| 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 | ||||||||||||||||||||||
| October 31, 2023 | July 31, 2023 | October 31, 2022 | ||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net (loss) earnings per share | |||||||||||||||||
| GAAP net earnings (loss) | $ | 974 | $ | 0.97 | $ | 766 | $ | 0.76 | $ | (23) | $ | (0.02) | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Restructuring and other charges | 111 | 0.11 | 75 | 0.07 | 70 | 0.07 | ||||||||||||||||
| Acquisition and divestiture charges | 34 | 0.03 | 48 | 0.05 | 235 | 0.23 | ||||||||||||||||
| Amortization of intangible assets | 88 | 0.09 | 91 | 0.09 | 74 | 0.07 | ||||||||||||||||
| Debt extinguishment benefit | — | — | (115) | (0.11) | — | — | ||||||||||||||||
| Non-operating retirement-related credits | (11) | (0.01) | (12) | (0.01) | (35) | (0.03) | ||||||||||||||||
| Tax adjustments (a) | (294) | (0.29) | 6 | 0.01 | 511 | 0.50 | ||||||||||||||||
| Non-GAAP net earnings | $ | 902 | $ | 0.90 | $ | 859 | $ | 0.86 | $ | 832 | $ | 0.82 | ||||||||||
| GAAP earnings from operations | $ | 1,014 | $ | 952 | $ | 741 | ||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Restructuring and other charges | 111 | 75 | 70 | |||||||||||||||||||
| Acquisition and divestiture charges | 34 | 48 | 235 | |||||||||||||||||||
| Amortization of intangible assets | 88 | 91 | 74 | |||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,247 | $ | 1,166 | $ | 1,120 | ||||||||||||||||
| GAAP operating margin | 7.3 | % | 7.2 | % | 5.0 | % | ||||||||||||||||
| Non-GAAP adjustments | 1.7 | % | 1.6 | % | 2.6 | % | ||||||||||||||||
| Non-GAAP operating margin | 9.0 | % | 8.8 | % | 7.6 | % | ||||||||||||||||
| (a) Includes tax impact on non-GAAP adjustments. | ||||||||||||||||||||||
