| 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) | |||||||||||||||||||||
| Nine months ended | |||||||||||||||||||||
| July 31, 2020 | July 31, 2019 | ||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 2,176 | $ | 1.51 | $ | 2,764 | $ | 1.80 | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||
| Restructuring and other charges | 431 | 0.30 | 141 | 0.09 | |||||||||||||||||
| Acquisition-related charges | 14 | 0.01 | 12 | 0.01 | |||||||||||||||||
| Amortization of intangible assets | 84 | 0.06 | 87 | 0.06 | |||||||||||||||||
| Non-operating retirement-related credits | (168 | ) | (0.12 | ) | (43 | ) | (0.03 | ) | |||||||||||||
| Debt extinguishment costs | 40 | 0.03 | — | — | |||||||||||||||||
| Tax adjustments (a) | (178 | ) | (0.13 | ) | (451 | ) | (0.30 | ) | |||||||||||||
| Non-GAAP net earnings | $ | 2,399 | $ | 1.66 | $ | 2,510 | $ | 1.63 | |||||||||||||
| GAAP earnings from operations | $ | 2,470 | $ | 2,933 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||
| Restructuring and other charges | 431 | 141 | |||||||||||||||||||
| Acquisition-related charges | 14 | 12 | |||||||||||||||||||
| Amortization of intangible assets | 84 | 87 | |||||||||||||||||||
| Non-GAAP earnings from operations | $ | 2,999 | $ | 3,173 | |||||||||||||||||
| GAAP operating margin | 6 | % | 7 | % | |||||||||||||||||
| Non-GAAP adjustments | 1 | % | 0 | % | |||||||||||||||||
| Non-GAAP operating margin | 7 | % | 7 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
