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, 2008
 
  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
  



FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE


Hewlett-Packard Company 401(k) Plan
December 31, 2008 and 2007, and for the Year Ended December 31, 2008
With Report of Independent Registered Public Accounting Firm

 




Hewlett-Packard Company 401(k) Plan
Financial Statements and Supplemental Schedule
December 31, 2008 and 2007,
and for the Year Ended December 31, 2008

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) 17
Signature 47
 
Exhibit
 
Exhibit 23 – Consent of Independent Registered Public Accounting Firm 48
 

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, 2008 and 2007, and the related statement of changes in net assets available for benefits for the year ended December 31, 2008. 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, 2008 and 2007, and the changes in its net assets available for benefits for the year ended December 31, 2008, in conformity with accounting principles generally accepted in the United States.

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, 2008, 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
June 26, 2009

1


Hewlett-Packard Company 401(k) Plan
Statements of Net Assets Available for Benefits

December 31
2008 2007
 
Assets            
Cash     $ 1,188,022   $ 25,699,157  
Investments, at fair value       7,978,860,454     11,103,035,010  
Receivables:    
    Company contribution           27,316  
    Amount due from brokers for securities sold       40,409,104     31,181,711  
    Forward foreign currency contracts       55,254,427     66,644,321  
    Interest and dividends       7,352,100     4,381,856  
Total receivables       103,015,631     102,235,204  
Total assets       8,083,064,107     11,230,969,371  
     
Liabilities    
Amounts due to brokers for securities purchased       27,573,213     23,578,053  
Forward foreign currency contracts payable       55,217,783     66,968,940  
Other payables       2,131,335     2,426,263  
Total liabilities       84,922,331     92,973,256  
     
Net assets reflecting investments, at fair value       7,998,141,776     11,137,996,115  
     
Adjustment from fair value to contract value for fully    
   benefit-responsive investment contracts       93,053,312     2,332,025  
     
Net assets available for benefits     $ 8,091,195,088   $ 11,140,328,140  

See accompanying notes.

2


Hewlett-Packard Company 401(k) Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2008

Additions to (deductions from) net assets attributed to:        
Contributions:    
    Participant     $ 480,208,233  
    Company       281,297,319  
    Rollover       57,891,286  
        819,396,838  
   
Transfer-in       1,122,494  
Net investment income (loss):

 

    Interest and dividends

348,098,436

    Net realized and unrealized depreciation in fair value of investments

(3,639,680,934

)
Net investment loss

(3,291,582,498

)
   
Benefits paid directly to participants       (567,810,073 )
  
Administrative expenses and fees       (764,200 )
  
Investment management fees       (9,495,613 )
      
Net decrease       (3,049,133,052 )
     
Net assets available for benefits:    
    Beginning of year       11,140,328,140  
    End of year     $ 8,091,195,088  

See accompanying notes.

3


Hewlett-Packard Company 401(k) Plan
Notes to Financial Statements
December 31, 2008

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).

In May 2007, the Investment Review Committee approved changes to the Plan’s investment lineup, including elimination of three of the Tier 1 funds, creation of ten Target Retirement Date Funds to replace the eliminated Tier 1 funds, and changing the default fund for automatic enrollment from the Stable Value Fund to the appropriate target date fund based on the participant’s expected retirement date at age 65. The changes were implemented on September 4, 2007.

Assets of the Plan are invested in a three-tier investment structure. Tier 1 includes one ready-made portfolio, i.e., the Conservative Portfolio, and ten Target Retirement Date Funds to be utilized based on the employee’s current age and anticipated retirement date at age 65. Tier 2 includes 15 institutional funds in a range of asset classes. Tier 3 includes 15 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 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.

The Plan includes a non-leveraged employee stock ownership plan (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.

4


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

1. Description of the Plan (continued)

Contributions

As soon as administratively feasible, normally about 15 days after the employee’s employment start date, employees are 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.

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 $15,500 for 2008.

Contributions can be made as whole or fractional percentages of pay. Employees can choose pre-tax contributions, after-tax Roth 401(k) contributions, or a combination of the two.

Effective January 1, 2007, after-tax Roth 401(k) contributions were permitted to be made to the Plan. 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 $5,000 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.

Effective January 1, 2006, employees first hired or rehired on and after January 1, 2006, and employees with fewer than 62 points, calculated as age plus years of service as of December 31, 2005, received Company matching contributions equal to 100% of the first 6% of the eligible compensation the participant contributes to the Plan; employees with 62 or more points as of December 31, 2005, calculated as age plus service, received Company matching contributions equal to 100% of the first 4% of eligible compensation contributed to the Plan. Effective January 1, 2008, all participants were eligible for the 6% matching contribution.  However, 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.

5


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

1. Description of the Plan (continued)

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.

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.

6


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

1. Description of the Plan (continued)

Forfeitures

Upon termination of employment, participants forfeit their nonvested balances. Forfeited balances of terminated participants’ nonvested accounts are used to reduce future company contributions. Unallocated forfeiture balances as of December 31, 2008 and 2007, were approximately $2,700,000 and $900,000, respectively, and forfeitures used to reduce Company contributions for 2008 were approximately $900,000.

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, 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 depreciation 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.

7


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

2. Summary of Significant Accounting Policies (continued)

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

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements (SFAS 157). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Additionally, in October 2008, the FASB issued FASB Staff Position 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active (FSP 157-3). FSP 157-3 clarifies the application of SFAS 157 in markets that are not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for an asset is not active. The guidance in FSP 157-3 was effective upon issuance, including prior periods for which financial statements had not been issued. The Plan adopted SFAS 157 effective January 1, 2008.

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 supersedes FSP 157-3 and amends SFAS 157 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 normal market activity for the asset or liability. FSP 157-4 also provides additional guidance on circumstances that may indicate that a transaction is not orderly and on defining major categories of debt and equity securities in meeting the disclosure requirements of SFAS 157. FSP 157-4 is effective for reporting periods ending after June 15, 2009. Plan management is currently evaluating the effect that the provisions of FSP 157-4 will have on the Plan’s financial statements.

8


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

2. Summary of Significant Accounting Policies (continued)

In March 2008, the FASB issued SFAS 161, Disclosures about Derivative Instruments and Hedging Activities. This standard applies to all derivative instruments and related hedged items accounted for under SFAS 133, Accounting for Derivative Instruments and Hedging Activities, and requires entities to provide greater transparency about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under SFAS 133 and (c) how derivative instruments and related hedged items affect an entity’s financial position, results of operations and cash flows. SFAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008, with earlier application encouraged. Plan management intends to include the additional disclosures required under SFAS 161 in the Plan’s financial statements for the year-end December 31, 2009.

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.

9


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

2. Summary of Significant Accounting Policies (continued)

In accordance with SFAS 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.

  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 depreciation in the fair value of investments includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

10


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

3. Investments

The fair values of individual investments that represent 5% or more of the fair value of the Plan’s net assets are as follows:

December 31
2008 2007
Hewlett-Packard Company common stock     $ 972,759,293   $ 1,395,814,908  
Vanguard Employee Benefit Index Fund       647,986,051     1,047,528,380  
Vanguard PRIMECAP ADM Fund       530,157,876     807,456,538  
Fidelity Contrafund       458,134,765     738,930,008  
Dwight Target 2 Fund       601,916,872     609,625,823  
Fidelity Magellan Fund       292,412,138 *   608,536,858  

*Less than 5% of the fair value of the Plan’s net assets as of December 31, 2008.

For the year ended December 31, 2008, the Plan’s investments (including investments purchased, sold, as well as held during the year) depreciated in fair value as follows:

Registered investment companies     $ 2,038,414,030  
Common stock       622,542,052  
Common collective trust funds       592,900,262  
Company common stock       378,933,934  
Corporate debt       6,890,656  
Total net realized and unrealized depreciation in fair value of investments     $ 3,639,680,934  

4. Fair Value Measurements

Following is a description of the valuation methodologies used for assets measured at fair value.

  Mutual funds: Valued at the net asset value (“NAV”) of shares held by the plan at year-end.

  Common collective trusts: Valued at the unit prices established by the funds’ sponsors on the last business day of the plan year, based on the fair value of the assets underlying the funds.

11


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

4. Fair Value Measurements (continued)

  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 NAV of units held by the Plan at year-end.

  Short-term investments: Valued at cost plus accrued interest, which approximates fair value.

  Guaranteed investment contracts: 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).

  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.

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets as of December 31, 2008:

Investment Assets at Fair Value
Level 1 Level 2 Level 3 Total
 
Mutual funds     $ 3,042,394,007   $   $   $ 3,042,394,007  
Common collective trusts           1,220,681,896         1,220,681,896  
Employer stock       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           1,226,121,380         1,226,121,380  
    Participants loans               130,272,943     130,272,943  
Total investment assets at fair value     $ 5,246,736,803   $ 2,601,850,708   $ 130,272,943   $ 7,978,860,454  

12


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) as of December 31, 2008:

Balance, beginning of year     $ 124,729,139  
New loans       58,434,191  
Repayments       (52,890,387 )
Balance, end of year     $ 130,272,943  

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 event, 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 termination date.

13


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
2008 2007
Based on actual earnings       5.36%   5.52%
Based on interest rate credited to participants       3.67%   5.12%

6. Forward Foreign Currency Contracts

The Plan began using forward foreign currency contracts in 2006, 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, 2008 and 2007, the value of currencies under forward foreign currency contracts represented less than 1% of net assets.

7. Plan Merger

Effective May 8, 2008, Tower Software Engineering Pty Ltd (Tower) was acquired by the Company and the Tower 401(k) Plan was merged into the Plan. Former employees of Tower began participating in the Plan effective July 1, 2008. The net assets transferred to the Plan are reflected on the statement of changes in net assets available for benefits as a transfer from other qualified plan.

14


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

8. Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service (IRS) 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 and restated. 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 and restated, is qualified and the related trust is tax-exempt.

9. Related-Party Transactions

Transactions in shares of the Company’s common stock qualify as party-in-interest transactions under the provisions of ERISA. During 2008, the Plan made purchases of approximately $218,885,650 and sales of approximately $254,877,008 of the Company’s common stock.

10. 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.

11. 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
2008 2007
Net assets available for benefits per the financial statements     $ 8,091,195,088   $ 11,140,328,140  
Less: Adjustment to fair value from contract value related    
   to fully benefit-responsive investment contracts       (93,053,312 )   (2,332,025 )
Net assets available for benefits per the Form 5500     $ 7,998,141,776   $ 11,137,996,115  

15


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

11. Reconciliation of Financial Statements to Form 5500 (continued)

The following is a reconciliation of the net investment loss per the financial statements for the year ended December 31, 2008, to the Form 5500:

Net investment loss per the financial statements     $ (3,291,582,498 )
Less: Current year adjustment between fair value and contract value    
   related to fully benefit-responsive investment contracts       (93,053,312 )
Add: Prior year adjustment between fair value and contract value related    
   to fully benefit-responsive investment contracts       2,332,025  
Net investment loss per the Form 5500     $ (3,382,303,785 )

12. Subsequent Events

The HP Investment Review Committee evaluated the Plan’s existing fund offerings and decided to remove the Fidelity Real Estate Investment Portfolio from the investment options in Tier 3. The change was 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. Also, 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 June 11, 2009.

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. Matching contributions may vary from quarter-to-quarter based on factors such as quarterly earnings, market share growth, and performance relative to market and economic conditions. The first quarterly match will be determined as of July 31, 2009, covering the period from April 1, 2009 through July 31, 2009.

16


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, 2008

(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     250,261,152     shares    $ 250,261,152    
  
Short-term investments    
       DREYFUS TREASURY CASH MGMT     31,517,863     shares     31,517,863    
       WACHOVIA BK NA BN 6 11/15/17     725,000     shares     699,861    
       INTESA SANP Y$CD 3ML+64 6/9/10     300,000     shares     300,000    
       TBC INC POOLED EMP DAILY LEH     220,575     shares     220,575    
       Interest-bearing cash     1,233,244,760     units     1,834,141    
34,572,440
                 
Registered investment companies    
       Mainstay I CAP Equity Portfolio     2,536,609     shares     63,795,720    
       Artisan International Fund     4,201,012     shares     62,847,145    
       PIMCO High Yield Fund     8,239,384     shares     55,121,481    
       Lazard Emerging Markets Portfolio     5,061,243     shares     55,066,322    
       PIMCO Real Return Fund     15,572,763     shares     147,162,612    
       Vanguard PRIMECAP ADMFund     11,475,279     shares     530,157,876    
       American Funds New World Fund     3,460,725     shares     108,735,980    
       PIMCO Global Bond II Fund     4,471,742     shares     39,127,741    
       MFS International New Discovery Fund     8,408,995     shares     107,130,596    
       Dodge & Cox International Stock     9,421,746     shares     206,336,233    
       Domini Social Equity Fund     1,924,217     shares     12,064,838    

*

       Fidelity Magellan Fund     6,376,191     shares     292,412,138    

*

       Fidelity Contrafund     10,122,288     shares     458,134,765    

*

       Fidelity Real Estate Investment Portfolio     7,408,562     shares     115,647,655    

*

       Fidelity Low-Priced Stock Fund     9,952,649     shares     230,105,234    
       Dodge & Cox Stock Fund     1,790,381     shares     133,150,640    
       PIMCO Asset Backed Securities Fund     556,605     shares     4,363,782    
       PIMCO Emerging Markets Fund     754,195     shares     6,093,893    
       PIMCO International Portfolio (unlisted)     4,359,991     shares     19,445,558    
       PIMCO Investment Grade Corporate Portfolio (unlisted) 4,593,296     shares     39,548,276    
       PIMCO Mortgage Portfolio (unlisted)     14,119,449     shares     140,206,126    
       PIMCO Municipal Sector Portfolio     744,357     shares     5,270,048    
       PIMCO Real Return Bond Fund     324,295     shares     2,620,307    
       PIMCO Short Term Port Ins     682,028     shares     5,081,110    
       PIMCO US Government Sector Portfolio     4,100,772     shares     38,383,221    
       Vanguard Extended Market Index     5,525,014     shares     132,710,843    
       CRM MID CAP VALUE FD INSTL     1,413,086     shares     26,777,978    
       SPDR Trust - ETF     54,200     shares     4,895,886    
                 3,042,394,007

   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, 2008

(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                      
       3I GROUP PLC       34,090   shares     $ 135,313  
       AAR CORP       104,800   shares       1,929,368  
       ABBOTT LABORATORIES       151,900   shares       8,106,903  
       ABSA GROUP LTD       20,700   shares       238,160  
       ACCENTURE LTD CL A       59,300   shares       1,944,447  
       ACE LTD       48,500   shares       2,566,620  
       ADOBE SYSTEMS INC       100,700   shares       2,143,903  
       ADVANCE AUTO PARTS INC       93,330   shares       3,140,555  
       ADVISORY BOARD CO       89,600   shares       1,998,080  
       AECOM TECHNOLOGY CORP       157,000   shares       4,824,610  
       AERCAP HOLDINGS NV       164,000   shares       493,640  
       AFFILIATED MANAGERS GRP       10,273   shares       430,644  
       AGCO CORP       4,617   shares       108,915  
       AHOLD NV, KONINKLIJKE       82,920   shares       1,017,972  
       AIR GAS INC       15,543   shares       606,022  
       AIR PRODUCTS & CHEMICALS       15,800   shares       794,266  
       ALBERTO CULVER CO NEW       105,900   shares       2,595,609  
       ALCON INC       42,840   shares       3,820,900  
       ALLIANCE DATA SYSTEMS CORP       78,000   shares       3,629,340  
       ALLIANZ SE (REGD)       15,400   shares       1,667,816  
       ALPS ELECTRIC CO LTD       17,900   shares       85,825  
       ALTERA CORP       82,600   shares       1,380,246  
       AMAZON.COM INC       58,800   shares       3,015,264  
       AMCOR LTD       88,902   shares       368,509  
       AMDOCS LTD       112,200   shares       2,052,138  
       AMEDISYS INC       76,564   shares       3,165,156  
       AMERICAN ITALIAN PASTA CO CL A       1,134   shares       25,334  
       AMERICAN REPROGRAPHICS CO       113,100   shares       780,390  
       AMERIPRISE FINANCIAL INC       60,400   shares       1,410,944  
       AMETEK INC NEW       9,900   shares       299,079  
       AMGEN INC       66,800   shares       3,857,700  
       AMPHENOL CORPORATION CL A       94,886   shares       2,275,366  
       AMYLIN PHARMACEUTICALS       51,400   shares       557,690  
       ANALOG DEVICES INC       68,300   shares       1,299,066  
       ANIXTER INTL INC       98,266   shares       2,959,772  
       ANSYS INC       13,662   shares       381,033  

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, 2008

(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)                  
       APOLLO GROUP INC CL A       9,691   shares     $ 742,524  
       APPLE INC       33,505   shares       2,859,652  
       APTARGROUP INC       36,848   shares       1,298,524  
       AQUA AMERICA INC       18,100   shares       372,679  
       ARCELORMITTAL SA (FRAN)       29,800   shares       712,121  
       ARCH CHEMICALS INC       53,000   shares       1,381,710  
       ARRIS GROUP INC       147,800   shares       1,175,010  
       ARTHUR J GALLAGHAR AND CO       100,000   shares       2,591,000  
       ASSOCIATED BRITISH FOODS       53,100   shares       565,668  
       ASSURED GUARANTTY LTD       90,900   shares       1,036,260  
       ASTRAZENECA PLC (UK)       27,638   shares       1,147,628  
       AT&T INC       310,750   shares       8,856,375  
       ATHEROS COMMUNICATIONS INC       105,907   shares       1,515,529  
       ATLAS COPCO AB SER A       54,893   shares       468,071  
       ATWOOD OCEANICS INC       4,219   shares       64,466  
       AUSTRALIA & NZ BANKING GRP       50,600   shares       550,198  
       AUTOLIV INC       80,017   shares       1,717,165  
       AVISTA CORP       70,600   shares       1,368,228  
       AVIVA PLC       77,401   shares       440,510  
       AVON PRODUCTS INC       123,600   shares       2,970,108  
       BAE SYSTEMS PLC       314,201   shares       1,727,450  
       BAKER HUGHES INC       14,700   shares       471,429  
       BALDOR ELEC CO       99,400   shares       1,774,290  
       BALLY TECHNOLOGIES INC       15,849   shares       380,851  
       BANCO SANTANDER SA       178,579   shares       1,733,391  
       BANCORPSOUTH INC       23,200   shares       541,952  
       BARCLAYS PLC ORD       411,400   shares       949,081  
       BASF SE       36,000   shares       1,394,248  
       BAXTER INTL INC       116,400   shares       6,237,876  
       BAYER AG       35,933   shares       2,085,221  
       BEACON ROOFING SUPPLY INC       45,300   shares       628,764  
       BENIHANA INC       4,900   shares       10,290  
       BENIHANA INC CL A       35,100   shares       73,710  
       BEST BUY CO INC       60,000   shares       1,686,600  
       BG GROUP PLC       163,711   shares       2,286,306  
       BHP BILLITON LTD       42,300   shares       916,610  
       BHP BILLITON PLC       61,106   shares       1,153,885  

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, 2008

(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)                  
       BILFINGER BERGER AG       4,000   shares     $ 208,492  
       BIO RAD LABS CL A       54,179   shares       4,080,220  
       BLACK HILLS CORP       59,628   shares       1,607,571  
       BLACKBOARD INC       93,400   shares       2,449,882  
       BMW AG (BAYER MTR WKS) (GERW)       12,741   shares       384,544  
       BNP PARIBAS (FRAN)       31,616   shares       1,335,734  
       BOSTON BEER COMPANY CL A       19,500   shares       553,800  
       BOSTON PPTY CV       275,000   shares       217,250  
       BP PLC       250,900   shares       1,965,834  
       BP PLC SPON ADR       122,500   shares       5,725,650  
       BRIDGESTONE CORP       34,100   shares       498,768  
       BRINKER INTERNATIONAL INC       199,300   shares       2,100,622  
       BRISTOW GROUP INC       70,061   shares       1,876,934  
       BRITISH AMERICAN TOBACCO       88,620   shares       2,346,465  
       BROADCOM CORP CL A       16,638   shares       282,347  
       CABOT CORP       100,449   shares       1,536,870  
       CABOT OIL & GAS CORP       53,100   shares       1,380,600  
       CADBURY PLC       72,600   shares       641,498  
       CAMERON INTL CORP       79,000   shares       1,619,500  
       CANON INC       13,500   shares       427,388  
       CAPELLA EDUCATION CO       4,998   shares       293,682  
       CAPITAL ONE FIN CORP       60,600   shares       1,932,534  
       CAPITALSOURCE INC       118,400   shares       547,008  
       CARLISLE COS INC       304,008   shares       6,292,966  
       CARPENTER TECHNOLOGY CORP       53,800   shares       1,105,052  
       CASEY GENERAL STORES       10,200   shares       232,254  
       CASTLE (A.M.) & CO       30,800   shares       333,564  
       CELANESE CORP SER A       27,500   shares       341,825  
       CELESIO AG       14,400   shares       390,168  
       CELGENE CORP       53,300   shares       2,946,424  
       CENTRAL EURO DIST CORP (USA)       55,100   shares       1,085,470  
       CENTRICA PLC       210,583   shares       817,428  
       CEPHALON INC       33,500   shares       2,580,840  
       CEZ AS       12,199   shares       498,038  
       CH ROBINSON WORLDWIDE INC       51,000   shares       2,806,530  
       CHARLES RIVER LABS INTL INC       4,093   shares       107,237  
       CHINA MOBILE LIMITED       33,000   shares       334,815  

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, 2008

(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)                  
       CHINA PETROL & CHEM H       608,000   shares     $ 373,708  
       CHINA RAILWAY CONS CORP LTD H       236,000   shares       351,396  
       CHINA TELECOM CORP LTD H       292,000   shares       110,385  
       CHURCH & DWIGHT CO INC       6,579   shares       369,213  
       CISCO SYSTEMS INC       187,800   shares       3,061,140  
       CITI (AU OPTRONICS) CWT       522,700   shares       393,709  
       CITI (COMPAL ELEC) ELN       235,281   shares       123,766  
       CITI (SILICONWARE) CWT       174,989   shares       149,415  
       CITRIX SYSTEMS INC       50,000   shares       1,178,500  
       CLARCOR INC       81,700   shares       2,710,806  
       CLIFFS NATURAL RESOURCES INC       23,600   shares       604,396  
       COCA COLA CO       27,900   shares       1,263,033  
       COGNEX CORP       111,000   shares       1,642,800  
       COLGATE-PALMOLIVE CO       64,300   shares       4,407,122  
       COMERICA INC       48,000   shares       952,800  
       COMMERCIAL METALS CO       179,200   shares       2,127,104  
       COMPASS GROUP PLC       73,342   shares       368,176  
       COMPLETE PRODUCTION SERVICES INC       52,800   shares       430,320  
       COMSTOCK RESOURCES INC NEW       48,400   shares       2,286,900  
       CONSOL ENERGY INC       8,600   shares       245,788  
       CONTINENTAL RES OKLA       9,650   shares       199,852  
       COPART INC       15,967   shares       434,143  
       CORE LABORATORIES NV       4,234   shares       253,447  
       CORNING INC       141,100   shares       1,344,683  
       CORPORATE EXECUTIVE BRD C       77,000   shares       1,698,620  
       CORRECTIONS CORP OF AMERICA       20,997   shares       343,511  
       COSTAR GROUP INC       67,600   shares       2,226,744  
       COSTCO WHOLESALE CORP       40,700   shares       2,136,750  
       COVIDIEN LTD       121,600   shares       4,406,784  
       CRACKER BARREL OLD CTRY ST INC       30,600   shares       630,054  
       CREDIT AGRICOLE SA       65,282   shares       729,409  
       CREDIT SUISSE GRP (REG)       78,452   shares       2,193,534  
       CRH PLC       31,990   shares       797,517  
       CSL LIMITED       20,057   shares       480,681  
       CULLEN FROST BANKERS INC       41,900   shares       2,123,492  
       CURTISS WRIGHT CORPORATION       142,800   shares       4,768,092  
       CVS CAREMARK CORP       106,400   shares       3,057,936  

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, 2008

(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)                  
       CYTEC INDUSTRIES INC       51,200   shares     $ 1,086,464  
       DANAHER CORP       41,100   shares       2,326,671  
       DAVITA INC       220,967   shares       10,953,334  
       DELHAIZE GROUP       7,300   shares       453,405  
       DELL INC       133,175   shares       1,363,712  
       DELTA AIR INC       29,000   shares       332,340  
       DENBURY RESOURCES INC       265,000   shares       2,893,800  
       DEUTSCHE BANK AG (GERW)       37,400   shares       1,521,870  
       DEUTSCHE BOERSE AG       9,495   shares       673,669  
       DEUTSCHE TELEKOM AG (REGD       125,572   shares       1,921,158  
       DEUTSCHE (UNITDMC) CWT 144A       261,965   shares       59,355  
       DEVRY INC       41,597   shares       2,388,084  
       DIC CORP       103,000   shares       212,301  
       DICKS SPORTING GOODS INC       9,340   shares       131,787  
       DISCOVER FIN SVCS       151,900   shares       1,447,607  
       DISCOVERY COMM INC CL C NON-VO       123,000   shares       1,646,970  
       DISCOVERY COMMUNICATIONS CL A       125,000   shares       1,770,000  
       DISNEY (WALT) CO       222,900   shares       5,057,601  
       DOMINION RESOURCES INC VA       44,400   shares       1,591,296  
       DONALDSON CO INC       24,100   shares       810,965  
       DOVER CORP       35,900   shares       1,181,828  
       DRESS BARN INC       44,699   shares       480,067  
       DRIL-QUIP INC       90,300   shares       1,852,053  
       DSW INC CL A       48,700   shares       606,802  
       E.ON AG       91,224   shares       3,623,484  
       EADS NV       42,850   shares       719,953  
       EAST JAPAN RAILWAY CO       50   shares       379,719  
       EATON VANCE CORP NON VTG       127,000   shares       2,668,270  
       ECOLAB INC       13,694   shares       481,344  
       EDWARDS LIFESCIENCES CORP       69,014   shares       3,792,319  
       ELAN CORP PLC ADR       80,600   shares       483,600  
       ELECTRONIC ARTS INC       214,800   shares       3,445,392  
       EMCOR GROUP INC       12,576   shares       282,080  
       ENERGIZER HOLDINGS INC       8,155   shares       441,512  
       ENERGYSOLUTIONS INC       171,700   shares       970,105  
       ENERSYS INC       62,700   shares       689,700  
       ENI SPA       51,500   shares       1,245,164  

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, 2008

(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)                  
       ENPRO INDUSTRIES INC       23,900   shares     $ 514,806  
       EOG RESOURCES INC       38,900   shares       2,589,962  
       EQUINIX INC       6,648   shares       353,607  
       EQUITABLE RESOURCES INC       6,900   shares       231,495  
       ERICSSON (LM) TELE CO CL B       104,000   shares       819,042  
       EXELON CORP       136,800   shares       7,607,448  
       EXPEDITORS INTL OF WASH       28,736   shares       956,047  
       EXTERRAN HLDGS INC       89,697   shares       1,910,546  
       F5 NETWORKS INC       7,798   shares       178,262  
       FAIRFAX FINL HLDGS LTD SUB VTG       1,800   shares       576,970  
       FASTENAL CO       5,028   shares       175,226  
       FEDEX CORP       27,200   shares       1,744,880  
       FINANCIAL FEDERAL CORP       107,200   shares       2,494,544  
       FIRST HORIZON NATIONAL CORP       46,641   shares       491,596  
       FIRST MIDWEST BANCORP DEL       18,700   shares       373,439  
       FIRSTENERGY CORP       44,500   shares       2,161,810  
       FMC CORP NEW       68,700   shares       3,072,951  
       FONDARIA SAI SPA       7,200   shares       128,715  
       FOOT LOCKER INC       74,800   shares       549,032  
       FOREST LABORATORIES INC       39,900   shares       1,016,253  
       FOREST OIL CORP       35,800   shares       590,342  
       FORTIS RTS       42,400   shares       1  
       FOSSIL INC       82,900   shares       1,384,430  
       FPL GROUP INC       57,300   shares       2,883,909  
       FRANCE TELECOM SA       33,000   shares       924,167  
       FREEPORT MCMORAN COPPER &       50,900   shares       1,243,996  
       FTI CONSULTING INC       6,167   shares       275,542  
       FUJITSU LTD       147,000   shares       714,124  
       FURUKAWA ELECTRIC CO LTD       79,000   shares       373,557  
       GAIAM INC CL A       18,800   shares       86,856  
       GAMESTOP CORP CL A       20,204   shares       437,619  
       GAP INC       324,900   shares       4,350,411  
       GATX CORP       55,100   shares       1,706,447  
       GAYLORD ENTERTAINMENT CO       91,200   shares       988,608  
       GDF SUEZ       45,637   shares       2,251,577  
       GEN PROBE INC       11,834   shares       506,969  
       GENENTECH INC       73,000   shares       6,052,430  

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, 2008

(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)                  
       GENERAL ELECTRIC CO       399,900   shares     $ 6,478,380  
       GENESCO INC       25,734   shares       434,647  
       GENESEE & WYOMING CL A       42,700   shares       1,302,350  
       GENTEX CORP       134,900   shares       1,191,167  
       GENZYME CORP       12,900   shares       856,173  
       GEO GROUP INC       27,547   shares       496,672  
       GIBRALTAR INDUSTRIES INC       23,900   shares       285,366  
       GILDAN ACTIVEWEAR INC       44,000   shares       517,440  
       GILEAD SCIENCES INC       160,200   shares       8,192,628  
       GLAXOSMITHKLINE PLC       157,202   shares       2,967,420  
       GLOBAL PAYMENTS INC       143,000   shares       4,688,970  
       GOLDMAN SACHS GROUP INC       51,400   shares       4,337,646  
       GOODRICH PETRO CORP       14,700   shares       440,265  
       GOOGLE INC A       29,800   shares       9,167,970  
       GRACO INC       93,400   shares       2,216,382  
       GRAND CANYON EDUCATION INC       105,000   shares       1,971,900  
       GRANITE CONSTRUCTION INC       47,300   shares       2,077,889  
       GREIF INC CL A       21,700   shares       725,431  
       HAEMONETICS CORP MASS       83,147   shares       4,697,806  
       HALLIBURTON CO       11,000   shares       199,980  
       HANA FINANCIAL GROUP INC       18,800   shares       290,261  
       HARSCO CORP       67,300   shares       1,858,826  
       HBOS PLC       495,048   shares       498,472  
       HCC INSURANCE HOLDINGS INC       14,000   shares       374,500  
       HEALTHSPRING INC       75,600   shares       1,509,732  
       HEARTLAND EXPRESS INC       118,166   shares       1,862,296  
       HELMERICH & PAYNE INC       7,900   shares       179,725  
       HENRY (JACK) & ASSOC INC       183,300   shares       3,557,853  
       HERBALIFE LTD       77,000   shares       1,669,360  
       HESS CORP 109,434 shares 5,870,040
       HEWLETT-PACKARD CO       162,900   shares       5,911,641  
       HEXCEL CORPORATION       188,500   shares       1,391,130  
       HITACHI LTD       131,000   shares       507,980  
       HITTITE MICROWAVE CORP       11,806   shares       347,805  
       HOLOGIC INC       38,527   shares       503,548  
       HONDA MOTOR CO LTD       35,700   shares       759,735  
       HONEYWELL INTL INC       70,680   shares       2,320,424  
       HORACE MANN EDUCATORS CORP       123,500   shares       1,134,965  

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, 2008

(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)                  
       HORNBECK OFFSHORE SERVICES INC       17,316   shares     $ 282,943  
       HOST HOTELS & RESORTS INC       96,500   shares       730,505  
       HSBC HOLDINGS PLC (UK REG)       134,500   shares       1,336,106  
       IBERIABANK CORP       3,400   shares       163,200  
       ICAP PLC       86,631   shares       363,459  
       IDEX CORPORATION       13,000   shares       313,950  
       IDEXX LABS INC       7,259   shares       261,905  
       IHS INC       97,000   shares       3,629,740  
       II-VI INC.       10,100   shares       192,809  
       ILLUMINA INC       15,698   shares       408,933  
       IMMUCOR INC       26,637   shares       708,011  
       IMPERIAL OIL LTD       12,000   shares       404,274  
       INDUSTRIAL & COM BK OF CHINA H       1,227,000   shares       645,927  
       INDUSTRIAL BK KOR SP 144A       12,500   shares       76,317  
       INFORMATICA CORP       213,500   shares       2,931,355  
       INFOSYS TECH SPON ADR       47,800   shares       1,174,446  
       ING GROEP NV CVA       49,800   shares       550,698  
       INTEGRATED DEVICE TECH INC       18,460   shares       103,561  
       INTERACTIVE DATA CORP       95,900   shares       2,364,894  
       INTERMEC INC       144,400   shares       1,917,632  
       INTERSIL CORPORATION CL A       189,400   shares       1,740,586  
       INTL BUS MACH CORP       18,500   shares       1,556,960  
       INTUIT INC       15,230   shares       362,322  
       INVESCO LTD       297,600   shares       4,297,344  
       IRON MOUNTAIN INC       65,600   shares       1,622,288  
       ISHARES TR RUSL 2000 GR IN FD       13,829   shares       703,343  
       ISUZU MOTORS LTD       166,000   shares       206,757  
       ITRON INC       9,727   shares       619,999  
       ITT EDUCATIONAL SVCS INC       2,010   shares       190,910  
       JACK IN THE BOX INC       44,400   shares       980,796  
       JACOBS ENGINEERING GROUP INC       11,402   shares       548,436  
       JARDEN CORP       100,000   shares       1,150,000  
       JETBLUE AIRWAYS CORP       81,000   shares       575,100  
       JFE HOLDINGS INC       30,000   shares       772,114  
       JPMORGAN CHASE & CO       76,770   shares       2,420,558  
       JSC MMC NORILSK NICKL SPON ADR       40,871   shares       257,487  
       JULIUS BAER HLDG AG       36,136   shares       1,354,253  

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, 2008

(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)                  
       KANSAS CITY SOUTHERN       162,200   shares     $ 3,089,910  
       KB FINANCIAL GROUP INC ADR       13,300   shares       348,460  
       KDDI CORP       107   shares       748,912  
       KENNAMETAL INC       66,400   shares       1,473,416  
       KEY ENERGY SERVICES INC       84,200   shares       371,322  
       KHD HUMBOLDT WEDAG INTL LTD       12,300   shares       137,391  
       KIMCO REALTY CORPORATION       127,300   shares       2,327,044  
       KINGFISHER PLC       184,080   shares       362,648  
       KIRBY CORP       56,362   shares       1,542,064  
       KNIGHT TRANSPORTATION INC       22,300   shares       359,476  
       KOHLS CORP       29,200   shares       1,057,040  
       KOPPERS HLDGS INC       58,800   shares       1,271,256  
       LABORATORY CORP OF AMER HLDGS       6,636   shares       427,425  
       LAGARDERE SCA (REG)       16,800   shares       680,448  
       LAM RESEARCH CORP       127,707   shares       2,717,605  
       LANDSTAR SYSTEM INC       24,700   shares       949,221  
       LAYNE CHRISTENSEN CO       11,654   shares       279,813  
       LAZARD LTD CL A       2,990   shares       88,923  
       LEAP WIRELESS INTL INC       8,908   shares       239,536  
       LEND LEASE CORP LTD       54,400   shares       278,543  
       LIFE TECHNOLOGIES CORP       4,695   shares       109,440  
       LILLY (ELI) & CO       80,800   shares       3,253,816  
       LKQ CORP       22,262   shares       259,575  
       LLOYDS BANKING GROUP PLC       136,900   shares       251,720  
       LOCKHEED MARTIN CORP       90,800   shares       7,634,464  
       LUFTHANSA AG (REGD)       37,100   shares       579,818  
       LUKOIL OIL CO SPONS ADR       17,900   shares       592,490  
       MACQUARIE GROUP LTD       175,391   shares       213,287  
       MACROVISION CORP       160,000   shares       2,024,000  
       MAGELLAN HLTH SVCS INC       108,800   shares       4,260,608  
       MAGNA INTL INC CL A SUB VTG       8,400   shares       253,719  
       MAN GROUP PLC       375,905   shares       1,302,826  
       MARATHON OIL CORP       223,400   shares       6,112,224  
       MARSH & MCLENNAN COS INC       110,800   shares       2,689,116  
       MARTEK BIOSCIENCES       15,917   shares       482,444  
       MARTIN MARIETTA MATERIALS       17,500   shares       1,698,900  
       MAX CAPITAL GROUP LTD       204,200   shares       3,614,340  

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, 2008

(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)                  
       MAXIM INTEGRATED PRODUCTS       163,700   shares     $ 1,869,454  
       MCCORMICK & SCHMICK SEA RES       52,600   shares       211,452  
       MCDERMOTT INTL INC       12,103   shares       119,578  
       MCKESSON CORP       95,200   shares       3,687,096  
       MEDCO HEALTH SOLUTIONS INC       70,100   shares       2,937,891  
       MEDICINES CO       109,100   shares       1,607,043  
       MEDTRONIC INC       140,600   shares       4,417,652  
       MENTOR CORP MINN       100,000   shares       3,093,000  
       METHANEX CORP       13,000   shares       146,380  
       METLIFE INC       43,000   shares       1,498,980  
       METTLER-TOLEDO INTL INC       3,375   shares       227,475  
       MGE ENERGY INC       11,700   shares       386,100  
       MICHELIN CL B (REG)       10,600   shares       556,205  
       MICROS SYSTEMS INC       25,576   shares       417,400  
       MICROSEMI CORP       53,559   shares       676,986  
       MICROSOFT CORP       763,500   shares       14,842,440  
       MINDRAY MED INTL LTD SPON ADR       91,300   shares       1,643,400  
       MITSUBISHI CHEMICAL HLDGS       158,000   shares       684,420  
       MITSUBISHI CORP       102,000   shares       1,391,855  
       MITSUI & CO LTD       206,200   shares       2,047,795  
       MOHAWK INDUSTRIES INC       50,000   shares       2,148,500  
       MOLSON COORS BREWING CO B       6,451   shares       315,583  
       MONSANTO CO NEW       77,000   shares       5,416,950  
       MOOG INC CL A       44,900   shares       1,641,993  
       MOSAIC CO       126,500   shares       4,376,900  
       MSC INDU DIRECT CO CL A       8,600   shares       316,738  
       MSCI INC CL A       108,800   shares       1,932,288  
       MTN GROUP LTD       33,000   shares       380,904  
       MUNICH REINSURANCE (REG)       12,388   shares       1,920,489  
       MYLAN INC       69,600   shares       688,344  
       NATIONAL AUSTRALIA BANK       16,521   shares       245,200  
       NATIONAL CINEMEDIA INC       182,000   shares       1,845,480  
       NATIONAL CITY CORP (DELIST)       954,050   shares       1,726,831  
       NATIONAL GRID TRANSCO PLC       132,959   shares       1,327,145  
       NAVIGATORS GROUP INC       4,200   shares       230,622  
       NCR CORP       21,956   shares       310,238  
       NEPTUNE ORIENT LINES LTD       151,000   shares       118,059  

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, 2008

(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)                  
       NESTLE SA (REG)       83,640   shares     $ 3,261,552  
       NESTLE SA REG ADR       191,800   shares       7,614,460  
       NETAPP INC       150,000   shares       2,095,500  
       NEUSTAR INC CL A       209,000   shares       3,998,170  
       NEW JERSEY RESOURCES CORP       19,950   shares       785,033  
       NEXEN INC       36,920   shares       650,887  
       NICE SYSTEMS LTD SPON ADR       144,054   shares       3,236,893  
       NII HOLDINGS INC       36,700   shares       667,206  
       NIKE INC CL B       45,000   shares       2,295,000  
       NINTENDO CO LTD       3,400   shares       1,298,800  
       NIPPON MINING HLDGS INC       88,000   shares       366,646  
       NIPPON TELEGRAPH & TELEPH       224   shares       1,256,020  
       NISSAN MOTOR CO LTD ORD       220,000   shares       790,825  
       NOBLE ENERGY INC       32,100   shares       1,579,962  
       NOKIA OYJ       70,600   shares       1,113,144  
       NORDEA BANK AB       55,200   shares       385,718  
       NORDSON CORP       48,300   shares       1,559,607  
       NORTHWEST NATURAL GAS CO       22,900   shares       1,012,867  
       NOVARTIS AG (REG)       87,262   shares       4,360,171  
       NOVO-NORDISK AS CL B       26,376   shares       1,341,371  
       NRG ENERGY INC       59,475   shares       1,387,552  
       NTT DOCOMO       367   shares       721,775  
       NUVASIVE INC       13,285   shares       460,325  
       NVIDIA CORP       64,800   shares       522,936  
       OCCIDENTAL PETROLEUM CORP       163,100   shares       9,784,369  
       OCEANEERING INTL INC       53,367   shares       1,555,114  
       ODYSSEY HEALTHCARE INC       129,700   shares       1,199,725  
       OIL STATES INTL INC       18,400   shares       343,896  
       OLIN CORP       76,000   shares       1,374,080  
       OM GROUP INC       3,160   shares       66,708  
       ONYX PHARMACEUTICALS INC       75,900   shares       2,592,744  
       OPTIONSXPRESS HLDGS INC       178,600   shares       2,386,096  
       ORACLE CORP       73,100   shares       1,296,063  
       ORBITAL SCIENCES CORP       144,500   shares       2,822,085  
       O'REILLY AUTOMOTIVE INC       17,845   shares       548,555  
       ORIENT EXPRESS HOTEL CL A       46,000   shares       352,360  
       ORIX CORP       3,120   shares       171,604  

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, 2008

(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)                  
       OSI PHARMACEUTICALS INC       96,900   shares     $ 3,783,945  
       OTTER TAIL CORPORATION       41,600   shares       970,528  
       OWENS ILLINOIS INC       60,800   shares       1,661,664  
       OXFORD INDUSTRIES       6,792   shares       59,566  
       PAREXEL INTERNATIONAL CORP       9,800   shares       95,158  
       PATTERSON COMPANIES INC       10,497   shares       196,819  
       PEDIATRIX MEDICAL GROUP       9,964   shares       315,859  
       PENN VIRGINIA CORP.       36,850   shares       957,363  
       PEPSICO INC       58,100   shares       3,182,137  
       PERKINELMER INC       12,128   shares       168,700  
       PERRIGO CO       21,549   shares       696,248  
       PETROBRAS PN SPON ADR       39,400   shares       964,906  
       PETRO-CANADA       43,400   shares       953,109  
       PHILIP MORRIS INTL INC       374,200   shares       16,281,442  
       PIEDMONT NATURAL GAS       44,700   shares       1,415,649  
       PIMCO HI YIELD PORTFOLIO       638,518   shares       3,518,235  
       PLEXUS CORP       72,200   shares       1,223,790  
       PNC FINANCIAL SERVICES GRP INC       31,700   shares       1,553,300  
       POLYPORE INTL INC       89,888   shares       679,553  
       POOL CORP       92,800   shares       1,667,616  
       PRECISION CASTPARTS CORP       16,300   shares       969,524  
       PROGENICS PHARMACEUTICALS       72,800   shares       750,568  
       PSYCHIATRIC SOLUTIONS INC       35,234   shares       981,267  
       PTT PCL (FOR)       41,800   shares       210,292  
       QANTAS AIRWAYS LTD       194,774   shares       364,291  
       QBE INSURANCE GROUP LTD       95,142   shares       1,746,311  
       QUALCOMM INC       268,000   shares       9,602,440  
       QUANEX BUILDING PRODUCTS       113,065   shares       1,059,419  
       QUANTA SVCS INC       16,499   shares       326,680  
       QUICKSILVER RES INC       149,000   shares       829,930  
       RALCORP HOLDINGS       24,800   shares       1,448,320  
       RANGE RESOURCES CORP       181,145   shares       6,229,577  
       RAYMOND JAMES FINANCIAL INC.       50,200   shares       859,926  
       RAYTHEON CO       38,200   shares       1,949,728  
       RECKITT BENCKISER GROUP P       56,791   shares       2,136,520  
       RED ROBIN GOURMET BURGERS INC       15,100   shares       254,133  
       RELIANCE STEEL & ALUMINUM CO       75,500   shares       1,505,470  

29


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, 2008

(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)                  
       RENAULT SA ORD       26,100   shares     $ 676,195  
       REPUBLIC SERVICES INC       38,042   shares       943,061  
       RESEARCH IN MOTION (USD)       74,400   shares       3,019,152  
       RESMED INC       136,167   shares       5,103,539  
       RESOURCES CONNECTION INC       186,500   shares       3,054,870  
       RIO TINTO PLC (REGD)       21,554   shares       486,252  
       RLI CORP       6,900   shares       422,004  
       ROCHE HLDGS GENUSSSCHEINE       8,586   shares       1,307,860  
       ROCHE HLDGS LTD SPON ADR       13,600   shares       1,041,080  
       ROFIN SINAR TECHNOLOGIES INC       12,900   shares       265,482  
       ROGERS CORP       72,200   shares       2,004,994  
       ROYAL BANK OF SCOTLAND GR       828,281   shares       597,103  
       ROYAL DUTCH SHELL PL CL A       166,873   shares       4,417,419  
       RUDDICK CORP       10,000   shares       276,500  
       RUSH ENTERPRISES INC CL A       26,900   shares       230,533  
       RWE AG       7,380   shares       656,574  
       SAMSUNG ELEC VTG GDR GDR       800   shares       140,000  
       SAMSUNG ELECTRON NVG GDS       1,000   shares       105,250  
       SANOFI-AVENTIS       23,400   shares       1,503,847  
       SBA COMM CORP CL A       354,443   shares       5,784,510  
       SCANSOURCE INC       99,600   shares       1,919,292  
       SCHERING PLOUGH CORP       463,700   shares       7,896,811  
       SCHLUMBERGER LTD       83,300   shares       3,526,089  
       SCHNITZER STEEL INDS INC CL A       11,000   shares       414,150  
       SCHWAB CHARLES CORP       183,500   shares       2,967,195  
       SEPRACOR INC       170,500   shares       1,872,090  
       SES SA A (LUX)       44,418   shares       844,936  
       SEVEN & I HOLDINGS CO LTD       29,800   shares       1,001,819  
       SHARP CORP       102,000   shares       715,040  
       SHIRE PLC SPON ADR       29,680   shares       1,329,070  
       SIGNATURE BANK       33,265   shares       954,373  
       SILGAN HOLDINGS INC       20,739   shares       991,532  
       SIMS METAL MANAGEMENT LTD ADR       18,203   shares       226,081  
       SKILLED HEALTHCARE GROUP CL A       82,100   shares       692,924  
       SOCIETE GENE PARIS CL A       16,818   shares       845,599  
       SOLERA HOLDINGS INC       7,403   shares       178,412  
       SOLVAY CL A       6,800   shares       503,828  

30


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, 2008

(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)                  
       SONIC CORP       94,400   shares     $ 1,148,848  
       SONOSITE INC       20,500   shares       391,140  
       SONY CORP       28,100   shares       614,093  
       SOUTHWESTERN ENERGY CO       49,600   shares       1,436,912  
       SRA INTERNATIONAL INC CL A       119,800   shares       2,066,550  
       ST JUDE MEDICAL INC       103,300   shares       3,404,768  
       ST MARY LAND & EXPLORATION CO       13,900   shares       282,309  
       STANDARD BANK GROUP LTD       13,511   shares       119,299  
       STANDARD CHARTERED PLC       50,109   shares       639,836  
       STAPLES INC       131,900   shares       2,363,648  
       STATE BANK OF IND GD GDR       3,700   shares       203,500  
       STATE STREET CORP       50,000   shares       1,966,500  
       STATOIL HYDRO ASA       133,236   shares       2,181,512  
       STERICYCLE INC       65,790   shares       3,426,343  
       STERIS CORPORATION       19,396   shares       463,370  
       STORA ENSO AB R 1/10 VTG       67,800   shares       522,705  
       STRAYER EDUCATION INC       14,131   shares       3,029,828  
       SUEDZUCKER AG (BR)       12,700   shares       192,806  
       SUMITOMO MITSUI FINL GROUP       180   shares       745,991  
       SUPERIOR ENERGY SVCS INC       69,900   shares       1,113,507  
       SUSSER HOLDINGS CORP       67,397   shares       895,706  
       SVB FINL GROUP       63,900   shares       1,676,097  
       SVENSKA CELLULOSA AB CL B       68,800   shares       586,656  
       SYNGENTA AG (SWIT)       4,689   shares       908,819  
       TAIWAN SEMI (CITI) (ELN) 1/12       112,604   shares       152,462  
       TARGET CORP       11,500   shares