Hewlett-Packard (HPQ)

Note 13: Stockholders' Equity

Stock Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In the first quarter of fiscal 2009, HP completed share repurchases of approximately 22 million shares. Repurchases of approximately 34 million shares were settled for $1.2 billion, which included approximately 14 million shares repurchased in transactions that were executed in fiscal 2008 but settled in the first quarter of fiscal 2009. HP had approximately 2 million shares purchased in the first quarter of fiscal 2009 but that will be settled in the second quarter of fiscal 2009. HP paid $3.3 billion in connection with share repurchases of 72 million shares during the three months ended January 31, 2008.

        As of January 31, 2009, HP had remaining authorization of approximately $7.9 billion for future share repurchases under the $8.0 billion repurchase authorization approved by HP's Board of Directors on September 19, 2008.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 13: Stockholders' Equity (Continued)

        The components of accumulated other comprehensive loss, net of taxes, were as follows:

Note 12: Stockholders' Equity

Stock Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. HP paid $3.3 billion and $2.3 billion in connection with share repurchases of 72 million shares and 57 million shares during the three months ended January 31, 2008 and January 31, 2007, respectively.

        On November 19, 2007, HP's Board of Directors authorized an additional $8.0 billion for future share repurchases. As of January 31, 2008, HP had remaining authorization of $7.4 billion for future share repurchases.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

        The components of accumulated other comprehensive income, net of taxes, were as follows:

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 12: Stockholders' Equity

Stock Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. HP paid approximately $2.5 billion and $2.3 billion in connection with share repurchases of approximately 55 million shares and 72 million shares during the three months ended July 31, 2007 and July 31, 2006, respectively. HP paid approximately $7.0 billion and $5.0 billion in connection with share repurchases of 167 million shares and 160 million shares in the first nine months of fiscal 2007 and 2006, respectively.

        In addition to the above transactions, HP entered into an Accelerated Share Repurchase (the "ASR Program") with a third-party investment bank during the second quarter of fiscal 2007. Pursuant to the terms of the ASR Program, HP purchased 40 million shares of its common stock from the

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investment bank for $1.8 billion (the "Purchase Price") on March 30, 2007 (the "Purchase Date"). HP decreased its shares outstanding and reduced the outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted EPS on the Purchase Date. The shares delivered to HP included shares that the investment bank borrowed from third parties. The investment bank purchased an equivalent number of shares in the open market to cover its position with respect to the borrowed shares during a contractually specified averaging period that began on the Purchase Date and ended on June 6, 2007. At the end of the averaging period, the investment bank's total purchase cost based on the volume weighted-average purchase price of HP shares during the averaging period was approximately $90 million less than the Purchase Price. In June 2007, HP received approximately 2 million additional shares purchased by the investment bank in the open market with a value approximately equal to that amount. HP reduced its shares outstanding upon receipt of those shares.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid approximately $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one-year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP completed all repurchases under the PVSPP on March 9, 2007. As of that date, HP had received a total of 53 million shares. HP retired all shares repurchased and no longer deems those shares outstanding.

        On March 15, 2007, HP's Board of Directors authorized an additional $8.0 billion for future repurchases of HP's common stock. As of July 31, 2007, HP had remaining authorization of $4.8 billion for future share repurchases.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

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        The components of accumulated other comprehensive income, net of taxes, were as follows:

Note 12: Stockholders' Equity

Stock Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. HP paid approximately $2.2 billion and $1.3 billion in connection with share repurchases of approximately 55 million shares and 40 million shares during the three months ended April 30, 2007 and April 30, 2006, respectively. HP paid $4.5 billion and $2.7 billion in connection with share repurchases of 112 million shares and 88 million shares in the first halves of fiscal 2007 and 2006, respectively.

        In addition to the above transactions, HP entered into an Accelerated Share Repurchase (the "ASR Program") with a third-party investment bank during the second quarter of fiscal 2007. Pursuant to the terms of the ASR Program, HP purchased 40 million shares of its common stock from the investment bank for $1.8 billion (the "Purchase Price") on March 30, 2007 (the "Purchase Date"). HP decreased its shares outstanding and reduced the outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted EPS on the Purchase Date. The shares delivered to HP included shares that the investment bank borrowed from third parties. The investment bank purchased an equivalent number of shares in the open market to cover its position with respect to the borrowed shares during a contractually specified averaging period that began on the Purchase Date and ended on June 6, 2007. As of April 30, 2007, the investment bank had purchased approximately 18 million shares in the open market for an aggregate purchase price of approximately $736 million. At the end of the averaging period, the investment bank's total purchase cost based on the volume weighted-average purchase price of HP shares during the averaging period was approximately $90 million less than the Purchase Price. As a result, HP expects to receive additional HP shares to be purchased by the investment bank in the open market with a value approximately equal to that amount. HP expects to receive the additional shares during the third quarter of fiscal 2007 and will treat them as additional repurchased shares at that time.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one-year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. For the three and six months ended April 30, 2007, HP had received 6 million and 19 million shares, respectively, for an aggregate price of $199 million and $629 million, respectively, under the PVSPP. HP completed all repurchases under the PVSPP on March 9, 2007. As of that date, HP had received a total of 53 million shares. HP retired all shares repurchased and HP no longer deems those shares outstanding.

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        On March 15, 2007, HP's Board of Directors authorized an additional $8.0 billion for future repurchases of HP's common stock. As of April 30, 2007, HP had remaining authorization of $7.3 billion for future share repurchases.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

        The components of accumulated other comprehensive (loss) income, net of taxes, were as follows:

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Note 12: Stockholders' Equity

Share Repurchases

        HP's share repurchase program authorizes both open market and private repurchase transactions. HP paid $2.3 billion and $860 million in connection with share repurchases of 72 million shares and 37 million shares, respectively, during the three months ended July 31, 2006 and 2005, respectively. HP paid $5.0 billion and $2.1 billion for the repurchase of 160 million shares and 96 million shares, respectively, in the first nine months of fiscal 2006 and 2005, respectively.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment was included in the cash flows from financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment bank has purchased and will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP purchases the shares are subject to a minimum and maximum price that was determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum and maximum number of shares HP could receive under the program are 52 million shares and 70 million shares, respectively. The exact number of shares to be repurchased is based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP decreases its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding. For the three and nine months ended July 31, 2006, HP had received approximately 13 million and 20 million shares, respectively for an aggregate price of $430 million and $662 million, respectively under the PVSPP.

        On February 14, 2006, HP's Board of Directors authorized $4.0 billion for future repurchases of HP's outstanding shares of common stock. As of July 31, 2006, HP had remaining authorization of $645 million for future share repurchases. On August 15, 2006, HP's Board of Directors authorized an additional $6.0 billion for future repurchase of its outstanding shares of common stock. Previously

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authorized share repurchases also will be made under the PVSPP until the remaining available balance is exhausted in the second quarter of fiscal 2007.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

        The components of accumulated other comprehensive income (loss), net of taxes, were as follows:

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Note 12: Stockholders' Equity

Share Repurchases

        HP's share repurchase program authorizes repurchases in the open market or in private transactions. HP paid $1.3 billion and $618 million in connection with share repurchases of 40 million shares and 30 million shares, respectively, during the three months ended April 30, 2006 and 2005, respectively. HP paid $2.7 billion and $1.2 billion for the repurchase of 88 million shares and 59 million shares, respectively, in the first half of fiscal 2006 and 2005, respectively.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment was included in the cash flows from

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financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment bank has purchased and will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP purchases the shares are subject to a minimum and maximum price that was determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum and maximum number of shares HP could receive under the program are 52 million shares and 70 million shares, respectively. The exact number of shares to be repurchased is based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP decreases its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding. As of April 30, 2006, HP had received approximately 7 million shares for an aggregate price of $232 million under the PVSPP.

        On February 14, 2006, HP's Board of Directors authorized an additional $4.0 billion for future repurchases of HP's outstanding shares of common stock. As of April 30, 2006, HP had remaining authorization of approximately $2.9 billion for future share repurchases. Previously authorized share repurchases also will be made under the PVSPP through the second quarter of fiscal 2007 until the remaining available balance under the PVSPP has been exhausted.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

        The components of accumulated other comprehensive loss, net of taxes, were as follows:

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Note 12: Stockholders' Equity

Share Repurchases

        HP's share repurchase program authorizes repurchases in the open market or in private transactions. HP paid $1,401 million and $586 million in connection with share repurchases of 48 million shares and 29 million shares, respectively, during the three months ended January 31, 2006 and 2005, respectively.

        In addition, HP entered into a prepaid variable share purchase program ("PVSPP") with a third party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment is included in the cash flows from financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment

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bank has purchased and they will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP will purchase the shares are subject to a minimum and maximum price determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum number and maximum number of shares HP could receive under the program are 52 million and 70 million shares, respectively. The exact number of shares that will be repurchased will be based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP will decrease its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding.

        As of January 31, 2006, HP had authorization for remaining future repurchases of approximately $258 million. On February 14, 2006, HP's Board of Directors authorized an additional $4.0 billion for future repurchases of HP's outstanding shares of common stock.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows:

        The components of accumulated other comprehensive loss, net of taxes, were as follows:

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