| 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) | |||||||||||
|
Twelve months
ended October 31, 2018 |
Diluted
net earnings per share |
Twelve months
ended October 31, 2017 |
Diluted
net earnings per share | ||||||||
| GAAP net earnings | $ | 5,327 | $ | 3.26 | $ | 2,526 | $ | 1.48 | |||
| Non-GAAP adjustments: | |||||||||||
| Restructuring and other charges | 132 | 0.08 | 362 | 0.21 | |||||||
| Acquisition-related charges | 123 | 0.07 | 125 | 0.07 | |||||||
| Amortization of intangible assets | 80 | 0.05 | 1 | — | |||||||
| Non-operating retirement-related credits | (219) | (0.13) | (135) | (0.07) | |||||||
| Defined benefit plan settlement charges | 7 | — | 5 | — | |||||||
| Debt extinguishment costs | 126 | 0.08 | — | — | |||||||
| Tax adjustments | (2,270) | (1.39) | (69) | (0.04) | |||||||
| Non-GAAP net earnings | $ | 3,306 | $ | 2.02 | $ | 2,815 | $ | 1.65 | |||
| GAAP earnings from operations | $ | 4,064 | $ | 3,519 | |||||||
| Non-GAAP adjustments: | |||||||||||
| Restructuring and other charges | 132 | 362 | |||||||||
| Acquisition-related charges | 123 | 125 | |||||||||
| Amortization of intangible assets | 80 | 1 | |||||||||
| Non-operating retirement-related credits | (219) | (135) | |||||||||
| Defined benefit plan settlement charges | 7 | 5 | |||||||||
| Non-GAAP earnings from operations | $ | 4,187 | $ | 3,877 | |||||||
| GAAP operating margin | 7% | 7% | |||||||||
| Non-GAAP adjustments | 0% | 0% | |||||||||
| Non-GAAP operating margin | 7% | 7% | |||||||||
| HP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In millions) | |||||
| As of | |||||
| October 31, 2018 | October 31, 2017 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 5,166 | $ | 6,997 | |
| Accounts receivable, net | 5,113 | 4,414 | |||
| Inventory | 6,062 | 5,786 | |||
| Other current assets | 5,046 | 5,121 | |||
| Total current assets | 21,387 | 22,318 | |||
| Property, plant and equipment, net | 2,198 | 1,878 | |||
| Goodwill | 5,968 | 5,622 | |||
| Other non-current assets | 5,069 | 3,095 | |||
| Total assets | $ | 34,622 | $ | 32,913 | |
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||
| Current liabilities: | |||||
| Notes payable and short-term borrowings | $ | 1,463 | $ | 1,072 | |
| Accounts payable | 14,816 | 13,279 | |||
| Employee compensation and benefits | 1,136 | 894 | |||
| Taxes on earnings | 340 | 214 | |||
| Deferred revenue | 1,095 | 1,012 | |||
| Other accrued liabilities | 6,281 | 5,941 | |||
| Total current liabilities | 25,131 | 22,412 | |||
| Long-term debt | 4,524 | 6,747 | |||
| Other non-current liabilities | 5,606 | 7,162 | |||
| Stockholders' deficit | (639) | (3,408) | |||
| Total liabilities and stockholders' deficit | $ | 34,622 | $ | 32,913 | |
