HP (HPQ) 8-K Results of Operations and Financial Condition

EXHIBIT 99.2

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

	Three months ended
	January 31,			October 31,			January 31,
	2009			2008(c)			2008(c)
Net revenue	$	28,800		$	33,603		$	28,467
Costs and expenses(a):
Cost of sales		22,069			25,853			21,444
Research and development		732			842			898
Selling, general and administrative		2,893			3,506			3,296
Amortization of purchased intangible assets		412			337			206
In-process research and development charges		6			32			--
Restructuring charges		146			251			10
Acquisition-related charges		48			41			--
Total costs and expenses		26,306			30,862			25,854
Earnings from operations		2,494			2,741			2,613
Interest and other, net		(232	)		(98	)		72
Earnings before taxes		2,262			2,643			2,685
Provision for taxes(b)		408			531			552
Net earnings	$	1,854		$	2,112		$	2,133
Net earnings per share:
Basic	$	0.77		$	0.87		$	0.83
Diluted	$	0.75		$	0.84		$	0.80
Cash dividends declared per share	$	0.16		$	--		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		2,410			2,440			2,560
Diluted		2,464			2,516			2,655
(a)  Stock-based compensation expense included under SFAS 123(R) was as follows:
Cost of sales	$	52		$	46		$	36
Research and development		17			17			20
Selling, general and administrative		85			94			101
Acquisition-related charges		6			--			--
Total costs and expenses	$	160		$	157		$	157
(b)  Tax benefit from stock-based compensation	$	(48	)	$	(37	)	$	(47	)
(c)  Certain pursuit-related costs previously reported as Cost of sales have been realigned retroactively to Selling, general and administrative expenses due to the organizational realignments occurring within HP's service offerings portfolio.

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

	January 31,		October 31,
	2009		2008
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,189	$	10,153
Short-term investments		66		93
Accounts receivable		14,769		16,928
Financing receivables		2,316		2,314
Inventory		7,629		7,879
Other current assets		12,912		14,361
Total current assets		48,881		51,728
Property, plant and equipment		10,774		10,838
Long-term financing receivables and other assets		10,111		10,468
Goodwill and purchased intangible assets		39,868		40,297
Total assets	$	109,634	$	113,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	10,199	$	10,176
Accounts payable		11,231		14,138
Employee compensation and benefits		2,951		4,159
Taxes on earnings		699		869
Deferred revenue		6,591		6,287
Other accrued liabilities		15,316		17,310
Total current liabilities		46,987		52,939
Long-term debt		10,259		7,676
Other liabilities		12,801		13,774
Stockholders' equity		39,587		38,942
Total liabilities and stockholders' equity	$	109,634	$	113,331

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

	Three months ended
	January 31,			October 31,			January 31,
	2009			2008(a)			2008(a)
Net revenue:
Enterprise Storage and Servers	$	3,948		$	5,059		$	4,820
Services		8,746			8,277			4,052
HP Software		878			1,148			947
Technology Solutions Group		13,572			14,484			9,819
Personal Systems Group		8,787			11,179			10,791
Imaging and Printing Group		5,981			7,572			7,357
HP Financial Services		636			691			642
Corporate Investments		196			246			218
Total Segments		29,172			34,172			28,827
Eliminations of intersegment net revenue and other		(372	)		(569	)		(360	)
Total HP Consolidated	$	28,800		$	33,603		$	28,467
Earnings from operations:
Enterprise Storage and Servers	$	405		$	705		$	673
Services		1,123			945			499
HP Software		140			211			49
Technology Solutions Group		1,668			1,861			1,221
Personal Systems Group		435			616			628
Imaging and Printing Group		1,105			1,155			1,142
HP Financial Services		41			51			43
Corporate Investments		(19	)		9			8
Total Segments		3,230			3,692			3,042
Corporate and unallocated costs and eliminations		24			(153	)		(89	)
Unallocated costs related to stock-based
compensation expense		(148	)		(137	)		(124	)
Amortization of purchased intangible assets		(412	)		(337	)		(206	)
In-process research and development charges		(6	)		(32	)		--
Restructuring charges		(146	)		(251	)		(10	)
Acquisition-related charges		(48	)		(41	)		--
Interest and other, net		(232	)		(98	)		72
Total HP Consolidated Earnings Before Taxes	$	2,262		$	2,643		$	2,685

(a)     Certain fiscal 2009 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2008, the reclassifications resulted in the transfer of revenue and operating profit among the Services, HP Software and Imaging and Printing Group financial reporting segments. In addition, certain previously allocated costs were reclassified to unallocated costs related to stock-based compensation expense. There was no impact on the previously reported financial results for the Enterprise Storage and Servers, Personal Systems Group, HP Financial Services and Corporate Investments segments.