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
	October 31, 2012			July 31, 2012			October 31, 2011
Net revenue	$	29,959		$	29,669		$	32,122
Costs and expenses:(a)
Cost of sales		22,711			22,820			25,304
Research and development		909			854			829
Selling, general and administrative		3,227			3,366			3,605
Amortization of purchased intangible assets		372			476			411
Impairment of goodwill and  purchased intangible assets		8,847			9,188			885
Restructuring charges		378			1,795			179
Acquisition-related charges		3			3			114
Total costs and expenses		36,447			38,502			31,327
(Loss) earnings from operations		(6,488	)		(8,833	)		795
Interest and other, net		(188	)		(224	)		(401	)
(Loss) earnings before taxes		(6,676	)		(9,057	)		394
Provision (benefit) for taxes		178			(200	)		155
Net (loss) earnings	$	(6,854	)	$	(8,857	)	$	239
Net (loss) earnings per share:
Basic	$	(3.49	)	$	(4.49	)	$	0.12
Diluted	$	(3.49	)	$	(4.49	)	$	0.12
Cash dividends declared per share	$	-		$	0.26		$	-
Weighted-average shares used to compute net (loss) earnings per share:
Basic		1,964			1,971			1,989
Diluted		1,964			1,971			2,005

(a) In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In millions except per share amounts)
	Twelve months ended
	October 31,
	2012			2011
		(Unaudited)
Net revenue	$	120,357		$	127,245
Costs and expenses:(a)
Cost of sales		92,385			97,418
Research and development		3,399			3,254
Selling, general and administrative		13,500			13,577
Amortization of purchased intangible assets		1,784			1,607
Impairment of goodwill and  purchased intangible assets		18,035			885
Restructuring charges		2,266			645
Acquisition-related charges		45			182
Total costs and expenses		131,414			117,568
(Loss) earnings from operations		(11,057	)		9,677
Interest and other, net		(876	)		(695	)
(Loss) earnings before taxes		(11,933	)		8,982
Provision for taxes		717			1,908
Net (loss) earnings	$	(12,650	)	$	7,074
Net (loss) earnings per share:
Basic	$	(6.41	)	$	3.38
Diluted	$	(6.41	)	$	3.32
Cash dividends declared per share	$	0.50		$	0.40
Weighted-average shares used to compute net (loss) earnings per share:
Basic		1,974			2,094
Diluted		1,974			2,128

(a) In connection with organizational realignments implemented in the first quarter of fiscal year 2012, certain costs previously reported as Cost of sales have been reclassified as Selling, general and administrative expenses to better align those costs with the functional areas that benefit from those expenditures.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
	October 31, 2012		October 31, 2011
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,301	$	8,043
Accounts receivable		16,407		18,224
Financing receivables		3,252		3,162
Inventory		6,317		7,490
Other current assets		13,360		14,102
Total current assets		50,637		51,021
Property, plant and equipment		11,954		12,292
Long-term financing receivables and other assets		10,593		10,755
Goodwill and purchased intangible assets		35,584		55,449
Total assets	$	108,768	$	129,517
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	6,647	$	8,083
Accounts payable		13,350		14,750
Employee compensation and benefits		4,058		3,999
Taxes on earnings		846		1,048
Deferred revenue		7,494		7,449
Other accrued liabilities		14,271		15,113
Total current liabilities		46,666		50,442
Long-term debt		21,789		22,551
Other liabilities		17,480		17,520
Stockholders' equity:
HP stockholders' equity		22,436		38,625
Non-controlling interests		397		379
Total stockholders' equity		22,833		39,004
Total liabilities and stockholders' equity	$	108,768	$	129,517

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
			Three months ended
			October 31, 2012			July 31, 2012			October 31, 2011
Net revenue:(a)
	Personal Systems		$	8,705		$	8,620		$	10,118
	Printing			6,080			6,017			6,419
	Total Printing and Personal Systems Group(b)			14,785			14,637			16,537
	Services			8,711			8,754			9,227
	Enterprise Servers, Storage and Networking			5,119			5,143			5,601
	Software			1,171			973			1,023
	HP Financial Services			966			935			952
	Corporate Investments			13			19			(131	)
	Total segments			30,765			30,461			33,209
	Eliminations of intersegment net revenue and other			(806	)		(792	)		(1,087	)
	Total HP consolidated net revenue		$	29,959		$	29,669		$	32,122
Earnings before taxes:(a)
	Personal Systems		$	309		$	409		$	578
	Printing			1,067			949			793
	Total Printing and Personal Systems Group(b)			1,376			1,358			1,371
	Services			1,234			959			1,210
	Enterprise Servers, Storage and Networking			423			562			717
	Software			318			175			284
	HP Financial Services			104			97			98
	Corporate Investments			(83	)		(58	)		(908	)
	Total segment earnings from operations			3,372			3,093			2,772
	Corporate and unallocated costs and eliminations			(120	)		(314	)		(196	)
	Unallocated costs related to stock-based compensation expense			(140	)		(150	)		(192	)
	Amortization of purchased intangible assets			(372	)		(476	)		(411	)
	Impairment of goodwill and purchased intangible assets			(8,847	)		(9,188	)		(885	)
	Restructuring charges			(378	)		(1,795	)		(179	)
	Acquisition-related charges			(3	)		(3	)		(114	)
	Interest and other, net			(188	)		(224	)		(401	)
	Total HP consolidated (loss) earnings before taxes	$		(6,676	)	$	(9,057	)	$	394

(a)

Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Printing, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to Printing, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems and HP Financial Services segments.

(b)

As part of a realignment of the structure of HP’s business in fiscal 2012, the Personal Systems segment and the Printing segment have been structured beneath a newly formed Printing and Personal Systems Group. While the Printing and Personal Systems Group is not a financial reporting segment, HP provides financial data aggregating the segments within it in order to provide a supplementary view of its business.

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(In millions)
		Twelve months ended
		October 31,
		2012			2011
		(Unaudited)
Net revenue:(a)
	Personal Systems	$	35,650		$	39,574
	Printing		24,487			26,176
	Total Printing and Personal Systems Group(b)		60,137			65,750
	Services		34,922			35,702
	Enterprise Servers, Storage and Networking		20,491			22,064
	Software		4,060			3,367
	HP Financial Services		3,819			3,596
	Corporate Investments		108			208
	Total Segments		123,537			130,687
��	Eliminations of intersegment net revenue and other		(3,180	)		(3,442	)
	Total HP consolidated net revenue	$	120,357		$	127,245
Earnings before taxes:(a)
	Personal Systems	$	1,706		$	2,350
	Printing		3,585			3,927
	Total Printing and Personal Systems Group(b)		5,291			6,277
	Services		4,095			5,203
	Enterprise Servers, Storage and Networking		2,132			2,997
	Software		827			722
	HP Financial Services		388			348
	Corporate Investments		(238	)		(1,619	)
	Total segment earnings from operations		12,495			13,928
	Corporate and unallocated costs and eliminations		(790	)		(314	)
	Unallocated costs related to stock-based compensation expense		(632	)		(618	)
	Amortization of purchased intangible assets		(1,784	)		(1,607	)
	Impairment of goodwill and purchased intangible assets		(18,035	)		(885	)
	Restructuring charges		(2,266	)		(645	)
	Acquisition-related charges		(45	)		(182	)
	Interest and other, net		(876	)		(695	)
	Total HP consolidated (loss) earnings before taxes	$	(11,933	)	$	8,982

(a)

Certain fiscal 2012 organizational reclassifications have been reflected retroactively to provide improved visibility and comparability. For each of the quarters in fiscal year 2011, the reclassifications resulted in the transfer of revenue and operating profit among the Services, Printing, Enterprise Servers, Storage and Networking, Software and Corporate Investments financial reporting segments. Reclassifications between segments included the transfer of the Indigo Scitex support and the LaserJet and enterprise solutions trade support businesses from Services to Printing, the transfer of the business intelligence services business from Corporate Investments to Services, the transfer of the information management services business from Software to Services, and the transfer of the TippingPoint business from Enterprise Servers, Storage and Networking to Software. There was no impact on the previously reported financial results for the Personal Systems and HP Financial Services segments.

(b)

As part of a realignment of the structure of HP’s business in fiscal 2012, the Personal Systems segment and the Printing segment have been structured beneath a newly formed Printing and Personal Systems Group. While the Printing and Personal Systems Group is not a financial reporting segment, HP provides financial data aggregating the segments within it in order to provide a supplementary view of its business.

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