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, 2020 | July 31, 2020 | October 31, 2019 | ||||||||||||||||||||||||
Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | |||||||||||||||||||||
GAAP net earnings | $ | 668 | $ | 0.49 | $ | 734 | $ | 0.52 | $ | 388 | $ | 0.26 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||
Restructuring and other charges | 31 | 0.02 | 59 | 0.04 | 134 | 0.09 | ||||||||||||||||||||
Acquisition-related charges | 2 | — | 11 | 0.01 | 23 | 0.02 | ||||||||||||||||||||
Amortization of intangible assets | 29 | 0.02 | 29 | 0.02 | 29 | 0.02 | ||||||||||||||||||||
Non-operating retirement-related credits | (57 | ) | (0.04 | ) | (55 | ) | (0.04 | ) | (25 | ) | (0.02 | ) | ||||||||||||||
Debt extinguishment costs | — | — | 40 | 0.03 | — | — | ||||||||||||||||||||
Defined benefit plan settlement charges | 214 | 0.16 | — | — | — | — | ||||||||||||||||||||
Tax adjustments (a) | (52 | ) | (0.03 | ) | (116 | ) | (0.09 | ) | 350 | 0.23 | ||||||||||||||||
Non-GAAP net earnings | $ | 835 | $ | 0.62 | $ | 702 | $ | 0.49 | $ | 899 | $ | 0.60 | ||||||||||||||
GAAP earnings from operations | $ | 992 | $ | 779 | $ | 944 | ||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||
Restructuring and other charges | 31 | 59 | 134 | |||||||||||||||||||||||
Acquisition-related charges | 2 | 11 | 23 | |||||||||||||||||||||||
Amortization of intangible assets | 29 | 29 | 29 | |||||||||||||||||||||||
Non-GAAP earnings from operations | $ | 1,054 | $ | 878 | $ | 1,130 | ||||||||||||||||||||
GAAP operating margin | 6.5 | % | 5.4 | % | 6.1 | % | ||||||||||||||||||||
Non-GAAP adjustments | 0.4 | % | 0.7 | % | 1.2 | % | ||||||||||||||||||||
Non-GAAP operating margin | 6.9 | % | 6.1 | % | 7.3 | % |
(a) Includes tax impact on non-GAAP adjustments.