EXHIBIT 12
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)
YEARS ENDED OCTOBER 31,
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2000 1999 1998 1997 1996
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(IN MILLIONS, EXCEPT RATIOS)
Earnings from continuing operations before taxes............ $4,625 $4,194 $3,694 $3,568 $2,915
Minority interest in the income of subsidiaries with fixed
charges................................................... 4 14 4 22 22
Undistributed (earnings) or loss of equity investees........ (52) 6 7 (7) (63)
Fixed charges from continuing operations:
Interest expense and amortization of debt discount and
premium on all indebtedness............................. 257 202 235 215 327
Interest included in rent................................. 141 130 120 107 96
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Total fixed charges from continuing operations.......... 398 332 355 322 423
Earnings before income taxes, minority interest,
undistributed earnings or loss of equity investees and
fixed charges............................................. $4,975 $4,546 $4,060 $3,905 $3,297
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Ratio of earnings to fixed charges.......................... 12.5x 13.7x 11.4x 12.1x 7.8x
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(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 discount or premium on all indebtedness,
and (ii) a reasonable approximation of the interest factor deemed to be
included in rental expense.