HP Inc. Reports Fiscal 2018 Third Quarter Results
| | | HP INC. AND SUBSIDIARIES | | SEGMENT INFORMATION | | (Unaudited) | | (In millions) | | | | |
Nine months ended July 31, | | |
2018 | |
2017 | | Net revenue:(a) | | | | | Personal Systems | $ | 27,597 | | | $ | 24,254 | | | Printing | 15,505 | | | 13,869 | | | Corporate Investments | 3 | | | 7 | | | Total segments | 43,105 | | | 38,130 | | | Other | 1 | | | (1 | ) | | Total net revenue | $ | 43,106 | | | $ | 38,129 | | | | | | | | Earnings before taxes:(a) | | | | | Personal Systems | $ | 1,033 | | | $ | 869 | | | Printing | 2,472 | | | 2,341 | | | Corporate Investments | (62 | ) | | (69 | ) | | Total segment earnings from operations | 3,443 | | | 3,141 | | | Corporate and unallocated costs and other | (137 | ) | | (114 | ) | | Stock-based compensation expense | (203 | ) | | (169 | ) | | Restructuring and other charges | (92 | ) | | (249 | ) | | Acquisition-related charges | (97 | ) | | (76 | ) | | Amortization of intangible assets | (60 | ) | | (1 | ) | | Non-operating retirement-related credits | 165 | | | 101 | | | Defined benefit plan settlement charges | (2 | ) | | (4 | ) | | Interest and other, net | (1,011 | ) | | (201 | ) | | Total earnings before taxes | $ | 2,006 | | | $ | 2,428 | | | | | | | | | | |
| (a) | | Effective at the beginning of its first quarter of fiscal year 2018, HP implemented an organizational change to align its segment and business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of long life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements, which are being eliminated for the purposes of reporting HP’s consolidated net revenue, have now been reclassified from Other to segments. HP has reflected this change to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. | | | | |
| | | HP INC. AND SUBSIDIARIES | | SEGMENT/BUSINESS UNIT INFORMATION | | (Unaudited) | | (In millions) | | | | |
Three months ended | |
Change (%) | | |
July 31, 2018 | |
April 30, 2018 | |
July 31, 2017 | |
Q/Q | |
Y/Y | | Net revenue:(a) | | | | | | | | | | | Personal Systems | | | | | | | | | | | Notebooks | $ | 5,634 | | | $ | 5,153 | | | $ | 5,008 | | | 9% | | 13% | | Desktops | 2,869 | | | 2,752 | | | 2,566 | | | 4% | | 12% | | Workstations | 588 | | | 538 | | | 530 | | | 9% | | 11% | | Other | 304 | | | 319 | | | 281 | | | (5)% | | 8% | | Total Personal Systems | 9,395 | | | 8,762 | | | 8,385 | | | 7% | | 12% | | Printing | | | | | | | | | | | Supplies | 3,405 | | | 3,434 | | | 3,145 | | | (1)% | | 8% | | Commercial Hardware | 1,170 | | | 1,186 | | | 940 | | | (1)% | | 24% | | Consumer Hardware | 613 | | | 621 | | | 592 | | | (1)% | | 4% | | Total Printing | 5,188 | | | 5,241 | | | 4,677 | | | (1)% | | 11% | | Corporate Investments | 1 | | | 1 | | | 2 | | | —% | | (50)% | | Total segments | 14,584 | | | 14,004 | | | 13,064 | | | 4% | | 12% | | Other (b) | 2 | | | (1 | ) | | (4 | ) | | NM | | NM | | Total net revenue | $ | 14,586 | | | $ | 14,003 | | | $ | 13,060 | | | 4% | | 12% | | | | | | | | | | | | | | | | | |
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