HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET REVENUE, NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three Three Three
months months months
ended ended ended
October Diluted July Diluted October Diluted
31, earnings 31, earnings 31, earnings
2011 per share 2011 per share 2010 per share
------- --------- ------- --------- ------- ---------
GAAP net revenue $32,122 $31,189 $33,278
Non GAAP
adjustment:
WebOS device
contra
revenue,
net(a) 142 - -
------- ------- -------
Non GAAP net
revenue $32,264 $31,189 $33,278
======= ======= =======
GAAP net
earnings $ 239 $ 0.12 $ 1,926 $ 0.93 $ 2,538 $ 1.10
Non-GAAP
adjustments:
Amortization
of purchased
intangible
assets 411 0.20 358 0.17 424 0.19
Restructuring
charges 179 0.09 150 0.07 235 0.10
Acquisition-
related
charges in
earnings from
operations 114 0.06 18 0.01 51 0.02
Impairment of
goodwill and
purchased
intangible
assets(b) 885 0.44 - - - -
Wind down of
the WebOS
device
business(c) 755 0.38 - - - -
Acquisition-
related
charges in
interest and
other, net(d) 276 0.14 - - - -
Adjustments
for taxes (509) (0.26) (170) (0.08) (184) (0.08)
------- --------- ------- --------- ------- ---------
Non-GAAP net
earnings $ 2,350 $ 1.17 $ 2,282 $ 1.10 $ 3,064 $ 1.33
======= ========= ======= ========= ======= =========
GAAP earnings
from operations $ 795 $ 2,520 $ 3,295
Non-GAAP
adjustments:
Amortization
of purchased
intangible
assets 411 358 424
Restructuring
charges 179 150 235
Acquisition-
related
charges in
earnings from
operations 114 18 51
Impairment of
goodwill and
purchased
intangible
assets(b) 885 - -
Wind down of
the WebOS
device
business(c) 755 - -
------- ------- -------
Non-GAAP
earnings from
operations $ 3,139 $ 3,046 $ 4,005
======= ======= =======
GAAP operating
margin 2% 8% 10%
Non-GAAP
adjustments 8% 2% 2%
------- ------- -------
Non-GAAP
operating
margin 10% 10% 12%
======= ======= =======
(a) Includes contra revenue primarily associated with sales incentive
programs to wind down the webOS device business, net of current quarter
webOS device revenue.
(b) Includes impairment charges to goodwill and purchased intangible assets
associated with the acquisition of Palm Inc. on July 1,2010 recorded as
a result of the decision announced on August 18,2011 to wind down the
webOS device business.
(c) Includes primarily expenses for supplier-related obligations and contra
revenue associated with sales incentive programs related to winding down
the webOS device business.
(d) Includes primarily the cost of the British pound options bought to limit
foreign exchange rate risk in connection with the Autonomy acquisition.
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