HP Inc. Reports Fiscal 2018 Second Quarter Results

(a) Effective at the beginning of its first quarter of fiscal year 2018, HP implemented an organizational change to align its segment and business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of long life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements, which are being eliminated for the purposes of reporting HP’s consolidated net revenue, have now been reclassified from Other to segments. HP has reflected this change to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
 

(b) "NM" represents not meaningful.

 
HP INC. AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
 
  Six months ended April 30,  Change (%)
  2018  2017  Y/Y
Net revenue:(a)     
Personal Systems     
Notebooks$10,748  $9,383  15%
Desktops5,707  4,911  16%
Workstations1,081  986  10%
Other666  589  13%
Total Personal Systems18,202  15,869  15%
Printing     
Supplies6,785  6,223  9%
Commercial Hardware2,256  1,775  27%
Consumer Hardware1,276  1,194  7%
Total Printing10,317  9,192  12%
Corporate Investments2  5  (60)%
Total segments28,521  25,066  14%
Other(b)(1) 3  NM
Total net revenue$28,520  $25,069  14%
           

(a) Effective at the beginning of its first quarter of fiscal year 2018, HP implemented an organizational change to align its segment and business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of long life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements, which are being eliminated for the purposes of reporting HP’s consolidated net revenue, have now been reclassified from Other to segments. HP has reflected this change to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
 

(b) "NM" represents not meaningful.

 
HP INC. AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY
(Unaudited)
    
  Three months ended  Change in Operating Margin (pts)
  April 30,
2018
  January 31,
2018
  April 30,
2017
  Q/Q   Y/Y
Segment operating margin: (a)                  
Personal Systems 3.8 %   3.6 %   3.2 %   0.2 %   0.6 %
Printing 16.0 %   15.8 %   17.3 %   0.2 %   (1.3 )%
Corporate Investments (b)     NM       NM       NM       NM       NM
Total segments 8.2 %   7.7 %   8.4 %   0.5 %   (0.2 )%
                             

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