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 | |||||||||||||||||||||||
| October 31, 2022 | July 31, 2022 | October 31, 2021 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net (loss) earnings | $ | (2 | ) | $ | — | $ | 1,119 | $ | 1.08 | $ | 3,099 | $ | 2.71 | ||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 70 | 0.07 | 13 | 0.01 | 29 | 0.02 | |||||||||||||||||
| Acquisition and divestiture charges | 235 | 0.23 | 31 | 0.03 | 28 | 0.02 | |||||||||||||||||
| Amortization of intangible assets | 74 | 0.07 | 50 | 0.05 | 51 | 0.04 | |||||||||||||||||
| Russia exit charges | — | — | 23 | 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 | ) | (33 | ) | (0.03 | ) | (38 | ) | (0.03 | ) | |||||||||||
| Tax adjustments (a) | 512 | 0.51 | (124 | ) | (0.12 | ) | 248 | 0.22 | |||||||||||||||
| Non-GAAP net earnings | $ | 855 | $ | 0.85 | $ | 1,079 | $ | 1.04 | $ | 1,076 | $ | 0.94 | |||||||||||
| GAAP earnings from operations | $ | 767 | $ | 1,272 | $ | 1,238 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 70 | 13 | 29 | ||||||||||||||||||||
| Acquisition and divestiture charges | 235 | 31 | 28 | ||||||||||||||||||||
| Amortization of intangible assets | 74 | 50 | 51 | ||||||||||||||||||||
| Russia exit charges | — | 23 | — | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,146 | $ | 1,389 | $ | 1,346 | |||||||||||||||||
| GAAP operating margin | 5.2 | % | 8.7 | % | 7.4 | % | |||||||||||||||||
| Non-GAAP adjustments | 2.5 | % | 0.8 | % | 0.7 | % | |||||||||||||||||
| Non-GAAP operating margin | 7.7 | % | 9.5 | % | 8.1 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
