Exhibit 12
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Statements of Computation of Ratio of Earnings to Fixed Charges(1)
| Six months ended April 30, 2013 | Fiscal years ended October 31 | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
| In millions, except ratios | ||||||||||||||||||
Earnings (loss): | |||||||||||||||||||
Earnings (loss) before taxes | $ | 2,981 | $ | (11,933 | ) | $ | 8,982 | $ | 10,974 | $ | 9,415 | $ | 10,473 | ||||||
Adjustments: | |||||||||||||||||||
Non-controlling interests in the income of subsidiaries with fixed charges | 35 | 102 | 75 | 108 | 74 | 17 | |||||||||||||
Undistributed (earnings) loss of equity method investees | (3 | ) | (2 | ) | 3 | 12 | 2 | — | |||||||||||
Fixed charges | 612 | 1,297 | 1,027 | 868 | 1,098 | 1,147 | |||||||||||||
$ | 3,625 | $ | (10,536 | ) | $ | 10,087 | $ | 11,962 | $ | 10,589 | $ | 11,637 | |||||||
Fixed charges: | |||||||||||||||||||
Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other | $ | 397 | $ | 865 | $ | 551 | $ | 417 | $ | 585 | $ | 467 | |||||||
Interest included in rent | 215 | 432 | 476 | 451 | 513 | 680 | |||||||||||||
Total fixed charges | $ | 612 | $ | 1,297 | $ | 1,027 | $ | 868 | $ | 1,098 | $ | 1,147 | |||||||
Ratio of earnings to fixed charges | 5.9x | * | 9.8x | 13.8x | 9.6x | 10.1x |
- (1)
- HP computed the ratio of earnings to fixed charges by dividing earnings (earnings before cumulative effect of change in accounting principle and taxes, adjusted for fixed charges, non-controlling interests in the income of subsidiaries with fixed charges and undistributed earnings or loss of equity method investees) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings and amortization of debt discount or premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rental expense.
- *
- (Loss) earnings do not cover fixed charges by $10.5 billion for the fiscal year ended October 31, 2012 due to the non-cash impairment charge of $18.0 billion.