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, 2022 | October 31, 2021 | ||||||||||||||
Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||
GAAP net earnings | $ | 3,203 | $ | 3.05 | $ | 6,503 | $ | 5.33 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Restructuring and other charges | 233 | 0.22 | 245 | 0.20 | |||||||||||
Acquisition and divestiture charges | 318 | 0.30 | 68 | 0.06 | |||||||||||
Amortization of intangible assets | 228 | 0.22 | 154 | 0.13 | |||||||||||
Russia exit charges | 23 | 0.02 | — | — | |||||||||||
Debt extinguishment costs | — | — | 16 | 0.01 | |||||||||||
Oracle litigation proceeds | — | — | (2,304 | ) | (1.89 | ) | |||||||||
Defined benefit plan settlement gains | — | — | (37 | ) | (0.03 | ) | |||||||||
Non-operating retirement-related credits | (138 | ) | (0.13 | ) | (153 | ) | (0.13 | ) | |||||||
Tax adjustments (a) | 422 | 0.40 | 128 | 0.11 | |||||||||||
Non-GAAP net earnings | $ | 4,289 | $ | 4.08 | $ | 4,620 | $ | 3.79 | |||||||
GAAP earnings from operations | $ | 4,676 | $ | 5,302 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||
Restructuring and other charges | 233 | 245 | |||||||||||||
Acquisition and divestiture charges | 318 | 68 | |||||||||||||
Amortization of intangible assets | 228 | 154 | |||||||||||||
Russia exit charges | 23 | — | |||||||||||||
Non-GAAP earnings from operations | $ | 5,478 | $ | 5,769 | |||||||||||
GAAP operating margin | 7.4 | % | 8.4 | % | |||||||||||
Non-GAAP adjustments | 1.3 | % | 0.7 | % | |||||||||||
Non-GAAP operating margin | 8.7 | % | 9.1 | % |
(a) Includes tax impact on non-GAAP adjustments.