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 | |||||||||||||||||||||||
| July 31, 2019 | April 30, 2019 | July 31, 2018 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 1,179 | $ | 0.78 | $ | 782 | $ | 0.51 | $ | 880 | $ | 0.54 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 17 | 0.02 | 69 | 0.03 | 4 | — | |||||||||||||||||
| Acquisition-related (credits) charges | (9 | ) | (0.01 | ) | 11 | 0.01 | 10 | 0.01 | |||||||||||||||
| Amortization of intangible assets | 29 | 0.02 | 29 | 0.02 | 20 | 0.01 | |||||||||||||||||
| Non-operating retirement-related credits | (21 | ) | (0.01 | ) | (10 | ) | (0.01 | ) | (56 | ) | (0.03 | ) | |||||||||||
| Defined benefit plan settlement charges | — | — | — | — | 1 | — | |||||||||||||||||
| Tax adjustments (a) | (315 | ) | (0.22 | ) | (60 | ) | (0.03 | ) | (19 | ) | (0.01 | ) | |||||||||||
| Non-GAAP net earnings | $ | 880 | $ | 0.58 | $ | 821 | $ | 0.53 | $ | 840 | $ | 0.52 | |||||||||||
| GAAP earnings from operations (b) | $ | 1,079 | $ | 928 | $ | 1,018 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 17 | 69 | 4 | ||||||||||||||||||||
| Acquisition-related (credits) charges | (9 | ) | 11 | 10 | |||||||||||||||||||
| Amortization of intangible assets | 29 | 29 | 20 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,116 | $ | 1,037 | $ | 1,052 | |||||||||||||||||
| GAAP operating margin (b) | 7 | % | 7 | % | 7 | % | |||||||||||||||||
| Non-GAAP adjustments | 1 | % | 0 | % | 0 | % | |||||||||||||||||
| Non-GAAP operating margin | 8 | % | 7 | % | 7 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
