EXHIBIT 12 HEWLETT-PACKARD COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1) (in millions, except ratios ) YEAR ENDED OCTOBER 31, ------------------------------- 1997 1996 1995 1994 1993 ----- ----- ----- ----- ----- Pre-tax income from continuing operations...... 4,455 3,694 3,632 2,423 1,783 Minority interest in the income of subsidiaries with fixed charges............................ 39 38 29 17 11 Undistributed (earnings) or loss of equity investees..................................... 19 (62) (41) 6 7 Fixed charges: Interest expense and amortization of debt discount and premium on all indebtedness.... 215 327 206 155 121 Interest included in rent.................... 139 126 111 104 102 ----- ----- ----- ----- ----- Total fixed charges........................ 354 453 317 259 223 Earnings before income taxes, minority interest, undistributed earnings or loss of equity investees and fixed charges............ 4,867 4,123 3,938 2,705 2,024 Ratio of earnings to fixed charges............. 13.67 9.09 12.39 10.44 9.06 ===== ===== ===== ===== ===== - -------- (1) The ratio of earnings to fixed charges was computed by dividing earnings (income from continuing operations before income taxes, adjusted for fixed charges, minority interest in the income of subsidiaries with fixed charges and equity in earnings or loss of equity investees) by fixed charges for the periods indicated. Fixed charges 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.