EXHIBIT 12
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Statement of Computation of Ratio of Earnings to Fixed Charges (1)
(in millions, except ratios)
YEAR ENDED OCTOBER 31
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1998 1997 1996 1995 1994
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Pre-tax income from continuing operations ........... $ 4,091 $ 4,455 $ 3,694 $ 3,632 $ 2,423
Minority interest in the income of subsidiaries
with fixed charges ............................... 8 39 38 29 17
Undistributed (earnings) or loss of equity
investees ....................................... 10 (6) (62) (47) 4
Fixed charges:
Interest expense and amortization of debt
discount and premium on all indebtedness ....... 235 215 327 206 155
Interest included in rent ....................... 158 139 126 111 104
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Total fixed charges ............... 393 354 453 317 259
Earnings before income taxes, minority interest,
undistributed earnings or loss of equity investees
and fixed charges ................................ $ 4,502 $ 4,842 $ 4,123 $ 3,931 $ 2,703
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Ratio of earnings to fixed charges ................ 11.5 13.7 9.1 12.4 10.4
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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.