| HP INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS | |||||||
| (Unaudited) | |||||||
| (In millions, except per share amounts) | |||||||
| Nine months ended July 31, | |||||||
| 2018 | 2017 | ||||||
| Net revenue | $ | 43,106 | $ | 38,129 | |||
| Costs and expenses: | |||||||
| Cost of revenue | 35,134 | 31,071 | |||||
| Research and development | 1,050 | 899 | |||||
| Selling, general and administrative | 3,656 | 3,204 | |||||
| Restructuring and other charges | 92 | 249 | |||||
| Acquisition-related charges | 97 | 76 | |||||
| Amortization of intangible assets | 60 | 1 | |||||
| Total costs and expenses | 40,089 | 35,500 | |||||
| Earnings from operations | 3,017 | 2,629 | |||||
| Interest and other, net | (1,011 | ) | (201 | ) | |||
| Earnings from operations before taxes | 2,006 | 2,428 | |||||
| Benefit from (provision for) taxes | 1,870 | (562 | ) | ||||
| Net earnings | $ | 3,876 | $ | 1,866 | |||
| Net earnings per share: | |||||||
| Basic | $ | 2.38 | $ | 1.10 | |||
| Diluted | $ | 2.36 | $ | 1.09 | |||
| Cash dividends declared per share | $ | 0.56 | $ | 0.53 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 1,627 | 1,694 | |||||
| Diluted | 1,645 | 1,705 | |||||
| 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, 2018 |
Diluted
net earnings per share |
Three
months ended April 30, 2018 |
Diluted
net earnings per share |
Three
months ended July 31, 2017 |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 880 | $ | 0.54 | $ | 1,058 | $ | 0.64 | $ | 696 | $ | 0.41 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 4 | — | 57 | 0.03 | 46 | 0.03 | |||||||||||||||||
| Acquisition-related charges | 10 | 0.01 | 45 | 0.03 | 40 | 0.02 | |||||||||||||||||
| Amortization of intangible assets | 20 | 0.01 | 20 | 0.01 | — | — | |||||||||||||||||
| Non-operating retirement-related credits | (56 | ) | (0.03 | ) | (53 | ) | (0.03 | ) | (34 | ) | (0.02 | ) | |||||||||||
| Defined benefit plan settlement charges | 1 | — | — | — | 1 | — | |||||||||||||||||
| Debt extinguishment costs | — | — | 126 | 0.08 | — | — | |||||||||||||||||
| Tax adjustments | (19 | ) | (0.01 | ) | (455 | ) | (0.28 | ) | (14 | ) | (0.01 | ) | |||||||||||
| Non-GAAP net earnings | $ | 840 | $ | 0.52 | $ | 798 | $ | 0.48 | $ | 735 | $ | 0.43 | |||||||||||
| GAAP earnings from operations | $ | 1,080 | $ | 964 | $ | 955 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 4 | 57 | 46 | ||||||||||||||||||||
| Acquisition-related charges | 10 | 45 | 40 | ||||||||||||||||||||
| Amortization of intangible assets | 20 | 20 | — | ||||||||||||||||||||
| Non-operating retirement-related credits | (56 | ) | (53 | ) | (34 | ) | |||||||||||||||||
| Defined benefit plan settlement charges | 1 | — | 1 | ||||||||||||||||||||
| Non-GAAP earnings | $ | 1,059 | $ | 1,033 | $ | 1,008 | |||||||||||||||||
| GAAP operating margin | 7 | % | 7 | % | 7 | % | |||||||||||||||||
| Non-GAAP adjustments | 0 | % | 0 | % | 1 | % | |||||||||||||||||
| Non-GAAP operating margin | 7 | % | 7 | % | 8 | % | |||||||||||||||||
