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ANALYSIS OF

FINANCIAL
STATEMENTS
HEWLETT PACKARD CO.

Contents
OVERVIEW OF THE COMPANY .............................................................................................................. 3
SWOT ANALYSIS HEWLETT PACKARD................................................................................................. 6
Hewlett-Packard Co., Consolidated Income Statement ....................................................................... 9
Hewlett-Packard Co., Consolidated Statement of Comprehensive Income ....................................... 11
Hewlett-Packard Co., Consolidated Statement of Financial Position, Assets ..................................... 13
Hewlett-Packard Co., Consolidated Statement of Financial Position, Liabilities and Stockholders'
Equity .................................................................................................................................................. 16
Hewlett-Packard Co., Consolidated Statement of Cash Flows ........................................................... 18
Hewlett-Packard Co., Common-Size Consolidated Income Statement .............................................. 20
Hewlett-Packard Co., Common-Size Consolidated Statement of Financial Position, Assets .............. 22
Hewlett-Packard Co., Common-Size Consolidated Statement of Financial Position, Liabilities and
Stockholders' Equity ............................................................................................................................ 23
Hewlett-Packard Co., short-term (operating) activity ratios .............................................................. 25
Hewlett-Packard Co., long-term (investment) activity ratios ............................................................. 32
Hewlett-Packard Co., liquidity ratios .................................................................................................. 34
Hewlett-Packard Co., debt and solvency ratios .................................................................................. 37
Hewlett-Packard Co., profitability ratios ............................................................................................ 40
Net Revenue ........................................................................................................................................ 44
Gross Margin ....................................................................................................................................... 45
Operating Expenses ............................................................................................................................ 47
Research and Development ............................................................................................................ 47
Selling, General and Administrative ................................................................................................ 47
Amortization of Purchased Intangible Assets ................................................................................. 47
Acquisition-Related Charges ........................................................................................................... 48
Interest and Other, Net ................................................................................................................... 48
Provision for Taxes .......................................................................................................................... 48
Operating Activities ............................................................................................................................. 49
Investing Activities .............................................................................................................................. 50
Financing Activities ............................................................................................................................. 50
Cash and Cash Equivalents .................................................................................................................. 50



OVERVIEW OF THE COMPANY
HP is a leading global provider of products, technologies, software, solutions and services to
individual consumers, small- and medium-sized businesses, and large enterprises, including
customers in the government, health and education sectors. Their offerings span:
Multi-vendor customer services, including infrastructure technology and business
process outsourcing, technology support and maintenance, application development
and support services, and consulting and integration services;
Enterprise information technology infrastructure, including enterprise storage and
server technology, networking products and solutions, information management
software and software that optimize business technology investments;
Personal computing and other access devices; and
Imaging and printing-related products and services.
They have seven business segments for financial reporting purposes: Services, Enterprise
Storage and Servers (''ESS''), HP Software, the Personal Systems Group (''PSG''), the Imaging and
Printing Group (''IPG''), HP Financial Services (''HPFS''), and Corporate Investments. Services, ESS
and HP Software are reported collectively as a broader HP Enterprise Business. While the HP
Enterprise Business is not an operating segment, they sometimes provide financial data
aggregating the segments within it in order to provide a supplementary view of their business.
Their strategy and operations are currently focused on the following
initiatives:

Competitive Positioning
They are positioning their businesses to take advantage of important trends in the markets
for their products and services. For example, they are aligning their printing business to
capitalize on key market trends such as the shift from analog to digital printing and the
growth in printable content by developing innovative products for consumers such as the
first web-connected home printer, working to enable web and mobile printing, expanding
their presence in high-usage annuity businesses including graphics and retail publishing
printing, and growing their managed print services business. They are also positioning their
enterprise business to capitalize on the trend towards converged infrastructure products
that integrate storage, networking, servers and management software, while also delivering
services for that converged infrastructure in a manner that best fits each client's needs, be it
at a client site, as an outsourced service via the Internet or via a hybrid approach. In
addition, they have developed IT management software offerings that seek to satisfy the
increasing demand for virtualization management and increased automation.

Driving Operational Efficiency
They are working to optimize efficiency across the company. As part of those efforts,
they are continuing to execute on their multi-year program to consolidate real estate
locations worldwide to fewer core sites in order to reduce their IT spending and real
estate costs. They are also continuing to implement the restructuring plan announced
in the fourth quarter of fiscal 2008 to optimize the cost structure of their Services
business and the restructuring plan announced in May 2009 to structurally change and
improve the effectiveness of several of their product businesses. In June 2010, they
announced and started implementing a new restructuring plan that will consolidate
data centers, systems and tools to better position for growth their enterprise services
business, which includes their infrastructure technology outsourcing, application
services, and business process outsourcing business units.

Investing for Growth
They are investing for growth by strengthening their position in their core markets and
accelerating growth in adjacent markets in anticipation of market trends, such as data
center consolidation and automation, cloud computing and virtualization, digitization, IT
security, and mobility and connectivity. For example, they are increasing their sales
coverage and investing in their sales channels to better address the markets they cover,
including further expansion in emerging markets. They are creating innovative new products
and developing new channels to connect with their customers. In addition, they have been
making focused investments in innovation to strengthen their portfolio of products and
services that they can offer to their customers, both through acquisitions and through
organic growth. A critical component of this strategy was their acquisition of Electronic Data
Systems Corporation (''EDS'') in August 2008, which has increased the size and breadth of
their services business and enabled them to provide comprehensive IT product and services
solutions to their customers. In addition, with the completion of the acquisition of 3Com
Corporation (''3Com'') in April 2010, they are accelerating their investments in networking.
In July 2010, they completed the acquisition of Palm, Inc. (''Palm''), which enhances their
ability to participate more aggressively in the growing smartphone and connected mobile
device markets. In September 2010, they completed the acquisition of 3PAR Inc. (''3PAR''),
which expands their storage portfolio into enterprise-class public and private cloud
computing environments. In October 2010, they completed the acquisition of ArcSight, Inc.
(''ArcSight''), which enables them to offer customers an integrated security platform with a
holistic approach to securing their networks, applications and sensitive data. These
acquisitions have enabled them to expand in high-margin and high-growth industry
segments and have further strengthened their portfolio of hardware, software and services.

Leveraging their Portfolio and Scale
They offer one of the IT industry's broadest portfolios of products and services, and they
leverage that portfolio to their strategic advantage. For example, in their enterprise
business, they are able to provide servers, storage and networking products packaged
with services that can be delivered to customers in the manner of their choosing, be it
in-house, outsourced as a service via the Internet or via a hybrid environment. Their
portfolio of management software completes the package by allowing their customers
to manage their IT operations in an efficient and cost-effective manner. In addition, they
are working to optimize their supply chain by eliminating complexity, reducing fixed
costs, and leveraging their scale to ensure the availability of components at favorable
prices even during shortages. They are also expanding their use of industry standard
components in their enterprise products to further leverage their scale.


SWOT ANALYSIS HEWLETT PACKARD

STRENGTHS

STRONG MARKET POSITION: Hewlett-Packard has the largest global market share in the PC
market at 17.7% with the closest competitor Dell at 14% and Lenovo which possesses
13.5%.In addition Hewlett Packard can boast of a 30% of the global server market. Its
domination of the global printer market is evidenced by its 40% market share. In 2009
Hewlett Packard took a major step in strengthening its position in the IT services market by
acquiring EDS.

PROMINENT BRAND NAME RECOGNITION: Hewlett-Packard has a strong, well-known brand.
They have the ability to pursue endeavors in other markets and their brand name will allow
them to do so with credibility to a certain extent. Hewlett Packard is keenly aware of the
importance of branding. It has long sought to adjust its brand image as required by changing
market forces. In the late nineties it began to shift its image to encompass more than just the
business to business segment making adjustments to increase its presence in the consumer
market as well. Although business to business sales continue to prevail, the company seeks to
exploit its good relationship with retailers. As a result of this strategy many current consumer
products are business models stripped of costly features in order to appeal to the needs and
pocketbook of the consumer market.

Hewlett Packard has launched a branding initiative called, One Voice, in order to better
integrate its line of consumer electronics and computer hardware products. With a fresh
design to the packaging, they are striving to on brand across thousands of product lines and
dozens of packaging types. The project has resulted in hundreds of thousands of dollars in
cost savings by automating package design creation. In addition, the company gained greater
consistency in its packaging by providing a system that keeps the company on brand. In 2009
the company moved up from the 12th to the 11th most recognizable brand according to a
global survey.

SUCCESSFUL STRATEGIC ACQUISITIONS: Hewlett Packard continues its trend of recognizing
and capitalizing on strategic acquisitions. The companys major mergers and acquisitions in
recent past include Compaq Computer Corporation in 2002, Mercury Interactive in 2006 and
Electronic Data Systems Corporation (EDS) in 2009. In November of 2009, Hewlett Packard
announced that it had reached an agreement to acquire 3Com, a provider of computer
network equipment, for $2.7 billion in a deal that H.P. plans as a the beginning of an assault
on the market leader in networking, Cisco Systems. Computer networking is a $40 billion-a-
year market with high profit margins that is growing briskly and dominated by Cisco, which
has so far had little head-to-head competition. The companys successful inorganic growth
allows it to increase its competitiveness as well as create value for both investors and
customers of the company.

EXPERTISE: Hewlett-Packard has printer expertise and is a world leader in this product.

WEAKNESSES

WEAK MARKET SEGMENT INTEGRATION: Although Hewlett Packard is currently addressing
its lack of presence in some seemingly obvious segments, there remains room for
improvement. The companys portfolio of offerings lack significant software product or
manage consulting services when compared to major competitors including, Accenture, EMC
and IBM. For example, both IBM and Accenture are establishing management consulting
divisions so as to provide more comprehensive and integrated range of services. Hewlett
Packard has partnered with Thomson eXimius to provide front office processes for private
client wealth management firms to support the increasingly sophisticated needs of their
customers.

SUPPLY CHAIN: Hewlett-Packard is supplied by third party vendors. Since they are unable to
accurately determine demand 100% of the time, they run the risks of having a shortage or
being oversupplied.


PERSONAL COMPUTER: Hewlett-Packards inability to create a desktop that can compete
with companies such as Dell within a timely manner.

OPPURTUNITIES


EXPANDING PRESENCE IN CLOUD COMPUTING MARKET: Cloud computing describes a new
delivery model for IT services. In July 2008, HP along with Intel Corporation and Yahoo!
created a global, multi-data center, open source test bed for cloud computing research and
education. The goal of the project was to promote collaboration among industry, academy
and governments by removing the financial and logistical barriers. In 2009, HP announced HP
Cloud Assure, a new SaaS offering designed to assist businesses to safely and effectively adopt
cloud-based services. HP Cloud Assure consists of HP services and software, including HP
Application Security Center, HP Performance Center and HP Business Availability Center.
These solutions are delivered to customers though HP SaaS platform. The increasing demand
for cloud computing is likely to create demand for HPs solutions in coming years. The global
spending on cloud computing is forecast to cross a value of over $40 billion by 2012
EXPANDING PORTFOLIO OF IMAGING AND PRINTING SOLUTIONS: Hewlett Packard has
made several strategic acquisitions and introduced new products in the imaging solutions
segment in recent times. Its imaging solutions strategy entails the commercial markets, from
print services solutions to new growth opportunities in commercial printing and capturing
high-value pages in areas such as industrial applications, outdoor signage, and graphic arts.
Among those key acquisitions are Tabblo, Logoworks, MacDermid and ColorSpan.

RETAIL PHOTO PRINTING SOLUTIONS AND SERVICES: HP provides consumers the tools to
personalize their photos and publish customized creative output. In addition, it has
introduced new digital printing technologies, HP Inkjet Web Press, HP Latex Inks and three HP
Indigo presses, as part of its graphic arts offerings. In October 2010, it also announced a plan
to launch full wireless HP Photosmart printer line-up by 2012.


THREATS


PROJECTED DECREASE IN IT MARKET: Forecasters predict a decrease in the worldwide demand for
various IT products offered by HP. The economic slowdown has negatively affected many market
segments, including information technology. Hewlett Packard has experienced this decline not only in
the U.S. but also in its global markets. Worldwide spending on IT was predicted to decline by 4% in
2011.
HYPER COMPETITIVE ENVIRONMENT: Although Hewlett Packard recently overtook Dell in sales, the
latter remains a formidable competitor, as are other companies such as Toshiba, Lenova Group and
Aver. It competes in terms of price, quality, brand, technology, reputation, distribution and range of
products, among other factors. In some regions, the company faces competition from local companies
and from generically-branded or white box manufacturers.
COMPETITORS: Specifically, the companys competitors in enterprise servers and storage include IBM
an in storage there is the EMC Corporation, Dell in industry standard servers and Sun Microsystems in
UNIX-based servers. The imaging and printing groups key competitors include Canon USA, Lexmark
International, Xerox Corporation, Seiko Epson Corporation, Samsung Electronics and Dell. HP even
faces competition from re-manufacturers including private label brand stores, supply stores such,
internet vendors and original equipment manufacturers (OEMs) such as Lexmark. The re-
manufacturers buy the original cartridges from customers, refill them with their own ink and resell
them at a discount to the branded OEMS. These entities provide a continuous source of competition
which could impact the profitability of HP.

Hewlett-Packard Co., Consolidated Income Statement
USD $ in millions
12 months ended Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007 Oct 31, 2006

Products 84,757 84,799 74,051 91,697 84,229 73,557

Services 42,039 40,816 40,124 26,297 19,699 17,773

Financing income 449 418 377 370 358 328

Net revenue 127,245 126,033 114,552 118,364 104,286 91,658

Cost of products (65,167) (65,064) (56,503) (69,342) (63,435) (55,248)

Cost of services (32,056) (30,723) (30,695) (20,250) (15,163) (13,930)

Financing interest (306) (302) (326) (329) (289) (249)

Gross profit 29,716 29,944 27,028 28,443 25,399 22,231

Research and development (3,254) (2,959) (2,819) (3,543) (3,611) (3,591)

Selling, general and administrative (13,466) (12,585) (11,613) (13,104) (12,226) (11,266)

Amortization of purchased intangible assets (1,607) (1,484) (1,578) (1,012) (973) (656)

Impairment of goodwill and purchased
intangible assets
(885)

Restructuring charges (645) (1,144) (640) (270) (387) (158)

Acquisition-related charges (182) (293) (242) (41)

Pension curtailments and pension settlements,
net
517

Earnings from operations 9,677 11,479 10,136 10,473 8,719 6,560

Interest expense (551) (417) (597) (467) (531) (336)

Other income (expense), net (144) (88) (124) 467 989 967

Interest and other, net (695) (505) (721) 458 631

Earnings before taxes 8,982 10,974 9,415 10,473 9,177 7,191

Provision for taxes (1,908) (2,213) (1,755) (2,144) (1,913) (993)

Net earnings 7,074 8,761 7,660 8,329 7,264 6,198












Item










Description










The company
Net revenue Aggregate revenue recognized during the period (derived from goods sold, services
rendered, insurance premiums, or other activities that constitute an entity's earning
process). For financial services companies, also includes investment and interest
income, and sales and trading gains.
Hewlett-Packard Co.'s net revenue
increased from 2009 to 2010 and from
2010 to 2011.
Earnings from
operations
The net result for the period of deducting operating expenses from operating
revenues.
Hewlett-Packard Co.'s earnings from
operations increased from 2009 to 2010
but then declined significantly from 2010
to 2011.
Earnings before
taxes
Sum of operating profit and non operating income (expense) before income (loss)
from equity method investments, income taxes, extraordinary items, cumulative
effects of changes in accounting principles, and non controlling interest.
Hewlett-Packard Co.'s earnings before
taxes increased from 2009 to 2010 but
then declined significantly from 2010 to
2011.
Net earnings The portion of consolidated profit or loss for the period, net of income taxes, which is
attributable to the parent. If the entity does not present consolidated financial
statements, the amount of profit or loss for the period, net of income taxes.
Hewlett-Packard Co.'s net earnings
increased from 2009 to 2010 but then
declined significantly from 2010 to 2011.




Hewlett-Packard Co., Consolidated Statement of Comprehensive Income
USD $ in millions
12 months ended Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Net earnings 7,074 8,761 7,660 8,329 7,264


Change in net unrealized gains (losses), net of
tax
17 16 17 (17) 2


Net unrealized (gains) losses reclassified into
earnings, with no tax effect
(1) 1 (14)


Net change in unrealized gains
(losses) on available-for-sale
securities
17 16 16 (16) (12)


Unrealized gains (losses) recognized in OCI,
net of tax
(288) 250 (163) 808 (63)


(Gains) losses reclassified into income, net of
tax
448 (282) (808) 58 45


Net change in unrealized gains
(losses) on cash flow hedges
160 (32) (971) 866 (18)


Net change in cumulative translation
adjustment, net of tax
46 28 304 (936) 106


Net change in unrealized components of
defined benefit plans, net of tax
116 (602) (2,531) (538) (3)


Other comprehensive income (loss) 339 (590) (3,182) (624) 73


Comprehensive income 7,413 8,171 4,478 7,705 7,337










Item




Description




The company
Net change in unrealized
gains (losses) on
available-for-sale
securities
Gross appreciation or the gross loss in value of the total unsold securities at
the end of an accounting period, after tax, attributable to the parent entity.

Net change in unrealized
gains (losses) on cash
flow hedges
Net of tax effect change in accumulated gains and losses from derivative
instruments designated and qualifying as the effective portion of cash flow
hedges, after taxes, that is attributable to the parent entity. A cash flow
hedge is a hedge of the exposure to variability in the cash flows of a
recognized asset or liability or a forecasted transaction that is attributable to
a particular risk. The change includes an entity's share of an equity investee's
increase (decrease) in deferred hedging gains or losses.
Hewlett-Packard Co.'s net change in
unrealized gains (losses) on cash flow
hedges increased from 2009 to 2010 and
from 2010 to 2011.
Net change in cumulative
translation adjustment,
net of tax
Adjustment that results from the process of translating subsidiary financial
statements and foreign equity investments into functional currency of the
reporting entity, net of tax, attributable to the parent entity.
Hewlett-Packard Co.'s net change in
cumulative translation adjustment, net of
tax declined from 2009 to 2010 but then
slightly increased from 2010 to 2011.
Net change in unrealized
components of defined
benefit plans, net of tax
Net changes to accumulated comprehensive income during the period related
to benefit plans, after tax, attributable to the parent entity.
Hewlett-Packard Co.'s net change in
unrealized components of defined
benefit plans, net of tax increased from
2009 to 2010 and from 2010 to 2011.
Comprehensive income The change in equity [net assets] of a business enterprise during a period
from transactions and other events and circumstances from non-owner
sources which are attributable to the reporting entity. It includes all changes
in equity during a period except those resulting from investments by owners
and distributions to owners, but excludes any and all transactions which are
directly or indirectly attributable to that ownership interest in subsidiary
equity which is not attributable to the parent.
Hewlett-Packard Co.'s comprehensive
income increased from 2009 to 2010 but
then slightly declined from 2010 to 2011.












Hewlett-Packard Co., Consolidated Statement of Financial Position, Assets
USD $ in millions
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Cash and cash equivalents 8,043 10,929 13,279 10,153 11,293


Accounts receivable 18,224 18,481 16,537 16,928 13,420


Financing receivables 3,162 2,986 2,675 2,314 2,507


Inventory 7,490 6,466 6,128 7,879 8,033


Deferred tax assets, short-term 5,374 5,833 4,979 3,920 4,609


Value added taxes receivable from various
governments
2,480 3,366 2,650 3,115 2,979


Supplier and other receivables 2,762 2,737 3,439 3,082 2,676


Prepaid and other current assets 3,486 3,386 2,852 4,337 1,885


Other current assets 14,102 15,322 13,920 14,454 12,149


Current assets 51,021 54,184 52,539 51,728 47,402


Property, plant and equipment 12,292 11,763 11,262 10,838 7,798


Financing receivables, net 4,015 3,584 3,303 2,722 2,778


Deferred tax assets, long term 1,283 2,070 1,750 792 961


Other 5,457 6,571 6,236 6,954 3,908


Long-term financing receivables and
other assets
10,755 12,225 11,289 10,468 7,647


Goodwill 44,551 38,483 33,109 32,335 21,773


Purchased intangible assets 10,898 7,848 6,600 7,962 4,079


Noncurrent assets 78,496 70,319 62,260 61,603 41,297


Total assets 129,517 124,503 114,799 113,331 88,699







Item


Description



The company
Cash and cash
equivalents
Includes currency on hand as well as demand deposits with banks or financial institutions. It
also includes other kinds of accounts that have the general characteristics of demand
deposits in that the Entity may deposit additional funds at any time and also effectively may
withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding
items classified as marketable securities, include short-term, highly liquid investments that
are both readily convertible to known amounts of cash, and so near their maturity that they
present minimal risk of changes in value because of changes in interest rates. Generally,
only investments with original maturities of three months or less qualify under that
definition. Original maturity means original maturity to the entity holding the investment. For
example, both a three-month US Treasury bill and a three-year Treasury note purchased
three months from maturity qualify as cash equivalents. However, a Treasury note
purchased three years ago does not become a cash equivalent when its remaining maturity
is three months. Compensating balance arrangements that do not legally restrict the
withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while
legally restricted deposits held as compensating balances against borrowing arrangements,
contracts entered into with others, or company statements of intention with regard to
particular deposits should not be reported as cash and cash equivalents.
Hewlett-Packard Co.'s cash and
cash equivalents declined from
2009 to 2010 and from 2010 to
2011.
Accounts
receivable
Amount due from customers or clients, within one year of the balance sheet date (or the
normal operating cycle, whichever is longer), for goods or services (including trade
receivables) that have been delivered or sold in the normal course of business, reduced to
the estimated net realizable fair value by an allowance established by the entity of the
amount it deems uncertain of collection.
Hewlett-Packard Co.'s accounts
receivable increased from 2009 to
2010 but then slightly declined
from 2010 to 2011.

Inventory

Carrying amount (lower of cost or market) as of the balance sheet date of inventories less
all valuation and other allowances. Excludes noncurrent inventory balances (expected to
remain on hand past one year or one operating cycle, if longer).

Hewlett-Packard Co.'s inventory
increased from 2009 to 2010 and
from 2010 to 2011.
Current assets Sum of the carrying amounts as of the balance sheet date of all assets that are expected to
be realized in cash, sold, or consumed within one year (or the normal operating cycle, if
longer). Assets are probable future economic benefits obtained or controlled by an entity as
a result of past transactions or events.
Hewlett-Packard Co.'s current
assets increased from 2009 to 2010
but then declined significantly from
2010 to 2011.


































Property, plant
and equipment




Tangible assets that are held by an entity for use in the production or supply of goods and
services, for rental to others, or for administrative purposes and that are expected to
provide economic benefit for more than one year; net of accumulated depreciation.
Examples include land, buildings, and production equipment.




Hewlett-Packard Co.'s property,
plant and equipment increased
from 2009 to 2010 and from 2010
to 2011.
Noncurrent
assets
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to
be realized in cash, sold or consumed after one year or beyond the normal operating cycle,
if longer.
Hewlett-Packard Co.'s noncurrent
assets increased from 2009 to 2010
and from 2010 to 2011.
Total assets Sum of the carrying amounts as of the balance sheet date of all assets that are recognized.
Assets are probable future economic benefits obtained or controlled by an entity as a result
of past transactions or events.
Hewlett-Packard Co.'s total assets
increased from 2009 to 2010 and
from 2010 to 2011.





Hewlett-Packard Co., Consolidated Statement of Financial Position, Liabilities and Stockholders' Equity
USD $ in millions

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Notes payable and short-term borrowings 8,083 7,046 1,850 10,176 3,186


Accounts payable 14,750 14,365 14,809 14,138 11,787


Employee compensation and benefits 3,999 4,256 4,071 4,159 3,465


Taxes on earnings 1,048 802 910 869 1,891


Deferred revenue 7,449 6,727 6,182 6,287 5,025


Accrued restructuring 654 911 1,109 1,099 123


Other accrued taxes 2,414 3,216 2,784 3,258 2,965


Warranty 1,773 1,774 1,777 1,973 1,762


Sales and marketing programs 3,317 3,374 2,724 2,958 2,930


Other 6,955 6,932 6,787 8,022 6,126


Other accrued liabilities 14,459 15,296 14,072 16,211 13,783


Current liabilities 50,442 49,403 43,003 52,939 39,260


Long-term debt 22,551 15,258 13,980 7,676 4,997


Pension, post-retirement, and post-employment liabilities 5,414 6,754 6,427 3,692 1,495


Deferred tax liability, long-term 5,163 5,239 4,230 3,162 397


Long-term deferred revenue 3,453 3,303 3,249 3,152 2,459


Other long-term liabilities 3,490 3,765 3,146 3,768 1,565


Other liabilities 17,520 19,061 17,052 13,774 5,916


Long-term liabilities 40,071 34,319 31,032 21,450 10,913


Total liabilities 90,513 83,722 74,035 74,389 50,173


Preferred stock, $0.01 par value


Common stock, $0.01 par value 20 22 24 24 26


Additional paid-in capital 6,837 11,569 13,804 14,012 16,381


Prepaid stock repurchase


Retained earnings 35,266 32,695 29,936 24,971 21,560





Accumulated other comprehensive income (loss)
(3,498) (3,837) (3,247) (65) 559


HP stockholders' equity 38,625 40,449 40,517 38,942 38,526


Non-controlling interests 379 332 247


Total stockholders' equity 39,004 40,781 40,764 38,942 38,526


Total liabilities and stockholders' equity 129,517 124,503 114,799 113,331 88,699


Item Description The company
Accounts payable Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically
been received) and payable to vendors for goods and services received that are used in an entity's
business. Used to reflect the current portion of the liabilities (due within one year or within the
normal operating cycle if longer).
Hewlett-Packard Co.'s accounts payable
declined from 2009 to 2010 but then
increased from 2010 to 2011 not
reaching 2009 level.
Current liabilities Total obligations incurred as part of normal operations that are expected to be paid during the
following twelve months or within one business cycle, if longer.
Hewlett-Packard Co.'s current liabilities
increased from 2009 to 2010 and from
2010 to 2011.
Long-term
liabilities
Total obligations incurred as part of normal operations that is expected to be repaid beyond the
following twelve months or one business cycle.
Hewlett-Packard Co.'s long-term
liabilities increased from 2009 to 2010
and from 2010 to 2011.
Total liabilities Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized.
Liabilities are probable future sacrifices of economic benefits arising from present obligations of an
entity to transfer assets or provide services to other entities in the future.
Hewlett-Packard Co.'s total liabilities
increased from 2009 to 2010 and from
2010 to 2011.
HP stockholders'
equity
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and
affiliates of the entity which are attributable to the parent. The amount of the economic entity's
stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is
allocable to that ownership interest in subsidiary equity which is not attributable to the parent (non
controlling interest, minority interest).
Hewlett-Packard Co.'s hP stockholders'
equity declined from 2009 to 2010 and
from 2010 to 2011.
Total stockholders'
equity
Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and
affiliates of the entity including portions attributable to both the parent and non controlling interests
(previously referred to as minority interest), if any. The entity including portions attributable to the
parent and non controlling interests is sometimes referred to as the economic entity.
Hewlett-Packard Co.'s total
stockholders' equity increased from
2009 to 2010 but then declined
significantly from 2010 to 2011.


Hewlett-Packard Co., Consolidated Statement of Cash Flows
USD $ in millions

12 months ended Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Net earnings 7,074 8,761 7,660 8,329 7,264


Depreciation and amortization 4,984 4,820 4,780 3,401 2,895


Impairment of goodwill and purchased intangible
assets
885


Stock-based compensation expense 685 668 635 606 629


Provision for doubtful accounts, accounts and
financing receivables
81 156 345 275 47


Provision for inventory 217 189 221 214 362


Restructuring charges 645 1,144 640 270 387


Pension curtailments and pension settlements, net (517)


Deferred taxes on earnings 166 197 379 1,035 415


Excess tax benefit from stock-based compensation (163) (294) (162) (293) (481)


Other, net (46) 169 (54) (31) (100)


Accounts and financing receivables (227) (2,398) (549) (261) (2,808)


Inventory (1,252) (270) 1,532 89 (633)


Accounts payable 275 (698) (153) 1,630 (346)


Taxes on earnings 610 723 733 (43) 502


Restructuring (1,002) (1,334) (1,237) (165) (606)


Other assets and liabilities (293) 89 (1,391) (465) 2,605


Changes in assets and liabilities (1,889) (3,888) (1,065) 785 (1,286)


Adjustments to reconcile net earnings to net
cash provided by operating activities
5,565 3,161 5,719 6,262 2,351


Net cash provided by operating activities 12,639 11,922 13,379 14,591 9,615


Investment in property, plant and equipment (4,539) (4,133) (3,695) (2,990) (3,040)


Proceeds from sale of property, plant and equipment 999 602 495 425 568


Purchases of available-for-sale securities and other
investments
(96) (51) (160) (178) (283)


Maturities and sales of available-for-sale securities and
other investments
68 200 171 280 425


Payments in connection with business acquisitions, net
of cash acquired
(10,480) (8,102) (391) (11,248) (6,793)


Proceeds from business divestiture, net 89 125


Net cash used in investing activities (13,959) (11,359) (3,580) (13,711) (9,123)


Issuance (payments) of commercial paper and notes
payable, net
(1,270) 4,156 (6,856) 5,015 1,863


Issuance of debt 11,942 3,156 6,800 3,121 4,106


Payment of debt (2,336) (1,323) (2,710) (1,843) (3,419)


Issuance of common stock under employee stock plans 896 2,617 1,837 1,810 3,103


Repurchase of common stock (10,117) (11,042) (5,140) (9,620) (10,887)


Prepayment of common stock repurchase


Excess tax benefit from stock-based compensation 163 294 162 293 481


Cash dividends paid (844) (771) (766) (796) (846)


Net cash used in financing activities (1,566) (2,913) (6,673) (2,020) (5,599)


Increase (decrease) in cash and cash equivalents (2,886) (2,350) 3,126 (1,140) (5,107)


Cash and cash equivalents at beginning of period 10,929 13,279 10,153 11,293 16,400


Cash and cash equivalents at end of period 8,043 10,929 13,279 10,153 11,293





Item Description The company
Net cash
provided by
operating
activities
The net cash from (used in) all of the entity's operating activities, including those of discontinued
operations, of the reporting entity. Operating activities generally involve producing and delivering
goods and providing services. Operating activity cash flows include transactions, adjustments, and
changes in value that are not defined as investing or financing activities.
Hewlett-Packard Co.'s net cash provided
by operating activities declined from 2009
to 2010 but then slightly increased from
2010 to 2011.










Hewlett-Packard Co., Common-Size Consolidated Income Statement

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Products 66.61 67.28 64.64 77.47 80.77


Services 33.04 32.39 35.03 22.22 18.89


Financing income 0.35 0.33 0.33 0.31 0.34


Net revenue 100.00% 100.00% 100.00% 100.00% 100.00%


Cost of products -51.21 -51.62 -49.33 -58.58 -60.83


Cost of services -25.19 -24.38 -26.80 -17.11 -14.54


Financing interest -0.24 -0.24 -0.28 -0.28 -0.28


Gross profit 23.35% 23.76% 23.59% 24.03% 24.36%


Research and development -2.56 -2.35 -2.46 -2.99 -3.46


Selling, general and administrative -10.58 -9.99 -10.14 -11.07 -11.72


Amortization of purchased intangible assets -1.26 -1.18 -1.38 -0.85 -0.93


Impairment of goodwill and purchased intangible assets -0.70


Restructuring charges -0.51 -0.91 -0.56 -0.23 -0.37


Acquisition-related charges -0.14 -0.23 -0.21 -0.03


Pension curtailments and pension settlements, net 0.50


Earnings from operations 7.61% 9.11% 8.85% 8.85% 8.36%


Interest expense -0.43 -0.33 -0.52 -0.39 -0.51


Hewlett-Packard Co., Common-Size Consolidated
Income Statement



Other income (expense), net



-0.11



-0.07



-0.11



0.39



0.95


Interest and other, net -0.55% -0.40% -0.63% % 0.44%


Earnings before taxes 7.06% 8.71% 8.22% 8.85% 8.80%


Provision for taxes -1.50 -1.76 -1.53 -1.81 -1.83


Net earnings 5.56% 6.95% 6.69% 7.04% 6.97%













Hewlett-Packard Co., Common-Size Consolidated Statement of Financial Position, Assets

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Cash and cash equivalents 6.21 8.78 11.57 8.96 12.73


Accounts receivable 14.07 14.84 14.41 14.94 15.13


Financing receivables 2.44 2.40 2.33 2.04 2.83


Inventory 5.78 5.19 5.34 6.95 9.06


Deferred tax assets, short-term 4.15 4.69 4.34 3.46 5.20


Value added taxes receivable from various governments 1.91 2.70 2.31 2.75 3.36


Supplier and other receivables 2.13 2.20 3.00 2.72 3.02


Prepaid and other current assets 2.69 2.72 2.48 3.83 2.13


Other current assets 10.89% 12.31% 12.13% 12.75% 13.70%


Current assets 39.39% 43.52% 45.77% 45.64% 53.44%


Property, plant and equipment 9.49 9.45 9.81 9.56 8.79


Financing receivables, net 3.10 2.88 2.88 2.40 3.13


Deferred tax assets, long term 0.99 1.66 1.52 0.70 1.08


Other 4.21 5.28 5.43 6.14 4.41


Long-term financing receivables and other assets 8.30% 9.82% 9.83% 9.24% 8.62%


Goodwill 34.40 30.91 28.84 28.53 24.55


Purchased intangible assets 8.41 6.30 5.75 7.03 4.60


Noncurrent assets 60.61% 56.48% 54.23% 54.36% 46.56%


Total assets 100.00% 100.00% 100.00% 100.00% 100.00%


Hewlett-Packard Co., Common-Size Consolidated Statement of Financial Position,
Liabilities and Stockholders' Equity



Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Notes payable and short-term borrowings 6.24 5.66 1.61 8.98 3.59


Accounts payable 11.39 11.54 12.90 12.47 13.29


Employee compensation and benefits 3.09 3.42 3.55 3.67 3.91


Taxes on earnings 0.81 0.64 0.79 0.77 2.13


Deferred revenue 5.75 5.40 5.39 5.55 5.67


Accrued restructuring 0.50 0.73 0.97 0.97 0.14


Other accrued taxes 1.86 2.58 2.43 2.87 3.34


Warranty 1.37 1.42 1.55 1.74 1.99


Sales and marketing programs 2.56 2.71 2.37 2.61 3.30


Other 5.37 5.57 5.91 7.08 6.91


Other accrued liabilities 11.16% 12.29% 12.26% 14.30% 15.54%


Current liabilities 38.95% 39.68% 37.46% 46.71% 44.26%


Long-term debt 17.41 12.26 12.18 6.77 5.63


Pension, post-retirement, and post-employment liabilities 4.18 5.42 5.60 3.26 1.69


Deferred tax liability, long-term 3.99 4.21 3.68 2.79 0.45


Long-term deferred revenue 2.67 2.65 2.83 2.78 2.77


Other long-term liabilities 2.69 3.02 2.74 3.32 1.76


Other liabilities 13.53% 15.31% 14.85% 12.15% 6.67%


Long-term liabilities 30.94% 27.56% 27.03% 18.93% 12.30%


Total liabilities 69.89% 67.24% 64.49% 65.64% 56.57%







Hewlett-Packard Co., Common-Size Consolidated Statement
of Financial Position, Liabilities and Stockholders' Equity

Preferred stock, $0.01 par value

















Common stock, $0.01 par value 0.02 0.02 0.02 0.02 0.03


Additional paid-in capital 5.28 9.29 12.02 12.36 18.47


Prepaid stock repurchase


Retained earnings 27.23 26.26 26.08 22.03 24.31


Accumulated other comprehensive income (loss) -2.70 -3.08 -2.83 -0.06 0.63


HP stockholders' equity 29.82% 32.49% 35.29% 34.36% 43.43%


Non-controlling interests 0.29 0.27 0.22


Total stockholders' equity 30.11% 32.76% 35.51% 34.36% 43.43%


Total liabilities and stockholders' equity 100.00% 100.00% 100.00% 100.00% 100.00%






RATIOS
Hewlett-Packard Co., short-term (operating) activity ratios
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Turnover Ratios

Inventory turnover 16.99 19.49 18.69 15.02 12.98


Receivables turnover 6.98 6.82 6.93 6.99 7.77


Payables turnover 8.63 8.77 7.74 8.37 8.85


Working capital turnover 11.61 11.91 14.58 11.09 10.79

Average No of Days

Average inventory processing period 21 19 20 24 28


Add: Average receivable collection period 52 54 53 52 47


Operating cycle 74 72 72 76 75


Less: Average payables payment period -42 -42 -47 -44 -41


Cash conversion cycle 31 31 25 33 34

Inventory Turnover
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Inventory 7,490 6,466 6,128 7,879 8,033


Inventory Turnover, Comparison to Industry

Hewlett-Packard Co. 16.99 19.49 18.69 15.02 12.98

Industry, Technology 19.15 19.52 17.49 16.09


2011 Calculations
Inventory turnover = Net revenue Inventory
= 127,245 7,490 = 16.99
Ratio Description The company
Inventory turnover An activity ratio calculated as revenue divided
by inventory.
Hewlett-Packard Co.'s inventory turnover improved from 2009 to 2010 but then
deteriorated significantly from 2010 to 2011.
Receivables Turnover

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Accounts receivable 18,224 18,481 16,537 16,928 13,420


Inventory Turnover, Comparison to Industry


Hewlett-Packard Co. 6.98 6.82 6.93 6.99 7.77

Industry, Technology 6.98 6.68 7.04 6.39



2011 Calculations
Receivables turnover = Net revenue Accounts receivable
= 127,245 18,224 = 6.98
Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by
receivables.
Hewlett-Packard Co.'s receivables turnover deteriorated from 2009 to 2010 but then improved
from 2010 to 2011 exceeding 2009 level.
Payables Turnover
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Accounts payable 14,750 14,365 14,809 14,138 11,787
Payables Turnover, Comparison to Industry

Hewlett-Packard Co.
1
8.63 8.77 7.74 8.37 8.85

Industry, Technology 10.26 9.95 11.23 9.82


2011 Calculations
1
Payables turnover = Net revenue Accounts payable
= 127,245 14,750 = 8.63
Ratio Description The company
Payables turnover An activity ratio calculated as revenue divided
by payables.
Hewlett-Packard Co.'s payables turnover increased from 2009 to 2010 but then slightly
declined from 2010 to 2011.





Working Capital Turnover
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Working capital 10,964 10,582 7,856 10,669 9,666


Working Capital Turnover, Comparison to Industry

Hewlett-Packard Co. 11.61 11.91 14.58 11.09 10.79

Industry, Technology 10.22 9.95 9.07 8.55


2011 Calculations
Working capital turnover = Net revenue Working capital
= 127,245 10,964 = 11.61
Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by
working capital.
Hewlett-Packard Co.'s working capital turnover deteriorated from 2009 to 2010
and from 2010 to 2011.

Average Inventory Processing Period
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data

Inventory turnover 16.99 19.49 18.69 15.02 12.98

Average Inventory Processing Period (no. of days), Comparison to Industry

Hewlett-Packard Co. 21 19 20 24 28

Industry, Technology 19 19 21 23



2011 Calculations
Average inventory processing period = 365 Inventory turnover
= 365 16.99 = 21
Ratio Description The company
Average inventory processing
period
An activity ratio equal to the number of days in the period
divided by inventory turnover over the period.
Hewlett-Packard Co.'s average inventory processing period improved from 2009
to 2010 but then deteriorated significantly from 2010 to 2011.


Average Receivable Collection Period
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Selected Financial Data

Receivables turnover 6.98 6.82 6.93 6.99 7.77

Average Receivable Collection Period (no. of days), Comparison to Industry

Hewlett-Packard Co. 52 54 53 52 47

Industry, Technology 52 55 52 57



2011 Calculations
Average receivable collection period = 365 Receivables turnover
= 365 6.98 = 52

Ratio

Description

The company
Average receivable collection
period
An activity ratio equal to the number of days in the
period divided by receivables turnover.
Hewlett-Packard Co.'s average receivable collection period deteriorated from 2009 to
2010 but then improved from 2010 to 2011 exceeding 2009 level.



Operating Cycle
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (no. of days)

Average inventory processing period 21 19 20 24 28


Average receivable collection period 52 54 53 52 47


Operating Cycle (no. of days), Comparison to Industry

Hewlett-Packard Co. 74 72 72 76 75

Industry, Technology 71 73 73 80


2011 Calculations
Operating cycle = Average inventory processing period + Average receivable collection period
= 21 + 52 = 74
Ratio Description The company
Operating cycle Equal to average inventory processing period plus average
receivables collection period.
Hewlett-Packard Co.'s operating cycle deteriorated from 2009 to 2010
and from 2010 to 2011.
Average Payables Payment Period

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data

Payables turnover 8.63 8.77 7.74 8.37 8.85

Average Payables Payment Period (no. of days), Comparison to Industry

Hewlett-Packard Co. 42 42 47 44 41

Industry, Technology 36 37 33 37





2011 Calculations
Average payables payment period = 365 Payables turnover
= 365 8.63 = 42

Ratio

Description

The company
Average payables
payment period
An estimate of the average number of days it takes a company to pay its suppliers;
equal to the number of days in the period divided by payables turnover ratio for the
period.
Hewlett-Packard Co.'s average payables payment period
declined from 2009 to 2010 but then slightly increased from
2010 to 2011.
Cash Conversion Cycle
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (no. of days)

Average inventory processing period 21 19 20 24 28


Average receivable collection period 52 54 53 52 47


Average payables payment period 42 42 47 44 41

Cash Conversion Cycle (no. of days), Comparison to Industry

Hewlett-Packard Co. 31 31 25 33 34

Industry, Technology 36 37 40 43



2011 Calculations
Cash conversion cycle = Average inventory processing period + Average receivable collection period Average payables payment period
= 21 + 52 42 = 31
Ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its
operations to cash received as a result of its operations; equal to average inventory processing period plus
average receivables collection period minus average payables payment period.
Hewlett-Packard Co.'s cash conversion
cycle deteriorated from 2009 to 2010 and
from 2010 to 2011.



Hewlett-Packard Co., long-term (investment) activity ratios
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Net fixed asset turnover 10.35 10.71 10.17 10.92 13.37


Total asset turnover 0.98 1.01 1.00 1.04 1.18


Equity turnover 3.29 3.12 2.83 3.04 2.71

Net Fixed Asset Turnover
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Property, plant and equipment 12,292 11,763 11,262 10,838 7,798

Net Fixed Asset Turnover, Comparison to Industry

Hewlett-Packard Co. 10.35 10.71 10.17 10.92 13.37


Industry, Technology 6.03 6.11 6.76 6.90


2011 Calculations
Net fixed asset turnover = Net revenue Property, plant and equipment
= 127,245 12,292 = 10.35
Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue
divided by net fixed assets.
Hewlett-Packard Co.'s net fixed asset turnover improved from 2009 to 2010 but then slightly
deteriorated from 2010 to 2011 not reaching 2009 level.


Total Asset Turnover
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


Total assets 129,517 124,503 114,799 113,331 88,699


Total Asset Turnover, Comparison to Industry

Hewlett-Packard Co. 0.98 1.01 1.00 1.04 1.18

Industry, Technology 0.90 0.90 0.99 0.99


2011 Calculations
Total asset turnover = Net revenue Total assets
= 127,245 129,517 = 0.98
Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue
divided by total assets.
Hewlett-Packard Co.'s total asset turnover improved from 2009 to 2010 but then
deteriorated significantly from 2010 to 2011.
Equity Turnover

Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net revenue 127,245 126,033 114,552 118,364 104,286


HP stockholders' equity 38,625 40,449 40,517 38,942 38,526


Equity Turnover, Comparison to Industry

Hewlett-Packard Co. 3.29 3.12 2.83 3.04 2.71

Industry, Technology 2.22 2.15 2.64 2.29





2011 Calculations
Equity turnover = Net revenue HP stockholders' equity
= 127,245 38,625 = 3.29


Ratio


Description


The company
Equity turnover An activity ratio calculated as total revenue divided by
shareholders' equity.
Hewlett-Packard Co.'s equity turnover improved from 2009 to 2010 and
from 2010 to 2011.


Hewlett-Packard Co., liquidity ratios
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Current ratio 1.01 1.10 1.22 0.98 1.21


Quick ratio 0.58 0.66 0.76 0.56 0.69


Cash ratio 0.16 0.22 0.31 0.19 0.29

Current Ratio
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Current assets 51,021 54,184 52,539 51,728 47,402


Current liabilities 50,442 49,403 43,003 52,939 39,260

Current Ratio, Comparison to Industry

Hewlett-Packard Co. 1.01 1.10 1.22 0.98 1.21

Industry, Technology 1.36 1.54 1.26 1.48



2011 Calculations
Current ratio = Current assets Current liabilities
= 51,021 50,442 = 1.01
Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by
current liabilities.
Hewlett-Packard Co.'s current ratio deteriorated from 2009 to 2010 and
from 2010 to 2011.
Quick Ratio
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Cash and cash equivalents 8,043 10,929 13,279 10,153 11,293


Accounts receivable 18,224 18,481 16,537 16,928 13,420


Financing receivables 3,162 2,986 2,675 2,314 2,507


Total quick assets 29,429 32,396 32,491 29,395 27,220


Current liabilities 50,442 49,403 43,003 52,939 39,260

Quick Ratio, Comparison to Industry

Hewlett-Packard Co. 0.58 0.66 0.76 0.56 0.69

Industry, Technology 1.00 1.13 0.89 1.11



2011 Calculations
1
Quick ratio = Total quick assets Current liabilities
= 29,429 50,442 = 0.58







Ratio

Description

The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus
receivables) divided by current liabilities.
Hewlett-Packard Co.'s quick ratio deteriorated from 2009 to
2010 and from 2010 to 2011.


Cash Ratio
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Cash and cash equivalents 8,043 10,929 13,279 10,153 11,293


Total cash assets 8,043 10,929 13,279 10,153 11,293


Current liabilities 50,442 49,403 43,003 52,939 39,260

Cash Ratio, Comparison to Industry

Hewlett-Packard Co 0.16 0.22 0.31 0.19 0.29

Industry, Technology 0.48 0.55 0.40 0.53



2011 Calculations
Cash ratio = Total cash assets Current liabilities
= 8,043 50,442 = 0.16
Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments)
divided by current liabilities.
Hewlett-Packard Co.'s cash ratio deteriorated from 2009 to
2010 and from 2010 to 2011.


Hewlett-Packard Co., debt and solvency ratios
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Debt to equity 0.79 0.55 0.39 0.46 0.21


Debt to capital 0.44 0.36 0.28 0.31 0.18


Interest coverage 17.30 27.32 16.77 23.43 18.28

Debt to Equity
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Notes payable and short-term borrowings 8,083 7,046 1,850 10,176 3,186


Long-term debt 22,551 15,258 13,980 7,676 4,997


Total debt 30,634 22,304 15,830 17,852 8,183


HP stockholders' equity 38,625 40,449 40,517 38,942 38,526

Debt to Equity, Comparison to Industry

Hewlett-Packard Co. 0.79 0.55 0.39 0.46 0.21

Industry, Technology 0.39 0.33 0.45 0.31



2011 Calculations
Debt to equity = Total debt HP stockholders' equity
= 30,634 38,625 = 0.79







Ratio

Description

The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total
shareholders' equity.
Hewlett-Packard Co.'s debt-to-equity ratio deteriorated from 2009 to 2010
and from 2010 to 2011.
Debt to Capital
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Notes payable and short-term borrowings 8,083 7,046 1,850 10,176 3,186


Long-term debt 22,551 15,258 13,980 7,676 4,997


Total debt 30,634 22,304 15,830 17,852 8,183


HP stockholders' equity 38,625 40,449 40,517 38,942 38,526


Total capital 69,259 62,753 56,347 56,794 46,709

Debt to Capital, Comparison to Industry

Hewlett-Packard Co. 0.44 0.36 0.28 0.31 0.18


Industry, Technology 0.28 0.25 0.31 0.23



2011 Calculations
Debt to capital = Total debt Total capital
= 30,634 69,259 = 0.44


Ratio


Description


The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus
shareholders' equity.
Hewlett-Packard Co.'s debt-to-capital ratio deteriorated from 2009 to
2010 and from 2010 to 2011.


Interest Coverage
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net earnings 7,074 8,761 7,660 8,329 7,264


Add: Interest expense 551 417 597 467 531


Add: Income tax expense (benefit) 1,908 2,213 1,755 2,144 1,913


Earnings before interest and tax (EBIT) 9,533 11,391 10,012 10,940 9,708

Interest Coverage, Comparison to Industry

Hewlett-Packard Co. 17.30 27.32 16.77 23.43 18.28

Industry, Technology 37.04 25.35 31.38 43.38



2011 Calculations
1
Interest coverage = EBIT Interest expense
= 9,533 551 = 17.30
Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided
by interest payments.
Hewlett-Packard Co.'s interest coverage ratio improved from 2009 to 2010 but then slightly
deteriorated from 2010 to 2011 not reaching 2009 level.





Hewlett-Packard Co., profitability ratios
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Return on Sales

Gross profit margin 23.35% 23.76% 23.59% 24.03% 24.36%


Operating profit margin 7.61% 9.11% 8.85% 8.85% 8.36%


Net profit margin 5.56% 6.95% 6.69% 7.04% 6.97%


Return on Investment

Return on equity (ROE) 18.31% 21.66% 18.91% 21.39% 18.85%


Return on assets (ROA) 5.46% 7.04% 6.67% 7.35% 8.19%

Gross Profit Margin
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Selected Financial Data (USD $ in millions)

Gross profit 29,716 29,944 27,028 28,443 25,399


Net revenue 127,245 126,033 114,552 118,364 104,286




Gross profit margin 23.35% 23.76% 23.59% 24.03% 24.36%






2011 Calculations
Gross profit margin = 100 Gross profit Net revenue
= 100 29,716 127,245 = 23.35%


Ratio


Description


The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to
cover operating and other expenditures.
Hewlett-Packard Co.'s gross profit margin improved from 2009 to 2010 but
then deteriorated significantly from 2010 to 2011.
Operating Profit Margin
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Selected Financial Data (USD $ in millions)

Earnings from operations 9,677 11,479 10,136 10,473 8,719


Net revenue 127,245 126,033 114,552 118,364 104,286

Operating Profit Margin, Comparison to Industry

Hewlett-Packard Co. 7.61% 9.11% 8.85% 8.85% 8.36%

Industry, Technology % 13.96% 12.02% 13.06% 14.69%



2011 Calculations
Operating profit margin = 100 Earnings from operations Net revenue
= 100 9,677 127,245 = 7.61%
Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income
divided by revenue.
Hewlett-Packard Co.'s operating profit margin improved from 2009 to 2010 but then
deteriorated significantly from 2010 to 2011.



Net Profit Margin
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007

Selected Financial Data (USD $ in millions)

Net earnings 7,074 8,761 7,660 8,329 7,264


Net revenue 127,245 126,033 114,552 118,364 104,286


Net Profit Margin, Comparison to Industry

Hewlett-Packard Co. 5.56% 6.95% 6.69% 7.04% 6.97%

Industry, Technology % 10.82% 8.97% 9.85% 11.65%

2011 Calculations
Net profit margin = 100 Net earnings Net revenue
= 100 7,074 127,245 = 5.56%
Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income
divided by revenue.
Hewlett-Packard Co.'s net profit margin improved from 2009 to 2010 but then
deteriorated significantly from 2010 to 2011.

Return on Equity (ROE)
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Selected Financial Data (USD $ in millions)

Net earnings 7,074 8,761 7,660 8,329 7,264


HP stockholders' equity 38,625 40,449 40,517 38,942 38,526

ROE, Comparison to Industry

Hewlett-Packard Co. 18.31% 21.66% 18.91% 21.39% 18.85%

Industry, Technology % 24.01% 19.32% 25.96% 26.63%


2011 Calculations
ROE = 100 Net earnings HP stockholders' equity
= 100 7,074 38,625 = 18.31%



Ratio



Description



The company
ROE A profitability ratio calculated as net income divided by
shareholders' equity.
Hewlett-Packard Co.'s ROE improved from 2009 to 2010 but then deteriorated
significantly from 2010 to 2011.
Return on Assets (ROA)
Oct 31, 2011 Oct 31, 2010 Oct 31, 2009 Oct 31, 2008 Oct 31, 2007


Selected Financial Data (USD $ in millions)

Net earnings 7,074 8,761 7,660 8,329 7,264


Total assets 129,517 124,503 114,799 113,331 88,699

ROA, Comparison to Industry

Hewlett-Packard Co. 5.46% 7.04% 6.67% 7.35% 8.19%

Industry, Technology % 9.68% 8.05% 9.77% 11.57%




2011 Calculations
ROA = 100 Net earnings Total assets
= 100 7,074 129,517 = 5.46%



Ratio



Description



The company
ROA A profitability ratio calculated as net income divided
by total assets.
Hewlett-Packard Co.'s ROA improved from 2009 to 2010 but then deteriorated
significantly from 2010 to 2011.



DETAILED ANALYSIS:

Results of operations in dollars and as a percentage of net revenue were as follows for the
following fiscal years ended October 31:

2010 2009 2008
In millions
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . $126,033 100.0% $114,552 100.0% $118,364 100.0%
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . 96,089 76.2% 87,524 76.4% 89,699 75.8%
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . 29,944 23.8% 27,028 23.6% 28,665 24.2%
Research and development . . . . . . . . . . . . . . 2,959 2.3% 2,819 2.5% 3,543 3.0%
Selling, general and administrative . . . . . . . . . 12,585 10.1% 11,613 10.1% 13,326 11.3%
Amortization of purchased intangible assets . . 1,484 1.1% 1,578 1.4% 1,012 0.9%
Restructuring charges . . . . . . . . . . . . . . . . . . 1,144 1.0% 640 0.6% 270 0.2%
Acquisition-related charges . . . . . . . . . . . . . . 293 0.2% 242 0.2% 41
Earnings from operations . . . . . . . . . . . . . . . 11,479 9.1% 10,136 8.8% 10,473 8.8%
Interest and other, net . . . . . . . . . . . . . . . . . (505) (0.4)% (721) (0.6)%
Earnings before taxes . . . . . . . . . . . . . . . . . . 10,974 8.7% 9,415 8.2% 10,473 8.8%
Provision for taxes . . . . . . . . . . . . . . . . . . . . 2,213 1.7% 1,755 1.5% 2,144 1.8%
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,761 7.0% $ 7,660 6.7% $ 8,329 7.0%
Net Revenue
The components of the weighted net revenue change were as follows for the following fiscal years
ended October 31:
2010 2009
Percentage Points
Personal Systems Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 (5.9)
Enterprise Storage and Servers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 (3.4)
Imaging and Printing Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 (4.7)
HP Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3
Corporate Investments/Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 (0.2)
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 11.6
HP Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.6)
Total HP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0 (3.2)


Fiscal 2010
In fiscal 2010, total HP net revenue increased 10% (8.3% on a constant currency basis). U.S. net
revenue increased 7.8% to $44.5 billion, while net revenue from outside of the United States
increased 11.3% to $81.5 billion. As reflected in the table above, the PSG segment was the largest
contributor to HP net revenue growth as a result of balanced growth across the regions.
Fiscal 2009
In fiscal 2009, the global slowdown of IT and consumer spending impacted each of HP segments. Net
revenue decreased 3.2% in fiscal 2009 (increased 1.3% on a constant currency basis). The
unfavorable currency impact for fiscal 2009 was due primarily to the movement of the dollar against
the euro. For fiscal 2009, the Services segment contributed favorably to the total HP net revenue
change primarily as a result of the EDS acquisition. U.S. net revenue increased 12% to $41.3 billion
for fiscal 2009 as compared to fiscal 2008, while net revenue from outside of the United States
decreased 10% to $73.2 billion. The increase in U.S. net revenue in fiscal 2009 was primarily a result
of the acquisition of EDS.

Gross Margin
Fiscal 2010
In fiscal 2010, total HP gross margin increased by 0.2 percentage points. The increase was a result of
an increased mix in networking products and rate increase in Services, the effect of which was
partially offset by strong revenue growth in personal computers and printer hardware that have
lower gross margins. Services gross margin increased in fiscal 2010 due primarily to the continued
focus on operating improvements, including delivery efficiencies and cost controls in HPs technology
services business, and EDS-related acquisition synergies.
ESS gross margin declined in fiscal 2010 due primarily to a product mix shift resulting from the
strength in industry standard servers (''ISS''), the effect of which was partially offset by lower
product costs and strong volume.
HP Software gross margin increased in fiscal 2010 primarily as a result of a higher license and
support mix, the effect of which was partially offset by a reduced services gross margin rate.
PSG gross margin declined in fiscal 2010 primarily as a result of higher component costs, the effect of
which was partially offset by lower warranty and logistics expenses.

IPG gross margin declined in fiscal 2010 due primarily to a higher mix of hardware and a
correspondingly lower mix of supplies, the effect of which was partially offset by cost savings
associated with their ongoing efforts to optimize their supply chain.
HPFS gross margin increased in fiscal 2010 primarily as a result of higher portfolio margins due to
favorable financing conditions and higher remarketing margin, the effect of which was partially offset
by higher bad debt.
Corporate Investments gross margin increased in fiscal 2010 primarily as a result of the impact
from the 3Com acquisition along with lower product costs for their network infrastructure
products.

Fiscal 2009
Total HP gross margin decreased by 0.6 percentage points in fiscal 2009. From a segment
perspective and on a weighted basis, ESS had the largest impact to the total company gross
margin decline due to product mix shift and rate declines.
Services gross margin increased in fiscal 2009 due primarily to the continued focus on cost
structure improvements, including delivery efficiencies and cost controls in their technology
services business, 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.
ESS gross margin decreased in fiscal 2009 due primarily to competitive pricing across each of the
segment business units and product mix shifts.
HP Software gross margin increased in fiscal 2009 primarily as a result of favorable support and
services revenue mix and improved services margins, the effect of which was partially offset by an
unfavorable license revenue mix.
PSG gross margin declined in fiscal 2009, resulting from average selling prices (''ASPs'') declining at a
faster pace than component costs combined with a mix shift towards lower-end products, the effects
of which were partially offset by lower warranty and supply chain costs and improvements in the
option attach rate.
IPG gross margin improved in fiscal 2009 primarily as a result of an increase in the supplies mix and
supplies pricing, the effect of which was partially offset by hardware margin declines.
HPFS gross margin declined in fiscal 2009 primarily as a result of unfavorable currency
impacts, lower margins relating to end-of-lease activities, higher bad debt expenses and
lower margins for remarketing and buyout activities, the effect of which was partially
offset by higher portfolio margins.
Corporate Investments gross margin declined in fiscal 2009 primarily as a result of a unit volume
decline in the sale of network infrastructure products and competitive pricing pressures.
Operating Expenses
Research and Development
Total research and development (''R&D'') expense increased in fiscal 2010 due primarily to
additional expenses from acquired companies. In fiscal 2010, R&D expense as a percentage of
net revenue increased for Corporate Investments, HP Software and Services, decreased for ESS,
PSG, and IPG and was flat for HPFS.
Total R&D expense decreased in fiscal 2009 due primarily to favorable currency impacts related to the
movement of the dollar against the euro, as well as effective cost controls, the effect of which was
partially offset by additional expenses related primarily to Services. In fiscal 2009, R&D expense as a
percentage of net revenue decreased for ESS, PSG, and IPG, and increased for HP Software, Services
and Corporate Investments.

Selling, General and Administrative
Selling, general and administrative (''SG&A'') expense increased in fiscal 2010 due primarily to
higher field selling and marketing costs as a result of their investments in sales resources to grow
revenue. In fiscal 2010, SG&A expense as a percentage of net revenue increased for Corporate
Investments and IPG, and decreased for ESS, HP Software, PSG, HPFS and Services even as HP
invested in incremental sales resources across the segments.
Total SG&A expense decreased in fiscal 2009 due primarily to favorable currency impacts related to
the movement of the dollar against the euro, lower compensation expense as well as effective cost
management, the impact of which was partially offset by additional expenses related to the EDS
acquisition. In fiscal 2009, SG&A expense as a percentage of net revenue decreased for each of their
segments, except for Corporate Investments.

Amortization of Purchased Intangible Assets
The decrease in amortization expense in fiscal 2010 was due primarily to certain intangible assets
associated with prior acquisitions reaching the end of their amortization periods, the effect of which
was partially offset by increased amortization of purchased intangible assets from acquisitions
completed during fiscal 2010.
The increase in amortization expense in fiscal 2009 was due primarily to amortization expenses
related to the intangible assets purchased as part of the EDS acquisition.



Acquisition-Related Charges
In fiscal 2010, HP recorded acquisition-related charges of $293 million primarily for consulting and
integration costs, acquisition costs and retention bonuses associated with the EDS, 3Com, Palm, 3PAR
and ArcSight acquisitions.
In fiscal 2009, HP recorded acquisition-related charges of $242 million primarily for consulting and
integration costs as well as retention bonuses associated with the EDS acquisition.
Interest and Other, Net
Interest and other, net improved by $216 million in fiscal 2010. The improvement was driven
primarily by lower currency losses on balance sheet remeasurement items, lower interest
expenses on debt balances due to lower interest rates, and a value-added tax refund, the effect
of which was partially offset by an increase to their litigation accruals.
Interest and other, net decreased by $721 million in fiscal 2009. The decrease was driven primarily by
higher interest expenses due to higher 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.


Provision for Taxes
HPs effective tax rates were 20.2%, 18.6% and 20.5% in fiscal 2010, 2009 and 2008, 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 of its international earnings because HP plans to
reinvest some of those earnings indefinitely outside the United States.
The increase in the overall tax rate in fiscal 2010 was due primarily to a decrease in the income tax
benefits related to foreign earnings.
The decrease in the overall tax rate in fiscal 2009 was due primarily to the net income tax benefits
recorded for fiscal 2009 which were related to foreign net operating losses, adjustments to
estimated fiscal 2008 tax accruals upon filing the 2008 income tax returns, valuation allowance
reversals for state and foreign net operating losses, and other miscellaneous items.





Operating Activities
Net cash provided by operating activities decreased by approximately $1.5 billion for fiscal 2010, as
compared to fiscal 2009. The decrease was due primarily to an increase in accounts and financing
receivables resulting from higher revenues in the fourth quarter and higher payments for account
payable activities, the impact of which was partially offset by the increase in net earnings. Net cash
provided by operating activities decreased by approximately $1.2 billion for fiscal 2009, as compared
to fiscal 2008. The decrease was due primarily to increased utilization of cash resources for payment
of operating liabilities such as accounts payable, other current liabilities and restructuring along with
a decrease in net earnings.
Days of sales outstanding in accounts receivable (''DSO'') measures the average number of days
HPs receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of
allowance for doubtful accounts, by a 90-day average net revenue. HPs accounts receivable
balance was $18.5 billion as of October 31, 2010.
Days of supply in inventory (''DOS'') measures the average number of days from procurement to
sale of HPs product. DOS is calculated by dividing ending inventory by a 90-day average cost of
goods sold. HPs inventory balance was $6.5 billion as of October 31, 2010.
Days of purchases outstanding in accounts payable (''DPO'') measures the average number of days
HPs accounts payable balances are outstanding. DPO is calculated by dividing ending accounts
payable by a 90-day average cost of goods sold. HPs accounts payable balance was $14.4 billion as
of October 31, 2010.
HPs working capital requirements depend upon HPs effective management of the cash conversion
cycle, which represents effectively the number of days that elapse from the day HP pay for the
purchase of raw materials to the collection of cash from HPs customers. The cash conversion cycle
is the sum of DSO and DOS less DPO.
The cash conversion cycle for fiscal 2010 increased by 7 days as compared to fiscal 2009. The
increase in DSO was due primarily to linearity and fewer cash discounts in the fourth quarter.
DOS remained flat year over year. The decrease in DPO was due primarily to a change in
purchasing linearity in the fourth quarter.
The cash conversion cycle for fiscal 2009 decreased by 6 days as compared to fiscal 2008. The
increase in DSO was due primarily to HPs improving penetration into the enterprise market
which tends to have a higher DSO profile, optimizing terms to drive shareholder value as well as
more sales in the month of October. The decrease in DOS was due to lower inventory levels
driven primarily by improved inventory management. The increase in DPO was due primarily to a
change in purchasing linearity as business recovered through the fourth quarter.

Investing Activities
Net cash used in investing activities increased by approximately $7.8 billion for fiscal 2010 as
compared to fiscal 2009 due primarily to higher cash payments made in connection with fiscal
2010 acquisitions and decreased by approximately $10.1 billion for fiscal 2009 as compared to
fiscal 2008 due primarily to higher cash payments made in connection with fiscal 2008
acquisitions.

Financing Activities
Net cash used in financing activities decreased by approximately $3.8 billion for fiscal 2010, as
compared to fiscal 2009. The decrease was due primarily to a higher net issuance of commercial
paper, the impact of which was partially offset by increased repurchases of HPs common stock
and lower global debt issuance. Net cash used in financing activities increased by approximately
$4.7 billion for fiscal 2009, as compared to fiscal 2008. The increase was due primarily to higher
net repayments of commercial paper and debt, the impact of which was partially offset by
decreased repurchases of HPs common stock.
Cash and Cash Equivalents
Cash and cash equivalents at October 31, 2010 totaled $10.9 billion, a decrease of $2.4 billion
from the October 31, 2009 balance of $13.3 billion. The decrease for fiscal 2010 was due primarily
to $11.0 billion of cash used to repurchase common stock, $8.1 billion of net cash paid for
business acquisitions, and $3.5 billion net investment in property, plant and equipment, all of
which were partially offset by $11.9 billion of cash provided from operations, $6.0 billion of
increased net borrowings, and $2.6 billion of proceeds related to issuance of common stock under
employee stock plan.