HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three Three Three
months months months
ended Diluted ended Diluted ended Diluted
January earnings October earnings January earnings
31, per 31, per 31, per
2008 share 2007 share 2007 share
---------------- ---------------- ----------------
GAAP net earnings $2,133 $ 0.80 $2,164 $ 0.81 $1,547 $ 0.55
Non-GAAP
adjustments:
Amortization of
purchased
intangible assets 206 0.08 187 0.07 201 0.07
In-process
research and
development
charges - - 4 - 167 0.06
Restructuring 10 - (20) (0.01) (41) (0.02)
Pension
curtailments and
pension
settlements, net - - - - (9) -
Adjustments for
taxes (58) (0.02) (39) (0.01) (39) (0.01)
------- -------- ------- -------- ------- --------
Non-GAAP net
earnings $2,291 $ 0.86 $2,296 $ 0.86 $1,826 $ 0.65
======= ======== ======= ======== ======= ========
GAAP earnings from
operations $2,613 $2,632 $1,843
Non-GAAP
adjustments:
Amortization of
purchased
intangible assets 206 187 201
In-process
research and
development
charges - 4 167
Restructuring 10 (20) (41)
Pension
curtailments and
pension
settlements, net - - (9)
------- ------- -------
Non-GAAP earnings
from operations $2,829 $2,803 $2,161
======= ======= =======
GAAP operating
margin 9% 9% 7%
Non-GAAP adjustments 1% 1% 2%
------- ------- -------
Non-GAAP operating
margin 10% 10% 9%
======= ======= =======
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
January 31, October 31,
2008 2007
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,903 $ 11,293
Short-term investments 73 152
Accounts receivable 12,384 13,420
Financing receivables 2,561 2,507
Inventory 7,938 8,033
Other current assets 11,767 11,997
----------- -----------
Total current assets 44,626 47,402
----------- -----------
Property, plant and equipment 7,804 7,798
Long-term financing receivables and other
assets 10,325 7,647
Goodwill and purchased intangible assets 25,817 25,852
----------- -----------
Total assets $ 88,572 $ 88,699
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings $ 2,212 $ 3,186
Accounts payable 11,162 11,787
Employee compensation and benefits 2,657 3,465
Taxes on earnings 420 1,891
Deferred revenue 5,314 5,025
Accrued restructuring 95 123
Other accrued liabilities 14,798 13,783
----------- -----------
Total current liabilities 36,658 39,260
----------- -----------
Long-term debt 5,099 4,997
Other liabilities 8,871 5,916
Stockholders' equity 37,944 38,526
----------- -----------
Total liabilities and stockholders' equity $ 88,572 $ 88,699
=========== ===========
