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 | ||||||||||||||||||||||||||
| July 31, 2021 | April 30, 2021 | July 31, 2020 | ||||||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | |||||||||||||||||||||
| GAAP net earnings | $ | 1,108 | $ | 0.92 | $ | 1,228 | $ | 0.98 | $ | 734 | $ | 0.52 | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||
| Restructuring and other charges | 56 | 0.04 | 39 | 0.02 | 59 | 0.04 | ||||||||||||||||||||
| Acquisition-related charges | 24 | 0.02 | 10 | 0.01 | 11 | 0.01 | ||||||||||||||||||||
| Amortization of intangible assets | 42 | 0.04 | 32 | 0.03 | 29 | 0.02 | ||||||||||||||||||||
| Debt extinguishment costs | 16 | 0.01 | — | — | 40 | 0.03 | ||||||||||||||||||||
| Non-operating retirement-related credits | (39 | ) | (0.03 | ) | (38 | ) | (0.03 | ) | (55 | ) | (0.04 | ) | ||||||||||||||
| Tax adjustments (a) | (9 | ) | — | (113 | ) | (0.08 | ) | (116 | ) | (0.09 | ) | |||||||||||||||
| Non-GAAP net earnings | $ | 1,198 | $ | 1.00 | $ | 1,158 | $ | 0.93 | $ | 702 | $ | 0.49 | ||||||||||||||
| GAAP earnings from operations | $ | 1,381 | $ | 1,362 | $ | 779 | ||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||
| Restructuring and other charges | 56 | 39 | 59 | |||||||||||||||||||||||
| Acquisition-related charges | 24 | 10 | 11 | |||||||||||||||||||||||
| Amortization of intangible assets | 42 | 32 | 29 | |||||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,503 | $ | 1,443 | $ | 878 | ||||||||||||||||||||
| GAAP operating margin | 9.0 | % | 8.6 | % | 5.4 | % | ||||||||||||||||||||
| Non-GAAP adjustments | 0.8 | % | 0.5 | % | 0.7 | % | ||||||||||||||||||||
| Non-GAAP operating margin | 9.8 | % | 9.1 | % | 6.1 | % | ||||||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
