EXHIBIT 12
HEWLETT-PACKARD COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(in millions, except ratios)
FOR THE
THREE MONTHS ENDED
JANUARY 31 YEAR ENDED OCTOBER 31,
------------------- -------------------------------------
1998 1997 1997 1996 1995 1994 1993
--------- --------- ------ ------ ------ ------ ------
Pre-tax income from
continuing operations.. $1,327 $1,303 $4,455 $3,694 $3,632 $2,423 $1,783
Minority interest in the
income of subsidiaries
with fixed charges..... 4 10 39 38 29 17 11
Undistributed (earnings)
or loss of equity
investees.............. 9 (3) (6) (62) (47) 4 6
Fixed charges:
Interest expense and
amortization of debt
discount and premium
on all indebtedness.. 67 54 215 327 206 155 121
Interest included in
rent................. 38 33 139 126 111 104 102
--------- --------- ------ ------ ------ ------ ------
Total fixed charges. 105 87 354 453 317 259 223
Earnings before income
taxes, minority
interest, undistributed
earnings or loss of
equity investees and
fixed charges.......... $1,445 $1,397 $4,842 $4,123 $3,931 $2,703 $2,023
========= ========= ====== ====== ====== ====== ======
Ratio of earnings to
fixed charges.......... 13.8 16.1 13.7 9.1 12.4 10.4 9.1
========= ========= ====== ====== ====== ====== ======
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(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.