Hewlett-Packard (HPQ)

Fiscal 2003, 2002 and 2001 Restructuring Plans

        The 2003, 2002 and 2001 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In fiscal 2007, HP recorded an adjustment of $33 million in additional restructuring charges relating primarily to facility lease obligations. As of October 31, 2007, the aggregate $69 million outstanding restructuring liability with respect to these plans relates primarily to facility lease obligations. HP expects to pay the majority of these obligations over the lives of the related obligations, which extend to the end of fiscal 2010.

Fiscal 2003, 2002 and 2001 Restructuring Plans

        The 2003, 2002 and 2001 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the three and nine months ended July 31, 2007, HP recorded a $9 million reduction in restructuring charges and an adjustment of $30 million in additional restructuring charges, respectively. As of July 31, 2007, the aggregate $85 million outstanding restructuring liability with respect to these plans relates primarily to facility lease obligations. HP expects to pay the majority of these obligations over the lives of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2003, 2002 and 2001 Restructuring Plans

        The 2003, 2002 and 2001 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the three and six months ended April 30, 2007, HP recorded adjustments of $34 million and $39 million, respectively, in additional restructuring charges. As of April 30, 2007, the aggregate $104 million outstanding restructuring liability with respect to these plans relates primarily to facility lease obligations. HP expects to pay the majority of these obligations over the lives of the related obligations, which extend to the end of fiscal 2010.

Fiscal 2003, 2002 and 2001 Restructuring Plans

The 2003, 2002 and 2001 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the first quarter of fiscal 2007, HP recorded adjustments of $5 million in additional restructuring charges. The aggregate $104 million restructuring liability with respect to these plans as of January 31, 2007 relates primarily to facility lease obligations and severance. HP expects to pay substantially all of these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

Fiscal 2002 and 2001 Restructuring Plans

        The 2002 and 2001 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. During fiscal 2006, HP recorded additional adjustments of $48 million. These charges pertained to facility lease obligations and severance. In addition, an adjustment during fiscal 2006 includes a $25 million reduction of goodwill pertaining to severance and other related restructuring true-ups. The aggregate $103 million restructuring liability with respect to these plans as of October 31, 2006 relates primarily to facility lease obligations and severance. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        The 2001 and 2002 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the three and nine months ended July 31, 2006, HP recorded additional adjustments of $8 million and $35 million, respectively. These charges pertained to severance and other related restructuring adjustments. In addition, an adjustment for the nine months ended July 31, 2006 includes an $18 million reduction of goodwill pertaining to severance and other related restructuring true-ups. The aggregate $109 million restructuring liability with respect to these plans as of July 31, 2006 relates primarily to facility lease obligations and severance. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        The 2001 and 2002 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the three and six months ended April 30, 2006, HP recorded additional adjustments of $14 million and $27 million, respectively. These adjustments pertained to severance and other related restructuring adjustments. In addition, an adjustment for the six months ended April 30, 2006 includes a $14 million reduction of goodwill pertaining to severance and other related restructuring true-ups. The aggregate $117 million restructuring liability on these plans as of April 30, 2006 relates primarily to facility lease obligations and severance. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        On May 3, 2002, HP acquired Compaq. At that time, both HP and Compaq had restructuring liabilities for 2001 restructuring plans, of which $3 million and $48 million, respectively, remained at January 31, 2006. Restructuring plans established in 2002 in connection with the Compaq acquisition resulted in additional restructuring liabilities aggregating $2.8 billion. Of this amount, HP recorded an aggregate $1.9 billion as restructuring charges during fiscal 2002, 2003 and 2004, while HP recorded $960 million as of the acquisition date as part of the Compaq purchase price allocation. At January 31, 2006, the remaining restructuring liabilities for the HP- and Compaq-related 2002 restructuring plans were $8 million and $61 million, respectively. The 2001 and 2002 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the first quarter ended January 31, 2006, HP recorded adjustments of $13 million additional restructuring charges. These charges pertained to other related restructuring adjustments to the fiscal 2002 and 2001 restructuring plans. In addition, an adjustment for the three months ended January 31, 2006 includes a $10 million reduction of goodwill pertaining to other related restructuring true-ups. The aggregate $120 million restructuring liability on these plans as of January 31, 2006 relates primarily to facility lease obligations. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        On May 3, 2002, HP acquired Compaq. At that time, both HP and Compaq had restructuring liabilities for 2001 restructuring plans, of which $3 million and $52 million, respectively, remained at October 31, 2005. Restructuring plans established in 2002 in connection with the Compaq acquisition resulted in additional restructuring liabilities aggregating $2.8 billion. Of this amount, HP recorded an aggregate $1.9 billion as restructuring charges during fiscal 2002, 2003 and 2004, while HP recorded $960 million as of the acquisition date as part of the Compaq purchase price allocation. At October 31, 2005, the remaining restructuring liabilities for the HP and Compaq-related 2002 restructuring plans were $8 million and $61 million, respectively. The 2001 and 2002 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. During fiscal 2005, HP recorded adjustments of $20 million. These adjustments pertained to severance and other related restructuring true-ups to the fiscal 2002 restructuring plans. In addition, an adjustment for fiscal 2005 includes a $44 million reduction of goodwill for the 2001 and 2002 Compaq-related restructuring plans, of which $25 million is related to asset true-ups of previously estimated fair value adjustments on asset disposal. The aggregate $124 million restructuring liability on these plans as of October 31, 2005 related primarily to facility lease obligations. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        On May 3, 2002, HP acquired all of the outstanding stock of Compaq. At that time, both HP and Compaq had restructuring liabilities for 2001 restructuring plans, of which $3 million and $55 million, respectively, remain at July 31, 2005. Restructuring plans established in 2002 in connection with the Compaq acquisition resulted in additional restructuring liabilities aggregating $2.7 billion. Of this amount, HP recorded an aggregate $1.8 billion as restructuring charges during fiscal 2002, 2003 and 2004, while HP recorded $960 million as of the acquisition date as part of the Compaq purchase price

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allocation. At July 31, 2005, the remaining restructuring liabilities for the HP and Compaq-related 2002 restructuring plans were $11 million and $84 million, respectively. The 2001 and 2002 restructuring plans are substantially complete, although HP records minor revisions to previous estimates as necessary. In the third quarter and nine months ended July 31, 2005, HP recorded adjustments of approximately $3 million and $20 million, respectively. These adjustments pertain to other related restructuring true-ups to the fiscal 2002 and 2001 restructuring plans. In addition, an adjustment for the nine months ended July 31, 2005 includes a $37 million reduction of goodwill, of which $25 million is related to asset true-ups of previously estimated fair value adjustments on asset disposal. The aggregate $153 million restructuring liability as of July 31, 2005 relates primarily to facility lease obligations. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

Fiscal 2002 and 2001 Restructuring Plans

        On May 3, 2002, HP acquired all of the outstanding stock of Compaq. At that time, both HP and Compaq had restructuring liabilities for 2001 restructuring plans, of which $3 million and $58 million, respectively, remain at April 30, 2005. Restructuring plans established in 2002 in connection with the Compaq acquisition resulted in additional restructuring liabilities aggregating $2.7 billion. Of this amount, an aggregate $1.8 billion was recorded as restructuring charges during fiscal 2002, 2003 and 2004, while $960 million was recorded as of the acquisition date as part of the Compaq purchase price allocation. At April 30, 2005, the remaining restructuring liabilities for the HP and Compaq-related 2002 restructuring plans were $13 million and $89 million, respectively. The 2001 and 2002 restructuring plans are substantially complete, although minor revisions to previous estimates are recorded as necessary. Additionally, in the second quarter of fiscal 2005, HP recorded an adjustment to reduce goodwill for $37 million, of which $25 million related to asset-impairment true-ups and the remaining related to other related restructuring true-ups to the fiscal 2002 and 2001 restructuring plans. The aggregate $163 million restructuring liability as of April 30, 2005 relates primarily to facility lease obligations. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2002 and 2001 Restructuring Plans

        On May 3, 2002, HP acquired all of the outstanding stock of Compaq. At that time, both HP and Compaq had restructuring liabilities for 2001 restructuring plans, of which $3 million and $65 million, respectively, remain at January 31, 2005. Restructuring plans established in 2002 in connection with the Compaq acquisition resulted in additional restructuring liabilities aggregating $2.7 billion. Of this amount, an aggregate $1.8 billion was recorded as restructuring charges during fiscal 2002, 2003 and 2004, while $960 million was recorded as of the acquisition date as part of the Compaq purchase price allocation. At January 31, 2005, the remaining restructuring liabilities for the HP and Compaq-related 2002 restructuring plans were $23 million and $100 million, respectively. The 2001 and 2002 restructuring plans are substantially complete, although minor revisions to previous estimates are recorded as necessary. The aggregate $191 million restructuring liability as of January 31, 2005 primarily relates to facility lease obligations. HP expects to pay out these obligations over the life of the related obligations, which extend to the end of fiscal 2010.

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Fiscal 2001 Restructuring Plans

        In fiscal 2001, HP's management approved restructuring actions to respond to the global economic downturn and to improve HP's cost structure by streamlining operations and prioritizing resources in strategic areas of HP's business infrastructure. HP recorded a restructuring charge of $384 million in fiscal 2001 to reflect these actions which consisted primarily of severance and other employee benefits related to termination of 7,500 employees worldwide. During fiscal 2002, HP recorded $21 million of additional charges to reflect adjustments to the expected severance cost of its fiscal 2001 plan. As of the end of fiscal 2003, HP had terminated substantially all of these employees were terminated and paid substantially all accrued costs.

        As part of the acquisition of Compaq, HP assumed the remaining obligations of Compaq's existing restructuring plans of $259 million, which Compaq initially recorded in its 2001 fiscal year. In fiscal 2004 and 2003, HP recorded adjustments to decrease goodwill related to true-ups to these plans of $2 million and $26 million, respectively. The remaining balance of the pre-merger Compaq fiscal 2001 plan consists primarily of severance and other employee benefits as well as other restructuring costs. HP expects to settle the majority of the remaining balance of the severance accrual under phased retirement plans required in certain international locations by the end of fiscal 2009. HP anticipates paying the other related restructuring activities, which consist primarily of contractual obligations such as facility leases, over the lives of the related obligations, which extend to the end of fiscal 2010.

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