form 11-k




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, 2005
 
  OR
 
  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
   
   
















FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE

Hewlett-Packard Company 401(k) Plan
December 31, 2005 and 2004, and for the Year Ended December 31, 2005
with Report of Independent Registered Public Accounting Firm




Hewlett-Packard Company 401(k) Plan

Financial Statements and Supplemental Schedule

December 31, 2005 and 2004,
and for the Year Ended December 31, 2005


Contents
 
Report of Independent Registered Public Accounting Firm 1
 
Audited Financial Statements
 
Statements of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4
 
Supplemental Schedule
 
Schedule H, Line 4i—Schedule of Assets (Held At End of Year) 11
Signature 30
 
Exhibit
 
Exhibit 23 – Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm 31

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 the Hewlett-Packard Company 401(k) Plan as of December 31, 2005 and 2004, and the related statement of changes in net assets available for benefits for the year ended December 31, 2005. 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 audit 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, 2005 and 2004, and the changes in its net assets available for benefits for the year ended December 31, 2005, in conformity with U.S. 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, 2005, is presented for the purpose 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
May 25, 2006

-1-



Hewlett-Packard Company 401(k) Plan

Statements of Net Assets Available for Benefits



December 31,
2005
2004
Assets            
Cash   $ 312,433   $ -  
Investments    8,798,830,023    8,068,624,270  
Receivables:  
Company contribution receivable    7,554,760    9,418,626  
Amount due from brokers for securities sold    36,154,295    18,844,047  
Interest and dividends receivable    4,409,007    3,709,463  


Total receivables    48,118,062    31,972,136  


Total assets    8,847,260,518    8,100,596,406  
 
Liabilities  
Amounts due to brokers for securities purchased    46,167,970    16,307,044  
Other payables    3,051,234    2,943,998  


Total liabilities    49,219,204    19,251,042  


Net assets available for benefits   $ 8,798,041,314   $ 8,081,345,364  


See accompanying notes.




-2-



Hewlett-Packard Company 401(k) Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2005


Additions        
Contributions:  
    Participant   $ 458,407,459  
    Company    200,357,352  
    Rollover    60,370,572  

Total contributions    719,135,383  
Investment income:  
    Interest and dividends    286,373,895  
    Net realized and unrealized appreciation in fair value of investments    607,082,193  

Total investment income    893,456,088  

Total additions    1,612,591,471  
Deductions  
Benefits paid directly to participants    886,723,120  
Administrative expenses and fees    2,895,954  
Investment management fees    6,276,447  

Total deductions    895,895,521  

Net increase    716,695,950  
Net assets available for benefits:  
    Beginning of year    8,081,345,364  

    End of year   $ 8,798,041,314  


See accompanying notes.

-3-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements

December 31, 2005



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 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 three-tier investment structure. Tier 1 includes four ready-made portfolios that represent different points on the risk/return spectrum. Tier 2 includes 14 institutional funds in a range of asset classes. Tier 3 includes 17 brand-name mutual funds spanning several investment categories. Additionally, the Plan offers Company common stock as an investment option.

The Plan includes a non-leveraged employee stock ownership plan (the ESOP) within the meaning of Internal Revenue Service 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.

-4-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



1.   Description of the Plan (continued)

Contributions

All employees are deemed to have elected a three percent compensation deferral effective on the first day of their employment unless the employee makes a change to that election in the manner prescribed by the Company.

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 Internal Revenue Code (the Code). The annual limitation was $14,000 for 2005.

Participants who are age 50 or older by the end of the plan year can contribute an additional $4,000 above the annual limitation. These “catch-up” contributions are not eligible for the Company match. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans.

The Company contributes 100% of the first 3% and 50% of the next 2% of compensation that each participant contributes to the Plan. The Plan uses a year-end “true-up” matching contribution feature to allow participants to receive the maximum matching contribution available by making up any loss in matching contributions resulting from the participant’s individual savings strategies. To be eligible to receive the year-end “true-up” match, the participant must be employed on the last day of the plan year. The “true-up” matching contribution was $7,554,760 for the year ended December 31, 2005.

Vesting

Participants are one hundred percent vested in the Plan at all times.

-5-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



1.  Description of the Plan (continued)

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. All amounts in participant accounts, including amounts invested in the Agilent Stock Fund prior to the June 2, 2000, spin-off of Agilent Technologies, Inc., are participant-directed.

However, effective June 2, 2000, no amounts may be directed into the Agilent Stock Fund. The Agilent Stock Fund was closed effective March 31, 2005. Proceeds from the liquidation of the fund were invested in the Stable Value Fund from which participants may redirect their investment, consistent with the Plan rules.

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 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 is paid ratably through payroll deductions.

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. Participants with account balances exceeding $5,000 may elect to receive a series of cash installment payments at their required beginning date. Lump-sum payments may be made in cash or shares of stock for distribution from the Company Stock Fund and prior to March 31, 2005, the Agilent Stock Fund. Hardship distributions and in-service withdrawals are permitted if certain criteria are met.

-6-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



1.   Description of the Plan (continued)

Administrative and Investment Management Expenses

Certain fees and expenses of the Plan for legal, accounting, and other administrative services are paid directly by the Company on behalf of the Plan. Other administrative fees and all investment management fees are charged to individual participants’ accounts. Certain administrative fees and investment management fees related to Tiers 1 and 2 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. 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

Investment Valuation and Income Recognition

Except for investment contracts, the Plan’s investments are stated at fair value. The shares of registered investment companies are valued at quoted market prices, which represent the net asset values of shares held by the Plan at year-end. The shares of the common collective trust funds are valued at the quoted redemption value on the last business day of the plan year. Short-term investments are valued at cost plus accrued interest, which approximates fair value. Securities traded on a national securities exchange are valued at the last reported sales price on the last day of the plan year. Participant loans are valued at their outstanding balances, which approximate fair value.

-7-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



2.   Summary of Significant Accounting Policies (continued)

Investments in guaranteed investment contracts and synthetic investment contracts are stated at contract value, which approximates fair value, because they are fully benefit-responsive. Contract value represents contributions made plus interest accrued at the contract rate, less withdrawals. The guaranteed investment contracts are promises by an insurance company or bank to repay principal plus accrued income at contract maturity, subject to the creditworthiness of the issuer. Synthetic investment contracts consist of various fixed income investments, together with contracts under a bank or other institution, which provide for fully benefit-responsive withdrawals by plan participants at contract value. There are no limitations on liquidity guarantees, and no valuation reserves are being recorded to adjust contract amounts.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

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. Actual results could differ from those estimates.

3.   Investments

The following investments represent 5% or more of the fair value of the Plan’s net assets:


December 31
2005
2004
Hewlett-Packard Company common stock $         954,974,636   $        810,232,925  
Fidelity Magellan Fund  609,935,731   725,591,053  
Fidelity Contrafund  577,471,923   454,973,081  
Vanguard PRIMECAP Fund  716,991,549   690,285,001  
Fidelity Low-Priced Stock Fund  442,313,583   437,765,920  
Vanguard Employee Benefit Index Fund  952,910,499   944,314,522  
Dwight Target 2 Fund  549,406,888   433,680,009  

-8-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



3.   Investments (continued)

During 2005, the Plan’s investments (including investments purchased, sold, as well as held during the year) appreciated in fair value as determined by quoted market prices as follows:


Net Realized and
Unrealized Appreciation
(Depreciation) in Fair
Value of Investments

 
Registered investment companies   $     137,143,728  
U. S. government securities  (673,087 )
Common stock  86,534,362  
Company common stock  266,703,410  
Common collective trust fund  117,373,780  

   $      607,082,193  

4.  Guaranteed and Synthetic Investment Contracts

The Plan offers a Stable Value Fund, which invests in guaranteed investment contracts and synthetic investment contracts, to provide participants with a stable, fixed-rate return and protection of principal from market changes.

The average yield of the various investment contracts in the Stable Value Fund for 2005 and 2004 was approximately 4.74% and 4.50%, respectively. The crediting interest rates at December 31, 2005 and 2004, range from 3.19% to 6.24% and 3.19% to 7.84%, respectively. 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%. The fair value of the guaranteed investment contracts, estimated by the issuers based on discounted cash flows, was $17,124,423 at December 31, 2005 and $108,801,050 at December 31, 2004. The fair value of the underlying assets related to the synthetic investment contracts was $1,089,792,281 at December 31, 2005 and $850,371,023 at December 31, 2004, resulting in positive wrapper values totaling $9,739,927 at December 31, 2005 and negative wrapper values totaling $(10,154,670) at December 31, 2004.

-9-



Hewlett-Packard Company 401(k) Plan

Notes to Financial Statements (continued)



5.   Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service dated August 22, 2000, stating that the Plan is qualified under Section 401(a) of the Code, and therefore the related trust is exempt from taxation. Subsequent to the issuance of the determination letter, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan administrator believes that the Plan is being operated in compliance with the applicable requirements of the Code and therefore believes that the Plan, as amended, is qualified and the related trust is tax-exempt.

6.   Related Party Transactions

Transactions in shares of the Company’s common stock qualify as party-in-interest transactions under the provisions of ERISA. During 2005, the Plan made purchases of approximately $53,311,435 and sales of approximately $175,268,135 of the Company’s common stock.

7.   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.

8.   Subsequent Events

Effective January 1, 2006, employees with fewer than 62 points, calculated as age plus years of service, will be eligible for an enhanced Company matching contribution equal to 100% of the first 6% of the eligible compensation the participant contributes to the Plan.

In addition, the Company will match contributions for all participants on a pay-period basis throughout the year. The year-end “true-up” match will no longer be made beginning with the 2006 plan year. The final “true-up” match was provided for the 2005 plan year in early 2006.

Effective January 1, 2006, all new employees will be subject to a three-year cliff vesting schedule with regard to matching contributions. As a result, participants with no prior HP service who enter the Plan on or after January 1, 2006, will be 0% vested in Company matching contributions until earning three years of credited service, at which time they will become 100% vested in their matching contributions.

-10-









Supplemental Schedule



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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Short-term investments                  
           Dreyfus Cash Management Portfolio       15,358,548   shares     $ 15,358,548  
           Mellon EB Temporary Investment    2,241,294   shares    2,241,294  
           The Boston Company Pooled Employee Liquidity Fund    3,344,440   shares    3,344,440  
  *       Fidelity Institutional Cash Portfolio    7,651,000   shares    7,651,000  
           BNP PARBS FIN CP 4.34%    5,600,000   shares    5,541,265  
           DNB NOR BK DN 0% 2/22/06    4,800,000   shares    4,747,114  
           HBOS TREAS DN 0% 2/24/06    5,600,000   shares    5,536,677  
           SOC GEN NA YCP 4.34%    2,400,000   shares    2,373,671  
           WESTPAC BANK 42CP 0%    2,300,000   shares    2,277,592  

        49,071,601
Registered investment companies  
           ICAP Equity Portfolio    1,811,778   shares    74,590,884  
           Artisan International Fund    1,366,217   shares    34,578,945  
           Montag & Caldwell Growth Fund    203,879   shares    4,866,603  
           PIMCO High Yield Fund    4,918,941   shares    47,812,108  
           PIMCO Real Return Fund    5,310,134   shares    58,836,289  
           Vanguard PRIMECAP Fund    10,579,778   shares    716,991,549  
           American Funds New World Fund    1,596,229   shares    61,853,869  
           PIMCO Global Bond II Fund    2,088,733   shares    20,427,806  
           MFS International New Discovery Fund    6,613,399   shares    160,374,919  
           BNY Hamilton Small Cap Growth Fund    966,980   shares    14,301,630  
           Domini Social Equity Fund    1,841,238   shares    20,842,819  
           Templeton Foreign Advisor Class    11,024,786   shares    139,463,544  
  *       Fidelity Magellan Fund    5,730,324   shares    609,935,731  
  *       Fidelity Contrafund    8,917,108   shares    577,471,923  
  *       Fidelity Growth & Income Portfolio    7,438,656   shares    255,889,762  
  *       Fidelity Real Estate Investment Portfolio    5,117,763   shares    159,469,486  
  *       Fidelity Low-Priced Stock Fund    10,830,401   shares    442,313,583  
           Dodge & Cox Income Fund    7,460,667   shares    93,556,763  
           Dodge & Cox Stock Fund    1,118,759   shares    153,516,112  
           Lord Abbett Midcap Value Fund    1,071,938   shares    23,979,254  

-11-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Registered investment companies (continued)                  
           PIMCO Asset Backed Securities Fund       196,435   shares     $ 2,064,537  
           PIMCO Emerging Markets Fund    590,635   shares    6,691,900  
           PIMCO International Portfolio    1,766,621   shares    8,780,106  
           PIMCO Investment Grade Corporate Portfolio    647,497   shares    6,300,144  
           PIMCO Mortgage Portfolio    8,109,671   shares    84,178,385  
           PIMCO Municipal Sector Portfolio    334,778   shares    3,444,870  
           PIMCO Real Return Bond Fund    263,359   shares    2,815,311  
           PIMCO US Government Sector Portfolio    5,133,847   shares    54,983,496  
           Vanguard Extended Market Index    5,387,879   shares    184,750,364  

      4,025,082,692
Common stock  
           AAR CORP    46,700   shares    1,118,465  
           Abbott Laboratories    127,600   shares    5,031,268  
           ACCENTURE LTD CL A    59,000   shares    1,703,330  
           ACE LTD    74,400   shares    3,975,936  
           ACTIVISION INC    217,866   shares    2,993,479  
           ACTUANT CORP CL A    2,900   shares    161,820  
           Adobe Systems Inc.    117,800   shares    4,353,888  
           Advance Auto Parts Inc.    99,900   shares    4,341,654  
           ADVISORY BOARD CO    46,800   shares    2,230,956  
           AFTERMARKET TECH CORP    27,200   shares    528,768  
           Agilent Technologies Inc.    44,200   shares    1,471,418  
           Alabama Natl Bancorp Del    5,200   shares    336,752  
           ALAMOSA HLDGS INC    401,000   shares    7,462,610  
           Alcoa Inc.    45,400   shares    1,342,478  
           Alcon Inc.    23,600   shares    3,058,560  
           Alexander & Baldwin Inc.    6,200   shares    336,288  
           Alliance Data Sys Corp.    237,700   shares    8,462,120  

-12-



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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Altria Group Inc.    129,200   shares   $9,653,824  
           AMAZON.COM INC    19,600   shares    924,140  
           Amer Intl Group Inc.    129,100   shares    8,808,493  
           AMERICAN AXLE & MFG HLDGS    24,000   shares    439,920  
           American Express Co.    89,200   shares    4,590,232  
           American Tower Corp.    237,467   shares    6,435,356  
           Ametek Inc. New    97,000   shares    4,126,380  
           Amgen Inc.    90,600   shares    7,144,716  
           AMYLIN PHARMACEUTICALS    11,200   shares    447,104  
           ANAREN INC    10,100   shares    157,863  
           ANIXTER INTL INC    50,900   shares    1,991,208  
           Ann Taylor Stores Corp.    14,800   shares    510,896  
           Anteon International Corp.    54,500   shares    2,962,075  
           Apple Computer Inc.    49,100   shares    3,529,799  
           APPLIED MATERIALS INC    147,700   shares    2,649,738  
           ARGONAUT GROUP    35,100   shares    1,150,227  
           ARRIS GROUP INC    68,800   shares    651,536  
           ASHLAND INC    10,500   shares    607,950  
           ASTRAZENECA PLC SPONS ADR    51,100   shares    2,483,460  
           ATMI INC    113,000   shares    3,160,610  
           Autoliv Inc.    113,500   shares    5,155,170  
           Aviall Inc.    15,700   shares    452,160  
           AVID TECHNOLOGY INC    72,900   shares    3,992,004  
           Baldor Elec Co.    46,100   shares    1,182,465  
           Bank Of America Corp.    364,200   shares    16,807,830  
           Baxter Intl. Inc.    47,500   shares    1,788,375  
           Be Aerospace Inc.    62,500   shares    1,375,000  

-13-



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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Benihana Inc    15,900   shares   $366,336  
           Bio Rad Labs    51,000   shares    3,337,440  
           Blount Intl. Inc.    3,200   shares    50,976  
           Boeing Co.    29,000   shares    2,036,960  
           Bowater Inc.    63,400   shares    1,947,648  
           BROADCOM CORP CL A    28,900   shares    1,362,635  
           C COR INC    120,000   shares    583,200  
           Capital One Fin Corp.    40,500   shares    3,499,200  
           Capitalsource Inc.    275,000   shares    6,160,000  
           Cardinal Health Inc.    44,900   shares    3,086,875  
           Caremark RX Inc.    54,400   shares    2,817,376  
           Carlisle COS Inc.    25,500   shares    1,763,325  
           CARPENTER TECHNOLOGY CORP    25,700   shares    1,811,079  
           Casey General Stores    29,100   shares    721,680  
           Castle (A.M.) & Co.    9,000   shares    196,560  
           Caterpillar Inc.    29,000   shares    1,675,330  
           Cb Richard Ellis Group A    96,200   shares    5,661,370  
           Central Garden & Pet    73,500   shares    3,376,590  
           Cephalon Inc.    58,100   shares    3,761,394  
           CH ROBINSON WORLDWIDE INC    89,700   shares    3,321,591  
           CHEESECAKE FACTORY INC    17,800   shares    665,542  
           CHEVRON CORP    98,700   shares    5,603,199  
           Chicos Fas Inc.    80,200   shares    3,523,186  
           Choicepoint Inc.    85,200   shares    3,792,252  
           Cisco Systems Inc.    260,500   shares    4,459,760  
           Citigroup Inc.    233,500   shares    11,331,755  
           Citizens Comm. Co.    202,200   shares    2,472,906  
           City National Corp.    41,800   shares    3,027,992  
           CNF INC    22,100   shares    1,235,169  
           Coach Inc.    76,500   shares    2,550,510  
           Coca Cola Enterprises Inc.    26,300   shares    504,171  

-14-



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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           COGENT INC    63,400   shares   $1,437,912  
           Cognex Corp.    92,500   shares    2,783,325  
           Comcast Corp.CL A    110,000   shares    2,854,196  
           COMMERCIAL CAPITAL BANCOR    12,500   shares    214,000  
           Commercial Vehicle Group    44,700   shares    839,466  
           COMPUWARE CORP    107,500   shares    964,275  
           Conocophillips    55,400   shares    3,223,172  
           Constellation Brands    161,200   shares    4,228,276  
           Cooper Cameron Corp.    72,000   shares    2,980,800  
           Corning Inc.    213,800   shares    4,203,308  
           Corporate Executive BRD C    62,400   shares    5,597,280  
           COSTAR GROUP INC    60,000   shares    2,590,200  
           Countrywide Fin. Corp.    56,400   shares    1,928,316  
           COURIER CORP    3,900   shares    133,926  
           Cullen Frost Bankers Inc.    14,200   shares    762,256  
           Curtiss Wright Corporation    12,300   shares    671,580  
           Cymer Inc.    33,200   shares    1,178,932  
           CYTYC CORP    153,400   shares    4,330,482  
           DATASCOPE CORP    5,300   shares    175,165  
           Davita Inc.    245,000   shares    12,406,800  
           Dell Inc.    227,200   shares    6,813,728  
           Denbury Resources Inc.    183,400   shares    4,177,852  
           DENDRITE INTL CORP    39,400   shares    567,754  
           Deutsche Telekom AGSPON    180,700   shares    3,005,041  
           DIAMOND ROCK HOSPITALITY C    81,200   shares    971,152  
           DIGITAS INC    191,000   shares    2,391,320  
           DIONEX CORP    33,300   shares    1,634,364  
           DOLBY LAB INC CL A    144,100   shares    2,456,905  
           DOMINION RESOURCES INC VA    17,000   shares    1,312,400  
           Dupont (Ei) De Nemours    51,100   shares    2,171,750  

-15-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           E TRADE FINANCIAL CORP    22,500   shares   $469,350  
           Ebay Inc.    130,000   shares    5,622,500  
           Education Management Corp.    211,800   shares    7,097,418  
           Edwards Lifesciences Corp.    85,200   shares    3,545,172  
           ELECTRO SCIENTIFIC INDS    34,000   shares    821,100  
           Electronic Arts Inc.    99,300   shares    5,194,383  
           ELECTRONICS FOR IMAGING    66,600   shares    1,772,226  
           Emc Corp.    235,400   shares    3,206,148  
           EMERSON ELEC CO    43,200   shares    3,227,040  
           Entercom Comm Corp.    55,900   shares    1,658,553  
           Ethan Allen Interiors Inc.    49,100   shares    1,793,623  
           Exelon Corp.    115,700   shares    6,148,298  
           Exxon Mobil Corp.    247,100   shares    13,879,607  
           FAIR ISSAC CORP    36,900   shares    1,629,873  
           FAIRCHILD SEMICON INTL    148,000   shares    2,502,680  
           FEDERATED DEPT STORES INC    32,700   shares    2,168,991  
           Filenet Corp.    28,600   shares    739,310  
           FINANCIAL FEDERAL CORP    26,300   shares    1,169,035  
           First Data Corp.    63,700   shares    2,739,737  
           Forest Laboratories Inc.    79,500   shares    3,234,060  
           FPL GROUP INC    33,600   shares    1,396,416  
           Franklin Resources Inc.    24,400   shares    2,293,844  
           Freddie Mac    49,700   shares    3,247,895  
           Frontier Airlines Inc.    88,000   shares    813,120  
           Fuelcell Energy Inc.    50,700   shares    429,429  
           Genentech Inc.    40,200   shares    3,718,500  
           General Electric Co.    432,800   shares    15,169,640  
           General Mills Inc.    79,800   shares    3,935,736  
           Genesee & Wyoming    28,150   shares    1,057,032  
           Genlyte Group Inc.    15,100   shares    808,907  

-16-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Genzyme Corp.    26,700   shares   $1,889,826  
           GETTY IMAGES INC    49,500   shares    4,418,865  
           Gibraltar Industries Inc.    41,550   shares    953,157  
           Gilead Sciences Inc.    77,500   shares    4,078,825  
           Global Payments Inc.    117,800   shares    5,490,658  
           Golden West Fin. Corp. DEL    27,400   shares    1,808,400  
           Goldman Sachs Group Inc.    41,700   shares    5,325,507  
           Google Inc.    21,300   shares    8,836,518  
           Graco Inc.    62,500   shares    2,280,000  
           GRANT PRIDECO INC    2,700   shares    119,124  
           Grey Wolf Inc.    31,100   shares    240,403  
           GUITAR CENTER INC    5,900   shares    295,059  
           Gulfmark Offshore Inc.    10,200   shares    302,124  
           Haemonetics Corp. Mass    32,000   shares    1,563,520  
           Halliburton Co.    54,800   shares    3,395,408  
           HEARTLAND EXPRESS INC    72,300   shares    1,466,967  
           Helmerich & Payne Inc.    6,200   shares    383,842  
           Henry (Jack) & Assoc Inc.    184,100   shares    3,512,628  
           Hewitt Assoc Inc.    47,954   shares    1,343,191  
           Hexcel Corporation    91,000   shares    1,642,550  
           HUB INTERNATIONAL LIMITED    44,600   shares    1,150,680  
           Hughes Supply Inc.    47,200   shares    1,692,120  
           IDACORP INC    35,500   shares    1,040,150  
           Idex Corporation    20,000   shares    822,200  
           II-VI INC    55,800   shares    997,146  
           Informatica Corp.    258,900   shares    3,106,800  
           Ingersoll Rand Co.    46,600   shares    1,881,242  
           Intel Corp.    251,400   shares    6,274,944  

-17-



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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Interline Brands Inc.    39,100   shares   $889,525  
           INTERSIL CORPORATION CL A    62,000   shares    1,542,560  
           INTL BUS MACH CORP    76,000   shares    6,247,200  
           Investors Finl Svcs Corp.    135,900   shares    5,005,197  
           IPC HOLDINGS LTD    81,000   shares    2,217,780  
           Iron Mountain Inc.    25,800   shares    1,089,276  
           Jefferies Group Inc.    69,600   shares    3,130,608  
           Jlg Industries Inc.    13,100   shares    598,146  
           Johnson Controls Inc.    15,000   shares    1,093,650  
           JP Morgan Chase & Co.    63,640   shares    2,525,872  
           Kcs Energy Inc.    36,600   shares    886,452  
           KENSEY NASH CORP    17,000   shares    374,510  
           Key Energy Services Inc.    88,600   shares    1,193,442  
           Keystone Automotive Inds    23,500   shares    739,780  
           Kirby Corp.    21,500   shares    1,121,655  
           Knbt Bancorp Inc.    20,700   shares    337,203  
           KNIGHT TRANSPORTATION INC    211,650   shares    4,387,504  
           Kohls Corp.    59,500   shares    2,891,700  
           Ladish Inc.    16,300   shares    364,305  
           Lamar Advertising Co.    147,700   shares    6,814,878  
           Lilly (Eli) & Co.    69,700   shares    3,944,323  
           Lincare Holdings Inc.    129,200   shares    5,414,772  
           LOCKHEED MARTIN CORP    39,200   shares    2,494,296  
           Lowes COS Inc.    39,600   shares    2,639,736  
           LSI INDUSTRIES INC    42,210   shares    661,009  
           Magellan Hlth Svcs Inc.    134,600   shares    4,233,170  
           Markel Corp.    14,400   shares    4,565,520  
           MARRIOTT INTL INC A    27,100   shares    1,814,887  
           Martin Marietta Materials    41,000   shares    3,145,520  
           MARVEL ENTERTAINMENT INC    113,100   shares    1,852,578  
           Marvell Tech Group Ltd.    77,000   shares    4,318,930  
           Maxim Integrated Products    129,500   shares    4,693,080  

-18-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Mbia Inc.    63,500   shares   $3,820,160  
           McCormick & Schmk Sea Res    22,900   shares    517,769  
           Mckesson Corp.    73,700   shares    3,802,183  
           Medtronic Inc.    68,300   shares    3,932,031  
           Mercury Interactive Corp.    65,700   shares    1,825,803  
           MEREDITH CORP    37,000   shares    1,936,580  
           MERICAN REPROGRAPHICS CO    107,000   shares    2,718,870  
           Merrill Lynch & Co. Inc.    106,100   shares    7,186,153  
           METAL MANAGEMENT INC    24,700   shares    574,522  
           METLIFE INC    19,600   shares    960,400  
           Micros Systems Inc.    57,500   shares    2,778,400  
           Microsemi Corp.    92,700   shares    2,564,082  
           Microsoft Corp.    397,700   shares    10,399,855  
           MIDDLEBY CORP    8,500   shares    735,250  
           Millennium Pharmaceutical    299,700   shares    2,907,090  
           Modine Manufacturing Co.    25,900   shares    844,081  
           MOLECULAR DEVICES CORP    20,600   shares    595,958  
           Moog Inc.    19,300   shares    547,734  
           Motorola Inc.    12,600   shares    284,634  
           MUELLER INDUSTRIES INC    26,700   shares    732,114  
           Nationwide Health PPTYS    58,800   shares    1,258,320  
           Navigators Group Inc.    24,700   shares    1,077,167  
           Navteq Corp.    69,500   shares    3,048,965  
           Nci Building Systems Inc.    46,000   shares    1,954,080  
           NEUSTAR INC CL A    67,900   shares    2,070,271  
           NEWMONT MINING CORP    19,200   shares    1,025,280  
           NICOR INC    18,600   shares    731,166  
           Nike Inc.    34,100   shares    2,959,539  
           NOKIA CORP SPON ADR    127,900   shares    2,340,570  
           Novartis AG SPON ADR    68,800   shares    3,610,624  

-19-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           NRG ENERGY INC    18,000   shares   $848,160  
           Occidental Petroleum Corp.    24,300   shares    1,941,084  
           Odyssey Re Hldgs Corp.    14,500   shares    363,660  
           OFFICE DEPOT INC    84,100   shares    2,640,740  
           Omnicom Group Inc.    18,100   shares    1,540,853  
           PATTERSON-UTI ENERGY INC    66,800   shares    2,201,060  
           PEDIATRIX MEDICAL GROUP    56,800   shares    5,030,776  
           Pepsi Bottling Group Inc.    119,100   shares    3,407,451  
           PEPSICO INC    39,000   shares    2,304,120  
           PETCO ANIMAL SUPPLIES INC    3,000   shares    65,850  
           Petro Canada Com    115,900   shares    4,646,431  
           PIEDMONT NATURAL GAS    40,500   shares    978,480  
           PIKE ELECTRIC CORP    20,100   shares    326,022  
           Pmc-Sierra Inc.    291,400   shares    2,246,694  
           PNM RESOURCES INC    40,700   shares    996,743  
           POLYMEDICA CORP    92,284   shares    3,088,745  
           POSSIS MEDICAL INC    17,500   shares    174,125  
           PREMIERE GLOBAL SVCS INC    94,500   shares    768,285  
           Procter & Gamble Co.    239,142   shares    13,841,539  
           Provident Bancshares Corp.    18,500   shares    624,745  
           Prudential Financial Inc.    11,600   shares    849,004  
           PSS World Medical Inc.    28,800   shares    427,392  
           PUBLIC SVC ENTERPRISE GRP    14,000   shares    909,580  
           Qualcomm Inc.    140,500   shares    6,052,740  
           Quanex Corp.    57,700   shares    2,883,269  
           QUANTA SVCS INC    18,200   shares    239,694  
           Quicksilver Res Inc.    59,200   shares    2,486,992  
           RADIO ONE CL D NON-VTG    145,400   shares    1,504,890  
           Range Resources Corp.    168,850   shares    4,447,509  
           Raymond James Fin. Inc.    7,900   shares    297,593  

-20-


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, 2005

(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Resources Connection Inc.       141,700   shares     $ 3,692,702  
           RESPIRONICS INC    120,000   shares    4,448,400  
           Roche Hldgs. Ltd. SPON ADR    51,500   shares    3,867,650  
           Rogers Corp.    29,000   shares    1,136,220  
           Roper Industries Inc.    84,000   shares    3,318,840  
           RUBY TUESDAY INC    20,400   shares    528,156  
           Sanfilippo (John B.) & Son    5,900   shares    76,287  
           SANOFI-AVENTIS    26,500   shares    2,326,699  
           SAP AG SPON ADR    62,700   shares    2,825,889  
           Sapient Corporation    102,200   shares    581,518  
           SBS TECHNOLOGIES INC    23,000   shares    231,610  
           SCANSOURCE INC    11,900   shares    650,692  
           Schering Plough Corp.    372,500   shares    7,766,625  
           Schlumberger Ltd.    51,100   shares    4,964,365  
           School Specialty Inc.    9,950   shares    362,578  
           Schwab Charles Corp.    207,700   shares    3,046,959  
           Scp Pool Corp.    230,100   shares    8,564,322  
           SEACOAST BANKING FLORIDA    8,600   shares    197,370  
           Sealed Air Corp.    19,200   shares    1,078,464  
           Selective Insurance Group    9,000   shares    477,900  
           Semtech Corp.    82,400   shares    1,504,624  
           SERENA SOFTWARE INC    112,600   shares    2,639,344  
           Shaw Group Inc.    39,500   shares    1,149,055  
           Signature Bank    34,000   shares    954,380  
           Simpson Manufacturing Co.    43,800   shares    1,592,130  
           Smith International Inc.    68,800   shares    2,553,168  
           SPRINT NEXTEL CORP    109,726   shares    2,563,199  
           ST JUDE MEDICAL INC    52,200   shares    2,620,440  
           Staples Inc.    138,750   shares    3,151,012  
           Starbucks Corp.    27,300   shares    819,273  
           State Street Corp.    49,900   shares    2,766,456  
           STEEL DYNAMICS INC    57,800   shares    2,052,478  
           Steel Technologies Inc.    38,800   shares    1,086,012  

-21-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Stericycle Inc.    75,300   shares   $4,433,664  
           Suncor Energy Inc.    37,400   shares    2,358,753  
           SUPERIOR ENERGY SVCS INC    32,200   shares    677,810  
           SYNIVERSE HOLDINGS INC    55,200   shares    1,153,680  
           Target Corp.    91,800   shares    5,046,246  
           Teledyne Technologies Inc.    9,800   shares    285,180  
           TENNECO INC    72,400   shares    1,419,764  
           TEXAS INSTRUMENTS INC    116,900   shares    3,748,983  
           TEXAS REGL BANCSHARE CL A    26,500   shares    749,950  
           THOR INDUSTRIES INC    26,900   shares    1,077,883  
           TIFFANY & CO    22,800   shares    873,012  
           Time Warner Inc.    211,200   shares    3,683,328  
           TODCO CL A    114,000   shares    4,338,840  
           TRC COMPANIES INC    18,200   shares    199,290  
           Trinity Industries Inc.    77,000   shares    3,393,390  
           TRW Automotive Hldgs. Corp.    33,200   shares    874,820  
           Txu Corp.    56,600   shares    2,840,754  
           U S CONCRETE INC    27,700   shares    262,596  
           Uap Holding Corp.    48,700   shares    994,454  
           UBIQUITEL INC    173,500   shares    1,715,915  
           UBS AG REG (USA)    37,000   shares    3,520,550  
           Ucbh Holdings Inc.    87,000   shares    1,555,560  
           Unionbancal Corp.    28,300   shares    1,944,776  
           UNITED COMMUNITY BANKS GA    10,700   shares    285,262  
           UNITED NATURAL FOODS INC    61,000   shares    1,610,400  
           UNITED RENTALS INC    15,000   shares    350,850  
           United Technologies Corp.    40,800   shares    2,281,128  
           Unitedhealth Group Inc.    140,200   shares    8,712,028  
           Universal Compression Hld    114,200   shares    4,695,904  
           Universal Forest Products    30,400   shares    1,679,600  
           UNIVISION COMM CL A    79,900   shares    2,348,261  

-22-


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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           URS Corp. New       34,400   shares     $ 1,293,784  
           UTI Worldwide Inc.    37,900   shares    3,518,636  
           VALEANT PHARMACEUTICALS I    136,000   shares    2,458,880  
           Valmont Industries Inc.    27,300   shares    913,458  
           VALSPAR CORP    20,200   shares    498,334  
           VARIAN SEMICONDCT EQP ASS    59,400   shares    2,609,442  
           VCA Antech Inc.    130,500   shares    3,680,100  
           VERINT SYSTEMS INC    51,400   shares    1,771,758  
           Verizon Comm Inc.    39,500   shares    1,189,740  
           VIACOM CL B NON-VTG (OLD)    61,400   shares    2,001,640  
           Vishay Intertechnology    48,500   shares    667,360  
           Wabtec    25,200   shares    677,880  
           Wal Mart Stores Inc.    99,000   shares    4,633,200  
           Warnaco Group Inc.    60,800   shares    1,624,576  
           Waste Management Inc.    52,800   shares    1,602,480  
           Webster Financial    36,000   shares    1,688,400  
           Wellpoint Inc.    34,100   shares    2,720,839  
           WERNER ENTERPRISES INC    132,000   shares    2,600,400  
           West Corp.    128,500   shares    5,416,275  
           WEST PHARMACEUTICAL SVCS    39,200   shares    981,176  
           Whole Foods Market Inc.    41,400   shares    3,203,946  
           WILLIAMS COMPANIES INC    36,300   shares    841,071  
           WILLIAMS SCOTSMAN INTL    5,700   shares    98,667  
           Williams-Sonoma Inc.    38,200   shares    1,648,330  
           WIND RIVER SYSTEMS INC    186,700   shares    2,757,559  
           Woodward Governor Co.    13,500   shares    1,161,135  
           WRIGHT EXPRESS CORP    142,200   shares    3,128,400  
           Wyeth    56,800   shares    2,616,776  
           Xerox Corp.    122,600   shares    1,796,090  
           Xm Satellite Radio    54,800   shares    1,494,944  

-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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

 
Common stock (continued)                  
           Yahoo Inc.    230,100   shares   $9,015,318  
           Yellow Roadway Corp.    17,600   shares    785,137  
           Ishares TR Russell 2000    117,500   shares    7,836,075  
           SPDR Trust    32,300   shares    4,021,673  

        924,363,606
Common/collective trusts  
           SSGA Bond Mkt. Ser. A-CME9    5,758,815   units    95,014,693  
           SSGA Daily EAFE FD Ser T    5,263,271   units    88,291,371  
           Capital Guardian Intl Eq-Instl Cls    18,781,743   units    339,386,102  
           Vanguard Employee Benefit Index Fund  81,865,163   units    952,910,499  

      1,475,602,665
 
U.S. Government securities      
           U.S. Treasury Bill $250,000 principal, 0%, due 3/02/06   248,443  
           U.S. Treasury Bill $500,000 principal, 0%, due 3/16/06   496,089  
           U.S. Treasury Note $7,000,000 principal, 3.375%, due 10/15/09   6,759,648  
           U.S. Treasury Note $1,000,000 principal, 4.25%, due 11/15/13   990,469  
           U.S. Treasury Bill $1,800,000 principal, 8.125%, due 8/15/19   2,441,954  
           U.S. Treasury Bill $2,200,000 principal, 6.25%, due 8/15/23   2,627,110  
           FNMA Discount Note $20,500,000 principal, 5%, due 2/36   19,852,969  

      33,416,682
 
Employer Stock    
  *       Hewlett-Packard Company    33,355,733   shares    954,974,636  
 
Stable Value Fund Holdings      
      Short-term investments      
  *       Fidelity Institutional Cash Portfolio    5,395,817   shares    5,395,817  
 
      Common/collective trust      
           SEI Financial Management    94,012,288   units    94,012,288  

-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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

  Synthetic guaranteed investment contracts                  
    Underlying asset fair market values:  
       PIMCO Managed Stable Value Account Net Assets:  
       Registered investment companies:  
          PIMCO Asset Backed Securities Portfolio     131,228   shares $ 1,379,209  
          PIMCO Investment Grade Corporate Portfolio     551,263   shares     5,363,792  
          PIMCO Mortgage Portfolio     5,400,652   shares     56,058,764  
          PIMCO Muni Sector Portfolio     240,002   shares     2,469,617  
          PIMCO International Portfolio     1,124,388   shares     5,588,209  
          PIMCO US Government Sector Portfolio     3,198,981   shares     34,261,086  
          PIMCO Emerging Markets Fund     430,298   shares     4,875,274  
          PIMCO Real Return Bond Fund     178,279   shares     1,905,802  
       U.S. Government obligations:   
          U.S. Treasury Note $6,500,000 principal, 3.375%, due 10/15/09 6,276,816  
          U.S. Treasury Bill $500,000 principal, 0%, due 3/16/06 496,090  
          U.S. Treasury Bill $600,000 principal, 8.125%, due 8/15/19 813,985  
          U.S. Treasury Bill $1,800,000 principal, 6.25%, due 8/15/23 2,149,454  
       Short-term investments    
          Dreyfus Cash Management Plus     1,142,406   shares     1,142,406  
          DNB NOR BK DN $2,000,000 principal, 0%, due 2/22/06 1,977,964  
          WESTPAC BANK 42CP $3,700,000 principal, 0%, due 2/21/06 3,663,953  
          HBOS TREAS DN $3,700,000 principal, 0%, due 2/24/06 3,658,162  
          SKANDI ENSK 42CP $1,400,000 principal, 0%, due 2/17/06 1,384,776  
          SVENSHA HANDELSBK CP $3,200,000 principal, 0%, due 3/98 3,164,894  
          FNMA (short sale) $(4,000,000) principal, 5%, due 1/36 (3,876,250 )
          FNMA $4,000,000 principal, 5%, due 1/36 3,876,250  
          FNMA $13,500,000 principal, 5%, due 2/36 13,073,906  

-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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

               
       PIMCO Managed Stable Value Account Net Assets (continued):      
       Other  
          Interest Rate Swap $(30,400,000) principal, 6/15/06 $ (226,438 )
          Interest Rate Swap $(13,600,000) principal, 6/21/06   (115,323 )
          Interest Rate Swap $2,500,000 principal, 6/21/06   20,831  
          Interest Receivable        159,131  
          Pending Trades, net        (12,948,926 )
          Accrued expenses        (48,764 )

       TOTAL NET ASSETS - PIMCO Managed Stable Value Account       136,544,670  
 
       Dodge & Cox Stable Value Fund Net Assets:  
       Corporate debt securities:  
          Federal Express $659,359 principal, 6.72%, due 1/15/22    720,158  
          Union Pacific PTC $1,900,000 principal, 5.082%, due 1/2/29    1,863,404  
          AOL Time Warner $2,070,000 principal, 7.625%, due 4/15/31    2,305,253  
          AOL Time Warner $250,000 principal, 7.7%, due 5/01/32    281,165  
          AT&T Corp. $1,000,000 principal, 9.75%, due 11/15/31    1,256,124  
          Amhome $525,000 principal, 6.7%, due 3/15/11    566,351  
          Bank One Cap III $500,000 principal, 8.75%, due 9/1/30    672,061  
          BankAmerica Cap II $625,000 principal, 8%, due 12/15/26    663,806  
          Boston Property Ltd. $650,000 principal, 6.25%, due 1/15/13    681,883  
          Boston Property Ltd. $600,000 principal, 5.625%, due 4/15/15    606,377  
          Burlington $369,275 principal, 8.251%, due 1/15/21    445,180  
          CIGNA Corp. $826,000 principal, 7.875%, due 5/15/27    1,010,591  
          CIGNA $500,000 principal, 6.375%, due 10/15/11    530,161  
          Citicorp Cap II $555,000 principal, 8.015%, due 2/15/27    592,828  
          Comcast Corp. $950,000 principal, 5.3%, due 1/15/14    931,996  
          Comcast $375,000 principal, 5.85%, due 11/15/15    379,845  
          Cox Communications $1,325,000 principal, 5.45%, due 12/15/14    1,292,939  
          Dillard Dept Stores $250,000 principal, 7.75%, due 5/15/27    242,500  
          Dow Chemical $600,000 principal, 7.375%, due 11/01/29    722,893  

-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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

               
       Dodge & Cox Stable Value Fund Net Assets (continued):        
       Corporate debt securities (continued):  
          Dow Chemical PTC   $725,000 principal, 4.027%, due 9/30/09   $;698,568  
          EOP Oper   $1,150,000 principal, 5.875%, due 1/15/13    1,169,166  
          EOP Oper   $875,000 principal, 4.75%, due 3/15/14    826,866  
          EDS   $625,000 principal, 6%, due 8/01/13  642,321  
          Ford Motor Credit   $1,100,000 principal, 7.375%, due 10/28/09  975,575  
          Ford Motor Global   $750,000 principal, 7.375%, due 2/01/11    657,389  
          Ford Motor Credit   $1,700,000 principal, 7.25%, due 10/25/11    1,468,555  
          General Electric   $1,100,000 principal, 5%, due 2/1/13    1,099,428  
          GMAC Global   $800,000 principal, 7.75%, due 1/19/10    747,110  
          GMAC   $2,675,000 principal, 6.875%, due 9/15/11    2,440,937  
          HCA Inc.   $1,300,000 principal, 6.25%, due 2/15/13    1,300,924  
          Health Net Inc.   $800,000 principal, 9.875%, due 4/15/11    930,641  
          International Paper   $650,000 principal, 5.25%, due 4/01/16    617,811  
          Lockheed Martin   $500,000 principal, 8.5%, due 12/01/29    681,484  
          May Department Stores   $1,625,000 principal, 8.5%, due 6/01/19    1,970,105  
          Nordstrom   $325,000 principal, 6.95%, due 3/15/28    358,312  
          Provident Company   $925,000 principal, 7.25%, due 3/15/28    954,325  
          Safeco Corp.   $400,000 principal, 7.25%, due 9/01/12    445,903  
          St. Paul Companies   $525,000 principal, 8.125%, due 4/15/10    582,993  
          UNUM Provident   $165,000 principal, 6.85%, due 11/15/15    170,363  
          UNUM Provident   $475,000 principal, 7.625%, due 3/01/11    512,291  
          Wyeth   $1,075,000 principal, 5.5%, due 2/01/14    1,088,924  
          Xerox Corp.   $1,750,000 principal, 7.125%, due 6/15/10    1,815,625  
       U.S. Government obligations:  
          US Treasury Note   $5,000,000 principal, 6.25%, due 2/15/07    5,096,095  
          US Treasury Note   $11,600,000 principal, 4.375%, due 5/15/07  11,590,488  
          US Treasury Note   $11,300,000 principal, 3.125%, due 10/15/08  10,930,546  
          US Treasury Note   $7,000,000 principal, 3.25%, due 1/15/09    6,777,694  
          US Treasury Note   $4,500,000 principal, 3.5%, due 8/15/09    4,369,041  
          US Treasury Note   $5,500,000 principal, 4%, due 3/15/10    5,421,152  
       Government agency obligations:  
          SBAP 05-20L 1   $1,315,000 5.39%, due 12/1/25    1,336,653  
          GSBA 504   $572,292 principal, 4.72%, due 2/1/24    565,951  
          FHLG 6.00 2/19   $2,657,668 principal, 6%, due 3/1/18    2,712,997  

-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, 2005


(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

             
       Dodge & Cox Stable Value Fund Net Assets (continued):        
          Government agency obligations:  
          FHLG   $1,508,349 principal, 6%, due 2/1/19 $ 1,539,768  
          FHLG   $2,046,416 principal, 6.5%, due 7/1/16    2,103,132  
          FHLG   $2,877,026 principal, 5.5%, due 12/1/19    2,895,996  
          FNGT     $1,016,251 principal, 6.983%, due 2/13/30  1,043,850  
          FNMA   $759,776 principal, 6.231%, 5/1/11    789,620  
          FNMA   $1,172,682 principal, 5.795%, 12/1/11    1,203,484  
          FNMA   $933,744 principal, 5.520%, 2/1/12    972,112  
          FNMA   $2,262,919 principal, 7.00%. due 4/1/32    2,362,261  
          FNMA   $2,623,072 principal, 7%, due 8/1/32    2,741,932  
          FNR   $2,600,000 principal, 6%, due 3/25/18    2,637,270  
          FNW   $892,463 principal, 7%, due 2/25/44    926,551  
          FNW   $1,338,252 principal, 7.5%, due 3/25/44    1,411,039  
          FNMA   $2,830,699 principal, 6%, due 5/1/18    2,893,599  
          FNMA   $1,653,222 principal, 6.5%, due 9/1/17    1,700,729  
          FNMA   $2,397,361 principal, 6.5%, due 4/1/18    2,466,251  
          FNMA   $2,195,758 principal, 7%, due 9/1/28    2,295,636  
          FNMA   $1,432,716 principal, 6%, due 12/1/18    1,464,551  
          FNMA   $2,146,709 principal, 6%, due 2/1/19    2,194,410  
          FNMA   $2,088,566 principal, 5.5%, due 2/1/18    2,105,407  
          FNMA   $2,094,072 principal, 6.5%, due 12/1/32    2,152,550  
          FNMA   $338,422 principal, 6%, due 12/1/32    342,216  
          FNMA   $887,175 principal, 5.5%, due 12/1/18    892,720  
          FNMA   $791,014 principal, 6.5%, due 2/1/34    813,103  
          GSMPS   $1,183,296 principal, 8%, due 6/25/34    1,234,476  
          SBAP   $802,403 principal, 6.65%, due 6/1/13    828,082  
          SBAP   $982,877 principal, 6.15%, due 4/1/18    1,012,427  
          SBAP   $537,224 principal, 4.625%, due 2/1/25    523,626  
       Short-term investments:  
           The Boston Company Pooled Employee Daily
                Liquidity Fund                                                                            2,202,073    share
      2,202,073  

-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, 2005

(a)
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party

(c)
Description of Investment,
Including Maturity Date,
Rate of Interest, Collateral,
Par or Maturity Value

(e)
Current
Value

              Dodge & Cox Stable Value Fund Net Assets (continued):        
              Other:  
                  Interest receivable      $1,391,923  
                  Pending trades       (818,848 )
                  Accrued expenses       (23,665 )

              TOTAL NET ASSETS - Dodge & Cox Managed Stable Value Account       133,020,029  
 
              Common/collective trusts  
                  Dwight Intermediate Core Plus                 9,907,015     units    134,563,231  
                  Dwight Target 5 Fund                 7,522,598     units    126,517,536  
                  Dwight Target 2 Fund               36,154,410     units    549,406,888  

              Total common/collective trusts        810,487,655  

           Total market value of underlying assets        1,080,052,354  
          Wrapper values  
              AIG Financial Products Corp. 245258   4.72% interest rate    1,618,112  
              CDC Financial Products 1423-01   4.72% interest rate    1,615,826  
              RABOBANK NEDERLAND CPQ090001 4.87% interest rate    1,615,926  
              ROYAL BANK OF CANADA NYDW109   4.71% interest rate    1,649,298  
              STATE ST BK & TR CO Boston 100003   4.71% interest rate    1,621,621  
              UBS AG 2752   4.87% interest rate    1,619,144  

           Total wrapper values        9,739,927  

     Total contract value of synthetic guaranteed investment contracts       1,089,792,281  
     Guaranteed investment contracts  
           Metropolitan Life Ins. Co. GIC 2884706901 3.19% interest rate    10,819,008  
           New York Life Insurance Co. GIC GA31257   6.24% interest rate    6,711,339  

     Total guaranteed investment contracts        17,530,347  

Total Stable Value Fund        1,206,730,733  
* Participant loans                Interest rates ranging from 4.5%-28.88%, maturing through 2033 129,587,408  

      $ 8,798,830,023  

* Indicates party-in-interest to the Plan.  

Note: Column (d), cost, has been omitted, as all investments are participant-directed.

-29-


SIGNATURE

The Plan. Pursuant to the requirements of the Securities and Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.



HEWLETT-PACKARD COMPANY
  401(k) PLAN


June 29, 2006

 
  /s/  Ann O. Baskins
———————————————
  ANN O. BASKINS
  Senior Vice President, General Counsel
     and Secretary






-30-