HP (HPQ) 8-K Third quarter GAAP operating profit up 5% to $2.3 billion; GAAP diluted earnings per share of $0.75, up 9% from $0.69 a year earlier

EXHIBIT 99.2
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
	Three months ended
	July 31, 2010			April 30, 2010			July 31, 2009
Net revenue	$	30,729		$	30,849		$	27,585
Costs and expenses(a):
Cost of sales		23,402			23,601			21,031
Research and development		742			722			667
Selling, general and administrative		3,154			3,064			2,874
Amortization of purchased intangible assets		383			347			379
Restructuring charges		598			180			362
Acquisition-related charges		127			77			59
Total costs and expenses		28,406			27,991			25,372
Earnings from operations		2,323			2,858			2,213
Interest and other, net		(134	)		(91	)		(177	)
Earnings before taxes		2,189			2,767			2,036
Provision for taxes(b)		416			567			365
Net earnings	$	1,773		$	2,200		$	1,671
Net earnings per share:
Basic	$	0.76		$	0.94		$	0.70
Diluted	$	0.75		$	0.91		$	0.69
Cash dividends declared per share	$	0.16		$	-		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		2,322			2,345			2,382
Diluted		2,376			2,406			2,436
(a)  Stock-based compensation expense was as follows:
Cost of sales	$	43		$	48		$	41
Research and development		11			16			12
Selling, general and administrative		111			136			94
Acquisition-related charges		1			-			3
Total costs and expenses	$	166		$	200		$	150
(b)  Tax benefit from stock-based compensation	$	(54	)	$	(64	)	$	(51	)

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions except per share amounts)
	Nine months ended
	July 31, 2010			July 31, 2009
Net revenue	$	92,755		$	83,775
Costs and expenses(a):
Cost of sales		71,065			64,049
Research and development		2,145			2,115
Selling, general and administrative		9,150			8,647
Amortization of purchased intangible assets		1,060			1,171
In-process research and development charges		-			6
Restructuring charges		909			602
Acquisition-related charges		242			182
Total costs and expenses		84,571			76,772
Earnings from operations		8,184			7,003
Interest and other, net		(424	)		(589	)
Earnings before taxes		7,760			6,414
Provision for taxes(b)		1,537			1,166
Net earnings	$	6,223		$	5,248
Net earnings per share:
Basic	$	2.66		$	2.19
Diluted	$	2.60		$	2.15
Cash dividends declared per share	$	0.32		$	0.32
Weighted-average shares used to compute net earnings per share:
Basic		2,342			2,395
Diluted		2,398			2,442
(a)  Stock-based compensation expense was as follows:
Cost of sales	$	138		$	141
Research and development		41			47
Selling, general and administrative		366			288
Acquisition-related charges		2			25
Total costs and expenses	$	547		$	501
(b)  Tax benefit from stock-based compensation	$	(176	)	$	(158	)

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
	July 31, 2010		October 31, 2009
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	14,718	$	13,279
Short-term investments		5		55
Accounts receivable		15,621		16,537
Financing receivables		2,799		2,675
Inventory		7,206		6,128
Other current assets		14,016		13,865
Total current assets		54,365		52,539
Property, plant and equipment		11,477		11,262
Long-term financing receivables and other assets		11,681		11,289
Goodwill and purchased intangible assets		42,494		39,709
Total assets	$	120,017	$	114,799
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	7,842	$	1,850
Accounts payable		14,885		14,809
Employee compensation and benefits		3,703		4,071
Taxes on earnings		947		910
Deferred revenue		6,583		6,182
Other accrued liabilities		15,328		15,181
Total current liabilities		49,288		43,003
Long-term debt		12,204		13,980
Other liabilities		15,690		17,052	(a)
Stockholders' equity
HP Stockholders' equity		42,535		40,517
Noncontrolling interests		300		247	(a)
Total stockholders' equity		42,835		40,764
Total liabilities and stockholders' equity	$	120,017	$	114,799
(a)  Reflects the adoption of the accounting standard related to the presentation of noncontrolling interests in consolidated financial statements.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
	Three months ended
	July 31, 2010			April 30, 2010			July 31, 2009(a)
Net revenue:
Services	$	8,609		$	8,712		$	8,520
Enterprise Storage and Servers		4,449			4,542			3,735
HP Software		863			871			847
HP Enterprise Business		13,921			14,125			13,102
Personal Systems Group		9,918			9,956			8,441
Imaging and Printing Group		6,167			6,396			5,660
HP Financial Services		764			755			670
Corporate Investments		607			315			193
Total Segments		31,377			31,547			28,066
Eliminations of intersegment net revenue and other		(648	)		(698	)		(481	)
Total HP Consolidated	$	30,729		$	30,849		$	27,585
Earnings from operations:
Services	$	1,366		$	1,382		$	1,302
Enterprise Storage and Servers		549			571			381
HP Software		183			162			153
HP Enterprise Business		2,098			2,115			1,836
Personal Systems Group		469			465			387
Imaging and Printing Group		1,040			1,098			960
HP Financial Services		72			69			53
Corporate Investments		83			12			(10	)
Total Segments		3,762			3,759			3,226
Corporate and unallocated costs and eliminations		(175	)		(112	)		(81	)
Unallocated costs related to stock-based compensation expense		(156	)		(185	)		(132	)
Amortization of purchased intangible assets		(383	)		(347	)		(379	)
Restructuring charges		(598	)		(180	)		(362	)
Acquisition-related charges		(127	)		(77	)		(59	)
Interest and other, net		(134	)		(91	)		(177	)
Total HP Consolidated Earnings Before Taxes	$	2,189		$	2,767		$	2,036
(a)  As a result of HP's adoption in fiscal 2009 of the revenue recognition standards related to multiple-deliverable revenue arrangements and revenue arrangements that included software, certain previously reported segment and business unit results have been restated. The adoption primarily impacted the Services, Enterprise Storage and Servers and Personal Systems Group financial reporting segments.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
	Nine months ended
	July 31, 2010			July 31, 2009(a)
Net revenue:
Services	$	25,972		$	25,767
Enterprise Storage and Servers		13,382			11,141
HP Software		2,612			2,605
HP Enterprise Business		41,966			39,513
Personal Systems Group		30,458			25,443
Imaging and Printing Group		18,769			17,557
HP Financial Services		2,238			1,947
Corporate Investments		1,158			577
Total Segments		94,589			85,037
Eliminations of intersegment net revenue and other		(1,834	)		(1,262	)
Total HP Consolidated	$	92,755		$	83,775
Earnings from operations:
Services	$	4,112		$	3,600
Enterprise Storage and Servers		1,672			1,037
HP Software		512			450
HP Enterprise Business		6,296			5,087
Personal Systems Group		1,464			1,201
Imaging and Printing Group		3,192			3,139
HP Financial Services		208			140
Corporate Investments		114			(48	)
Total Segments		11,274			9,519
Corporate and unallocated costs and eliminations		(375	)		(119	)
Unallocated costs related to stock-based compensation expense		(504	)		(436	)
Amortization of purchased intangible assets		(1,060	)		(1,171	)
In-process research and development charges		-			(6	)
Restructuring charges		(909	)		(602	)
Acquisition-related charges		(242	)		(182	)
Interest and other, net		(424	)		(589	)
Total HP Consolidated Earnings Before Taxes	$	7,760		$	6,414
(a)  As a result of HP's adoption in fiscal 2009 of the revenue recognition standards related to multiple-deliverable revenue arrangements and revenue arrangements that included software, certain previously reported segment and business unit results have been restated. The adoption primarily impacted the Services, Enterprise Storage and Servers and Personal Systems Group financial reporting segments.

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