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)
| Nine months ended | |||||||||||||||||
| July 31, 2021 | July 31, 2020 | ||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||
| GAAP net earnings | $ | 3,404 | $ | 2.73 | $ | 2,176 | $ | 1.51 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 216 | 0.18 | 431 | 0.30 | |||||||||||||
| Acquisition-related charges | 40 | 0.03 | 14 | 0.01 | |||||||||||||
| Amortization of intangible assets | 103 | 0.08 | 84 | 0.06 | |||||||||||||
| Debt extinguishment costs | 16 | 0.01 | 40 | 0.03 | |||||||||||||
| Non-operating retirement-related credits | (115 | ) | (0.09 | ) | (168 | ) | (0.12 | ) | |||||||||
| Tax adjustments (a) | (120 | ) | (0.10 | ) | (178 | ) | (0.13 | ) | |||||||||
| Non-GAAP net earnings | $ | 3,544 | $ | 2.84 | $ | 2,399 | $ | 1.66 | |||||||||
| GAAP earnings from operations | $ | 4,064 | $ | 2,470 | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 216 | 431 | |||||||||||||||
| Acquisition-related charges | 40 | 14 | |||||||||||||||
| Amortization of intangible assets | 103 | 84 | |||||||||||||||
| Non-GAAP earnings from operations | $ | 4,423 | $ | 2,999 | |||||||||||||
| GAAP operating margin | 8.7 | % | 6.0 | % | |||||||||||||
| Non-GAAP adjustments | 0.7 | % | 1.2 | % | |||||||||||||
| Non-GAAP operating margin | 9.4 | % | 7.2 | % | |||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
