EXHIBIT 12.1
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Statement of Computation of Ratio of Earnings to Fixed Charges (1)
(in millions, except ratios)
YEAR ENDED OCTOBER 31
------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
Earnings from continuing operations before taxes $4,194 $3,694 $3,568 $2,915 $2,945
Minority interest in the income of subsidiaries with
fixed charges 14 4 22 22 19
Undistributed (earnings) or loss of equity investees 6 7 (7) (63) (45)
Fixed charges from continuing operations:
Interest expense and amortization of debt
discount and premium on all indebtedness 202 235 215 327 206
Interest included in rent 130 120 107 96 85
--- --- --- -- --
Total fixed charges from continuing operations: 332 355 322 423 291
Earnings before income taxes, minority interest,
undistributed earnings or loss of equity investees
and fixed charges $4,546 4,060 3,905 3,297 3,210
======== ========== ========= ======== =======
Ratio of earnings to fixed charges 13.7x 11.4x 12.1x 7.8x 11.0x
(1) The ratio of earnings to fixed charges was computed by dividing
earnings (earnings from continuing operations before taxes, adjusted
for fixed charges from continuing operations, minority interest in the
income of subsidiaries with fixed charges and undistributed earnings
or loss of equity investees) by fixed charges from continuing operations
for the periods indicated. Fixed charges from continuing operations
include (i) interest expense and amortization of debt discounts or
premiums on all indebtedness, and (ii) a reasonable approximation of
the interest factor deemed to be included in rental expense.