HP Inc. Reports Fiscal 2018 Third Quarter Results
| (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. | | | | | | (b) | | "NM" represents not meaningful. | | | | |
| | | HP INC. AND SUBSIDIARIES | | SEGMENT/BUSINESS UNIT INFORMATION | | (Unaudited) | | (In millions) | | | | |
Nine months ended July 31, | |
Change (%) | | |
2018 | |
2017 | |
Y/Y | | Net revenue:(a) | | | | | | | Personal Systems | | | | | | | Notebooks | $ | 16,382 | | | $ | 14,391 | | | 14% | | Desktops | 8,576 | | | 7,477 | | | 15% | | Workstations | 1,669 | | | 1,516 | | | 10% | | Other | 970 | | | 870 | | | 11% | | Total Personal Systems | 27,597 | | | 24,254 | | | 14% | | Printing | | | | | | | Supplies | 10,190 | | | 9,368 | | | 9% | | Commercial Hardware | 3,426 | | | 2,715 | | | 26% | | Consumer Hardware | 1,889 | | | 1,786 | | | 6% | | Total Printing | 15,505 | | | 13,869 | | | 12% | | Corporate Investments | 3 | | | 7 | | | (57)% | | Total segments | 43,105 | | | 38,130 | | | 13% | | Other(b) | 1 | | | (1 | ) | | NM | | Total net revenue | $ | 43,106 | | | $ | 38,129 | | | 13% | | | | | | | | | | | |
| (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. | | | | | | (b) | | "NM" represents not meaningful. | | | | |
| | | HP INC. AND SUBSIDIARIES | | SEGMENT OPERATING MARGIN SUMMARY | | (Unaudited) | | | | |
Three months ended | |
Change in Operating Margin (pts) | | |
July 31, 2018 | |
April 30, 2018 | |
July 31, 2017 | |
Q/Q | |
Y/Y | | Segment operating margin: (a) | | | | | | | | | | | Personal Systems | 3.9% | | 3.8% | | 3.7% | | 0.1pts | | 0.2pts | | Printing | 16.0% | | 16.0% | | 17.3% | | —pts | | (1.3)pts | |
Corporate Investments (b) | NM | | NM | | NM | | NM | | NM | | Total segments | 8.1% | | 8.2% | | 8.4% | | (0.1)pts | | (0.3)pts | | | | | | | | | | | |
|
