HP (HPQ) 8-K Financial statements and exhibits

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS
(Unaudited)
(In millions except per share amounts)

	Three months ended
	April 30, 2004			January 31, 2004		April 30, 2003(a)
Net revenue	$	20,113		$	19,514	$	17,983
Costs and expenses:
Cost of sales		15,045			14,564		13,103
Research and development		910			875		941
Selling, general and administrative		2,816			2,719		2,795
Amortization of purchased intangible assets		148			144		141
Restructuring charges		38			54		234
Acquisition-related charges		9			15		126
In-process research and development charge		9			--		--
Total costs and expenses		18,975			18,371		17,340
Earnings from operations		1,138			1,143		643
Interest and other, net		2			11		(20	)
(Losses) gains on investments and other, net		(5	)		9		(12	)
Dispute settlement		(70	)		--		--
Earnings before taxes		1,065			1,163		611
Provision for (benefit from) taxes		181			227		(48	)
Net earnings	$	884		$	936	$	659
Net earnings per share:
Basic	$	0.29		$	0.31	$	0.22
Diluted	$	0.29		$	0.30	$	0.22
Cash dividends declared per share	$	--		$	0.16	$	--
Weighted-average shares used to compute net earnings per share:
Basic		3,043			3,050		3,047
Diluted		3,081			3,088		3,059

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^(a)     Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
(In millions)

	April 30, 2004		October 31, 2003(a)
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	14,654	$	14,188
Short-term investments		354		403
Accounts receivable, net		8,530		8,921
Financing receivables, net		3,016		3,026
Inventory		6,273		6,065
Other current assets		7,776		8,351
Total current assets		40,603		40,954
Property, plant and equipment, net		6,382		6,482
Long-term financing receivables and other assets		8,109		8,030
Goodwill and purchased intangibles, net		19,830		19,250
Total assets	$	74,924	$	74,716
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	803	$	1,080
Accounts payable		8,268		9,285
Employee compensation and benefits		1,899		1,755
Taxes on earnings		1,484		1,599
Deferred revenue		4,279		3,665
Accrued restructuring		360		709
Other accrued liabilities		8,721		8,545
Total current liabilities		25,814		26,638
Long-term debt		6,453		6,494
Other liabilities		3,809		3,838
Stockholders' equity		38,848		37,746
Total liabilities and stockholders' equity	$	74,924	$	74,716

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^(a)     Certain reclassifications have been made to prior year balances in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

Net revenue (which includes intersegment revenue) and earnings from operations for each segment are provided in the tables below, which includes a reconciliation to our consolidated condensed statement of earnings:

	Three months ended
	April 30, 2004			January 31, 2004			April 30, 2003(a)
Net revenue:
Enterprise Storage and Servers	$	3,979		$	3,717		$	3,679
Software		222			200			180
HP Services		3,492			3,161			3,043
Technology Solutions Group		7,693			7,078			6,902
Imaging and Printing Group		6,098			5,910			5,512
Personal Systems Group		5,991			6,187			5,127
Financing		469			441			501
Corporate Investments		114			102			84
Total segments		20,365			19,718			18,126
Eliminations of intersegment net revenue and other		(252	)		(204	)		(143	)
Total HP Consolidated	$	20,113		$	19,514		$	17,983
Earnings from operations:
Enterprise Storage and Servers	$	120		$	154		$	58
Software		(49	)		(46	)		(63	)
HP Services		329			258			297
Technology Solutions Group		400			366			292
Imaging and Printing Group		953			968			925
Personal Systems Group		45			62			23
Financing		35			29			21
Corporate Investments		(48	)		(35	)		(44	)
Total segments		1,385			1,390			1,217
Corporate and unallocated costs, and eliminations		(43	)		(34	)		(73	)
Restructuring charges		(38	)		(54	)		(234	)
Amortization of purchased intangible assets		(148	)		(144	)		(141	)
Acquisition-related charges		(9	)		(15	)		(126	)
In-process research and development charge		(9	)		--			--
Interest and other, net		2			11			(20	)
(Losses) gains on investments and other, net		(5	)		9			(12	)
Dispute Settlement		(70	)		--			--
Total HP Consolidated Earnings Before Taxes	$	1,065		$	1,163		$	611

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^(a)     Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS
(Unaudited)
(In millions except per share amounts)

	Six months ended April 30,
	2004			2003(a)
Net revenue	$	39,627		$	35,860
Costs and expenses:
Cost of sales		29,609			26,244
Research and development		1,785			1,849
Selling, general and administrative		5,535			5,520
Amortization of purchased intangible assets		292			279
Restructuring charges		92			234
Acquisition-related charges		24			212
In-process research and development charge		9			--
Total costs and expenses		37,346			34,338
Earnings from operations		2,281			1,522
Interest and other, net		13			31
Gains (losses) on investments and other, net		4			(17	)
Dispute settlement		(70	)		--
Earnings before taxes		2,228			1,536
Provision for taxes		408			156
Net earnings	$	1,820		$	1,380
Net earnings per share:
Basic	$	0.60		$	0.45
Diluted	$	0.59		$	0.45
Cash dividends declared per share	$	0.16		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		3,047			3,047
Diluted		3,086			3,062

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^(a)     Certain reclassifications have been made to prior period amounts in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

Net revenue (which includes intersegment revenue) and earnings from operations for each segment are provided in the tables below, which includes a reconciliation to our consolidated condensed statement of earnings:

	Six months ended April 30,
	2004			2003(a)
Net revenue:
Enterprise Storage and Servers	$	7,696		$	7,231
Software		422			363
HP Services		6,653			6,015
Technology Solutions Group		14,771			13,609
Imaging and Printing Group		12,008			11,110
Personal Systems Group		12,178			10,269
Financing		910			1,018
Corporate Investments		216			160
Total segments		40,083			36,166
Eliminations of intersegment net revenue and other		(456	)		(306	)
Total HP Consolidated	$	39,627		$	35,860
Earnings from operations:
Enterprise Storage and Servers	$	274		$	31
Software		(95	)		(118	)
HP Services		587			636
Technology Solutions Group		766			549
Imaging and Printing Group		1,921			1,836
Personal Systems Group		107			56
Financing		64			35
Corporate Investments		(83	)		(91	)
Total segments		2,775			2,385
Corporate and unallocated costs, and eliminations		(77	)		(138	)
Restructuring charges		(92	)		(234	)
Amortization of purchased intangible assets		(292	)		(279	)
Acquisition-related charges		(24	)		(212	)
In-process research and development charge		(9	)		--
Interest and other, net		13			31
Gains (losses) on investments and other, net		4			(17	)
Dispute settlement		(70	)		--
Total HP Consolidated Earnings Before Taxes	$	2,228		$	1,536

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^(a)     Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.

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