On April 22, 2013, the court stayed the lawsuit pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter in federal court. Two additional derivative actions, James Gould v. Margaret C. Whitman, et al. and Leroy Noel v. Margaret C. Whitman, et al., were filed in California Superior Court on July 26, 2013 and August 16, 2013, respectively, containing substantially similar allegations and seeking substantially similar relief. Those actions also have been stayed pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the settlement of the federal derivative case is approved, it will result in a release of the claims asserted in all three actions other than claims asserted against Michael Lynch, the former chief executive officer of Autonomy.

• Cook v. Whitman, et al. is a lawsuit filed on March 18, 2014 in the Delaware Chancery Court, alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy. On May 15, 2014, HP moved to dismiss or stay the Cook matter. On July 22, 2014, the Delaware Chancery Court stayed the motion pending the United States District Court's hearing on preliminary approval of the proposed settlement in the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the District Court approves the settlement, it will result in a release of all the claims asserted in the Cook matter other than those asserted against Michael Lynch, Sushovan Hussain, the former chief financial officer of Autonomy, and Deloitte LLP.

Environmental

        HP's operations and products are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of HP's products and the recycling, treatment and disposal of those products. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, and the energy consumption associated with those products, including requirements relating to climate change. HP is also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). HP could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.

        HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or state laws similar to CERCLA, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. HP is also conducting environmental investigations or remediations at several current or former operating sites pursuant to administrative orders or consent agreements with state environmental agencies.

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Retirement and Post-Retirement Benefit Plans (Tables)

3 Months Ended

Jan. 31, 2015

Retirement and Post-Retirement Benefit Plans

Schedule of net pension and post-retirement benefit (credit) costs

	Three months ended January 31
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
	In millions
Service cost	$	—		$	—		$	86		$	78		$	1		$	1
Interest cost		143			142			163			183			7			8
Expected return on plan assets		(217	)		(203	)		(305	)		(282	)		(9	)		(8	)
Amortization and deferrals:
Actuarial loss (gain)		13			4			112			78			(3	)		(3	)
Prior service benefit		—			—			(5	)		(6	)		(5	)		(10	)
Net periodic benefit (credit) cost		(61	)		(57	)		51			51			(9	)		(12	)
Special termination benefits		—			—			6			6			—			(11	)
Net benefit (credit) cost	$	(61	)	$	(57	)	$	57		$	57		$	(9	)	$	(23	)

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Financing Receivables and Operating Leases (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014
Gross financing receivables
Net Investment	$ 6,430	$ 6,670
Period past due, after which a write-off or specific reserve is created	180 days
Allowance for doubtful accounts
Balance at beginning of year	111
Provision for doubtful accounts	1
Deductions, net of recoveries	(10)
Balance at end of period	102
Gross financing receivables collectively evaluated for loss	6,143	6,378
Gross financing receivables individually evaluated for loss	287	292
Allowance for financing receivables collectively evaluated for loss	82	92
Allowance for financing receivables individually evaluated for loss	20	19
Period past due, after which account is put on non-accrual status	90 days
Aging and non-accrual status of gross financing receivables
Current 1-30 days	231	243
Past due 31-60 days	44	46
Past due 61-90 days	25	12
Past due >90 days	54	49
Unbilled sales-type and direct-financing lease receivables	6,076	6,320
Gross financing receivables on non-accrual status	131	130
Gross financing receivables 90 days past due and still accruing interest	156	162
Operating lease assets
Equipment leased to customers	3,867	3,977
Accumulated depreciation	(1,342)	(1,382)
Operating lease assets, net	2,525	2,595
Low Risk
Gross financing receivables
Net Investment	3,374	3,536
Moderate Risk
Gross financing receivables
Net Investment	2,967	3,022
High Risk
Gross financing receivables
Net Investment	$ 89	$ 112

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Segment Information (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Segment Reporting Information
Net revenue	$ 26,839	$ 28,154
Operating segments
Segment Reporting Information
Net revenue	27,751	28,984
Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(912)	(830)
Enterprise Group
Segment Reporting Information
Net revenue	6,680	6,791
Enterprise Group | Operating segments
Segment Reporting Information
Net revenue	6,981	6,970
Enterprise Group | Operating segments | Industry Standard Servers
Segment Reporting Information
Net revenue	3,387	3,178
Enterprise Group | Operating segments | Technology Services
Segment Reporting Information
Net revenue	1,987	2,100
Enterprise Group | Operating segments | Storage
Segment Reporting Information
Net revenue	837	834
Enterprise Group | Operating segments | Networking
Segment Reporting Information
Net revenue	562	630
Enterprise Group | Operating segments | Business Critical Systems
Segment Reporting Information
Net revenue	208	228
Enterprise Group | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(301)	(179)
Enterprise Services
Segment Reporting Information
Net revenue	4,780	5,283
Enterprise Services | Operating segments
Segment Reporting Information
Net revenue	4,993	5,595
Enterprise Services | Operating segments | Infrastructure Technology Outsourcing
Segment Reporting Information
Net revenue	3,132	3,501
Enterprise Services | Operating segments | Application and Business Services
Segment Reporting Information
Net revenue	1,861	2,094
Enterprise Services | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(213)	(312)
Software
Segment Reporting Information
Net revenue	811	846
Software | Operating segments
Segment Reporting Information
Net revenue	871	916
Software | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(60)	(70)
HP Financial Services
Segment Reporting Information
Net revenue	781	854
HP Financial Services | Operating segments
Segment Reporting Information
Net revenue	803	870
HP Financial Services | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(22)	(16)
Corporate Investments
Segment Reporting Information
Net revenue	16	288
Corporate Investments | Operating segments
Segment Reporting Information
Net revenue	16	288
Printing and Personal Systems Group | Operating segments
Segment Reporting Information
Net revenue	14,087	14,345
Printing and Personal Systems Group | Personal Systems
Segment Reporting Information
Net revenue	8,286	8,310
Printing and Personal Systems Group | Personal Systems | Operating segments
Segment Reporting Information
Net revenue	8,544	8,530
Printing and Personal Systems Group | Personal Systems | Operating segments | Notebooks
Segment Reporting Information
Net revenue	4,724	4,335
Printing and Personal Systems Group | Personal Systems | Operating segments | Desktops
Segment Reporting Information
Net revenue	2,949	3,274
Printing and Personal Systems Group | Personal Systems | Operating segments | Workstations
Segment Reporting Information
Net revenue	526	533
Printing and Personal Systems Group | Personal Systems | Operating segments | Other
Segment Reporting Information
Net revenue	345	388
Printing and Personal Systems Group | Personal Systems | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	(258)	(220)
Printing and Personal Systems Group | Printing
Segment Reporting Information
Net revenue	5,485	5,782
Printing and Personal Systems Group | Printing | Operating segments
Segment Reporting Information
Net revenue	5,543	5,815
Printing and Personal Systems Group | Printing | Operating segments | Supplies
Segment Reporting Information
Net revenue	3,601	3,795
Printing and Personal Systems Group | Printing | Operating segments | Commercial Hardware
Segment Reporting Information
Net revenue	1,316	1,347
Printing and Personal Systems Group | Printing | Operating segments | Consumer Hardware
Segment Reporting Information
Net revenue	626	673
Printing and Personal Systems Group | Printing | Eliminations of inter-segment net revenue and other
Segment Reporting Information
Net revenue	$ (58)	$ (33)

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Consolidated Condensed Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Jan. 31, 2015	Oct. 31, 2014
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	300	300
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	9,600	9,600
Common stock, shares issued	1,822	1,839
Common stock, shares outstanding	1,822	1,839

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Retirement and Post-Retirement Benefit Plans

3 Months Ended

Jan. 31, 2015

Retirement and Post-Retirement Benefit Plans

Retirement and Post-Retirement Benefit Plans

Note 4: Retirement and Post-Retirement Benefit Plans

        HP's net pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings was as follows:

	Three months ended January 31
	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
	In millions
Service cost	$	—		$	—		$	86		$	78		$	1		$	1
Interest cost		143			142			163			183			7			8
Expected return on plan assets		(217	)		(203	)		(305	)		(282	)		(9	)		(8	)
Amortization and deferrals:
Actuarial loss (gain)		13			4			112			78			(3	)		(3	)
Prior service benefit		—			—			(5	)		(6	)		(5	)		(10	)
Net periodic benefit (credit) cost		(61	)		(57	)		51			51			(9	)		(12	)
Special termination benefits		—			—			6			6			—			(11	)
Net benefit (credit) cost	$	(61	)	$	(57	)	$	57		$	57		$	(9	)	$	(23	)

Employer Contributions and Funding Policy

        HP's policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.

        HP previously disclosed in its Consolidated Financial Statements for the fiscal year ended October 31, 2014 that it expected to contribute approximately $686 million in fiscal 2015 to its non-U.S. pension plans and expected to pay approximately $35 million to cover benefit payments to U.S. non-qualified plan participants. HP expected to pay approximately $47 million to cover benefit claims for HP's post-retirement benefit plans.

        During the three months ended January 31, 2015, HP contributed $54 million to its non-U.S. pension plans, paid $8 million to cover benefit payments to U.S. non-qualified plan participants, and paid $12 million to cover benefit claims under HP's post-retirement benefit plans. During the remainder of fiscal 2015, HP anticipates making additional contributions of approximately $632 million to its non-U.S. pension plans and approximately $27 million to its U.S. non-qualified plan participants and expects to pay approximately $35 million to cover benefit claims under HP's post-retirement benefit plans.

        HP's pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

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Financial Instruments (Details 5) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Portion of the hedging instruments gain or loss excluded from the assessment of effectiveness for fair value, cash flow or net investment hedges	$ 0	$ 0
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings
Gain (Loss) recognized in income on derivatives not designated as hedges	244	180
Interest rate contracts | Interest and other, net
Pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship
Gain (Loss) Recognized in Earnings on Derivative	141	(24)
Gain (Loss) Recognized in Earnings on Related Hedged Item	(141)	24
Foreign currency contracts | Interest and other, net
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings
Gain (Loss) recognized in income on derivatives not designated as hedges	247	190
Other derivatives | Interest and other, net
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings
Gain (Loss) recognized in income on derivatives not designated as hedges	(3)	(10)
Fair value hedges
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Hedge ineffectiveness	0
Cash flow hedges
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	631	70
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	334	(109)
Hedge ineffectiveness	0
Gain expected to be reclassified from Accumulated OCI into earnings in next 12 months	415
Cash flow hedges | Foreign currency contracts | Net revenue
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	737	175
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	334	(63)
Cash flow hedges | Foreign currency contracts | Cost of products
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	(138)	(87)
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(26)	(23)
Cash flow hedges | Foreign currency contracts | Other operating expenses
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	(3)
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(4)	(4)
Cash flow hedges | Foreign currency contracts | Interest and other, net
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	35	(18)
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	30	(19)
Net investment hedges
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Hedge ineffectiveness	0
Net investment hedges | Foreign currency contracts | Interest and other, net
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion)	$ 129	$ 66

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Stock-Based Compensation (Tables)

3 Months Ended

Jan. 31, 2015

Share-based compensation

Schedule of stock based compensation expense and the resulting tax benefits

	Three months ended January 31
	2015			2014
	In millions
Stock-based compensation expense	$	187		$	170
Income tax benefit		(60	)		(53	)
Stock-based compensation expense, net of tax	$	127		$	117

Schedule of restricted stock award activity

	Three months ended January 31, 2015
	Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands
Outstanding at beginning of period		40,808		$	24
Granted		14,738		$	37
Vested		(15,749	)	$	23
Forfeited		(733	)	$	25
Outstanding at end of period		39,064		$	30

Stock Options

Share-based compensation

Schedule of weighted-average fair value and the assumptions used to measure fair value

	Three months ended January 31
	2015			2014
Weighted-average fair value of grants per option(1)	$	8.04		$	7.45
Expected volatility(2)		26.3	%		33.6	%
Risk-free interest rate(3)		1.7	%		1.8	%
Expected dividend yield(4)		1.7	%		2.2	%
Expected term in years(5)		5.8			5.7

(1)	The weighted-average fair value was based on stock options granted during the period.
(2)	For all awards granted in fiscal 2015, expected volatility was estimated using the implied volatility derived from options traded on HP's common stock. For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock.
(3)	The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.
(4)	The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award.
(5)	For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model.

Schedule of stock options activity

	Three months ended January 31, 2015
	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions
Outstanding at beginning of period		57,853		$	27
Granted		7,869		$	37
Exercised		(6,977	)	$	20
Forfeited/cancelled/expired		(14,375	)	$	41
Outstanding at end of period		44,370		$	25		5.6	$	514
Vested and expected to vest at end of period		40,827		$	25		5.5	$	478
Exercisable at end of period		20,921		$	24		4.5	$	278

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Basis of Presentation (Details) (Aruba, Subsequent Event, USD $) In Billions, except Per Share data, unless otherwise specified	0 Months Ended
	Mar. 02, 2015	Mar. 02, 2015
Aruba | Subsequent Event
Subsequent Event.
Date when business acquisition agreement was executed	Mar. 02, 2015
Price payable per share	$ 24.67	$ 24.67
Equity value	$ 3.00
Equity value net of cash and debt acquired	$ 2.70

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Net Earnings Per Share

3 Months Ended

Jan. 31, 2015

Net Earnings Per Share

Net Earnings Per Share

Note 14: Net Earnings Per Share

        HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards, stock options, performance-based awards and shares purchased under the 2011 ESPP.

        The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

	Three months ended January 31
	2015		2014
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,366	$	1,425
Denominator:
Weighted-average shares used to compute basic net EPS		1,833		1,907
Dilutive effect of employee stock plans		28		28
Weighted-average shares used to compute diluted net EPS		1,861		1,935
Net earnings per share:
Basic	$	0.75	$	0.75
Diluted	$	0.73	$	0.74
Anti-dilutive weighted average options(2)		17		37

(1)	There were no participating securities for net earnings allocation for the three months ended January 31, 2015. The net earnings allocated to participating securities were not significant for the three months ended January 31, 2014. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities.
(2)	HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits.