Hewlett-Packard (HPQ)

2008 Compared to 2007

Operating Activities

        Net cash provided by operating activities increased by approximately $5.0 billion during fiscal 2008 from fiscal 2007. The increase was due primarily to higher net earnings in fiscal 2008, a decrease in accounts and financing receivables, and increased accounts payable.

Investing Activities

        Net cash used in investing activities increased by approximately $4.6 billion in fiscal 2008 from fiscal 2007, due primarily to higher cash payments made in connection with acquisitions.

Financing Activities

        Net cash used in financing activities decreased by approximately $3.6 billion during fiscal 2008 from fiscal 2007. The decrease was due primarily to higher net issuance of commercial paper and debt.

Common Stock Repurchases

        We repurchase shares of our common stock under an ongoing program to manage the dilution created by shares issued under employee benefit plans as well as to repurchase shares opportunistically. This program authorizes repurchases in the open market or in private transactions. In fiscal 2008, we completed share repurchases of approximately 230 million shares. Repurchases of approximately 216 million shares were settled for $9.6 billion, which included approximately 1 million shares repurchased in transactions that were executed in fiscal 2007 but settled in fiscal 2008. At the end of fiscal 2008, we had approximately 14 million shares which would be settled in the next fiscal year. In fiscal 2007, we completed share repurchases of approximately 209 million shares. Repurchases of approximately 210 million shares were settled for $9.1 billion in fiscal 2007, including approximately 1 million shares repurchased in transactions that were executed in fiscal 2006 but settled in fiscal 2007.

        We intend to continue to repurchase shares as a means to manage dilution from the issuance of shares under employee benefit plans and to purchase shares opportunistically. On September 19, 2008, our Board of Directors authorized an additional $8.0 billion for future share repurchases. As of October 31, 2008, we had remaining authorization of approximately $9.1 billion for future share repurchases. For more information on our share repurchases, see Item 5 and Note 14 to the Consolidated Financial Statements in Item 8, which are incorporated herein by reference.

2008 Compared to 2007

Operating Activities

        Net cash provided by operating activities increased by approximately $5.0 billion during fiscal 2008 from fiscal 2007. The
increase was due primarily to higher net earnings in fiscal 2008, a decrease in accounts and financing receivables, and increased accounts payable.

Investing Activities

        Net cash used in investing activities increased by approximately $4.6 billion in fiscal 2008 from fiscal 2007, due primarily to
higher cash payments made in connection with acquisitions.

Financing Activities

        Net cash used in financing activities decreased by approximately $3.6 billion during fiscal 2008 from fiscal 2007. The decrease
was due primarily to higher net issuance of commercial paper and debt.

Common Stock Repurchases

        We repurchase shares of our common stock under an ongoing program to manage the dilution created by shares issued under employee
benefit plans as well as to repurchase
shares opportunistically. This program authorizes repurchases in the open market or in private transactions. In fiscal 2008, we completed share repurchases of approximately 230 million shares.
Repurchases of approximately 216 million shares were settled for $9.6 billion, which included approximately 1 million shares repurchased in transactions that were executed in
fiscal 2007 but settled in fiscal 2008. At the end of fiscal 2008, we had approximately 14 million shares which would be settled in the next fiscal year. In fiscal 2007, we completed share
repurchases of approximately 209 million shares. Repurchases of approximately 210 million shares were settled for $9.1 billion in fiscal 2007, including approximately
1 million shares repurchased in transactions that were executed in fiscal 2006 but settled in fiscal 2007.

        We
intend to continue to repurchase shares as a means to manage dilution from the issuance of shares under employee benefit plans and to purchase shares opportunistically. On
September 19, 2008, our Board of Directors authorized an additional $8.0 billion for future share repurchases. As of October 31, 2008, we had remaining authorization of
approximately $9.1 billion for future share repurchases. For more information on our share repurchases, see Item 5 and Note 14 to the Consolidated Financial Statements in
Item 8, which are incorporated herein by reference.