HEWLETT-PACKARD COMPANY AND SUBSIDIARIES |
| Three months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| April 30, 2007 | January 31, 2007 | April 30, 2006 | |||||||||
| Net revenue | $ | 25,534 | $ | 25,082 | $ | 22,554 | |||||
| Costs and expenses(a): | |||||||||||
| Cost of sales | 19,283 | 19,136 | 16,970 | ||||||||
| Research and development | 903 | 877 | 930 | ||||||||
| Selling, general and administrative | 3,044 | 2,908 | 2,858 | ||||||||
| Amortization of purchased intangible assets | 212 | 201 | 151 | ||||||||
| In-process research and development charges | 19 | 167 | 2 | ||||||||
| Restructuring | 453 | (41 | ) | (14 | ) | ||||||
| Pension curtailments and pension settlements, net | (508 | ) | (9 | ) | -- | ||||||
| Total costs and expenses | 23,406 | 23,239 | 20,897 | ||||||||
| Earnings from operations | 2,128 | 1,843 | 1,657 | ||||||||
| Interest and other, net | 87 | 111 | 157 | ||||||||
| Gains on investments | 13 | 10 | 6 | ||||||||
| Earnings before taxes | 2,228 | 1,964 | 1,820 | ||||||||
| Provision for (benefit from) taxes(b) | 453 | 417 | (79 | ) | |||||||
| Net earnings | $ | 1,775 | $ | 1,547 | $ | 1,899 | |||||
| Net earnings per share: | |||||||||||
| Basic | $ | 0.67 | $ | 0.57 | $ | 0.68 | |||||
| Diluted | $ | 0.65 | $ | 0.55 | $ | 0.66 | |||||
| Cash dividends declared per share | $ | -- | $ | 0.16 | $ | -- | |||||
| Weighted-average shares used to compute net earnings per share: | |||||||||||
| Basic | 2,638 | 2,705 | 2,809 | ||||||||
| Diluted | 2,731 | 2,801 | 2,887 | ||||||||
| (a) Stock-based compensation expense included under SFAS 123(R) was as follows: | |||||||||||
| Cost of sales | $ | 42 | $ | 45 | $ | 33 | |||||
| Research and development | 18 | 19 | 15 | ||||||||
| Selling, general and administrative | 94 | 99 | 76 | ||||||||
| Total costs and expenses | $ | 154 | $ | 163 | $ | 124 | |||||
| (b) Tax benefit from stock-based compensation | $ | (44 | ) | $ | (48 | ) | $ | (39 | ) | ||
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES |
| Six months ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| April 30, 2007 | April 30, 2006 | |||||||
| Net revenue | $ | 50,616 | $ | 45,213 | ||||
| Costs and expenses(a): | ||||||||
| Cost of sales | 38,419 | 34,362 | ||||||
| Research and development | 1,780 | 1,801 | ||||||
| Selling, general and administrative | 5,952 | 5,550 | ||||||
| Amortization of purchased intangible assets | 413 | 298 | ||||||
| In-process research and development charges | 186 | 52 | ||||||
| Restructuring | 412 | 1 | ||||||
| Pension curtailments and pension settlements, net | (517 | ) | -- | |||||
| Total costs and expenses | 46,645 | 42,064 | ||||||
| Earnings from operations | 3,971 | 3,149 | ||||||
| Interest and other, net | 198 | 195 | ||||||
| Gains on investments | 23 | 4 | ||||||
| Earnings before taxes | 4,192 | 3,348 | ||||||
| Provision for taxes(b) | 870 | 222 | ||||||
| Net earnings | $ | 3,322 | $ | 3,126 | ||||
| Net earnings per share: | ||||||||
| Basic | $ | 1.24 | $ | 1.11 | ||||
| Diluted | $ | 1.20 | $ | 1.08 | ||||
| Cash dividends declared per share | $ | 0.16 | $ | 0.16 | ||||
| Weighted-average shares used to compute net earnings per share: | ||||||||
| Basic | 2,672 | 2,815 | ||||||
| Diluted | 2,763 | 2,890 | ||||||
| (a) Stock-based compensation expense included under SFAS 123(R) was as follows: | ||||||||
| Cost of sales | $ | 87 | $ | 72 | ||||
| Research and development | 37 | 33 | ||||||
| Selling, general and administrative | 193 | 163 | ||||||
| Total costs and expenses | $ | 317 | $ | 268 | ||||
| (b) Tax benefit from stock-based compensation | $ | (92 | ) | $ | (82 | ) | ||
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES |
| April 30, 2007 | October 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,236 | $ | 16,400 | ||||
| Short-term investments | 74 | 22 | ||||||
| Accounts receivable | 11,577 | 10,873 | ||||||
| Financing receivables | 2,532 | 2,440 | ||||||
| Inventory | 7,278 | 7,750 | ||||||
| Other current assets | 10,177 | 10,779 | ||||||
| Total current assets | 43,874 | 48,264 | ||||||
| Property, plant and equipment | 7,339 | 6,863 | ||||||
| Long-term financing receivables and other assets | 7,751 | 6,649 | ||||||
| Goodwill and purchased intangible assets | 24,449 | 20,205 | ||||||
| Total assets | $ | 83,413 | $ | 81,981 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes payable and short-term borrowings | $ | 4,360 | $ | 2,705 | ||||
| Accounts payable | 11,505 | 12,102 | ||||||
| Employee compensation and benefits | 2,559 | 3,148 | ||||||
| Taxes on earnings | 1,744 | 1,905 | ||||||
| Deferred revenue | 4,900 | 4,309 | ||||||
| Accrued restructuring | 236 | 547 | ||||||
| Other accrued liabilities | 11,609 | 11,134 | ||||||
| Total current liabilities | 36,913 | 35,850 | ||||||
| Long-term debt | 3,977 | 2,490 | ||||||
| Other liabilities | 6,037 | 5,497 | ||||||
| Stockholders' equity | 36,486 | 38,144 | ||||||
| Total liabilities and stockholders' equity | $ | 83,413 | $ | 81,981 | ||||
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES |
| Three months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| April 30, 2007 | January 31, 2007 | April 30, 2006(a) | |||||||||
| Net revenue: | |||||||||||
| Enterprise Storage and Servers | $ | 4,619 | $ | 4,453 | $ | 4,265 | |||||
| HP Services | 4,145 | 3,948 | 3,892 | ||||||||
| HP Software | 523 | 550 | 330 | ||||||||
| Technology Solutions Group | 9,287 | 8,951 | 8,487 | ||||||||
| Personal Systems Group | 8,663 | 8,719 | 6,977 | ||||||||
| Imaging and Printing Group | 7,161 | 6,999 | 6,724 | ||||||||
| HP Financial Services | 550 | 547 | 518 | ||||||||
| Corporate Investments | 175 | 157 | 122 | ||||||||
| Total Segments | 25,836 | 25,373 | 22,828 | ||||||||
| Eliminations of intersegment net revenue and other | (302 | ) | (291 | ) | (274 | ) | |||||
| Total HP Consolidated | $ | 25,534 | $ | 25,082 | $ | 22,554 | |||||
| Earnings from operations: | |||||||||||
| Enterprise Storage and Servers | $ | 407 | $ | 416 | $ | 322 | |||||
| HP Services | 459 | 414 | 345 | ||||||||
| HP Software | 42 | 47 | 3 | ||||||||
| Technology Solutions Group | 908 | 877 | 670 | ||||||||
| Personal Systems Group | 417 | 414 | 248 | ||||||||
| Imaging and Printing Group | 1,167 | 1,073 | 1,041 | ||||||||
| HP Financial Services | 36 | 32 | 39 | ||||||||
| Corporate Investments | (18 | ) | (29 | ) | (49 | ) | |||||
| Total Segments | 2,510 | 2,367 | 1,949 | ||||||||
| Corporate and unallocated costs and eliminations | (75 | ) | (66 | ) | (50 | ) | |||||
| Unallocated costs related to stock-based compensation expense | (131 | ) | (140 | ) | (103 | ) | |||||
| Amortization of purchased intangible assets | (212 | ) | (201 | ) | (151 | ) | |||||
| In-process research and development charges | (19 | ) | (167 | ) | (2 | ) | |||||
| Restructuring | (453 | ) | 41 | 14 | |||||||
| Pension curtailments and pension settlements, net | 508 | 9 | -- | ||||||||
| Interest and other, net | 87 | 111 | 157 | ||||||||
| Gains on investments | 13 | 10 | 6 | ||||||||
| Total HP Consolidated Earnings Before Taxes | $ | 2,228 | $ | 1,964 | $ | 1,820 | |||||
| (a) | Certain fiscal 2007 organizational realignments have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2006, the realignments primarily resulted in revenue movement within business units within the ESS and HPS segments. There was no impact to total segment revenue. |
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES |
| Six months ended April 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2007 | 2006(a) | |||||||
| Net revenue: | ||||||||
| Enterprise Storage and Servers | $ | 9,072 | $ | 8,505 | ||||
| HP Services | 8,093 | 7,649 | ||||||
| HP Software | 1,073 | 634 | ||||||
| Technology Solutions Group | 18,238 | 16,788 | ||||||
| Personal Systems Group | 17,382 | 14,426 | ||||||
| Imaging and Printing Group | 14,160 | 13,269 | ||||||
| HP Financial Services | 1,097 | 1,014 | ||||||
| Corporate Investments | 332 | 251 | ||||||
| Total Segments | 51,209 | 45,748 | ||||||
| Eliminations of intersegment net revenue and other | (593 | ) | (535 | ) | ||||
| Total HP Consolidated | $ | 50,616 | $ | 45,213 | ||||
| Earnings from operations: | ||||||||
| Enterprise Storage and Servers | $ | 823 | $ | 648 | ||||
| HP Services | 873 | 638 | ||||||
| HP Software | 89 | 12 | ||||||
| Technology Solutions Group | 1,785 | 1,298 | ||||||
| Personal Systems Group | 831 | 541 | ||||||
| Imaging and Printing Group | 2,240 | 2,014 | ||||||
| HP Financial Services | 68 | 77 | ||||||
| Corporate Investments | (47 | ) | (82 | ) | ||||
| Total Segments | 4,877 | 3,848 | ||||||
| Corporate and unallocated costs and eliminations | (141 | ) | (122 | ) | ||||
| Unallocated costs related to stock-based compensation expense | (271 | ) | (226 | ) | ||||
| Amortization of purchased intangible assets | (413 | ) | (298 | ) | ||||
| In-process research and development charges | (186 | ) | (52 | ) | ||||
| Restructuring | (412 | ) | (1 | ) | ||||
| Pension curtailments and pension settlements, net | 517 | -- | ||||||
| Interest and other, net | 198 | 195 | ||||||
| Gains on investments | 23 | 4 | ||||||
| Total HP Consolidated Earnings Before Taxes | $ | 4,192 | $ | 3,348 | ||||
| (a) | Certain fiscal 2007 organizational realignments have been reflected retroactively to provide improved visibility and comparability. For fiscal year 2006, the realignments primarily resulted in revenue movement within business units within the ESS and HPS segments. There was no impact to total segment revenue. |
