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EXHIBIT 12
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(IN MILLIONS, EXCEPT RATIOS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
JULY 31, FISCAL YEAR ENDED
------------------- ----------------------------------------------------
2000 1999 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings from continuing operations
before taxes...................... $3,427 $3,189 $4,194 $3,694 $3,568 $2,915 $2,945
Minority interest in the income of
subsidiaries with fixed charges... 5 2 14 4 22 22 19
Undistributed (earnings) or loss of
equity investees.................. (10) (1) 6 7 (7) (63) (45)
Fixed charges from continuing
operations:
Interest expense and amortization
of debt discount and premium on
all indebtedness................ 156 137 202 235 215 327 206
Interest included in rent......... 105 102 130 120 107 96 85
------ ------ ------ ------ ------ ------ ------
Total fixed charges from
continuing operations............. 261 239 332 355 322 423 291
Earnings before income taxes,
minority interest, undistributed
earnings or loss of equity
investees and fixed charges....... $3,683 $3,429 $4,546 $4,060 $3,905 $3,297 $3,210
====== ====== ====== ====== ====== ====== ======
Ratio of earnings to fixed
charges........................... 14.1x 14.3x 13.7x 11.4x 12.1x 7.8x 11.0x
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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.
