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ANNUAL REPORT
2009

Table of contents

  • Page 1
    2009 ANNUAL REPORT

  • Page 2
    ...agile company, able to adapt and benefit from changing market conditions. In fiscal 2009, we gained share in key markets and continued to invest for growth in research and development, acquisitions, and sales coverage. Perhaps nowhere has this agility been more evident than in our Personal Systems...

  • Page 3
    ...fitable segment. We worked hard on the integration of EDS, retained 199 of the 200 largest EDS accounts, and increased customer satisfaction. Today, we face the marketplace as one company with a more competitive cost structure and a significant number of new customers. Services is well positioned...

  • Page 4
    ..., healthcare, and energy to meet the changing needs of the global community today. And in HP Labs, we're working on the future. Innovations like nano-scale sensors, breakthrough software for analytics and knowledge discovery, and data centers with zero net environmental impact will be the building...

  • Page 5
    ...in the United States based on environmental impact, green policies, and social responsibility. In closing Even as HP successfully managed through a challenging fiscal 2009, we have continued to build for the future and prepare our company for growth. Today, our market leadership extends across the...

  • Page 6
    ...as a Managing Director at Silver Lake, a private equity firm, since July 2005. From 1975 to July 2005, he served in multiple roles for IBM, a global technology firm, including Senior Vice President and Group Executive of the IBM Global Services division; Chief Financial Officer; President, IBM...

  • Page 7
    ... of the plans, strategies, and objectives of management for future operations, including the execution of cost reduction programs and restructuring plans; any statements concerning expected development, performance or market share relating to products or services; any statements regarding future...

  • Page 8
    ... the fiscal year ended October 31, 2009 Or អ 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 (State or...

  • Page 9
    ... ...Financial Statements and Supplementary Data ...Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ...Controls and Procedures ...Other Information ...PART III Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership...

  • Page 10
    ... other financial items; any statements of the plans, strategies and objectives of management for future operations, including the execution of cost reduction programs and restructuring plans; any statements concerning expected development, performance or market share relating to products or services...

  • Page 11
    ... within it in order to provide a supplementary view of our business. In each of the past three fiscal years, notebooks, desktops and printing supplies each accounted for more than 10% of our consolidated net revenue. In fiscal 2009, infrastructure technology outsourcing also accounted for more than...

  • Page 12
    ..., customer relationship management services, financial process management services and administrative services. Technology Services. HP provides consulting and support services, as well as warranty support across HP's product lines. HP specializes in keeping technology running with mission critical...

  • Page 13
    ...PCs'') in the world based on unit volume shipped and annual revenue. PSG provides commercial PCs, consumer PCs, workstations, handheld computing devices, calculators and other related accessories, software and services for the commercial and consumer markets. We group commercial desktops, commercial...

  • Page 14
    ... work together as a system to produce faster prints with improved resistance to fading, increased print quality and better affordability. HP Financial Services HPFS supports and enhances HP's global product and service solutions, providing a broad range of value-added financial life-cycle management...

  • Page 15
    ... Business Exchange. IPG manages HP's overall consumer-related sales and marketing activities, including our annual consumer product launch for the back-to-school and holiday seasons. IPG also manages consumer channel relationships with third-party retail locations for imaging and printing products...

  • Page 16
    ...and our revenue and gross margin could suffer if we fail to manage suppliers properly,'' in Item 1A, which is incorporated herein by reference. International Our products and services are available worldwide. We believe this geographic diversity allows us to meet demand on a worldwide basis for both...

  • Page 17
    ... develop, manufacture and market products and services that meet customer requirements for innovation and quality, our revenue and gross margin may suffer,'' in Item 1A, which is incorporated herein by reference. Patents Our general policy has been to seek patent protection for those inventions and...

  • Page 18
    ... their own brand names. Our successful management of these competitive partner relationships will continue to be critical to our future success. Moreover, we anticipate that we will have to continue to adjust prices on many of our products and services to stay competitive. On a revenue basis we are...

  • Page 19
    ...based distribution of products from retail and commercial channels to direct sales. Imaging and Printing Group. The markets for printer hardware and associated supplies are highly competitive, especially with respect to pricing and the introduction of new products and features. IPG's key competitors...

  • Page 20
    ... with a comprehensive environmental, health and safety policy, strict environmental management of our operations and worldwide environmental programs and services. The liability for environmental remediation and other environmental costs is accrued when HP considers it probable and can reasonably...

  • Page 21
    ...was a partner in the litigation practice at Morgan, Lewis & Bockius LLP, where, among other clients, he supported HP as external counsel on a variety of litigation and regulatory matters for more than ten years. Vyomesh I. Joshi; age 55; Executive Vice President, Imaging and Printing Group Mr. Joshi...

  • Page 22
    ...and Governance Committee) and code of ethics entitled ''Standards of Business Conduct'' also are available at that same location on our website. Stockholders may request free copies of these documents from: Hewlett-Packard Company Attention: Investor Relations 3000 Hanover Street Palo Alto, CA 94304...

  • Page 23
    ... and margins also could decline due to increased competition from other types of products. For example, refill and remanufactured alternatives for some of HP's LaserJet toner and inkjet cartridges compete with HP's supplies business. In addition, other companies have developed and marketed new...

  • Page 24
    ... economic conditions and the demand for computing and imaging products 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 difficulty managing inventory levels...

  • Page 25
    ... 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 service...

  • Page 26
    ... the contractual terms under which we are supplied components by a single source supplier could adversely affect our revenue and gross margins. Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses. Our worldwide operations could be...

  • Page 27
    ... affect, our financial results, stock price and reputation. 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...

  • Page 28
    ..., business combination or investment transactions, or executive team; • the announcement of new products, services, technological innovations or acquisitions by HP or its competitors; • quarterly increases or decreases in revenue, gross margin, earnings or cash flow from operations, changes in...

  • Page 29
    ..., costs and expenses and financial condition. Sales outside the United States make up approximately 64% 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...

  • Page 30
    ... 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...

  • Page 31
    ... 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. • Our inventory management...

  • Page 32
    ...of our rates for the benchmarked services performed after the implementation of those pricing adjustments, which could decrease the revenues and profitability of our IT services business. If we fail to comply with our customer contracts or government contracting regulations, our revenue could suffer...

  • Page 33
    ... taxable income in the United States. In addition, President Obama's administration has recently announced proposals for a new U.S. tax legislation that, if adopted, could adversely affect our tax rate. Any of these changes could affect our profitability. Our sales cycle makes planning and inventory...

  • Page 34
    ... to the number of days in the quarter affected. 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 United States government) are often...

  • Page 35
    ... relating to obtaining stockholder approval of equity compensation plans could limit our ability to grant share-based payment awards to employees in the future. Terrorist acts, conflicts and wars may seriously harm our business and revenue, costs and expenses and financial condition and stock price...

  • Page 36
    ... business operations. These business combination and investment transactions also 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, asset impairment charges...

  • Page 37
    ... more restrictive borrowing terms. In addition, HP's effective tax rate on an ongoing basis is uncertain, and business combination and investment transactions could impact our effective tax rate. We also may experience risks relating to the challenges and costs of closing a business combination and...

  • Page 38
    ...the end of fiscal 2009, we are continuing to execute on our plan to reduce our real estate costs and increase our productive utilization by consolidating several hundred HP core real estate locations worldwide. As indicated above, we have seven business segments: Services, ESS, HP Software, PSG, IPG...

  • Page 39
    ..., Japan Singapore Palo Alto, United States St. Petersburg, Russia Hewlett-Packard Laboratories Bangalore, India Beijing, China Bristol, United Kingdom ITEM 3. Legal Proceedings. Information with respect to this item may be found in Note 18 to the Consolidated Financial Statements in Item 8, which...

  • Page 40
    ...been previously reported in a Quarterly Report on Form 10-Q. Issuer Purchases of Equity Securities Total Number of Approximate Shares Purchased Dollar Value of Shares Average as Part of Publicly that May Yet Be Price Paid Announced Purchased under the per Share Plans or Programs Plans or Programs In...

  • Page 41
    .../09 Hewlett-Packard Company ...S&P 500 ...S&P Information Technology ...(1) 100.00 100.00 100.00 152.39 108.72 105.43 212.65 126.49 115.90 285.77 144.90 147.08 213.09 92.60 86.47 266.66 101.68 113.71 The stock performance graph does not include HP's peer group because peer group information...

  • Page 42
    ... Financial Data 2009(2) For the fiscal years ended October 31, 2008 2007 2006 In millions, except per share amounts 2005 Net revenue ...Earnings from operations(1) ...Net earnings ...Net earnings per share Basic ...Diluted ...Cash dividends declared per share At year-end: Total assets ...Long-term...

  • Page 43
    ... business technology investments; • personal computing and other access devices; and • imaging and printing-related products and services. We have seven business segments for financial reporting purposes: Services, Enterprise Storage and Servers (''ESS''), HP Software, the Personal Systems Group...

  • Page 44
    ... we can offer to our customers, both through acquisitions and through organic growth. A critical component of this strategy was our acquisition of Electronic Data Systems Corporation (''EDS'') in August 2008, which has increased the size and breadth of our services business and enabled us to provide...

  • Page 45
    ...into financial performance: HP Consolidated HP Enterprise Business HP Services ESS Software Total PSG In millions, except per share amounts IPG HPFS Net revenue ...Year-over-year net revenue % (decrease) increase ...Earnings from operations ...Earnings from operations as a % of net revenue ...Net...

  • Page 46
    ... critical accounting policies reflect the significant estimates and assumptions used in the preparation of the Consolidated Financial Statements. Revenue Recognition We enter into contracts to sell our products and services, and, while the majority of our sales agreements contain standard terms...

  • Page 47
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) (''ASU 2009-13''). The new standard changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the ...

  • Page 48
    ... used in the Black-Scholes option pricing model in fiscal years 2009, 2008 and 2007 was based on market-based implied volatility. We issue performance-based restricted units (''PRUs'') representing hypothetical shares of HP common stock. Each PRU award reflects a target number of shares that may be...

  • Page 49
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) cannot be used when simulating multivariate prices for companies in the S&P 500. We estimate the fair value of PRUs using the Monte Carlo simulation model, as ...

  • Page 50
    ... trade allowance at the end of fiscal year 2009. Inventory We state our inventory at the lower of cost or market. We make adjustments to reduce the cost of inventory to its net realizable value, if required, at the product group level for estimated excess, obsolescence or impaired balances. Factors...

  • Page 51
    ... and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, assumed royalty rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on...

  • Page 52
    ... which are used to determine fair value. Warranty Provision We provide for the estimated cost of product warranties at the time we recognize revenue. We evaluate our warranty obligations on a product group basis. Our standard product warranty terms generally include post-sales support and repairs or...

  • Page 53
    ... 3.3% of annual net product revenue. Retirement Benefits Our pension and other post-retirement benefit costs and obligations are dependent on various assumptions. Our major assumptions relate primarily to discount rates, salary growth, long-term return on plan assets and medical cost trend rates. We...

  • Page 54
    ... that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). In August 2009, the FASB issued ASU No. 2009-05, ''Measuring Liabilities at Fair Value'' in relation to the fair value measurement of liabilities. We adopted the applicable portions...

  • Page 55
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) In May 2008, the FASB issued a new accounting standard related to convertible debt instruments. The new standard requires the issuer of certain convertible debt ...

  • Page 56
    ... 26, 2008, the closing date of the EDS acquisition. Results of operations in dollars and as a percentage of net revenue were as follows for the following fiscal years ended October 31: 2009 2008 In millions 2007 Net revenue ...Cost of sales(1) ...Gross profit ...Research and development ...Selling...

  • Page 57
    ... net revenue change from the prior-year period were as follows for the following fiscal years ended October 31: 2009 2008 Percentage Points Personal Systems Group ...Imaging and Printing Group . . Enterprise Storage and Servers HP Software ...Corporate Investments/Other . HP Financial Services...

  • Page 58
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Net revenue in Corporate Investments and Other declined in fiscal 2009 from fiscal 2008, resulting from lower sales of network infrastructure products primarily ...

  • Page 59
    ...and EDS-related acquisition synergies. This was partially offset by the mix effect from the acquisition of the EDS business, which has lower gross margins. The increase in HP Software gross margin in fiscal 2009 from the prior year resulted primarily from a favorable support and services revenue mix...

  • Page 60
    ... offset by lower warranty and supply chain costs and improvements in the option attach rate. Fiscal 2008 Total company gross margin decreased slightly in fiscal 2008 from fiscal 2007. On a segment basis, an increase in HP Software gross margin and a small increase in ESS gross margin were offset by...

  • Page 61
    ... of the dollar against the euro, and additional expenses related to the EDS acquisition. Each of our major segments experienced a year-over-year decrease in SG&A expense as a percentage of net revenue during fiscal 2008. Amortization of Purchased Intangible Assets The increase in amortization...

  • Page 62
    ... average debt balances principally related to the EDS acquisition, lower interest income as a result of lower interest rates, and higher currency losses on balance sheet remeasurement items. Additionally, there were higher gains from the sale of real estate in fiscal 2008 as compared to fiscal 2009...

  • Page 63
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) The decrease in the overall tax rate in fiscal 2009 from fiscal 2008 was due primarily to the net income tax benefits recorded for fiscal 2009 which were related...

  • Page 64
    ...impacts and weak economic conditions, the effect of which was partially offset by growth in extended warranty. Services earnings from operations as a percentage of net revenue increased by 2.5 percentage points for fiscal 2009, as compared to fiscal 2008. The operating margin increased due primarily...

  • Page 65
    ... support services, extended warranty revenue and favorable currency impacts, the impact of which was partially offset by competitive pricing pressures. Net revenue in infrastructure technology outsourcing, application services and business process outsourcing increased driven mainly by the EDS...

  • Page 66
    ... new product ramp up. Total ESS blades revenue declined by 8% in fiscal 2009 as compared to fiscal 2008. Business critical systems net revenue decreased 27% in fiscal 2009 compared to fiscal 2008 driven by a decline in Integrity server revenue due to weaker market conditions and by the planned phase...

  • Page 67
    ... in gross margin. Gross margin in fiscal 2009 decreased due primarily to competitive pricing across each of the segment business units and product mix shifts. Operating expense as a percentage of net revenue in fiscal 2009 was generally consistent with the fiscal 2008. ESS net revenue increased...

  • Page 68
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) from licenses and services declined, the effect of which was partially offset by increased support revenue as a result of renewal rate increases. Net revenue ...

  • Page 69
    ... decreased 14%, while net revenue for commercial clients decreased 19% from fiscal 2008. The net revenue increase in Other PSG was related primarily to increased sales of extended warranties, support services and third-party branded options. In fiscal 2009, PSG net revenue was also impacted by ASP...

  • Page 70
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) 4% decline in consumer client ASPs. ASPs declined from fiscal 2007 as a result of price erosion related to component cost reductions and a competitive pricing ...

  • Page 71
    ... was partially offset by increased investments in our enterprise printing sales force. HP Financial Services For the fiscal years ended October 31 2009 2008 2007 In millions Net revenue ...Earnings from operations ...Earnings from operations as a % of net revenue ... $2,673 $ 206 7.7% $2,698 $ 192...

  • Page 72
    ... Financial Statements. The portfolio assets and ratios derived from the segment balance sheet for HPFS were as follows for the following fiscal years ended October 31: 2009 2008 In millions Portfolio assets(1) ...Allowance for doubtful accounts(2) ...Operating lease equipment reserve ...Total...

  • Page 73
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Consolidated Financial Statements in Item 8, which is incorporated herein by reference. Portfolio assets also include capitalized profit on intercompany ...

  • Page 74
    ...generated by network infrastructure products, and operating expenses related to HP Labs was flat as compared to fiscal 2007. LIQUIDITY AND CAPITAL RESOURCES Our cash balances are held in numerous locations throughout the world, including substantial amounts held outside of the United States. Most of...

  • Page 75
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) institutions. Our liquidity is subject to various risks including the market risks identified in the section entitled ''Qualitative and Quantitative Disclosures ...

  • Page 76
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Our key working capital metrics are as follows: 2009 October 31 2008 2007 Days of sales outstanding in accounts receivable ...Days of supply in inventory ......

  • Page 77
    ... net issuance of commercial paper and debt. For more information on our share repurchase programs, see Item 5 and Note 15 to the Consolidated Financial Statements in Item 8, which are incorporated herein by reference. CAPITAL RESOURCES Debt Levels For the fiscal years ended October 31 2009 2008 2007...

  • Page 78
    ... balance that exceeds the $6.4 billion supported by our credit facilities is subject to a number of factors, including liquidity conditions and business performance. HP also has registered for the Commercial Paper Funding Facility (''CPFF'') provided by the Federal Reserve Bank of New York...

  • Page 79
    ... relating to our long-term debt and do not include any fair value adjustments or discounts and premiums. Amounts represent the expected interest cash payments relating to our long-term debt. We have outstanding interest rate swap agreements accounted for as fair value hedges that have the economic...

  • Page 80
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) In addition to the above, at October 31, 2009, we had approximately $1.3 billion of recorded liabilities and related interest and penalties pertaining to ...

  • Page 81
    ... exchange rate risk inherent in our sales commitments, anticipated sales, anticipated purchases and assets, liabilities and debt denominated in currencies other than the U.S. dollar. We transact business in approximately 40 currencies worldwide, of which the most significant to our operations...

  • Page 82
    ... change in the stock prices of our publicly-traded equity securities would result in a loss in the fair values of our marketable equity securities of $1 million at October 31, 2009 and $2 million at October 31, 2008. The aggregate cost of privately-held companies, marketable trading securities...

  • Page 83
    ... Restructuring Charges ...Note 9: Fair Value ...Note 10: Financial Instruments ...Note 11: Financing Receivables and Operating Leases ...Note 12: Guarantees ...Note 13: Borrowings ...Note 14: Taxes on Earnings ...Note 15: Stockholders' Equity ...Note 16: Retirement and Post-Retirement Benefit Plans...

  • Page 84
    ... Topic 715, Compensation-Retirement Benefits). We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Hewlett-Packard Company's internal control over financial reporting as of October 31, 2009, based on criteria...

  • Page 85
    ... Public Company Accounting Oversight Board (United States), the accompanying consolidated balance sheets of Hewlett-Packard Company and subsidiaries as of October 31, 2009 and 2008, and the related consolidated statements of earnings, stockholders' equity and cash flows for each of the three years...

  • Page 86
    ... accounting firm, as stated in their report which appears on page 78 of this Annual Report on Form 10-K. /s/ MARK V. HURD Mark V. Hurd Chairman, Chief Executive Officer and President December 17, 2009 /s/ CATHERINE A. LESJAK Catherine A. Lesjak Executive Vice President and Chief Financial Officer...

  • Page 87
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Consolidated Statements of Earnings For the fiscal years ended October 31 2009 2008 2007 In millions, except per share amounts Net revenue: Products ...Services ...Financing income ...Total net revenue ...Costs and expenses: Cost of products ...Cost of ...

  • Page 88
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Consolidated Balance Sheets October 31 2009 2008 In millions, except par value ASSETS Current assets: Cash and cash equivalents . Short-term investments ...Accounts receivable ...Financing receivables ...Inventory ...Other current assets ...$ 13,279 55 16,...

  • Page 89
    ... taxes on earnings ...Excess tax benefit from stock-based compensation ...Other, net ...Changes in assets and liabilities: Accounts and financing receivables ...Inventory ...Accounts payable ...Taxes on earnings ...Restructuring ...Other assets and liabilities ...Net cash provided by operating...

  • Page 90
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Accumulated Additional Prepaid Other Number of Paid-in stock Retained Comprehensive Shares Par Value Capital repurchase Earnings (Loss) income Common Stock Balance October 31, 2006 ...Net earnings ...Net ...

  • Page 91
    ...related to the presentation of tax benefits of stock option plans, as described in Note 14. The revisions result in an increase in the change in taxes on earnings and a decrease in the adjustment to deferred taxes on earnings within cash flows from operating activities on the Consolidated Statements...

  • Page 92
    ... revenue on sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale and when the channel partners have economic substance apart from HP and HP has completed its obligations related to the sale. In October 2009, the FASB issued Accounting...

  • Page 93
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies (Continued) deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement ...

  • Page 94
    ... basis is recognized over the period such items are delivered. Services HP recognizes revenue from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements, ratably over the contract period and recognizes the costs...

  • Page 95
    ... on fixed-price contracts as trade receivables. Financing Income Sales-type and direct-financing leases produce financing income, which HP recognizes at consistent rates of return over the lease term. Shipping and Handling HP includes costs related to shipping and handling in cost of sales for all...

  • Page 96
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies (Continued) held in major banks and commercial paper. As of October 31, 2009 and 2008, the carrying value of cash and cash equivalents approximates fair...

  • Page 97
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies (Continued) income and market approaches. Under the income approach, HP calculates the fair value of a reporting unit based on the present value of ...

  • Page 98
    ... and related accounting policies, which is incorporated herein by reference. Investments HP's investments consist principally of time deposits, money market funds, commercial paper, corporate debt, other debt securities, and equity securities of publicly-traded and privately-held companies. HP...

  • Page 99
    ... HP is supplied components by a single source supplier could adversely affect HP's revenue and gross margins. Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value. HP recognizes these compensation costs...

  • Page 100
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies (Continued) functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as ...

  • Page 101
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies (Continued) restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and ...

  • Page 102
    ... under ''Revenue Recognition'' above. Note 2: Stock-Based Compensation HP's stock-based compensation plans include incentive compensation plans and an employee stock purchase plan (''ESPP''). Stock-based Compensation Expense and the Related Income Tax Benefits Total stock-based compensation expense...

  • Page 103
    ... of HP common stock that may be issued under the Hewlett-Packard Company 2004 Stock Incentive Plan. PRU awards may be granted to eligible employees, including HP's principal executive officer, principal financial officer and other executive officers. Each PRU award reflects a target number of shares...

  • Page 104
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 2: Stock-Based Compensation (Continued) subject to that award. Target shares subject to PRU awards do not have dividend equivalent rights and do not have the voting rights of common stock until ...

  • Page 105
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 2: Stock-Based Compensation (Continued) fiscal 2009 will be determined when the annual cash flow goals are approved, and the expense will be amortized over the remainder of the applicable three-year...

  • Page 106
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 2: Stock-Based Compensation (Continued) The weighted-average fair value of stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: ...

  • Page 107
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 2: Stock-Based Compensation (Continued) Information about options outstanding at October 31, 2009 was as follows: Options Outstanding WeightedWeightedAverage Average Remaining Exercise Shares ...

  • Page 108
    ... pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expected to recognize over a weighted-average vesting period of 1.2 years. Employee Stock Purchase Plan HP sponsors the Hewlett-Packard Company 2000 Employee Stock Purchase Plan, also known as the Share...

  • Page 109
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 2: Stock-Based Compensation (Continued) The ESPP activity as of October 31 during each fiscal year was as follows: 2009 2008 2007 In millions, except weighted-average purchase price per share ...

  • Page 110
    ... options to purchase an additional 2 million shares, 28 million shares and 33 million shares in fiscal 2009, 2008 and 2007, respectively, whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's common...

  • Page 111
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 3: Net Earnings Per Share (Continued) the fiscal 2008 awards. HP has excluded all other shares underlying the fiscal 2008 PRU awards when calculating diluted EPS as those shares were not ...

  • Page 112
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 4: Balance Sheet Details (Continued) Other Current Assets 2009 2008 In millions Deferred tax assets - short-term ...Value added taxes receivable from the government Supplier and other receivables ...

  • Page 113
    ... the balance sheet date. Deferred revenue represents amounts received or billed in advance for fixed-price support or maintenance contracts, software customer support contracts, outsourcing services start-up or transition work, consulting and integration projects, product sales and leasing income...

  • Page 114
    ... to governments around the world. The purchase price for EDS was $13.0 billion, comprised of $12.7 billion cash paid for outstanding common stock, $328 million for the fair value of stock options and restricted stock units assumed, and $36 million for direct transaction costs. Of the total purchase...

  • Page 115
    ... 2008 and changes in the carrying amount of goodwill during the fiscal year ended October 31, 2009 are as follows: Enterprise Imaging Storage Personal and HP and HP Systems Printing Financial Corporate Services Servers Software Group Group Services Investments In millions Total Balance at October...

  • Page 116
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 7: Goodwill and Purchased Intangible Assets (Continued) EDS's foreign subsidiaries whose functional currency is not the U.S. dollar. These increases in goodwill were partially offset by tax ...

  • Page 117
    ...approximately $6 million related to severance costs associated with this plan. Fiscal 2008 HP/EDS Restructuring Plan In connection with the acquisition of EDS on August 26, 2008, HP's management approved and initiated a restructuring plan to streamline the combined company's services business and to...

  • Page 118
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 8: Restructuring Charges (Continued) All restructuring costs associated with pre-acquisition EDS are reflected in the purchase price of EDS. These costs are subject to change based on the actual ...

  • Page 119
    ... methodologies HP uses to measure its financial assets and liabilities at fair value. Cash Equivalents and Investments: HP holds time deposits, money market funds, commercial paper, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and...

  • Page 120
    ... presents HP's assets and liabilities as of October 31, 2009 that are measured at fair value on a recurring basis: Fair Value Measured Using Level 1 Level 2 Level 3 In millions Total Balance Assets Time deposits ...Commercial paper ...Money market funds ...Other debt securities ...Marketable equity...

  • Page 121
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 9: Fair Value (Continued) $39 million were measured using level 3 inputs. HP recorded an impairment charge of $18 million relating to these investments. HP reviews the carrying values of the ...

  • Page 122
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 10: Financial Instruments Available-for-Sale Investments Cash equivalents and investments at fair value for the following fiscal years ended October 31 were as follows: 2009 Gross Gross Unrealized ...

  • Page 123
    ... in privately-held companies include cost basis and equity method investments. Marketable trading securities and other investments consist primarily of marketable trading securities held to generate returns that HP expects to offset changes in certain liabilities related to deferred compensation...

  • Page 124
    ... 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...

  • Page 125
    ... consist primarily of forward contracts HP uses to hedge foreign currency balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on the equity and fixed income indices, to hedge its executive deferred compensation plan liability. For derivative...

  • Page 126
    ... 31, 2009 Long-term Financing Other Receivables Other Current and Accrued Assets Other Assets Liabilities In millions Gross Notional(1) Other Liabilities Derivatives designated as hedging Fair value hedges: Interest rate contracts ...Cash flow hedges: Foreign exchange contracts ...Net investment...

  • Page 127
    ... item in a fair value hedging relationship for fiscal year ended October 31, 2009 was as follows: Derivative Instrument Gain (Loss) Recognized in Income on Derivative and Related Hedged Item Location 2009 Hedged Item Location 2009 In millions In millions Interest rate contracts ...Interest and...

  • Page 128
    ...billion at that date. The estimated fair value of the debt is based primarily on quoted market prices, as well as borrowing rates currently available to HP for bank loans with similar terms and maturities. Note 11: Financing Receivables and Operating Leases Financing receivables represent sales-type...

  • Page 129
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 11: Financing Receivables and Operating Leases (Continued) As of October 31, 2009, scheduled maturities of HP's minimum lease payments receivable were as follows for the following fiscal years ended...

  • Page 130
    ... post sales support costs differ from these estimates, revisions to the estimated warranty liability would be required. The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31: 2009 2008 In millions Product warranty liability at...

  • Page 131
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 13: Borrowings (Continued) Long-Term Debt Long-term debt was as follows for the following fiscal years ended October 31: 2009 2008 In millions U.S. Dollar Global Notes 2002 Shelf Registration ...

  • Page 132
    ... shares and warrants. The 2009 Shelf Registration Statement replaced a similar registration statement filed in May 2006 that expired in May 2009. In May 2008, HP's Board of Directors approved an increase in the capacity of HP's U.S. commercial paper program by $10.0 billion to $16.0 billion. HP...

  • Page 133
    ... to have a U.S. commercial paper outstanding balance that exceeds the $6.4 billion supported these credit facilities is subject to a number of factors, including liquidity conditions and business performance. HP also maintains uncommitted lines of credit from a number of financial institutions that...

  • Page 134
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 14: Taxes on Earnings (Continued) The provision for (benefit from) taxes on earnings was as follows for the following fiscal years ended October 31: 2009 2008 In millions 2007(1) U.S. federal taxes...

  • Page 135
    ... - profit in inventory . Intercompany transactions - excluding inventory Fixed assets ...Warranty ...Employee and retiree benefits ...Accounts receivable allowance ...Capitalized research and development ...Purchased intangible assets ...Restructuring ...Equity investments ...Deferred revenue...

  • Page 136
    ...of employee stock options and other employee stock programs, are recorded as an increase in stockholders' equity and were approximately $163 million in fiscal 2009, $316 million in fiscal 2008, and $530 million in fiscal 2007. The differences between the U.S. federal statutory income tax rate and HP...

  • Page 137
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 14: Taxes on Earnings (Continued) In fiscal 2009, HP recorded $547 million of net income tax benefits related to items unique to the year. The recorded amounts included $383 million of income tax ...

  • Page 138
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 14: Taxes on Earnings (Continued) HP recognizes interest income from favorable settlements and income tax receivables and interest expense and penalties accrued on unrecognized tax benefits within ...

  • Page 139
    ... to the terms of the ASR Program, HP purchased 40 million shares of its common stock from the investment bank for $1.8 billion (the ''Purchase Price'') on March 30, 2007 (the ''Purchase Date''). HP decreased its shares outstanding and reduced the outstanding shares used to calculate the weighted...

  • Page 140
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 15: Stockholders' Equity (Continued) average common shares outstanding for both basic and diluted EPS on the Purchase Date. The shares delivered to HP included shares that the investment bank ...

  • Page 141
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 15: Stockholders' Equity (Continued) Comprehensive Income The changes in the components of other comprehensive income, net of taxes, were as follows for the following fiscal years ended October 31: ...

  • Page 142
    ... Benefit Plans HP sponsors a number of defined benefit pension plans worldwide, of which the most significant are in the United States. Both the HP Retirement Plan (the ''Retirement Plan''), a traditional defined benefit pension plan based on pay and years of service, and the HP Company Cash Account...

  • Page 143
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 16: Retirement and Post-Retirement Benefit Plans (Continued) benefit obligations for the U.S. defined benefit plans combined with the DPSP is as follows for the following fiscal years ended October ...

  • Page 144
    ... share growth, and performance relative to market and economic conditions. HP's matching contributions for the quarter ended October 31, 2009 was 100% of the maximum 4% match. Effective January 31, 2004, HP designated the HP Stock Fund, an investment option under the HP 401(k) Plan, as an Employee...

  • Page 145
    ... Benefit Plans 2009 2008 2007 Non-U.S. Defined Benefit Plans 2009 2008 2007 Post-Retirement Benefit Plans 2009 2008 2007 Discount rate ...8.0% 6.4% 5.9% 6.0% 5.2% 4.4% 8.2% 6.2% 5.8% Average increase in compensation levels ...2.0% 3.7% 4.0% 2.6% 3.3% 3.3% - - - Expected long-term return on assets...

  • Page 146
    ...: U.S. Defined Benefit Plans 2009 2008 Non-U.S. Defined Benefit Plans 2009 2008 In millions Post-Retirement Benefit Plans 2009 2008 Change in fair value of plan assets: Fair value - beginning of year ...Addition of plan - EDS ...Acquisition/addition/(deletion) of plans Actual return on plan assets...

  • Page 147
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 16: Retirement and Post-Retirement Benefit Plans (Continued) The net amounts recognized for HP's defined benefit and post-retirement benefit plans in HP's Consolidated Balance Sheets as of October ...

  • Page 148
    ...fiscal close were as follows: U.S. Defined Benefit Plans 2009 2008 Non-U.S. Defined Benefit Plans 2009 2008 Post-Retirement Benefit Plans 2009 2008 Discount rate ...Average increase in compensation levels . Current medical cost trend rate ...Ultimate medical cost trend rate ...Year the rate reaches...

  • Page 149
    ...liabilities and liquidity needs. HP invests a portion of the U.S. defined benefit plan assets and post-retirement benefit plan assets in private market securities such as venture capital funds, private debt and private equity to provide diversification and higher expected returns. Outside the United...

  • Page 150
    ... investment strategy for the merged U.S. pension plan. The approach used to arrive at the expected rate of return on assets for the non-U.S. plans reflects the asset allocation policy of each plan and the expected country real returns for equity and fixed income investments. On an annual basis, HP...

  • Page 151
    ... Consolidated Balance Sheet. Accumulated depreciation on the property under capital lease was approximately $406 million at October 31, 2009. The related depreciation is included in depreciation expense. Future annual minimum lease payments, sublease rental income commitments and capital lease...

  • Page 152
    ... (such as multifunction devices (''MFDs''), personal computers (''PCs'') and printers) and alleging that these devices enable producing private copies of copyrighted materials. The total levies due, if imposed, would be based upon the number of products sold and the per-product amounts of the levies...

  • Page 153
    ... levy of 15 euros plus tax for each PC sold during that period. HP has rejected the ruling of the arbitration board, and the arbitration proceedings have concluded. ZPU has filed a claim with the Munich Court of Appeals to which HP has responded. A hearing date has been set by the court for February...

  • Page 154
    ... of contract. The claims arose out of a customer relationship management project that was awarded to EDS in 2000, the principal objective of which was to develop a customer call center in Scotland. EDS's main role in the project was as systems integrator. On November 12, 2004, EDS and EDS UK filed...

  • Page 155
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 18: Litigation and Contingencies (Continued) • A lawsuit captioned Blennis v. HP was filed on January 17, 2007 in the United States District Court for the Northern District of California where the...

  • Page 156
    ... false claims in connection with contracts to provide products and services to the federal government. On April 12, 2007, the U.S. Department of Justice intervened in the qui tam action and filed a complaint against HP (and several other companies in separate actions) on behalf of the United States...

  • Page 157
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 18: Litigation and Contingencies (Continued) that HP was not entitled to receive under those contracts, and was unjustly enriched by expressly or impliedly making false statements, records or ...

  • Page 158
    ... In re Hewlett-Packard Company Derivative Litigation. The consolidated complaint filed on November 19, 2006, also seeks to recover damages in connection with sales of HP stock alleged to have been made by certain current and former HP officers and directors while in possession of material non-public...

  • Page 159
    ... personal computing and other access devices; imaging and printing-related products and services; enterprise information technology (''IT'') infrastructure, including enterprise storage and server technology and networking products; software that optimizes business technology investments; financial...

  • Page 160
    ... shared services, customer relationship management services, financial process management services and administrative services. Technology services include consulting and support services, such as mission critical services, converged infrastructure services, networking services, data center...

  • Page 161
    ...that enables communication service providers to deploy revenue generating infrastructure and applications, customer intelligence and billing systems, and operational support systems. In addition, for media companies and distributors, HP Software provides solutions that address content management and...

  • Page 162
    ...include LaserJet toner and inkjet printer cartridges and other printing-related media. • HP Financial Services supports and enhances HP's global product and services solutions, providing a broad range of value-added financial life-cycle management services. HPFS enables HP's worldwide customers to...

  • Page 163
    ... resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no...

  • Page 164
    ... of segment assets to HP consolidated total assets were as follows at October 31: 2009 2008 In millions 2007 Services ...Enterprise Storage and Servers ...HP Software ...HP Enterprise Business ...Personal Systems Group ...Imaging and Printing Group ...HP Financial Services ...Corporate Investments...

  • Page 165
    ... the sales location that predominately represents the customer location. Other than the United States, no single country represented more than 10% of HP's total consolidated net revenue in any period presented. HP reports revenue net of sales taxes, use taxes and value-added taxes directly imposed...

  • Page 166
    ...Other software ...HP Software ...HP Enterprise Business ...Notebooks . . Desktops ...Workstations Handhelds . . Other ... Personal Systems Group ...Supplies ...Commercial hardware ...Consumer hardware ...Imaging and Printing Group ...HP Financial Services ...Corporate Investments ...Total segments...

  • Page 167
    ...revenue was transferred among the business units within the Services, HP Software, Imaging and Printing Group, and Personal Systems Group segments. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, HP Financial Services and Corporate Investments...

  • Page 168
    ...charges ...Total costs and expenses ...Earnings from operations ...Interest and other, net ...Earnings before taxes ...Provision for taxes ...Net earnings ...Net earnings per share:(2) Basic ...Diluted ...Cash dividends paid per share ...Range of per share stock prices on the New York Stock Exchange...

  • Page 169
    ... charges ...Total costs and expenses ...Earnings from operations ...Interest and other, net ...Earnings before taxes ...Provision for taxes ...Net earnings ...Net earnings per share:(2) Basic ...Diluted ...Cash dividends paid per share ...Range of per share stock prices on the New York Exchange...

  • Page 170
    .... 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...

  • Page 171
    ... beneficial owners, directors and executive officers is set forth under ''Common Stock Ownership of Certain Beneficial Owners and Management.'' • Information regarding HP's equity compensation plans, including both stockholder approved plans and non-stockholder approved plans, is set forth in the...

  • Page 172
    ...with related persons is set forth under ''Related Person Transaction Policies and Procedures.'' • Information regarding director independence is set forth under ''Corporate Governance Principles and Board Matters-Director Independence.'' ITEM 14. Principal Accountant Fees and Services. Information...

  • Page 173
    ... filed as part of this report under Item 8-''Financial Statements and Supplementary Data.'' Reports of Independent Registered Public Accounting Firm ...Management's Report on Internal Control Over Financial Reporting Consolidated Statements of Earnings ...Consolidated Balance Sheets ...Consolidated...

  • Page 174
    Schedule II HEWLETT-PACKARD COMPANY AND SUBSIDIARIES Valuation and Qualifying Accounts For the fiscal years ended October 31 2009 2008 2007 In millions Allowance for doubtful accounts - accounts receivable: Balance, beginning of period ...Amount acquired through acquisition ...Addition of bad debt ...

  • Page 175
    ... by the undersigned, thereunto duly authorized. Date: December 17, 2009 HEWLETT-PACKARD COMPANY By: /s/ CATHERINE A. LESJAK Catherine A. Lesjak Executive Vice President and Chief Financial Officer POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below...

  • Page 176
    ... Date /s/ JOHN H. HAMMERGREN John H. Hammergren /s/ JOEL Z. HYATT Joel Z. Hyatt /s/ JOHN R. JOYCE John R. Joyce /s/ ROBERT L. RYAN Robert L. Ryan /s/ LUCILLE S. SALHANY Lucille S. Salhany /s/ G. KENNEDY THOMPSON G. Kennedy Thompson Director Director December 17, 2009 December 17, 2009 Director...

  • Page 177
    HEWLETT-PACKARD COMPANY AND SUBSIDIARIES EXHIBIT INDEX Exhibit Number Incorporated by Reference File No. Exhibit(s) Filing Date Exhibit Description Form 3(a) Registrant's Certificate of Incorporation. 3(b) Registrant's Amendment to the Certificate of Incorporation. 3(c) Registrant's Amended and ...

  • Page 178
    Exhibit Number Exhibit Description Form Incorporated by Reference File No. Exhibit(s) Filing Date 4(j) Form of Registrant's Floating Rate Global Note due February 24, 2011, 4.250% Global Note due February 24, 2012 and 4.750% Global Note due June 2, 2014 and form of related Officers' Certificate....

  • Page 179
    ... Stock Option Plan for Non-Employee Directors, effective September 3, 2001.* 10(l) Compaq Computer Corporation 1998 Former Nonemployee Replacement Option Plan.* 10(m) Registrant's Excess Benefit Retirement Plan, amended and restated as of January 1, 2006.* 10(n) Hewlett-Packard Company Cash Account...

  • Page 180
    ...(s) Filing Date 10(x) Registrant's Executive Officers Severance Agreement.* 10(y) Form letter regarding severance offset for restricted stock and restricted units.* 10(z) Form of Indemnity Agreement between Compaq Computer Corporation and its executive officers.* 10(a)(a) Form of Stock Option...

  • Page 181
    Exhibit Number Exhibit Description Form Incorporated by Reference File No. Exhibit(s) Filing Date 10(g)(g) Forms of Stock Option Notice for the Compaq Computer Corporation Non-Qualified Stock Option Plan for Non-Employee Directors, as amended.* 10(h)(h) Form of Long-Term Performance Cash Award ...

  • Page 182
    ...of restricted stock.* 10(a)(a)(a) Form of Restricted Stock Unit Agreement for Registrant's 2004 Stock Incentive Plan.* 10(b)(b)(b) First Amendment to the HewlettPackard Company Excess Benefit Retirement Plan.* 10(c)(c)(c) Fourth Amendment to the Registrant's 2005 Executive Deferred Compensation Plan...

  • Page 183
    ... debt not filed herewith as to which the total amount of securities authorized thereunder does not exceed 10 percent 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...

  • Page 184
    Financial highlights Revenue $ in billions $34.0 $33.6 FY09 revenue by segment Imaging and Printing Group Services $30.8 21% 30% 32.0 30.0 $28.8 $28.3 $28.5 $28.3 $28.0 28.0 26.0 $25.5 $25.1 Personal Systems Group Enterprise Storage and Servers HP Software HP Financial Services and Other...

  • Page 185
    ...com www.hp.com © Copyright 2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein...