| Six months ended | |||||||
| April 30, 2019 | April 30,2018 | ||||||
| Net revenue | $ | 28,746 | $ | 28,520 | |||
| Costs and expenses: | |||||||
| Cost of revenue | 23,405 | 23,236 | |||||
| Research and development | 697 | 703 | |||||
| Selling, general and administrative(a) | 2,587 | 2,547 | |||||
| Restructuring and other charges | 124 | 88 | |||||
| Acquisition-related charges | 21 | 87 | |||||
| Amortization of intangible assets | 58 | 40 | |||||
| Total costs and expenses | 26,892 | 26,701 | |||||
| Earnings from operations | 1,854 | 1,819 | |||||
| Interest and other, net(a) | (71 | ) | (831 | ) | |||
| Earnings before taxes | 1,783 | 988 | |||||
| (Provision for) benefit from taxes
| (198 | ) | 2,008 | ||||
| Net earnings | $ | 1,585 | $ | 2,996 | |||
| Net earnings per share: | |||||||
| Basic | $ | 1.03 | $ | 1.83 | |||
| Diluted | $ | 1.02 | $ | 1.81 | |||
| Cash dividends declared per share | $ | 0.32 | $ | 0.28 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 1,543 | 1,640 | |||||
| Diluted | 1,551 | 1,658 | |||||
- Pursuant to adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.
| HP INC. AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) |
| Three months ended | |||||||||||||||||||||||
| April 30, 2019 | January 31, 2019 | April 30, 2018 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 782 | $ | 0.51 | $ | 803 | $ | 0.51 | $ | 1,058 | $ | 0.64 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 69 | 0.03 | 55 | 0.04 | 57 | 0.03 | |||||||||||||||||
| Acquisition-related charges | 11 | 0.01 | 10 | 0.01 | 45 | 0.03 | |||||||||||||||||
| Amortization of intangible assets | 29 | 0.02 | 29 | 0.02 | 20 | 0.01 | |||||||||||||||||
| Non-operating retirement-related credits | (10 | ) | (0.01 | ) | (12 | ) | (0.01 | ) | (53 | ) | (0.03 | ) | |||||||||||
| Debt extinguishment costs | — | — | — | — | 126 | 0.08 | |||||||||||||||||
| Tax adjustments (a) | (60 | ) | (0.03 | ) | (76 | ) | (0.05 | ) | (455 | ) | (0.28 | ) | |||||||||||
| Non-GAAP net earnings | $ | 821 | $ | 0.53 | $ | 809 | $ | 0.52 | $ | 798 | $ | 0.48 | |||||||||||
| GAAP earnings from operations (b) | $ | 928 | $ | 926 | $ | 906 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 69 | 55 | 57 | ||||||||||||||||||||
| Acquisition-related charges | 11 | 10 | 45 | ||||||||||||||||||||
| Amortization of intangible assets | 29 | 29 | 20 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,037 | $ | 1,020 | $ | 1,028 | |||||||||||||||||
| GAAP operating margin (b) | 7 | % | 6 | % | 7 | % | |||||||||||||||||
| Non-GAAP adjustments | 0 | % | 1 | % | 0 | % | |||||||||||||||||
| Non-GAAP operating margin | 7 | % | 7 | % | 7 | % | |||||||||||||||||
- Includes tax impact on non-GAAP adjustments.
