| HP INC. AND SUBSIDIARIES | ||||||||||||||
| SEGMENT OPERATING MARGIN SUMMARY | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | Change in Operating Margin (pts) | |||||||||||||
|
January 31,
2019 |
October 31,
2018 |
January 31,
2018 | Q/Q | Y/Y | ||||||||||
| Segment operating margin:(a) | ||||||||||||||
| Personal Systems | 4.2% | 3.7% | 3.5% | 0.5pts | 0.7pts | |||||||||
| Printing | 16.2% | 16.0% | 15.7% | 0.2pts | 0.5pts | |||||||||
| Corporate Investments(b) | NM | NM | NM | NM | NM | |||||||||
| Total segments | 8.2% | 7.8% | 7.7% | 0.4pts | 0.5pts | |||||||||
| (a) Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS. | ||||||||||||||
| (b) "NM" represents not meaningful. | ||||||||||||||
| HP INC. AND SUBSIDIARIES | ||||||||
| CALCULATION OF DILUTED NET EARNINGS PER SHARE | ||||||||
| (Unaudited) | ||||||||
| (In millions, except per share amounts) | ||||||||
| Three months ended | ||||||||
|
January 31,
2019 |
October 31,
2018 |
January 31,
2018 | ||||||
| Numerator: | ||||||||
| GAAP net earnings | $ | 803 | $ | 1,451 | $ | 1,938 | ||
| Non-GAAP net earnings | $ | 809 | $ | 865 | $ | 803 | ||
| Denominator: | ||||||||
| Weighted-average shares used to compute basic net earnings per share | 1,556 | 1,578 | 1,650 | |||||
| Dilutive effect of employee stock plans(a) | 11 | 20 | 19 | |||||
| Weighted-average shares used to compute diluted net earnings per share | 1,567 | 1,598 | 1,669 | |||||
| GAAP diluted net earnings per share | $ | 0.51 | $ | 0.91 | $ | 1.16 | ||
| Non-GAAP diluted net earnings per share | $ | 0.52 | $ | 0.54 | $ | 0.48 | ||
| (a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards. | ||||||||
| HP INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||
| FISCAL 2018 SEGMENT / BUSINESS UNIT INFORMATION (Revised) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | CHANGE | |||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve
months ended | Three months ended | Twelve
months ended | Three months ended | Twelve
months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| Jan 31,
2018 | Apr 30,
2018 | July 31,
2018 | Oct 31,
2018 | Oct 31,
2018 | Jan 31,
2018 | Apr 30,
2018 | July 31,
2018 | Oct 31,
2018 | Oct 31,
2018 | Jan 31,
2018 | Apr 30,
2018 | July 31,
2018 | Oct 31,
2018 | Oct 31,
2018 | |||||||||||||||||||||||||||||||||||||
| Net revenue: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Personal Systems | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Notebooks | $ | 5,595 | $ | 5,153 | $ | 5,634 | $ | 6,165 | $ | 22,547 | $ | 5,595 | $ | 5,153 | $ | 5,634 | $ | 6,165 | $ | 22,547 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
| Desktops | 2,955 | 2,752 | 2,869 | 2,991 | 11,567 | 2,955 | 2,752 | 2,869 | 2,991 | 11,567 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Workstations | 543 | 538 | 588 | 577 | 2,246 | 543 | 538 | 588 | 577 | 2,246 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Other | 347 | 319 | 304 | 331 | 1,301 | 347 | 319 | 304 | 331 | 1,301 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Total Personal Systems | 9,440 | 8,762 | 9,395 | 10,064 | 37,661 | 9,440 | 8,762 | 9,395 | 10,064 | 37,661 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Printing | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplies | 3,351 | 3,434 | 3,405 | 3,385 | 13,575 | 3,351 | 3,434 | 3,405 | 3,385 | 13,575 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Commercial Hardware | 1,037 | 1,145 | 1,129 | 1,203 | 4,514 | 1,070 | 1,186 | 1,170 | 1,248 | 4,674 | (33 | ) | (41 | ) | (41 | ) | (45 | ) | (160 | ) | |||||||||||||||||||||||||||||||
| Consumer Hardware | 688 | 662 | 654 | 712 | 2,716 | 655 | 621 | 613 | 667 | 2,556 | 33 | 41 | 41 | 45 | 160 | ||||||||||||||||||||||||||||||||||||
| Total Printing | 5,076 | 5,241 | 5,188 | 5,300 | 20,805 | 5,076 | 5,241 | 5,188 | 5,300 | 20,805 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Corporate Investments | 1 | 1 | 1 | 2 | 5 | 1 | 1 | 1 | 2 | 5 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Total segments | 14,517 | 14,004 | 14,584 | 15,366 | 58,471 | 14,517 | 14,004 | 14,584 | 15,366 | 58,471 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Other | — | (1 | ) | 2 | — | 1 | — | (1 | ) | 2 | — | 1 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total net revenue | $ | 14,517 | $ | 14,003 | $ | 14,586 | $ | 15,366 | $ | 58,472 | $ | 14,517 | $ | 14,003 | $ | 14,586 | $ | 15,366 | $ | 58,472 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
| (a) Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS. | |||||||||||||||||||||||||||||||||||||||||||||||||||
