For example, depreciation on machineryused in productionis properly considered part ofoverhead, while depreciation on cars used by the salesstaffis not; the latter cost is a sellingcost.
But longer term, competing against Apple ( AAPL), IBM ( IBM), Dell ( DELL) and others, HP will need innovation to succeed, not just cheaper overhead in selling printers and toner.
But they have most of the burden of keeping, you know, the really high overhead of record label expenditures in check for all these other bands that aren't selling anything.