form11-k_2009.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, 2009
   
 
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, 2009 and 2008,
 
and for the Year Ended December 31, 2009
 
 
Contents
 
 
 1
 
 
 
Audited Financial Statements:
 
 
 
 2
 
 3
 
 4
 
 
 
Supplemental Schedule:
 
 
 
23
 
 
62
 
 
 
Exhibit:
 
 
 
64

 
 
 
 

 
 
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, 2009 and 2008, and the related statement of changes in net assets available for benefits for the year ended December 31, 2009. 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 the Plan at December 31, 2009 and 2008, and the changes in its net assets available for benefits for the year ended December 31, 2009, in conformity with US generally accepted accounting principles.
 
Our audits were performed 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, 2009, 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 under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule 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 25, 2010
 

 
1
 
 

Hewlett-Packard Company 401(k) Plan
 
             
             
   
December 31
  
   
2009
    
2008
  
Assets
            
Cash
   $ 4,315,148     $ 1,188,022  
Investments, at fair value
     10,185,682,751       7,978,860,454  
Receivables:
                
      Company contribution
     25,982,745       –  
      Amount due from brokers for securities sold
     201,906,549       40,409,104  
      Forward foreign currency contracts
     68,874,951       55,254,427  
      Interest and dividends
     8,111,837       7,352,100  
Total receivables
     304,876,082       103,015,631  
Total assets
     10,494,873,981       8,083,064,107  
                 
Liabilities
                
Amounts due to brokers for securities purchased
     196,379,984       27,573,213  
Forward foreign currency contracts payable
     69,385,734       55,217,783  
Other payables
     8,076,020       2,131,335  
Total liabilities
     273,841,738       84,922,331  
                 
Net assets reflecting investments, at fair value
     10,221,032,243       7,998,141,776  
                 
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
     16,921,697       93,053,312  
                 
Net assets available for benefits
   $ 10,237,953,940     $ 8,091,195,088  
                 
See accompanying notes.
                
 
 
2
 
 

Hewlett-Packard Company 401(k) Plan
 
Statement of Changes in Net Assets Available for Benefits
 
Year Ended December 31, 2009
       
       
Additions
      
Investment income:
      
      Interest and dividends
   $ 168,058,755  
      Net realized and unrealized appreciation in fair value of investments
     2,046,684,918  
      2,214,743,673  
Contributions:
        
      Participants
     424,883,575  
      Company
     188,436,584  
      Rollover
     25,320,178  
      638,640,337  
Total additions
     2,853,384,010  
         
Deductions
        
Benefits paid directly to participants
     694,303,937  
Investment management fees
     10,802,266  
Administrative expenses and fees
     1,518,955  
Total deductions
     706,625,158  
         
Net increase
     2,146,758,852  
         
Net assets available for benefits:
        
      Beginning of year
     8,091,195,088  
      End of year
   $ 10,237,953,940  
         
See accompanying notes.
        
 
 
3
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements
 
December 31, 2009
 
 
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).
 
Effective December 31, 2009, the Target Retirement Date Funds were renamed to the corresponding Birth Date Funds. The Target Retirement Income Fund was transferred to the Target Retirement 2010 Fund and then was renamed the 1945 Birth Date Fund.
 
Assets of the Plan are invested in a three-tier investment structure. Tier 1 includes one ready-made portfolio (the Conservative Portfolio), and nine Birth Date Funds (formerly Target Retirement Date Funds) to be managed based on the year participants were born instead of an assumed retirement date. This 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 15 institutional funds in a range of asset classes. Tier 3 includes 13 brand-name mutual funds spanning several investment categories. Additionally, the Plan offers Company common stock as an investment option. All investments are participant-directed.
 
Effective after the close of the market on January 30, 2009, the Fidelity Real Estate Investment Portfolio was replaced with a Tier 2 fund, the Global Real Estate Fund. Additionally, effective after the close of market on June 11, 2009, the Fidelity Magellan Fund was replaced with another Tier 2 fund, the Large Cap Growth Stock Fund.
 
Effective after the close of the market on April 25, 2008, the Fidelity Growth and Income Portfolio was removed from the investment options in Tier 3 and was replaced with a Tier 2 fund, the Large Cap Core Stock Fund.
 

 
4
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 

1.  Description of the Plan (continued)
 
The Plan includes a nonleveraged 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, are not eligible to participate in the ESOP.
 
Contributions
 
As soon as administratively feasible, normally about 15 days after the employee’s employment start date, employees were automatically enrolled in the Plan at a 3% contribution rate in one of the ten Target Retirement Date Funds based on the employee’s current age and anticipated retirement age. Effective December 31, 2009, employees are automatically enrolled in one of the nine Birth Date Funds 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 $16,500 for 2009. Contributions can be made as whole or fractional percentages of pay. Employees can choose pretax 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. Catch-up contributions can be pretax contributions, after-tax Roth 401(k) contributions, or a combination of the two. These “catch-up” 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.
 

 
5

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

 
1.  Description of the Plan (continued)
 
Effective January 1, 2008, all participants were eligible for a Company matching contribution equal to 100% of the first 6% of the eligible compensation the participant contributes to the Plan.  Effective August 1, 2008, new hires, re-hires, or transfers onto the U.S. payroll receive Company matching contributions equal to 100% of the first 4% of eligible compensation they contribute to the Plan.
 
Effective April 1, 2009, the Company’s matching contribution is determined up to a maximum of 100% of the first 4% of the eligible compensation for all eligible U.S. employees. The Company’s matching contribution was changed to a quarterly discretionary performance-based match, determined each fiscal quarter based on business results.
 
Vesting
 
Participants are fully vested at all times with regard to their contributions and earnings thereon.
 
Participants who became employees before January 1, 2006, are also 100% vested in their Company matching contributions and earnings thereon at all times. 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 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.
 
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.
 

 
6

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

 
1.
Description of the Plan (continued)
 
Participant Loans
 
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 5 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 is paid ratably through payroll deductions.
 
Forfeitures
 
Upon termination of employment, participants forfeit their nonvested balances. Forfeited balances of terminated participants’ nonvested accounts are used to reduce future Company contributions, restore previously forfeited balances, or pay eligible Plan expenses. Unallocated forfeiture balances as of December 31, 2009 and 2008, were approximately $5,100,000 and $2,700,000, respectively, and forfeitures used to reduce Company contributions for 2009 were approximately $2,700,000.
 
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 account. Lump-sum payments may be made in cash or shares of stock for distribution from the Company 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.  Starting with the Company’s fiscal quarter ended October 31, 2009, each participant was charged a fixed fee of $9.75 per fiscal quarter for recordkeeping expenses. Certain administrative and investment management fees related to Tiers 1 and 2 investment options are paid directly to the Plan’s investment managers and are reported
 

 
7

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

 
1.
Description of the Plan (continued)
 
separately on the statement of changes in net assets available for benefits. Investment management fees charged by the Tier 3 mutual funds are deducted from the net asset values of the mutual funds and are, therefore, recorded as a component of the net realized and unrealized appreciation in fair value of the Plan’s investments.
 
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.
 
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 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.
 
New Accounting Pronouncements
 
During 2009, the Plan adopted the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) and the Hierarchy of Generally Accepted Accounting Principles which only affected the specific references to GAAP literature in the notes to the financial statements.
 
In April 2009, the FASB issued FASB Staff Position 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. (FSP 157-4). FSP 157-4 amended FASB Statement No. 157 (codified as ASC 820) to provide additional guidance on estimating fair value when the volume and level of activity for an asset or liability have significantly decreased in relation to its normal market activity. FSP 157-4 also provided additional guidance on circumstances that may indicate that a transaction is not orderly and on defining major categories of debt and equity securities to comply with the disclosure requirements of ASC 820.

 
8
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
2.
Summary of Significant Accounting Policies (continued)
 
The Plan adopted the guidance in FSP 157-4 for the reporting period ended December 31, 2009. Adoption of FSP 157-4 did not have a significant effect on the Plan’s net assets available for benefits or its changes in net assets available for benefits.
 
In May 2009, the FASB issued FASB Statement No. 165, Subsequent Events, which was codified into ASC 855, Subsequent Events, to provide general standards of accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued. ASC 855 was amended in February 2010. The Plan has adopted ASC 855, as amended.
 
In September 2009, the FASB issued Accounting Standards Update 2009-12, Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2009-12). ASU 2009-12 amended ASC 820 to allow entities to use net asset value (NAV) per share (or its equivalent), as a practical expedient, to measure fair value when the investment does not have a readily determinable fair value and the net asset value is calculated in a manner consistent with investment company accounting. The Plan adopted the guidance in ASU 2009-12 for the reporting period ended December 31, 2009, and has utilized the practical expedient to measure the fair value of investments within the scope of this guidance based on the investment’s NAV. In addition, as a result of adopting ASU 2009-12, the Plan has provided additional disclosures regarding the nature and risks of investments within the scope of this guidance. Refer to Note 4 for these disclosures. Adoption of ASU 2009-12 did not have a significant effect on the Plan’s net assets available for benefits or its changes in net assets available for benefits.
 
In January 2010, the FASB issued Accounting Standards Update 2010-06, Improving Disclosures about Fair Value Measurements (ASU 2010-06). ASU 2010-06 amended ASC 820 to clarify certain existing fair value disclosures and require a number of additional disclosures. The guidance in ASU 2010-06 clarified that disclosures should be presented separately for each “class” of assets and liabilities measured at fair value and provided guidance on how to determine the appropriate classes of assets and liabilities to be presented. ASU 2010-06 also clarified the requirement for entities to disclose information about both the valuation techniques and inputs used in estimating Level 2 and Level 3 fair value measurements. In addition, ASU 2010-06 introduced new requirements to disclose the amounts (on a gross basis) and reasons for any significant transfers between Levels 1, 2, and 3 of the fair value hierarchy and present information regarding the purchases, sales, issuances, and settlements of Level 3 assets and liabilities on a gross basis. With the exception of the requirement to present changes in Level 3 measurements on a gross basis, which is delayed until 2011, the guidance in ASU 2010-06

 
9
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)


 
2.
Summary of Significant Accounting Policies (continued)
 
becomes effective for reporting periods beginning after December 15, 2009. Plan management is currently evaluating the effect that the provisions of ASU 2010-06 will have on the Plan’s financial statements.
 
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 (see Note 4). 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 invests in fully benefit-responsive guaranteed investment contracts (GICs) and synthetic investment contracts (synthetic GICs). The statements of net assets available for benefits present the fair value of the investment contracts, as well as an adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The fair value of the GICs is calculated by discounting the related cash flows based on current yields of similar instruments with comparable durations. The underlying investments of the synthetic GICs are valued at quoted redemption values on the last business day of the Plan’s year-end. Wrapper contracts are valued using a replacement cost methodology as of the last day of the plan year. The contract value of the fully benefit-responsive investment contracts represents contributions plus earnings, less participant withdrawals and administrative expenses.
 
In accordance with ASC 820, Fair Value Measurements and Disclosures (formerly FASB Statement No. 157), 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.
 
 

 
10

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

 
2.
Summary of Significant Accounting Policies (continued)
 
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 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.
 
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
  
   
2009
    
2008
  
             
HP Common Stock Fund
   $ 1,238,052,019     $ 972,759,293  
Vanguard Employee Benefit Index Fund
   $ 813,298,960     $ 647,986,051  
Vanguard PRIMECAP ADM Fund
   $ 688,218,529     $ 530,157,876  
Dwight Target 2 Fund
   $ 635,253,443     $ 601,916,872  
Fidelity Contrafund
   $ 572,514,247     $ 458,134,765  


 
11

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

 
3.
Investments (continued)
 
For the year ended December 31, 2009, the Plan’s investments (including investments purchased, sold, as well as held during the year) appreciated in fair value as follows:
 
Registered investment companies
   $ 904,917,283  
Common stock
     462,546,845  
Common collective trust funds
     281,839,251  
Company common stock
     385,302,421  
Corporate debt
     12,079,118  
Total net realized and unrealized appreciation in fair value of investments
   $ 2,046,684,918  

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 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.
 
Publicly traded mutual funds, common stocks, corporate debt and U.S. government securities: Valued at the closing price reported on the active market on which the individual securities are traded.
 
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.
 
Synthetic GICs: Valued at fair value of the underlying investments, which consist of mutual funds, short-term investments, corporate debt, and U.S. government securities (see Note 5).
 

 
12
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
4.
Fair Value Measurements (continued)
 
Traditional GICs: Value is determined using the present value of the contracts’ future cash flow values discounted by comparable duration Wall Street Journal GIC index rates.
 
Wrappers: Value is determined by a present value discounting of the difference between the contractual wrap rate fee and the rebid rate.
 
Participant loans: Valued at amortized cost, which approximates fair value.
 
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.
 

 
13

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

 
4.
Fair Value Measurements (continued)
 
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets and liabilities as of December 31, 2009 and 2008:
 

   
Fair Value Measurements as of December 31, 2009
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets                        
Mutual funds:
                        
      Index funds
   $ 350,469,034     $ –     $ –     $ 350,469,034  
      Growth funds
     2,563,953,433       293,276,700       –       2,857,230,133  
      Fixed income funds
     253,519,451       –       –       253,519,451  
      Value funds
     221,899,884       –       –       221,899,884  
      Other funds
     26,231,263       –       –       26,231,263  
Total mutual funds
     3,416,073,065       293,276,700       –       3,709,349,765  
                                 
Common collective trusts:
                                
      Index funds
     –       813,298,960       –       813,298,960  
      Growth funds
     –       382,720,689       –       382,720,689  
      Fixed income funds
     –       1,170,003,695       –       1,170,003,695  
      Other funds
     –       105,247,081       –       105,247,081  
Total common collective trusts
     –       2,471,270,425       –       2,471,270,425  
                                 
HP Common Stock Fund
     1,238,052,019       –       –       1,238,052,019  
Money market funds
     –       209,735,873       –       209,735,873  
Managed accounts:
                                
  Short-term investments
     –       152,755,663       –       152,755,663  
      Common and preferred stocks:
                                
       Banks, insurance and other financial institutions
     182,426,919       –       –       182,426,919  
       Consumer and capital goods
     457,870,702       –       –       457,870,702  
       Health care, pharmaceuticals, and biotechnology
     279,411,192       –       –       279,411,192  
       Technology, hardware and software
     444,502,280       –       –       444,502,280  
       Energy, transportation and other utilities
     280,790,968       –       –       280,790,968  
       Hospitality and real estate
     182,945,424       –       –       182,945,424  
       Other
     609,238       –       –       609,238  
Total common and preferred stocks
     1,828,556,723       –       –       1,828,556,723  

 
 
14
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
4.
Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2009
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Corporate debt:
                        
      Banks, insurance and other financial institutions
   $ –     $ 68,537,872     $ –     $ 68,537,872  
      Consumer and capital goods
     –       23,391,435       –       23,391,435  
      Health care, pharmaceuticals, and biotechnology
     –       19,320,084       –       19,320,084  
      Technology, hardware and software
     –       9,004,335       –       9,004,335  
      Energy, transportation and other utilities
     –       55,824,306       –       55,824,306  
      Hospitality and real estate
     –       3,484,710       –       3,484,710  
      Other
     –       593,680       –       593,680  
Total corporate debt
     –       180,156,422       –       180,156,422  
                                 
U.S. government securities:
                                
      Federal
     –       234,707,407       –       234,707,407  
      State
     –       7,173,879       –       7,173,879  
      Municipal
     –       2,257,999       –       2,257,999  
Total U.S. government securities
     –       244,139,285       –       244,139,285  
Guaranteed investment contracts
     –       17,749,665       –       17,749,665  
Wrapper contracts
     –       –       852,339       852,339  
Participant loans
     –       –       133,064,572       133,064,572  
Total investments
     6,482,681,807       3,569,084,033       133,916,911       10,185,682,751  
Derivative assets     69,005,522       –       –       69,005,522  
Amount due from brokers for securities sold     201,906,549       –       –       201,906,549  
Total assets measured at fair value   $ 6,753,593,878     $ 3,569,084,033     $ 133,916,911     $ 10,456,594,822  
                                 
                                 
Liabilities                                
Derivative liabilities   $ 69,470,436     $ –     $ –     $ 69,470,436  
Amount due to brokers for securities purchased     196,379,984       –       –       196,379,984  
Total liabilities measured at fair value   $ 265,850,420     $ –     $ –     $ 265,850,420  
 
 
 
15
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
4.
Fair Value Measurements (continued)
 
   
Fair Value Measurements as of December 31, 2008
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Assets                                
Mutual funds
   $ 2,723,746, 901     $ 318,647,106     $ –     $ 3,042,394,007  
Common collective trusts
     –       1,220,681,896       –       1,220,681,896  
HP Common Stock Fund
     972,759,293       –       –       972,759,293  
Money market funds
     –       250,261,152       –       250,261,152  
                                 
Managed accounts:
                                
      Short-term investments
     –       34,572,440       –       34,572,440  
      Common and preferred stocks
     946,749,911       –       –       946,749,911  
Corporate debt
     –       70,762,793       –       70,762,793  
U.S. government securities
     –       84,284,639       –       84,284,639  
Guaranteed investment contracts
     –       1,222,969,854       –       1,222,969,854  
Wrapper contracts     –        –       3,151,526        3,151,526   
Participants loans
     –       –       130,272,943       130,272,943  
Total investments
     4,643,256,105       3,202,179,880       133,424,469       7,978,860,454  
Derivative assets     55,422,003       –       –       55,422,003  
Amount due from brokers for securities sold     40,409,104       –       –       40,409,104  
Total assets measured at fair value   $ 4,739,087,212     $ 3,202,179,880     $ 133,424,469     $ 8,074,691,561  
                                 
                                 
Liabilities                                
Derivative liabilities   $ 55,351,707     $ –     $ –     $ 55,351,707  
Amount due to brokers for securities purchased     27,573,213       –       –       27,573,213  
Total liabilities measured at fair value   $ 82,924,920     $ –     $ –      $ 82,924,920  
 
 
 
16
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

4.
Fair Value Measurements (continued)

The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 assets (participant loans and wrapper contracts) for the year ended December 31, 2009:
 
   
Participant Loans
    
Wrapper Contracts
    
Total
  
                   
Balance, beginning of year
   $ 130,272,943     $ 3,151,526     $ 133,424,469  
New loans
     54,546,181       –       54,546,181  
Repayments
     (51,754,552 )     –       (51,754,552 )
Unrealized losses relating to instruments held at the reporting date
     –       (2,299,187 )     (2,299,187 )
Balance, end of year
   $ 133,064,572     $ 852,339     $ 133,916,911  

5.
Guaranteed Investment Contracts
 
The Plan offers a Stable Value Fund, which invests in GICs and synthetic GICs, to provide participants with a stable, fixed-rate return and protection of principal from market changes. There are no reserves against contract value for credit risk of the contract issuers or otherwise. The crediting interest rates are 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 limit the ability of the Plan to transact at contract value with the issuer. Such events include 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 does not believe that the occurrence of any such events, which would limit the Plan’s ability to transact at contract value with participants, is probable.
 
GICs generally do not permit issuers to terminate the contract prior to the scheduled maturity date. Wrapper contracts, a component of synthetic GICs, generally allow the issuer to terminate upon notice at any time for market value. Wrapper contracts generally also contain provisions to allow the Plan to elect to convert the wrapped portfolio to a declining direction strategy upon termination by the issuer. Such provisions are intended to result in contract value equaling market value by the ultimate maturity date.

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

 
5.
Guaranteed Investment Contracts (continued)
 
Average yields earned on the Stable Value Fund are as follows:
 
   
Year Ended December 31
   
2009
  
2008
             
Based on actual earnings
     3.22 %     5.36 %
Based on interest rate credited to participants
     2.93 %     3.67 %

 
6. 
Derivatives
 
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 at the time it was closed or offset.
 
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, 2009 and 2008, the value of currencies under forward foreign currency contracts represented less than 1% of net assets available for benefits.
 
 
18
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
6.  
Derivatives (continued)
 
Total gross notional amounts for outstanding derivatives (recorded at fair value) were as follows:
 
    December 31   
   
2009
    
2008
  
             
Forward foreign currency exchange
   $ 63,984,617     $ 55,314,091  
Financial futures
     24,500,000       18,700,000  
Interest rate swaps
     11,000,000       6,800,000  
Financial options
     9,400,000       3,000,000  
Total
   $ 108,884,617     $ 83,814,091  

Total gross notional amounts for forward foreign currency exchange contracts by currency were as follows:
 
    December 31   
   
2009
    
2008
  
             
Australian dollar
   $ 8,655,624     $ 751,889  
Brazil real
     –       2,236  
British pound
     17,951,934       10,781,309  
Canadian dollar
     7,192,366       2,107,811  
Chinese yuan
     253,202       1,007,080  
Euro
     5,904,548       6,686,521  
Japanese yen
     10,969,135       12,962,631  
Mexican peso
     205,003       1,450  
Norwegian krone
     4,456,546       2,516,897  
Polish zloty
     –       45,029  
Russian ruble
     –       85,519  
Singapore dollar
     52,449       51,512  
South Korean won
     99,613       –  
Swedish krona
     4,374,092       10,732,722  
Swiss franc
     3,870,105       7,581,485  
Total
   $ 63,984,617     $ 55,314,091  
 
None of the derivative instruments contain credit-risk-related contingent features. Credit ratings are not applicable to the Plan investment accounts.
 

 
19
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)

 
6.
Derivatives (continued)
 
The fair values of the derivatives instruments included in the net assets available for benefits were as follows:
 
   
December 31, 2009
    
December 31, 2008
  
   
Derivative
Asset
    
Derivative
Liability
    
Derivative
Asset
    
Derivative
Liability
  
Forward foreign currency exchange
   $ 68,874,951     $ 69,385,734     $ 55,254,427     $ 55,217,783  
Interest rate swaps
     130,571       10,356       167,576       133,493  
Financial options
     –       74,346       –       431  
Total
   $ 69,005,522     $ 69,470,436     $ 55,422,003     $ 55,351,707  

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, 2009 were as follows:
 
Forward foreign currency exchange
   $ (638,689 )
Financial futures
     875,703  
Interest rate swaps
     78,449  
Financial options
     143,762  
Total
   $ 459,225  

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. 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.
 
 
 
 
20
 
 
Hewlett-Packard Company 401(k) Plan
 
Notes to Financial Statements (continued)
 
 
8.  Related-Party Transactions
 
Transactions in shares of the Company’s common stock qualify as party-in-interest transactions under the provisions of ERISA. During 2009, the Plan made purchases of approximately $141,348,730 and sales of approximately $269,162,190 of the Company’s common stock.
 
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.
 Reconciliation of Financial Statements to Form 5500
 
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
 
   
December 31
  
   
2009
    
2008
  
             
Net assets available for benefits per the financial statements
   $ 10,237,953,940     $ 8,091,195,088  
Less: Adjustment from fair value to contract value for fully benefit-responsive investment contracts
     (16,921,697 )     (93,053,312 )
Net assets available for benefits per the Form 5500
   $ 10,221,032,243     $ 7,998,141,776  

The following is a reconciliation of the net investment gain per the financial statements for the year ended December 31, 2009, to the Form 5500:
 
Net investment gain per the financial statements
   $ 2,214,743,673  
Less: Current year adjustment from fair value to contract value for fully benefit-responsive investment contracts
     (16,921,697 )
Add: Prior year adjustment from fair value to contract value for fully benefit-responsive investment contracts
     93,053,312  
Net investment gain per the Form 5500
   $ 2,290,875,288  

 
21

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

 
 
11.
 Subsequent Events
 
Effective January 1, 2010, new guidelines were imposed on participants' ability to invest in the HP common stock fund, with a goal of limiting investments in HP 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 HP 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 HP 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 HP 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 of the portfolio balance in the HP common stock fund.  Finally, the new guidelines provide that if the participant chooses to rebalance his or her portfolio, the respective holding in the HP common stock fund will be limited to a maximum of 20% regardless of the current investments in the HP common stock fund.
 

 
22

 
 
 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, 2009
                   
                   
       
(c)
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
                   
Money market funds
            
*
Fidelity Institutional Cash Portfolio
  
     209,735,873
  
shares
  $ 
      209,735,873
                   
                   
Short-term investments
            
 
DREYFUS TREASURY CASH MGMT
  
       78,420,905
  
shares
  
           78,420,905
 
WACHOVIA BK NA BN 6% 11/15/17
  
            725,000
  
shares
  
                759,730
 
INTESA SANP Y$CD 3ML+64 6/9/10
  
            300,000
  
shares
  
                300,000
 
Interest-bearing cash
  
       43,185,156
  
units
  
           43,185,156
                 
         122,665,791
             
Registered investment companies
            
 
Mainstay I CAP Equity Portfolio
  
         2,699,452
  
shares
  
           85,437,671
 
Artisan International Fund
  
         4,353,067
  
shares
  
           89,934,358
 
PIMCO High Yield Fund
  
       11,488,638
  
shares
  
         100,008,604
 
Lazard Emerging Markets Portfolio
  
         7,866,491
  
shares
  
         141,675,497
 
PIMCO Real Return Fund
  
       15,597,998
  
shares
  
         168,302,178
 
Vanguard PRIMECAP ADM Fund
  
       11,161,507
  
shares
  
         688,218,529
 
American Funds New World Fund
  
         3,834,624
  
shares
  
         181,301,046
 
PIMCO Global Bond II Fund
  
         5,685,875
  
shares
  
           53,504,081
 
MFS International New Discovery Fund
  
         8,695,563
  
shares
  
         161,569,133
 
Dodge & Cox International Stock
  
         9,675,047
  
shares
  
         308,150,237
 
Domini Social Equity Fund
  
         1,915,442
  
shares
  
           15,572,541
*
Fidelity Contrafund
  
         9,823,511
  
shares
  
         572,514,247
*
Fidelity Low-Priced Stock Fund
  
       10,117,972
  
shares
  
         323,168,040
 
Dodge & Cox Stock Fund
  
         1,945,389
  
shares
  
         187,029,695
 
PIMCO Asset Backed Securities Fund
  
            582,744
  
shares
  
             5,308,802
 
PIMCO Emerging Markets Fund
  
            793,038
  
shares
  
             7,636,960
 
PIMCO International Portfolio
  
         5,349,352
  
shares
  
           22,413,783
 
PIMCO Investment Grade Corporate Portfolio
  
         5,219,650
  
shares
  
           51,831,127
 
PIMCO Mortgage Portfolio
  
       10,312,735
  
shares
  
         109,830,632
 
PIMCO Municipal Sector Portfolio
  
            995,226
  
shares
  
             8,031,478
 
PIMCO Short Term Portfolio Institutional
  
            713,416
  
shares
  
             6,106,843
 
PIMCO US Government Sector Portfolio
  
         4,860,466
  
shares
  
           45,007,914
 
Vanguard Extended Market Index
  
         5,574,261
  
shares
  
         182,166,856
 
CRM Midcap Value FD Institutional
  
         1,437,353
  
shares
  
           34,870,189
 
SPDR Trust - ETF
  
              17,600
  
shares
  
             1,961,343
                 
      3,551,551,784

 
23



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, 2009
                   
                   
       
(c) 
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock
            
 
AAR CORP
  
              48,100
  
shares
  $
           1,105,338
 
ABB LTD (REG) (SWIT)
  
              52,500
  
shares
  
1,011,010
 
ABBOTT LABORATORIES
  
            129,800
  
shares
  
7,007,902
 
ACADIA REALTY TRUST
  
              34,359
  
shares
  
579,636
 
ACCENTURE LTD CL A
  
              86,995
  
shares
  
3,610,293
 
ACE LTD
  
              35,100
  
shares
  
1,769,040
 
ACTUANT CORP CL A
  
              20,172
  
shares
  
373,787
 
ADECCO SA
  
              16,800
  
shares
  
925,627
 
ADOBE SYSTEMS INC
  
            418,260
  
shares
  
15,383,603
 
ADTRAN INC
  
              17,729
  
shares
  
399,789
 
ADVANCE AUTO PARTS INC
  
              77,880
  
shares
  
3,152,582
 
ADVISORY BOARD CO
  
              66,600
  
shares
  
2,041,956
 
AECOM TECHNOLOGY CORP
  
            126,000
  
shares
  
3,465,000
 
AEON CO LTD
  
              64,900
  
shares
  
524,275
 
AEON MALL CO LTD
  
                8,600
  
shares
  
165,736
 
AERCAP HOLDINGS NV
  
            302,500
  
shares
  
2,740,650
 
AEROPOSTALE INC
  
              24,800
  
shares
  
844,440
 
AETNA INC
  
            135,800
  
shares
  
4,304,860
 
AFFILIATED MANAGERS GROUP
  
              14,700
  
shares
  
990,045
 
AGCO CORP
  
              14,317
  
shares
  
463,012
 
AGILENT TECHNOLOGIES INC
  
            153,000
  
shares
  
4,753,710
 
AHOLD NV, KONINKLIJKE
  
              82,920
  
shares
  
1,099,277
 
AIR GAS INC
  
              15,543
  
shares
  
739,847
 
AIR PRODUCTS & CHEMICALS
  
              20,500
  
shares
  
1,661,730
 
ALBEMARLE CORP
  
              13,155
  
shares
  
478,447
 
ALBERTO CULVER CO NEW
  
            154,400
  
shares
  
4,522,376
 
ALCON INC
  
            132,300
  
shares
  
14,984,217
 
ALEXANDRIA REAL ESTATE EQ INC REIT
  
              36,800
  
shares
  
2,365,872
 
ALLGREEN PROPERTIES LTD
  
              89,000
  
shares
  
77,909
 
ALLIANCE DATA SYSTEMS CORP
  
              96,199
  
shares
  
6,213,493
 
ALLIANZ SE
  
              12,500
  
shares
  
1,556,250
 
ALLREAL HOLDING AG
  
                   447
  
shares
  
53,099
 
ALLSTATE CORPORATION
  
            104,100
  
shares
  
3,127,164
 
ALPHA NAT RES INC
  
              17,400
  
shares
  
754,812
 
ALSTRIA OFFICE REIT-AG
  
                9,605
  
shares
  
103,132
 
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, 2009
                   
                   
       
   (c)   
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock (continued)
            
 
ALTERA CORP
  
            126,500
  
shares
  $
          2,862,695
 
ALTRIA GROUP INC
  
            219,100
  
shares
  
4,300,933
 
AMAZON.COM INC
  
            167,700
  
shares
  
22,559,004
 
AMB PROPERTY CORP REIT
  
              41,074
  
shares
  
1,049,441
 
AMCOR LTD
  
              55,502
  
shares
  
310,595
 
AMDOCS LTD
  
            130,000
  
shares
  
3,708,900
 
AMEDISYS INC
  
              44,400
  
shares
  
2,156,064
 
AMERICAN EAGLE OUTFITTERS INC
  
              71,600
  
shares
  
1,215,768
 
AMERICAN ECOLOGY CORP
  
            121,700
  
shares
  
2,073,768
 
AMERIPRISE FINANCIAL INC
  
              49,000
  
shares
  
1,902,180
 
AMGEN INC
  
              55,300
  
shares
  
3,128,321
 
AMPHENOL CORPORATION CL A
  
            100,397
  
shares
  
4,636,333
 
AMYLIN PHARMACEUTICALS
  
              59,100
  
shares
  
838,629
 
ANALOG DEVICES INC
  
            386,900
  
shares
  
12,218,302
 
ANGLO AMER PLC (UK)
  
              22,500
  
shares
  
985,811
 
ANHEUSER BUSCH INBEV NV
  
              49,935
  
shares
  
2,601,858
 
ANIXTER INTL INC
  
              42,366
  
shares
  
1,995,439
 
ANN TAYLOR STORES CORP
  
              50,600
  
shares
  
690,184
 
ANSYS INC
  
              21,786
  
shares
  
946,820
 
APACHE CORP
  
              43,900
  
shares
  
4,529,163
 
APARTMENT INV & MGMT CO A REIT
  
              30,570
  
shares
  
486,674
 
APOLLO GROUP INC CL A
  
              48,540
  
shares
  
2,940,553
 
APPLE INC
  
            200,535
  
shares
  
42,284,810
 
APTARGROUP INC
  
              34,148
  
shares
  
1,220,450
 
ARCELORMITTAL SA (NETH)
  
              44,158
  
shares
  
2,034,381
 
ARCH CHEMICALS INC
  
              46,400
  
shares
  
1,432,832
 
ARENA RESOURCES INC
  
              28,100
  
shares
  
1,211,672
 
ARRIS GROUP INC
  
              52,700
  
shares
  
602,361
 
ARTIO GLOBAL INVESTORS CL A
  
              18,087
  
shares
  
461,038
 
ARUBA NETWORKS INC
  
              39,502
  
shares
  
421,091
 
ASAHI BREWERIES LTD
  
              38,100
  
shares
  
700,690
 
ASCENDAS REAL ESTATE INVEST TR
  
            484,700
  
shares
  
765,806
 
ASML HOLDING NV (NETH)
  
              43,600
  
shares
  
1,486,611
 
ASSISTED LIVING CON CL A
  
                6,254
  
shares
  
164,918
 
ASSOCIATED BRITISH FOODS
  
              19,900
  
shares
  
264,367
 
ASSURED GUARANTY LTD
  
              67,000
  
shares
  
1,457,920
               
 
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, 2009
                   
                   
       
(c)
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock (continued)
            
 
ASTRAZENECA PLC (UK)
  
              39,000
  
shares
  $
          1,833,972
 
AT&T INC
  
            262,450
  
shares
  
7,356,474
 
ATHEROS COMMUNICATIONS INC
  
              71,507
  
shares
  
2,448,400
 
ATLAS AIR WORLD
  
              75,000
  
shares
  
2,793,750
 
ATLAS COPCO AB SER A
  
              47,993
  
shares
  
705,947
 
ATRIUM EUROPEAN REAL ESTATE LT
  
              62,770
  
shares
  
422,364
 
AU OPTRONICS CORP SPON ADR
  
              53,838
  
shares
  
645,518
 
AUSTRALIA & NZ BANKING GRP
  
              52,300
  
shares
  
1,074,868
 
AUTOLIV INC
  
              13,217
  
shares
  
573,089
 
AUTOMATIC DATA PROCESSING INC
  
              43,525
  
shares
  
1,863,741
 
AVALONBAY COMMUNITIES INC REIT
  
              28,530
  
shares
  
2,342,598
 
AVIVA PLC
  
              65,801
  
shares
  
423,144
 
BAE SYSTEMS PLC
  
            321,974
  
shares
  
1,870,688
 
BAIDU INC SPON ADR
  
              12,630
  
shares
  
5,193,835
 
BALDOR ELEC CO
  
              94,200
  
shares
  
2,646,078
 
BALLY TECHNOLOGIES INC
  
              36,684
  
shares
  
1,514,682
 
BANCO SANTANDER SA
  
            286,240
  
shares
  
4,723,754
 
BANCORPSOUTH INC
  
              23,200
  
shares
  
544,272
 
BANK AMERICA (1DS/1WT) PFD
  
            372,300
  
shares
  
5,554,716
 
BANK OF AMERICA CORPORATION
  
            439,600
  
shares
  
6,620,376
 
BANPU PUB CO LTD - NVDR
  
              24,000
  
shares
  
413,274
 
BARCLAYS PLC ORD
  
            166,500
  
shares
  
734,108
 
BARRICK GOLD CORP
  
              10,300
  
shares
  
405,614
 
BASF SE
  
              14,600
  
shares
  
908,405
 
BAXTER INTL INC
  
            184,400
  
shares
  
10,820,592
 
BAYER AG
  
              37,814
  
shares
  
3,029,474
 
BE AEROSPACE INC
  
              41,300
  
shares
  
970,550
 
BEFIMMO SCA SICAFI
  
                1,377
  
shares
  
121,831
 
BENI STABILI SPA AZ
  
            314,474
  
shares
  
258,875
 
BEST BUY CO INC
  
              65,000
  
shares
  
2,564,900
 
BG GROUP PLC
  
            121,486
  
shares
  
2,202,930
 
BGP HOLDINGS PLC (UNLIST)
  
         1,317,017
  
shares
  
19
 
BHP BILLITON LTD
  
                7,100
  
shares
  
271,694
 
BHP BILLITON PLC
  
              62,106
  
shares
  
2,002,434
 
BIG LOTS INC
  
            119,000
  
shares
  
3,448,620
 
BIG YELLOW GROUP PLC
  
              41,378
  
shares
  
236,731
               
 
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, 2009
                   
                   
       
(c)
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock (continued)
            
 
BIO RAD LABS CL A
  
              55,000
  
shares
  $
           5,305,300
 
BLACKBOARD INC
  
              75,000
  
shares
  
3,404,250
 
BMW AG (BAYER MTR WKS) (GERW)
  
              19,300
  
shares
  
878,661
 
BNP PARIBAS (FRAN)
  
              21,560
  
shares
  
1,725,430
 
BOEING CO
  
              52,510
  
shares
  
2,842,366
 
BOSTON PPTY CV
  
            275,000
  
shares
  
269,844
 
BOSTON PROPERTIES INC
  
              30,010
  
shares
  
2,012,771
 
BOUYGUES ORD
  
                7,800
  
shares
  
406,753
 
BOWNE & CO INC
  
              59,400
  
shares
  
396,792
 
BP PLC
  
            273,300
  
shares
  
2,640,587
 
BP PLC SPON ADR
  
              95,400
  
shares
  
5,530,338
 
BR MALLS PARTICIPACOES SA
  
              45,000
  
shares
  
553,012
 
BRE PROPERTIES INC
  
              15,000
  
shares
  
496,200
 
BRISTOW GROUP INC
  
              67,489
  
shares
  
2,594,952
 
BRITISH AIRWAYS PLC ORD
  
            217,000
  
shares
  
655,467
 
BRITISH AMER TOBACCO PLC (UK)
  
              63,542
  
shares
  
2,064,000
 
BRITISH LAND CO PLC
  
            256,592
  
shares
  
1,990,518
 
BRITISH SKY BROADCAST GRP PLC
  
              67,860
  
shares
  
616,356
 
BROADCOM CORP CL A
  
              66,445
  
shares
  
2,089,695
 
BROOKDALE SENIOR LIVING INC
  
            134,799
  
shares
  
2,451,994
 
BROOKFIELD PPTYS CORP
  
            124,820
  
shares
  
1,512,818
 
BRUKER CORP
  
            215,600
  
shares
  
2,600,136
 
BRUSH ENGINEERED MATERIALS INC
  
              12,165
  
shares
  
225,539
 
BT GROUP PLC
  
            214,310
  
shares
  
467,006
 
CABOT CORP
  
              74,400
  
shares
  
1,951,512
 
CABOT OIL & GAS CORP
  
              45,385
  
shares
  
1,978,332
 
CADENCE DESIGN SYSTEMS INC
  
              46,945
  
shares
  
281,201
 
CALLOWAY REAL EST INVT TR REIT
  
              19,700
  
shares
  
365,818
 
CAMDEN PROPERTY TRUST - REIT
  
              32,120
  
shares
  
1,360,924
 
CAMERON INTL CORP
  
              36,500
  
shares
  
1,525,700
 
CANADIAN REAL INVEST TR (REIT)
  
                5,200
  
shares
  
134,225
 
CAPITACOMMERCIAL TRUST REIT
  
            604,000
  
shares
  
502,939
 
CAPITAL & REGIONAL PLC
  
            147,881
  
shares
  
81,857
 
CAPITAL SR LIVING CORP
  
                5,650
  
shares
  
28,363
 
CAPITALAND LTD
  
            595,900
  
shares
  
1,781,211
 
CAPITAMALL TRUST REIT
  
            532,900
  
shares
  
682,670

 
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, 2009
                   
                   
       
(c)
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock (continued)
            
 
CARDINAL HEALTH INC
  
            104,205
  
shares
   $ 
         3,359,569
 
CARLISLE COS INC
  
            116,708
  
shares
  
3,998,416
 
CARLSBERG AS CL B
  
                7,075
  
shares
  
522,658
 
CARNIVAL PLC
  
              47,109
  
shares
  
1,605,863
 
CASINO GUICHARD PERRACHON ORD
  
                7,200
  
shares
  
644,552
 
CASTELLUM AB
  
              44,340
  
shares
  
449,055
 
CASTLE (A.M.) & CO
  
              49,400
  
shares
  
676,286
 
CELESIO AG
  
              14,400
  
shares
  
364,899
 
CELGENE CORP
  
            171,300
  
shares
  
9,537,984
 
CENTENE CORP
  
              78,641
  
shares
  
1,664,830
 
CENTRAL EURO DIST CORP (USA)
  
              13,874
  
shares
  
394,160
 
CENTRICA PLC
  
            181,550
  
shares
  
824,781
 
CENTURYTEL INC
  
              20,900
  
shares
  
756,789
 
CEPHALON INC
  
              76,600
  
shares
  
4,780,606
 
CFS RETAIL PROPERTY TRUST
  
            466,379
  
shares
  
795,957
 
CH ROBINSON WORLDWIDE INC
  
                4,900
  
shares
  
287,777
 
CHEESECAKE FACTORY INC
  
              19,700
  
shares
  
425,323
 
CHICAGO BRIDGE & IRON (NY REG)
  
            112,600
  
shares
  
2,276,772
 
CHILDRENS PL RETAIL STORES INC
  
              39,100
  
shares
  
1,290,691
 
CHINA COAL ENERGY CO LTD H
  
            303,000
  
shares
  
556,472
 
CHINA OVERSEAS LAND & INV LTD
  
            906,000
  
shares
  
1,916,298
 
CHINA RESOURCES LAND LTD
  
         1,045,259
  
shares
  
2,378,009
 
CHIPOTLE MEXICAN GRILL INC
  
                1,955
  
shares
  
172,353
 
CISCO SYSTEMS INC
  
            711,550
  
shares
  
17,034,507
 
CITY DEVELOPEMENT LTD
  
                4,000
  
shares
  
32,909
 
CITY NATIONAL CORP
  
              36,500
  
shares
  
1,664,400
 
CLARCOR INC
  
              79,300
  
shares
  
2,572,492
 
CLEAN HARBORS INC
  
              53,000
  
shares
  
3,159,330
 
CLIFFS NATURAL RESOURCES INC
  
              19,200
  
shares
  
884,928
 
COACH INC
  
            103,230
  
shares
  
3,770,992
 
COBALT INTL ENERGY INC
  
            234,600
  
shares
  
3,246,864
 
COHERENT INC
  
              11,700
  
shares
  
347,841
 
COLGATE-PALMOLIVE CO
  
            103,200
  
shares
  
8,477,880
 
COLONY FINANCIAL INC
  
                5,660
  
shares
  
115,294
 
COLUMBIA BANKING SYSTEMS INC
  
              57,100
  
shares
  
923,878
 
COMINAR REAL ESTAT INV TR UNIT
  
                9,000
  
shares
  
165,755
 
 
28
 

 
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, 2009
                   
                   
       
(c)
    
       
Description of Investment,
    
     
(b)
Including Maturity Date,
  
 (e)
     
Identity of  Issue, Borrower,
Rate of Interest, Collateral,
  
 Current
(a)
    
Lessor, or Similar Party
Par, or Maturity Value
  
 Value
 
Common stock (continued)
            
 
COMMERCIAL METALS CO
  
61,400
  
shares
$
960,910
 
COMMONWEALTH PROP OFFICE UNITS
  
343,567
  
shares
  
299,351
 
COMSTOCK RESOURCES INC NEW
  
93,700
  
shares
  
3,801,409
 
COMTECH TELECOMMUNICATIONS NEW
  
30,200
  
shares
  
1,058,510
 
COMVERSE TECHNOLOGY INC
  
52,456
  
shares
  
495,709
 
CON WAY INC
  
12,000
  
shares
  
418,920
 
CONCUR TECHNOLOGIES INC
  
8,669
  
shares
  
370,600
 
CONOCOPHILLIPS
  
49,680
  
shares
  
2,537,158
 
CONSOL ENERGY INC
  
19,900
  
shares
  
991,020
 
CONSTELLATION BRANDS INC CL A
  
128,100
  
shares
  
2,040,633
 
CONWERT IMMOBIL INVEST AG
  
9,752
  
shares
  
119,231
 
COOPER COMPANIES INC
  
44,500
  
shares
  
1,696,340
 
COOPER TIRE & RUBBER COMPANY
  
74,900
  
shares
  
1,501,745
 
CORE LABORATORIES NV
  
29,263
  
shares
  
3,456,546
 
CORIO NV
  
22,064
  
shares
  
1,506,428
 
CORNING INC
  
113,530
  
shares
  
2,192,264
 
CORPORATE EXECUTIVE BRD C
  
59,900
  
shares
  
1,366,918
 
COSTAR GROUP INC
  
76,900
  
shares
  
3,212,113
 
COSTCO WHOLESALE CORP
  
138,800
  
shares
  
8,212,796
 
COUSINS PROPERTIES INC
  
21,999
  
shares
  
167,852
 
COVIDIEN LTD
  
130,290
  
shares
  
6,239,588
 
CREDIT AGRICOLE SA
  
69,938
  
shares
  
1,237,566
 
CREDIT SUISSE GRP (REG)
  
54,975
  
shares
  
2,720,906
 
CREE INC
  
72,179
  
shares
  
4,068,730
 
CREXUS INVT CO
  
5,860
  
shares
  
81,806
 
CRH PLC
  
23,700