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
	Jan 31, 2014			Oct 31, 2013			Jan 31, 2013
Net revenue	$	28,154		$	29,131		$	28,359
Costs and expenses:
Cost of sales		21,736			22,437			22,029
Research and development		811			729			794
Selling, general and administrative		3,210			3,351			3,300
Amortization of intangible assets		283			317			350
Restructuring charges		114			371			130
Acquisition-related charges		3			3			4
Total costs and expenses		26,157			27,208			26,607
Earnings from operations		1,997			1,923			1,752
Interest and other, net		(163	)		(103	)		(179	)
Earnings before taxes		1,834			1,820			1,573
Provision for taxes		(409	)		(406	)		(341	)
Net earnings	$	1,425		$	1,414		$	1,232
Net earnings per share:
Basic	$	0.75		$	0.74		$	0.63
Diluted	$	0.74		$	0.73		$	0.63
Cash dividends declared per share	$	0.29		$	-		$	0.26
Weighted-average shares used to compute net earnings per share:
Basic		1,907			1,918			1,953
Diluted		1,935			1,940			1,956

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
	January 31, 2014		October 31, 2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	16,165	$	12,163
Accounts receivable		13,492		15,876
Financing receivables		3,054		3,144
Inventory		6,004		6,046
Other current assets		11,969		13,135
Total current assets		50,684		50,364
Property, plant and equipment		11,259		11,463
Long-term financing receivables and other assets		9,131		9,556
Goodwill and intangible assets		33,951		34,293
Total assets	$	105,025	$	105,676
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	6,621	$	5,979
Accounts payable		12,640		14,019
Employee compensation and benefits		3,171		4,436
Taxes on earnings		1,224		1,203
Deferred revenue		6,754		6,477
Other accrued liabilities		13,201		13,407
Total current liabilities		43,611		45,521
Long-term debt		17,971		16,608
Other liabilities		15,294		15,891
Stockholders' equity:
HP stockholders' equity		27,754		27,269
Non-controlling interests		395		387
Total stockholders' equity		28,149		27,656
Total liabilities and stockholders' equity	$	105,025	$	105,676

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
	Three months ended
	January 31, 2014			October 31, 2013			January 31, 2013
Net revenue:(a)
Personal Systems	$	8,530		$	8,604		$	8,232
Printing		5,815			6,047			5,946
Total Printing and Personal Systems Group		14,345			14,651			14,178
Enterprise Group		6,993			7,575			6,948
Enterprise Services		5,595			5,918			6,038
Software		916			1,093			951
HP Financial Services		870			912			957
Corporate Investments		288			5			4
Total segments		29,007			30,154			29,076
Elimination of intersegment net revenue and other		(853	)		(1,023	)		(717	)
Total HP consolidated net revenue	$	28,154		$	29,131		$	28,359
Earnings before taxes:(a)
Personal Systems	$	279		$	265		$	233
Printing		979			1,081			967
Total Printing and Personal Systems Group		1,258			1,346			1,200
Enterprise Group		1,006			1,092			1,070
Enterprise Services		57			255			76
Software		145			330			155
HP Financial Services		101			102			101
Corporate Investments		121			(86	)		(73	)
Total segment earnings from operations		2,688			3,039			2,529
Corporate and unallocated costs and eliminations		(121	)		(323	)		(109	)
Unallocated costs related to stock-based compensation expense		(170	)		(102	)		(184	)
Amortization of intangible assets		(283	)		(317	)		(350	)
Restructuring charges		(114	)		(371	)		(130	)
Acquisition-related charges		(3	)		(3	)		(4	)
Interest and other, net		(163	)		(103	)		(179	)
Total HP consolidated earnings before taxes	$	1,834		$	1,820		$	1,573

(a)

Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud-related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations.

HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes also resulted in the transfer of operating profit among the Personal Systems, Printing, the Enterprise Group, Software and Corporate Investments segments. These changes had no impact on HP’s previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

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