| HP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) | |||||||
| Six months ended April 30, | |||||||
| 2018 | 2017 | ||||||
| Net revenue | $ | 28,520 | $ | 25,069 | |||
| Costs and expenses: | |||||||
| Cost of revenue | 23,236 | 20,438 | |||||
| Research and development | 703 | 610 | |||||
| Selling, general and administrative | 2,429 | 2,107 | |||||
| Restructuring and other charges | 88 | 203 | |||||
| Acquisition-related charges | 87 | 36 | |||||
| Amortization of intangible assets | 40 | 1 | |||||
| Total costs and expenses | 26,583 | 23,395 | |||||
| Earnings from operations | 1,937 | 1,674 | |||||
| Interest and other, net | (949 | ) | (145 | ) | |||
| Earnings from operations before taxes | 988 | 1,529 | |||||
| Benefit from (provision for) taxes | 2,008 | (359 | ) | ||||
| Net earnings | $ | 2,996 | $ | 1,170 | |||
| Net earnings per share: | |||||||
| Basic | $ | 1.83 | $ | 0.69 | |||
| Diluted | $ | 1.81 | $ | 0.68 | |||
| Cash dividends declared per share | $ | 0.28 | $ | 0.27 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 1,640 | 1,696 | |||||
| Diluted | 1,658 | 1,716 | |||||
| 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, 2018 |
Diluted
net earnings per share |
Three
months ended January 31, 2018 |
Diluted
net earnings per share |
Three
months ended April 30, 2017 |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 1,058 | $ | 0.64 | $ | 1,938 | $ | 1.16 | $ | 559 | $ | 0.33 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 57 | 0.03 | 31 | 0.02 | 140 | 0.08 | |||||||||||||||||
| Acquisition-related charges | 45 | 0.03 | 42 | 0.02 | 20 | 0.01 | |||||||||||||||||
| Amortization of intangible assets | 20 | 0.01 | 20 | 0.01 | 1 | — | |||||||||||||||||
| Non-operating retirement-related credits | (53 | ) | (0.03 | ) | (56 | ) | (0.03 | ) | (35 | ) | (0.02 | ) | |||||||||||
| Defined benefit plan settlement charges | — | — | 1 | — | 3 | — | |||||||||||||||||
| Debt extinguishment costs | 126 | 0.08 | — | — | — | — | |||||||||||||||||
| Tax adjustments | (455 | ) | (0.28 | ) | (1,173 | ) | (0.70 | ) | (3 | ) | — | ||||||||||||
| Non-GAAP net earnings | $ | 798 | $ | 0.48 | $ | 803 | $ | 0.48 | $ | 685 | $ | 0.40 | |||||||||||
| GAAP earnings from operations | $ | 964 | $ | 973 | $ | 818 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 57 | 31 | 140 | ||||||||||||||||||||
| Acquisition-related charges | 45 | 42 | 20 | ||||||||||||||||||||
| Amortization of intangible assets | 20 | 20 | 1 | ||||||||||||||||||||
| Non-operating retirement-related credits | (53 | ) | (56 | ) | (35 | ) | |||||||||||||||||
| Defined benefit plan settlement charges | — | 1 | 3 | ||||||||||||||||||||
| Non-GAAP earnings | $ | 1,033 | $ | 1,011 | $ | 947 | |||||||||||||||||
| GAAP operating margin | 7 | % | 7 | % | 7 | % | |||||||||||||||||
| Non-GAAP adjustments | 0 | % | 0 | % | 1 | % | |||||||||||||||||
| Non-GAAP operating margin | 7 | % | 7 | % | 8 | % | |||||||||||||||||
