| (a) | Interest and other, net and Provision for taxes includes a gain and corresponding tax expense, respectively, from the one-time Oracle litigation proceeds for the three months ended October 31, 2021. |
| 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 | |||||||||||||||||||||||
| January 31, 2022 | October 31, 2021 | January 31, 2021 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 1,086 | $ | 0.99 | $ | 3,099 | $ | 2.71 | $ | 1,068 | $ | 0.83 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 68 | 0.06 | 29 | 0.02 | 121 | 0.10 | |||||||||||||||||
| Acquisition-related charges | 20 | 0.02 | 28 | 0.02 | 6 | — | |||||||||||||||||
| Amortization of intangible assets | 52 | 0.05 | 51 | 0.04 | 29 | 0.02 | |||||||||||||||||
| Oracle litigation proceeds | — | — | (2,304 | ) | (2.01 | ) | — | — | |||||||||||||||
| Defined benefit plan settlement gains | — | — | (37 | ) | (0.03 | ) | — | — | |||||||||||||||
| Non-operating retirement-related credits | (34 | ) | (0.03 | ) | (38 | ) | (0.03 | ) | (38 | ) | (0.03 | ) | |||||||||||
| Tax adjustments (a) | 11 | 0.01 | 248 | 0.22 | 2 | — | |||||||||||||||||
| Non-GAAP net earnings | $ | 1,203 | $ | 1.10 | $ | 1,076 | $ | 0.94 | $ | 1,188 | $ | 0.92 | |||||||||||
| GAAP earnings from operations | $ | 1,359 | $ | 1,238 | $ | 1,321 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 68 | 29 | 121 | ||||||||||||||||||||
| Acquisition-related charges | 20 | 28 | 6 | ||||||||||||||||||||
| Amortization of intangible assets | 52 | 51 | 29 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,499 | $ | 1,346 | $ | 1,477 | |||||||||||||||||
| GAAP operating margin | 8.0 | % | 7.4 | % | 8.4 | % | |||||||||||||||||
| Non-GAAP adjustments | 0.8 | % | 0.7 | % | 1.0 | % | |||||||||||||||||
| Non-GAAP operating margin | 8.8 | % | 8.1 | % | 9.4 | % | |||||||||||||||||
