form11-k_2012.htm
                    
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 11-K
 

 
(Mark One)
   
  x  ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the fiscal year ended December 31, 2012
   
 
OR
   
  o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the transition period from ____________ to ____________
   
   
 
Commission File Number: 1-4423
   
   
 A. Full title of the plan and address of the plan, if different from that of the issuer named below:
   
   
 
HEWLETT-PACKARD COMPANY 401(k) PLAN
   
   
 B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
   
   
 
HEWLETT-PACKARD COMPANY
3000 HANOVER STREET
PALO ALTO, CALIFORNIA 94304
 
 
 
 
 
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Financial Statements and Supplemental Schedule
 
December 31, 2012 and 2011 and
For the Year Ended December 31, 2012
 
 
 
Contents
 
 
Report of Independent Registered Public Accounting Firm 1  
     
Audited Financial Statements:    
     
Statements of Net Assets Available for Benefits     3  
Statement of Changes in Net Assets Available for Benefits 4  
Notes to Financial Statements 5  
     
Supplemental Schedule:    
     
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) 24  
     
Signature 81  
     
Exhibit Index:    
     
Exhibit 23.1 – Consent of Independent Registered Public Accounting Firm  82  
 
 
 
 
 

 
Report of Independent Registered Public Accounting Firm
 
Plan Administrator
Hewlett-Packard Company 401(k) Plan
 
 
We have audited the accompanying statements of net assets available for benefits of Hewlett-Packard Company 401(k) Plan as of December 31, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Hewlett-Packard Company 401(k) Plan at December 31, 2012 and 2011, and the changes in its net assets available for benefits for the year ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.
 
Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2012, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure
 
 
1
 
 
 
under the Employee Retirement Income Security Act of 1974. Such information has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
 
 
/s/ Ernst & Young LLP                                             
 
San Jose, California
June 24, 2013


 
2
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Statements of Net Assets Available for Benefits
             
             
   
December 31
   
2012
  
2011
Assets
            
Cash
   $ 1,331,574     $ 363,201  
Investments, at fair value
     14,380,302,112       13,717,114,451  
Receivables:
                
     Notes receivable from participants
     231,305,214       224,531,689  
     Company contribution
     33,307,290       41,048,166  
     Amount due from brokers for securities sold
     52,601,724       181,590,682  
     Forward foreign currency contracts and other derivative assets
     1,242,428       3,838,763  
     Interest, dividends, and other receivables
     24,687,770       26,300,916  
Total receivables
     343,144,426       477,310,216  
Total assets
     14,724,778,112       14,194,787,868  
 
                
Liabilities
                
Amount due to brokers for securities purchased
     102,852,757       193,332,110  
Forward foreign currency contracts and other derivative payables
     3,433,935       2,966,781  
Administrative expenses and other payables
     8,642,165       9,533,391  
Total liabilities
     114,928,857       205,832,282  
Net assets available for benefits
   $ 14,609,849,255     $ 13,988,955,586  
                 
 
                
See accompanying notes.
                

 
3
 

 
Hewlett-Packard Company 401(k) Plan
 
Statement of Changes in Net Assets Available for Benefits
 
Year Ended December 31, 2012
       
       
Additions
      
Investment income:
      
     Interest and dividends
   $ 289,309,105  
     Net realized and unrealized appreciation in fair value of investments
     1,290,429,711  
 
     1,579,738,816  
Contributions:
        
     Participants
     657,671,458  
     Company
     254,847,156  
     Rollover
     99,485,501  
Total contributions
     1,012,004,115  
         
Interest income on notes receivable from participants
     10,102,280  
Participant loans transferred in from other plan
     20,617  
Total additions
     2,601,865,828  
 
        
Deductions
        
Benefits paid directly to participants
     1,945,766,599  
Investment management fees
     27,302,638  
Administrative expenses and fees
     7,902,922  
Total deductions
     1,980,972,159  
 
        
Net increase
     620,893,669  
 
        
Net assets available for benefits:
        
     Beginning of year
     13,988,955,586  
     End of year
   $ 14,609,849,255  
 
        
See accompanying notes.
        
         
 

 
4
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements
 
December 31, 2012
 

1.    Description of the Plan
 
The following brief description of the Hewlett-Packard Company 401(k) Plan (the Plan) provides only general information. Participants should refer to the plan document for a more complete description of the Plan’s provisions.
 
General
 
The Plan is a defined contribution plan covering employees of Hewlett-Packard Company (the Company or HP) and designated domestic subsidiaries who are on the U.S. payroll and who are employed as regular full-time or regular part-time or limited-term employees. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
 
Assets of the Plan are invested in a five-tier investment structure. Tier 1 includes one ready-made portfolio (the Conservative Portfolio), and ten Birth Date Funds. The Birth Date Funds’ investment strategy is designed to apply over a participant’s entire investment horizon, including the years after retirement, and is designed to become more conservative as participants grow older. Tier 2 includes six actively managed institutional funds from the main asset classes – stocks, bonds, and short-term investments. Tier 3 includes four index funds that try to mirror a specific market index by investing in the same list of equities and bonds. Tier 4 includes six funds from specialty asset classes, such as real-return income, commodities, and real estate. The Company common stock is also included in Tier 4. Tier 5 is a self-directed Mutual Fund Brokerage Window that offers more than 8,500 brand-name mutual funds through Fidelity. All investments are participant-directed.
 
The Plan includes a non-leveraged employee stock ownership plan feature (the ESOP) within the meaning of Internal Revenue Code (the Code) Section 4975(e)(7). The ESOP is maintained as part of the Plan and is designed to invest primarily in the Company’s common stock. The purpose of the ESOP is to permit participants the option of having dividends on the Company’s common stock re-invested in the Plan or paid directly to them in cash. Participants in the Plan who were formerly participants in the Compaq Computer Corporation 401(k) Investment Plan, but who did not become employees of the Company subsequent to the acquisition of Compaq Computer Corporation in May 2002, and participants who were formerly participants in the EDS 401(k) Plan but who did not become employees of the Company subsequent to the acquisition of EDS in August 2008 are not eligible to participate in the ESOP.
 

 
5
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.    Description of the Plan (continued)
 
Effective January 1, 2010, new guidelines were imposed on participants’ ability to invest in the Company common stock, with a goal of limiting investments in Company common stock to a maximum of 20% of a participant’s portfolio. Under the new guidelines, if a participant’s account currently has more than 20% invested in the Company common stock fund, the participant will not be forced to reduce his or her holdings; however, the investment election for ongoing contributions and loan repayments will be limited to a maximum of 20% in the Company common stock fund, and any percentage above the 20% limit for ongoing contributions will automatically be directed to the appropriate Birth Date Fund based on the year the participant was born. In addition, the new guidelines provide that future requested exchanges into the Company common stock fund will be blocked if the requested change will cause the participant to exceed the 20% limit or if the participant is already at or above the 20% limit. Finally, the new guidelines provide that if the participant chooses to rebalance his or her portfolio, the respective holdings in the Company common stock fund will be limited to a maximum of 20% regardless of the current investments in the Company common stock fund.
 
Contributions
 
As soon as administratively feasible, normally about 15 days after the employment start date, employees are automatically enrolled in the Plan at a 3% contribution rate in the appropriate Birth Date Fund based on the year employees were born.
 
Participants may annually contribute, on a pretax basis, up to 50% of their eligible compensation, as defined by the Plan. Contributions are subject to annual deductibility limits specified under the Code. The annual limitation was $17,000 for 2012. Contributions can be made as whole or fractional percentages of pay. Employees can choose pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of the two. The Plan also accepts rollover contributions from a Roth deferral account to the Plan as described in Code section 402A(e)(1) and only to the extent the rollover is permitted under the rules of section 402(c) of the Code. After-tax Roth 401(k) contributions shall be treated as deferred contributions for all purposes under the Plan, including Company matching contributions.
 
Participants who are age 50 or older by the end of the plan year can contribute an additional $5,500 above the annual limitation. These catch-up contributions can be pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of the two. Such contributions are not eligible for the Company match. Participants may also make rollover contributions of amounts representing distributions from other qualified defined benefit or defined contribution plans.
 
 
 
6
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.    Description of the Plan (continued)
 
Effective February 1, 2011, the Company matching contribution was a fixed contribution funded at 100%, up to 4% of eligible earnings, each pay period, with the matching contribution made after the end of the fiscal quarter. Prior to February 1, 2011, the Company matching contributions were discretionary funded at the same rates.
 
In order to receive a matching contribution for a fiscal quarter, a participant must be employed on the last day of such fiscal quarter or have terminated employment during such fiscal quarter as a result of such employee’s death, termination under a Company-approved severance program, or in connection with a sale or divestiture by the Company of the business unit in which the participant had been employed.  Effective for matching contributions made on or after May 23, 2012, a participant who terminates under the 2012 U.S. Enhanced Early Retirement Program is also eligible for a matching contribution for the fiscal quarter in which the participant terminates.
 
Employees of Autonomy Corporation plc (Autonomy), who began participating in the Plan in November 2011 following the Company’s October 2011 acquisition of a controlling interest in Autonomy, are eligible for matching contributions of 50% of the first 6% of eligible pay contributed each pay period, not to exceed $1,000 for any calendar year; provided, however, that for 2012, the minimum matching contribution for any employee will be limited to the greater of (i) the amount of matching contribution received by such employee as of May 31, 2012, or (ii) $1,000.
 
Employees of Palm, Inc. (Palm), who began participating in the Plan in August 2010 following the Company’s July 2010 acquisition of Palm, are eligible for matching contributions of 50% of the first 6% of eligible pay contributed each pay period.
 
Vesting
 
Participants are fully vested at all times with regard to their contributions and earnings thereon.
 
Effective January 1, 2006, all new employees are subject to a three-year cliff vesting schedule with regard to Company matching contributions. As a result, participants with no prior HP service who enter the Plan on or after January 1, 2006, do not vest in Company matching contributions until the
 
 
7
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.    Description of the Plan (continued)

earlier of earning three years of credited service, attaining age 65, death before termination of employment, or becoming eligible for disability benefits under the Company’s long-term disability benefits program, at which time they will become 100% vested in their Company matching contributions and earnings thereon. Participants are also fully vested in their Company matching contributions if they terminate employment in connection with a sale or divestiture by the Company of the business unit in which the participant had been employed. Additionally, effective May 23, 2012, participants are fully vested in their Company matching contributions if they terminate employment under the 2012 U.S. Enhanced Early Retirement Program.
 
Participants who are employees of Autonomy are subject to a four-year graded vesting schedule, with their Company matching contributions becoming 25% vested after one full year of service, 50% vested after two full years of service, 75% vested after three full years of service, and 100% vested after four or more years of service, taking into consideration years of service with Autonomy.
 
Participants who are employees of Palm are subject to a three-year graded vesting schedule, with their Company matching contributions becoming 33% vested after one full year of service, 66% vested after two full years of service, and 100% vested after three or more years of service, taking into consideration years of service with Palm.
 
Participant Accounts
 
Each participant’s account is credited with the participant’s contributions and allocations of (i) Company contributions and (ii) Plan earnings and losses. Allocations are determined in accordance with the provisions of the plan document. The benefit to which a participant is entitled is the benefit that can be provided from the vested portion of the participant’s account.
 
Notes Receivable From Participants
 
The Plan offers two types of loans, namely general-purpose loans and primary residence loans. The repayment period for a general-purpose loan may not exceed five years, and the repayment period for a primary residence loan may not exceed 15 years.
 
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balances. Loans are secured by the participant’s account and bear interest at a rate equal to the prevailing prime rate plus 1%. Principal and interest are paid ratably through payroll deductions.
 
 
 
8
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
1.    Description of the Plan (continued)

Forfeitures
 
If a participant terminates employment before becoming fully vested in his or her Company matching contributions, the participant’s nonvested matching contributions (and related investment earnings) are forfeited at the earlier of the date the participant receives a distribution of his or her account or incurs a five-year break-in-service.  Forfeited balances are restored only if the participant both returns to an eligible status within five years of his or her termination date and repays any amount previously distributed from his or her account. Forfeited balances of terminated participants’ nonvested accounts are used to reduce future Company matching contributions, restore previously forfeited balances, or pay eligible Plan expenses.
 
Unallocated forfeiture balances as of December 31, 2012 and 2011, were approximately $3,500,000 and $1,100,000, respectively, and forfeitures used to reduce Company matching contributions for 2012 were approximately $11,800,000.
 
Payment of Benefits
 
On termination of service, death, or retirement, participants may elect to receive a lump-sum amount equal to the value of their accounts. Lump-sum payments may be made in cash or shares of stock for distribution from the Company common stock fund. Hardship distributions and in-service withdrawals are permitted if certain criteria are met. Participants may also, at any time, withdraw all or part of their rollover accounts.
 
Administrative and Investment Management Expenses
 
Certain fees and expenses of the Plan for legal and other administrative services are paid directly by the Company on behalf of the Plan. Effective January 1, 2011, each participant was charged a fixed fee of $8.50 per fiscal quarter for recordkeeping expense. Certain administrative and investment management fees related to certain investment options are paid directly to the Plan’s investment managers and are reported separately on the statement of changes in net assets available for benefits.
 
Plan Termination
 
Although it has not expressed any intent to do so, the Company has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.
 
 
 
9
 
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
2.    Summary of Significant Accounting Policies
 
Basis of Accounting
 
The accompanying financial statements have been prepared on the accrual basis of accounting.
 
Use of Estimates
 
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes and supplemental schedule. Actual results could differ from those estimates.
 
Recent Accounting Pronouncements
 
In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-04, Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRS (ASU 2011-04). ASU 2011-04 amended Accounting Standards Codification (ASC) 820, Fair Value Measurement and Disclosures (ASC 820) to converge the fair value measurement guidance in U.S. GAAP and International Financial Reporting Standards (IFRS). Some of the amendments clarify the application of existing fair value measurement requirements, while other amendments change a particular principle in ASC 820. In addition, ASU 2011-04 requires additional fair value disclosures. The amendments are to be applied prospectively and are effective for annual periods beginning after December 15, 2011. The adoption of ASU 2011-04 did not have a significant impact on the Plan’s financial statements.
 
Reclassifications
 
Certain prior year classification disclosures have been reclassified to be consistent with the current year presentation.
 

 
10
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
2.    Summary of Significant Accounting Policies (continued)

Derivative Contracts
 
In the normal course of business, the Plan enters into derivative contracts (derivatives) for trading purposes. Derivatives are either exchange-traded or over-the-counter (OTC) contracts. Exchange-traded derivatives are standard contracts traded on a regulated exchange. OTC contracts are private contracts negotiated with counterparties. The Plan has entered into derivatives that include foreign currency exchange contracts, option contracts, futures, and swaps agreements.
 
Derivatives are recorded at fair value. The Plan values derivatives at independent values when available; otherwise, fair values are based on pricing models that incorporate the time value of money, volatility, credit spreads, liquidity, and the current market and contractual prices of the underlying financial instruments.
 
Investment Valuation and Income Recognition
 
The Plan’s investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). See Note 4 for further discussion of fair value measurements.
 
Investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of net assets available for benefits of the Plan attributable to fully benefit-responsive contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invested in a fully benefit-responsive guaranteed investment contract (traditional GIC) as of December 31, 2011. The statements of net assets available for benefits present the fair value of the investment contract. The fair value of the GICs was calculated by discounting the related cash flows based on current yields of similar instruments with comparable durations. The contract value of the fully benefit-responsive investment contract represents contributions plus earnings, less participant withdrawals and administrative expenses. The Plan no longer held the traditional GIC as of December 31, 2012. As of December 31, 2011, the issuer of the traditional GIC had indicated that contract value approximated fair value.
 

 
11
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 

2.    Summary of Significant Accounting Policies (continued)

Assets and liabilities measured at fair value are categorized into the following fair value hierarchy:
 
Level 1 – Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market that the Plan has the ability to access at the measurement date.
 
Level 2 – Fair value is based on quoted prices in markets that are not active, quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Pricing models are utilized to estimate fair value for certain financial assets and liabilities categorized in Level 2.
 
Level 3 – Fair value is based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the investment and are based on the best available information, some of which may be internally developed.
 
The level in the fair value hierarchy with which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.
 
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the ex-dividend date. Net appreciation/depreciation in the fair value of investments includes the Plan’s gains and losses on investments bought and sold, as well as held during the year.
 

 
12
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
3.     Investments
 
The fair values of individual investments that represent 5% or more of the fair value of the Plan’s net assets are as follows:
 
   
December 31
   
2012
  
2011
             
Vanguard Primecap Adm Fund
   $ 791,309,708     $ 734,724,342  
BTC Russell 1000 Index Fund
     1,412,553,246       1,293,779,452  

For the year ended December 31, 2012, the Plan’s investments (including investments purchased, sold, as well as held during the year) appreciated (depreciated) in fair value as follows:
 
Registered investment companies
   $ 333,152,747  
Common stock
     720,207,728  
Common collective trust funds
     452,596,373  
Company common stock
     (233,888,266 )
Corporate debt
     19,302,167  
Derivatives      (941,038 )
Total net realized and unrealized appreciation in fair value of investments
   $ 1,290,429,711  

4.    Fair Value Measurements
 
The following is a description of the valuation methodologies used for assets measured at fair value.
 
Common collective trusts and privately held mutual funds: Valued at the net asset value (NAV) established by the funds’ sponsor on the last business day of the plan year, based on the fair value of the assets underlying the funds. There are no redemption restrictions on the Plan’s investments in common collective trusts and privately held mutual funds.
 
Publicly traded mutual funds and common stocks: Valued at the closing price reported on the active market on which the individual securities are traded.
 

 
13
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)


4.    Fair Value Measurements (continued)
 
Corporate debt, U.S. government securities and foreign obligations: Valued using quoted market prices that are traded in less active markets or quoted market price for similar investments.
 
Money market funds: Valued at the NAV of units held by the Plan at year-end.
 
Short-term investments: Valued at cost plus accrued interest, which approximates fair value.
 
Traditional GIC: Valued using the present value of the contracts’ future cash flows discounted by comparable duration Wall Street Journal GIC index rates.
 
Derivative instruments: Listed derivatives, such as futures and exchange-traded options, are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy to the extent that these instruments are actively traded and valuation adjustments are not applied. If valuation adjustments are applied to listed derivatives, they are categorized in Level 2. OTC derivative contracts are privately negotiated contracts with counterparties, including forwards, credit default swaps, and total return swaps. Depending on the product and the terms of the transaction, the fair value for the OTC derivative products can be modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not require significant judgments and the pricing inputs are observed from actively quoted markets. Such contracts are categorized in Level 2.
 
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
 

 
14
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)


4.    Fair Value Measurements (continued)
 
The following tables sets forth by level, within the fair value hierarchy, the Plan’s assets and liabilities as of December 31, 2012 and 2011:
 
   
Fair Value Measurements as of December 31, 2012
   
Level 1
  
Level 2
  
Total
Assets
                  
Mutual funds:
                  
Growth funds
   $ 1,379,900,602     $ 48,860,262     $ 1,428,760,864  
Fixed income funds
     768,264,035       367,753,165       1,136,017,200  
Other funds
     74,759,010       –       74,759,010  
Total mutual funds
     2,222,923,647       416,613,427       2,639,537,074  
                         
Self-directed brokerage accounts:
                        
Mutual funds:
                        
     Index funds
     21,147,249       –       21,147,249  
     Growth funds
     87,158,551       –       87,158,551  
     Fixed income funds
     128,968,357       –       128,968,357  
     Value funds
     43,701,578       –       43,701,578  
     Industry specific funds
     23,671,745       –       23,671,745  
     Other funds
     24,920,257       –       24,920,257  
Total self-directed brokerage accounts
     329,567,737       –       329,567,737  
                         
Common collective trusts:
                        
Index funds
     –       2,759,473,097       2,759,473,097  
Growth funds
     –       473,009,996       473,009,996  
Other funds
     –       75,235,189       75,235,189  
Total common collective trusts
     –       3,307,718,282       3,307,718,282  
                         
HP common stock
     297,897,889       –       297,897,889  
                         
Money market funds
     –       1,125,693       1,125,693  
                         
Short-term investments
     –       705,813,192       705,813,192  

 

 
15
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)


4.    Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2012
   
Level 1
  
Level 2
  
Total
Common and preferred stocks:
                  
Automobiles and components
   $ 75,009,984     $ –     $ 75,009,984  
Banks, insurance, and other financial institutions
     785,459,748       –       785,459,748  
Consumer and capital goods
     1,172,166,987       –       1,172,166,987  
Health care and pharmaceuticals
     479,998,470       –       479,998,470  
Telecommunications and media
     261,321,241       –       261,321,241  
Technology, hardware, and software
     854,568,757       –       854,568,757  
Energy, transportation, and other utilities
     544,613,718       –       544,613,718  
Hospitality and real estate
     496,205,848       –       496,205,848  
Total common and preferred stocks
     4,669,344,753       –       4,669,344,753  
                         
Corporate debt:
                        
Automobiles and components
     –       2,286,000       2,286,000  
Banks, insurance, and other financial institutions
     –       436,776,306       436,776,306  
Consumer and capital goods
     –       82,536,893       82,536,893  
Health care, pharmaceuticals, and biotechnology
     –       43,291,374       43,291,374  
Technology, hardware, and equipment
     –       23,270,041       23,279,041  
Telecommunications and media
     –       103,724,722       103,724,722  
Energy, transportation, and other utilities
     –       98,357,819       98,357,819  
Real estate
     –       9,006,826       9,006,826  
    Total corporate debt
     –       799,249,981       799,249,981  
                         
Foreign obligations
     –       26,957,038       26,957,038  
                         
    U.S. government securities:
                        
    Federal
     –       1,518,758,402       1,518,758,402  
    State
     –       73,158,545       73,158,545  
    Municipal
     –       11,173,526       11,173,526  
    Total U.S. government securities
     –       1,603,090,473       1,603,090,473  
Total investments
     7,519,734,026       6,860,568,086       14,380,302,112  
                         
Derivative assets
     90,185       1,152,243       1,242,428  
Amount due from brokers for securities sold
     52,601,724       –       52,601,724  
Total assets measured at fair value
   $ 7,572,425,935     $ 6,861,720,329     $ 14,434,146,264  
                         
Liabilities
                        
Derivative liabilities
   $ 348,539     $ 3,085,396     $ 3,433,935  
Amount due to brokers for securities purchased
     102,852,757       –       102,852,757  
Total liabilities measured at fair value
   $ 103,201,296     $ 3,085,396     $ 106,286,692  

 

 
16
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 

4.    Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2011
   
Level 1
  
Level 2
  
Total
Assets
                  
Mutual funds:
                  
Index funds
   $ 4,037,335     $ –     $ 4,037,335  
Growth funds
     1,561,225,969       43,087,359       1,604,313,328  
Fixed income funds
     694,565,554       315,525,501       1,010,091,055  
Value funds
     90,115,794       –       90,115,794  
Other funds
     73,652,259       –       73,652,259  
Total mutual funds
     2,423,596,911       358,612,860       2,782,209,771  
                         
Self-directed brokerage accounts:
                        
Mutual funds:
                        
     Index funds
     14,131,187       –       14,131,187  
     Growth funds
     52,936,202       –       52,936,202  
     Fixed income funds
     111,096,467       –       111,096,467  
     Value funds
     31,617,985       –       31,617,985  
     Industry specific funds
     19,622,355       –       19,622,355  
     Other funds
     47,332,821       –       47,332,821  
Total self-directed brokerage accounts
     276,737,017       –       276,737,017  
                         
Common collective trusts:
                        
Index funds
     –       2,573,846,644       2,573,846,644  
Growth funds
     –       443,295,485       443,295,485  
Other funds
     –       74,121,551       74,121,551  
Total common collective trusts
     –       3,091,263,680       3,091,263,680  
                         
HP common stock
    561,318,720       –       561,318,720  
                         
Money market funds
     –       2,832,925       2,832,925  
                         
Short-term investments
     –       540,119,388       540,119,388  
                         
Common and preferred stocks:
                        
Automobiles and components
     70,078,762       –       70,078,762  
Banks, insurance, and other financial institutions
     503,978,935       –       503,978,935  
Consumer and capital goods
     1,105,414,978       –       1,105,414,978  
Health care and pharmaceuticals
     493,487,118       –       493,487,118  
Telecommunications and media
     275,480,193       –       275,480,193  
Technology, hardware, and software
     691,509,800       –       691,509,800  
Energy, transportation, and other utilities
     577,148,726       –       577,148,726  
Hospitality and real estate
     387,641,789       –       387,641,789  
Total common and preferred stocks
     4,104,740,301       –       4,104,740,301  

 
 
17
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
4.    Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2011
   
Level 1
  
Level 2
  
Total
Corporate debt:
                  
Banks, insurance, and other financial institutions
   $ –     $ 439,499,649     $ 439,499,649  
Consumer and capital goods
     –       66,580,081       66,580,081  
Health care, pharmaceuticals, and biotechnology
     –       43,358,762       43,358,762  
Technology, hardware, and equipment
     –       22,701,563       22,701,563  
Telecommunications and media
     –       95,668,985       95,668,985  
Energy, transportation, and other utilities
     –       76,252,822       76,252,822  
Real estate
     –       9,300,387       9,300,387  
    Total corporate debt
     –       753,362,249       753,362,249  
                         
Foreign obligations
     –       41,707,043       41,707,043  
                         
    U.S. government securities:
                        
    Federal
     –       1,473,360,372       1,473,360,372  
    State
     –       28,708,484       28,708,484  
    Municipal
     –       48,765,264       48,765,264  
    Total U.S. government securities
     –       1,550,834,120       1,550,834,120  
                         
    Guaranteed investment contracts
     –       11,989,237       11,989,237  
Total investments
     7,366,392,949       6,350,721,502       13,717,114,451  
                         
Derivative assets
     830,696       3,008,067       3,838,763  
Amount due from brokers for securities sold
     181,590,682       –       181,590,682  
Total assets measured at fair value
   $ 7,548,814,327     $ 6,353,729,569     $ 13,902,543,896  
                         
Liabilities
                        
Derivative liabilities
   $ 96,226     $ 2,870,555     $ 2,966,781  
Amount due to brokers for securities purchased
     193,332,110       –       193,332,110  
Total liabilities measured at fair value
   $ 193,428,336     $ 2,870,555     $ 196,298,891  

The Plan did not have any Level 3 investments or any assets or liabilities that are measured at fair value on a nonrecurring basis as of December 31, 2012 and 2011.
 
5.    Guaranteed Investment Contracts
 
Prior to December 31, 2010, the Plan offered a Stable Value Fund, which invested in GICs, to provide participants with a stable, fixed-rate return and protection of principal from market changes. As of December 31, 2011, the Plan held one traditional GIC. All other investments that comprised the Stable Value Fund prior to that date, were liquidated. There were no reserves against contract value for credit risk of the contract issuer or otherwise.

 
18
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
5.   Guaranteed Investment Contracts (continued)   
 
The crediting interest rates were based on a formula agreed upon with the issuer. The interest rate paid by the issuer or contract rate may be fixed over the life of the contract or adjusted periodically, but cannot fall below 0%.
 
Certain events limited the ability of the Plan to transact at contract value with the issuer. Such events included amendments to the plan document, changes to the Plan’s prohibition of competing investment options, complete or partial termination of the Plan, the failure of the Plan or its trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA, the redemption of all or a portion of the Plan’s interest in the investment at the direction of the Company, or delivery of any communication to participants designed to influence participants not to invest in the Stable Value Fund. The Company did not believe that the occurrence of any such events, which would have limited the Plan’s ability to transact at contract value with participants, was probable.
 
GICs generally do not permit issuers to terminate the contract prior to the scheduled maturity date. As of December 31, 2012, the Plan no longer invested in the traditional GIC.
 
Average yields earned on the Stable Value Fund as of December 31, 2011, were as follows:
 
 
Based on actual earnings
     1.27 %
 
Based on interest rate credited to participants
     1.32 %
 
6.    Derivatives
 
Foreign Currency Contracts

As the Plan holds investments denominated in foreign currencies, forward foreign currency contracts are generally utilized to hedge a portion of the currency exposure that results in those investments denominated in foreign currencies. The forward foreign currency contracts are not designated as hedging instruments.
 
Forward foreign currency contracts are generally marked-to-market at the prevailing forward exchange rate of the underlying currencies, and the difference between contract value and market value is recorded as unrealized appreciation (depreciation) in fair value of investments. When the forward foreign currency contract is closed, the Plan transfers the unrealized appreciation (depreciation) to a realized gain (loss) equal to the change in the value of the forward foreign currency contract when it was opened and the value when it was closed or offset.
 
 
 
19
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
6.    Derivatives (continued)
 
Certain risks may arise upon entering into a forward foreign currency contract from the potential inability of the counterparties to meet the terms of their contracts. Additionally, when utilizing forward foreign currency contracts to hedge, the Plan gives up the opportunity to profit from favorable exchange rate movements during the term of the contract. As of December 31, 2012 and 2011, the value of currencies under forward foreign currency contracts represented less than 1% of net assets available for benefits.
 
Futures Contracts
 
Future contracts are used to manage exposure to the market. Buying futures typically increases the exposure to the underlying instrument. Selling futures typically decreases the exposure to the underlying instrument held. During the period that the contract is open, changes in the value of the contract are recognized as unrealized gains or losses by daily marking-to-market the contract to reflect the market value of the contract at the end of each day’s trading. The Plan receives from, or pays to, the broker an amount equal to the daily fluctuation in the market value of the contract, known as margin variation, which is recognized in net appreciation (depreciation) in the fair value of investments.
 
Swap Agreements
 
Swap agreements are entered to exchange or swap investment cash flows, assets, or market-linked returns at specified future intervals with counterparties. Interest rate and credit default swap agreements are used to manage exposure to interest rate risk and credit risk. Swaps are marked-to-market daily based on quotations supplied by an exchange, a pricing service, or a major market maker (dealer), and the change in value, if any, is recorded as unrealized appreciation (depreciation). Realized gains (losses) are recorded upon termination or maturity of the swap. At the end of the plan year, outstanding swaps with a positive fair value are recorded as a derivative asset, and those with a negative fair value are recorded as a derivative liability.
 
Option Contracts
 
From time to time option contracts are utilized in order to take advantage of imperfections in the markets or to hedge exposure to interest rate or market risks. An option contract is an agreement that allows the holder to either buy or sell the underlying security at a fixed strike price. In exchange for a premium, the writer of the option contract assumes the obligation to sell the underlying instrument on a future date if the holder of the option chooses to exercise it.
 
 
 
20
 
 
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
6.    Derivatives (continued)
 
The fair values of derivative instruments included in the statements of net assets available for benefits were as follows:
 
   
December 31, 2012
  
December 31, 2011
   
Assets
  
Liabilities
  
Assets
  
Liabilities
                         
Foreign currency contracts
   $ 1,084,896     $ 3,022,176     $ 2,735,043     $ 2,870,555  
Financial futures
     −       39,757       615,876       –  
Interest rate swaps
     67,347       63,220       273,024       –  
Financial options
     34,717       107,383       –       96,226  
Credit default swaps
     55,468       201,399       214,820       –  
    $ 1,242,428     $ 3,433,935     $ 3,838,763     $ 2,966,781  

 
Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows. Certain amounts in prior year have been reclassified to conform to current year presentation.
 
   
December 31
   
2012
  
2011
             
Foreign currency contracts
   $ 319,816,791     $ 256,508,617  
Financial futures
     2,252,257       153,037,262  
Interest rate swaps
     23,016,042       11,200,000  
Financial options
     123,200,000       156,500,000  
Credit default swaps
     24,893,000       10,446,000  
    $ 493,178,090     $ 587,691,879  

 
All income from derivatives was recorded as net realized and unrealized appreciation (depreciation) in fair value of investments. The effects of derivatives on the net realized and unrealized appreciation (depreciation) in fair value of investments for the year ended December 31, 2012, were as follows:
 
Forward foreign currency exchange
   $ (2,398,261 )
Financial futures
     386,362  
Interest rate and credit default swaps
     136,460  
Financial options
     934,401  
Total
   $ (941,038 )
 
 
 
21
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
7.    Income Tax Status
 
The Plan has received a determination letter from the Internal Revenue Service (IRS) dated October 24, 2009, stating that the Plan is qualified under Section 401(a) of the Code and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended. The Plan has also applied for, but has not yet received an updated determination letter. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualified status. The plan administrator believes that the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan, as amended, is qualified and the related trust is tax-exempt.
 
Plan management evaluates any uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2012 and 2011, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2009.
 
8.    Related-Party Transactions
 
The Plan engages in certain transactions involving Fidelity Management Trust Company (Fidelity), the Trustee, and the Company, which are parties-in-interest under the provisions of ERISA. These transactions involve the purchase and sale of the Company’s common stock and corporate debt and investment of Plan monies in money market and mutual funds managed by Fidelity primarily through the Tier 5 self-directed brokerage accounts. During 2012, the Plan made purchases of $22,077,579 and sales of $35,688,563 of the Company’s common stock. Additionally, as of December 31, 2012 and 2011, the Plan held $297,897,889 and $561,318,720, respectively, of the Company’s common stock and $8,408,654 and $8,484,691, respectively, of the Company’s corporate debt. As of December 31, 2012 and 2011, the Plan held $167,941,769 and $328,261,163, respectively, of investments managed by Fidelity or its affiliates.
 

 
22
 

 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
9.    Risk and Uncertainties
 
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
 
10.    Subsequent Events
 
Effective January 2, 2013, the Trustee for the HP 401(k) Plan changed from Fidelity Management Trust Company to the Bank of New York Mellon (BNYM). As a result of the change in trustee, the assets of the Plan transferred from Fidelity Management Trust Company to BNYM on January 2, 2013.
 
 
 
23
 

 
 
Hewlett-Packard Company 401(k) Plan
                     
EIN: 94-1081436 PN: 004
                     
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
                     
December 31, 2012
                     
                     
    (b)  
(c)
  
(e)
  
    Identity of  Issue, Borrower,  
Descripton of Investment Including Maturity Date,
  
Current
  
(a)
   Lessor, or Similar Party  
Rate of Interest, Collateral, Par, or Maturity Value
  
Value
  
                     
Interest bearing cash
              
  *  
FIDELITY INSTITUTIONAL CASH PORTFOLIO
     1,125,693  
USD
   $ 1,125,693  
                           
Short-term investments
                  
     
VANGUARD PRIME MONEY MARKET FUND
     433,373,519  
shares
     433,373,519  
     
BBH STIF FUND
     272,439,673  
shares
     272,439,673  
                        705,813,192  
                           
Registered investment companies
                  
     
DODGE & COX INTL STOCK FD
     12,745,701  
shares
     441,511,072  
     
HIGH YIELD PORTFOLIO INSTL CL
     1,516,047  
shares
     11,870,651  
     
HIGHBRIDGE DYNA COMM STR FD R5
     5,336,118  
shares
     74,759,010  
     
MFS INTL NEW DISCOVERY FD I
     5,973,998  
shares
     147,079,822  
     
PIMCO ASSET BACK SECS PORT (UNLISTED)
     2,745,119  
shares
     31,815,926  
     
PIMCO EMERGING MKTS FD INST CL
     1,581,938  
shares
     16,974,192  
     
PIMCO HIGH YIELD FUND
     36,740,497  
shares
     354,178,395  
     
PIMCO INTL PORT FUND (UNLISTED)
     6,727,019  
shares
     31,886,070  
     
PIMCO INV GRD CORP PORT (UNLISTED)
     6,272,744  
shares
     71,007,458  
     
PIMCO MTG PORT INSTL CL (UNLISTED)
     11,181,191  
shares
     122,545,853  
     
PIMCO MUNI SECTR PORT INSTL CL
     756,007  
shares
     6,781,382  
     
PIMCO REAL RETURN BD FD INST CL
     5,620,355  
shares
     55,360,492  
     
PIMCO REAL RETURN BD FD I CL
     33,747,811  
shares
     414,085,640  
     
PIMCO SHORT TERM PORT INSTL CL
     1,015,953  
shares
     9,641,390  
     
PIMCO US GOVT SECTOR PORT INST
     6,254,527  
shares
     58,730,013  
     
VANGUARD PRIMECAP ADMIRAL
     10,979,738  
shares
     791,309,708  
                        2,639,537,074  
Company common stock
                  
  *  
HEWLETT-PACKARD COMPANY
     20,905,115  
shares
     297,897,889  
                        297,897,889  
 
 
 
24
 
 
 
                           
Hewlett-Packard Company 401(k) Plan
                           
EIN: 94-1081436 PN: 004
                           
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)
                           
December 31, 2012
                           
                           
      (b)  
(c)
  
(e)
      Identity of  Issue, Borrower,  
Descripton of Investment Including Maturity Date,
  
Current
(a)
   Lessor, or Similar Party  
Rate of Interest, Collateral, Par, or Maturity Value
  
Value
 
Common stock
                  
     
3M CO
     93,800  
shares
   $ 8,709,330  
     
A P MOLLER - MAERSK S/A B
     94  
shares
     708,455  
     
ABB LTD (REG) (SWIT)
     173,701  
shares
     3,560,809  
     
ABBOTT LABORATORIES
     88,518  
shares
     5,797,929  
     
ABERTIS INFRAESTRUCTURAS SA
     18,886  
shares
     309,613  
     
ABIOMED INC
     148,268  
shares
     1,995,687  
     
ABOITIZ POWER CORP
     449,100  
shares
     404,146  
     
ACADIA RLTY TR REIT
     16,919  
shares
     424,329  
     
ACE LTD
     36,580  
shares
     2,919,084  
     
ACTELION LTD (REGD)
     27,124  
shares
     1,290,885  
     
ACTIVIA PROPERTIES INC
     8  
shares
     50,049  
     
ADECCO SA (REGD)
     29,149  
shares
     1,530,988  
     
ADIDAS AG
     52,997  
shares
     4,709,962  
     
ADOBE SYSTEMS INC
     424,480  
shares
     15,994,406  
     
ADT CORP
     37,500  
shares
     1,743,375  
     
ADTRAN INC
     145,000  
shares
     2,833,300  
     
ADVANCED INFO SERVICES
     654,500  
shares
     4,468,817  
     
ADVANTEST CORP
     23,100  
shares
     359,425  
     
ADVISORY BOARD CO
     95,000  
shares
     4,445,050  
     
AEGON NV
     429,019  
shares
     2,719,860  
     
AEGON NV (REGD)
     668,193  
shares
     4,303,163  
     
AERCAP HOLDINGS NV
     410,000  
shares
     5,625,200  
     
AES CORP
     396,400  
shares
     4,241,480  
     
AFFILIATED MANAGERS GRP INC
     42,010  
shares
     5,467,601  
     
AFLAC INC
     49,963  
shares
     2,654,035  
     
AGEAS (BELG)
     40,159  
shares
     1,177,570  
     
AGGREKO PLC
     81,056  
shares
     2,291,083  
     
AGILE PROPERTY HOLDINGS LTD
     665,000  
shares
     935,188  
     
AHOLD NV (KONINKLIJKE)
     66,902  
shares
     894,994  
     
AIA GROUP LTD
     2,335,400  
shares
     9,114,594  
     
AIR FRANCE KLM ADR
     1,065,700  
shares
     10,305,319  
     
AIR PRODUCTS & CHEMICALS INC
     16,440  
shares
     1,381,289  
     
AIRCASTLE LTD
     323,900  
shares
     4,061,706  
     
AISIN SEIKI CO LTD
     23,500  
shares
     722,618  
     
AIXTRON SE
     165,705  
shares
     1,942,035  
     
AJINOMOTO CO INC
     69,000  
shares
     910,336  
     
AKBANK TURK ANONIM SIRKETI
     289,676  
shares
     1,428,935  
     
AKZO NOBEL NV
     6,920  
shares
     454,374  
     
ALEXANDRIA REAL ES EQ INC REIT
     38,170  
shares
     2,645,944  
 
 
 
25
 
 
 
                           
Hewlett-Packard Company 401(k) Plan
                           
EIN: 94-1081436 PN: 004
                           
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)
                           
December 31, 2012
                           
                           
      (b)  
(c)
  
(e)
      Identity of  Issue, Borrower,  
Descripton of Investment Including Maturity Date,
  
Current
(a)
   Lessor, or Similar Party  
Rate of Interest, Collateral, Par, or Maturity Value
  
Value
 
Common stock (continued)
                  
     
ALEXION PHARMACEUTICALS INC
     99,895  
shares
   $ 9,371,150  
     
ALFA LAVAL AB
     240,560  
shares
     5,004,923  
     
ALIGN TECHNOLOGY INC
     118,300  
shares
     3,282,825  
     
ALLEGIANT TRAVEL CO
     75,251  
shares
     5,524,176  
     
ALLERGAN INC
     227,903  
shares
     20,905,542  
     
ALLIANCE DATA SYSTEMS CORP
     75,000  
shares
     10,857,000  
     
ALLSTATE CORPORATION
     151,000  
shares
     6,065,670  
     
ALSTOM (NEW)
     5,239  
shares
     208,390  
     
ALSTRIA OFFICE REIT-AG
     28,586  
shares
     349,060  
     
ALTAREA
     824  
shares
     127,254  
     
ALTERRA CAPITAL HOLDINGS LTD
     255,100  
shares
     7,191,269  
     
AMADA CO LTD
     25,000  
shares
     160,155  
     
AMADEUS IT HOLDING SA CL A
     102,339  
shares
     2,573,319  
     
AMAZON.COM INC
     74,223  
shares
     18,640,364  
     
AMDOCS LTD
     220,000  
shares
     7,477,800  
     
AMEC PLC ORD
     23,362  
shares
     380,643  
     
AMERICAN ELECTRIC POWER CO INC
     96,826  
shares
     4,132,534  
     
AMERICAN EXPRESS CO
     159,368  
shares
     9,160,473  
     
AMERICAN INTERNATIONAL GROUP
     285,900  
shares
     10,092,270  
     
AMERICAN NATIONAL INSURANCE
     47,745  
shares
     3,260,506  
     
AMERICAN TOWER CORP
     191,117  
shares
     14,767,611  
     
AMERIPRISE FINANCIAL INC
     85,228  
shares
     5,337,830  
     
AMGEN INC
     62,900  
shares
     5,429,528  
     
ANADARKO PETROLEUM CORP
     32,913  
shares
     2,445,765  
     
ANALOGIC CORP
     17,469  
shares
     1,297,947  
     
ANHEUSER BUSCH INBEV NV
     63,082  
shares
     5,473,847  
     
ANIXTER INTL INC
     72,766  
shares
     4,655,569  
     
ANNIES INC
     99,900  
shares
     3,339,657  
     
AOL INC
     60,000  
shares
     1,776,600  
     
AON PLC
     214,100  
shares
     11,903,960  
     
APACHE CORP
     31,800  
shares
     2,496,300  
     
APARTMENT INV & MGMT CO A REIT
     28,259  
shares
     764,689  
     
APOLLO GLOBAL MGMT LLC CL A
     350,000  
shares
     6,076,000  
     
APPLE INC
     115,693  
shares
     61,667,840  
     
APPLIED INDUSTRIAL TECH INC
     82,600  
shares
     3,470,026  
     
APTARGROUP INC
     55,748  
shares
     2,660,295  
     
ARIAD PHARMACEUTICALS INC
     125,000  
shares
     2,397,500  
     
ARM HOLDINGS PLC
     944,000  
shares
     11,777,133  
     
ARM HOLDINGS PLC SPON ADR
     183,843  
shares
     6,954,780  
 
 
 
26
 
 
 
                           
Hewlett-Packard Company 401(k) Plan
                           
EIN: 94-1081436 PN: 004
                           
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)
                           
December 31, 2012
                           
                           
      (b)  
(c)
  
(e)
      Identity of  Issue, Borrower,  
Descripton of Investment Including Maturity Date,
  
Current
(a)
   Lessor, or Similar Party  
Rate of Interest, Collateral, Par, or Maturity Value
  
Value
 
Common stock (continued)
                  
     
ASAHI GLASS CO LTD
     98,000  
shares
   $ 708,120  
     
ASCENA RETAIL GROUP INC
     192,798  
shares
     3,564,835  
     
ASHFORD HOSPITALITY TR INC
     31,440  
shares
     330,434  
     
ASML HLDG NV (NY REG SHS)
     8,277  
shares
     533,122  
     
ASML HOLDING NV (EURO)
     18,396  
shares
     1,165,526  
     
ASSISTED LIVING CON CL A
     16,148  
shares
     157,443  
     
ASTELLAS PHARMA INC
     65,300  
shares
     2,920,731  
     
ASTRAZENECA PLC (UK)
     27,924  
shares
     1,319,782  
     
ASUSTEK COMPUTER INC
     32,000  
shares
     359,470  
     
AT&T INC
     411,930  
shares
     13,886,160  
     
ATHENAHEALTH INC
     21,366  
shares
     1,569,333  
     
ATLAS AIR WORLD
     26,000  
shares
     1,152,060  
     
ATLAS COPCO AB SER A
     638,884  
shares
     17,516,591  
     
ATOS
     19,023  
shares
     1,327,283  
     
ATRIUM EUROPEAN REAL ESTATE LT
     38,411  
shares
     225,618  
     
ATRIUM LJUNGBERG AB B
     17,326  
shares
     231,790  
     
AUTOGRILL SPA
     52,861  
shares
     605,986  
     
AVAGO TECHNOLOGIES LTD
     146,895  
shares
     4,650,696  
     
AVALONBAY COMMUNITIES INC REIT
     72,092  
shares
     9,774,954  
     
AVIS BUDGET GROUP
     188,900  
shares
     3,743,998  
     
AVON PRODUCTS INC
     181,500  
shares
     2,606,340  
     
AXA SA
     336,649  
shares
     5,932,204  
     
AYALA CORP
     10,710  
shares
     134,853  
     
BAE SYSTEMS PLC
     415,109  
shares
     2,271,797  
     
BAIDU INC SPON ADR
     260,158  
shares
     26,091,246  
     
BAKER HUGHES INC
     287,000  
shares
     11,721,080  
     
BALLY TECHNOLOGIES INC
     108,500  
shares
     4,851,035  
     
BALOISE HOLDINGS AG
     4,069  
shares
     349,223  
     
BANCO BILBAO VIZ ARGENTARIA SA
     305,821  
shares
     2,809,532  
     
BANCO COMMERCIAL PORTUGUESE (REG)
     1,925,911  
shares
     190,658  
     
BANCO DO BRASIL SA
     68,700  
shares
     858,960  
     
BANCO ESPIRITO SANTO (REG)
     290,563  
shares
     343,258  
     
BANCO SANTANDER BRASIL SA ADS
     78,844  
shares
     573,196  
     
BANCO SANTANDER SA (SPAIN)
     1,083,178  
shares
     8,721,419  
     
BANCO SANTDR SA UNIT
     181,600  
shares
     1,327,742  
     
BANK HAPOALIM LTD (REG)
     58,592  
shares
     250,195  
     
BANK LEUMI LE-ISRAEL BM
     302,623  
shares
     1,026,500  
     
BANK OF AMERICA CORPORATION
     1,647,500  
shares
     19,111,000  
     
BANK OF MONTREAL
     13,146  
shares
     804,328  
 
 
 
27
 
 
 
                           
Hewlett-Packard Company 401(k) Plan
                           
EIN: 94-1081436 PN: 004
                           
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)
                           
December 31, 2012
                           
                           
      (b)  
(c)
  
(e)
      Identity of  Issue, Borrower,  
Descripton of Investment Including Maturity Date,
  
Current
(a)
   Lessor, or Similar Party  
Rate of Interest, Collateral, Par, or Maturity Value
  
Value
 
Common stock (continued)
                  
     
BANK OF NEW YORK MELLON CORP
     958,100  
shares
   $ 24,623,170  
     
BANK OF NOVA SCOTIA
     13,321  
shares
     769,503  
     
BANK RAKYAT INDONESIA TBK PT
     183,000  
shares
     131,969  
     
BB&T CORP
     146,500  
shares
     4,264,615  
     
BBCN BANCORP INC
     324,800  
shares
     3,757,936  
     
BEACON ROOFING SUPPLY INC
     99,300  
shares
     3,304,704  
     
BEBIDAS DAS AM (CIA) PFD SP ADR
     67,415  
shares
     2,830,756  
     
BEBIDAS DAS AMERS (CIA) PN PFD
     3,900  
shares
     163,010  
     
BEC WORLD PLC (LOC)
     342,100  
shares
     793,502  
     
BEFIMMO SCA SICAFI
     894  
shares
     57,621  
     
BELLE INTERNATION HOLDINGS LTD
     1,155,000  
shares
     2,506,448  
     
BENI STABILI SPA SIIQ
     458,823  
shares
     270,169  
     
BERKLEY (WR) CORP
     77,000  
shares
     2,905,980  
     
BERKSHIRE HATHAWAY INC CL B
     124,900  
shares
     11,203,530  
     
BG GROUP PLC
     153,061  
shares
     2,517,479  
     
BGP HOLDINGS PLC (UNLISTED)
     1,317,017  
shares
     17  
     
BHP BILLITON PLC
     268,137  
shares
     9,275,573  
     
BIC
       1,648  
shares
     196,471  
     
BIDVEST GROUP LTD
     29,027  
shares
     737,839  
     
BIG YELLOW GROUP PLC
     34,918  
shares
     197,111  
     
BIM BIRLESIK MAGAZALAR AS
     80,252  
shares
     3,924,991  
     
BIO RAD LABS CL A
     26,000  
shares
     2,731,300  
     
BIOGEN IDEC INC
     62,202  
shares
     9,123,167  
     
BLACKBAUD INC
     124,995  
shares
     2,853,636  
     
BLOUNT INTL INC
     24,015  
shares
     379,917  
     
BM&F BOVESPA SA
     1,229,300  
shares
     8,405,470  
     
BMC SOFTWARE INC
     351,566  
shares