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, 2021 | October 31, 2020 | January 31, 2020 | ||||||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | |||||||||||||||||||||
| GAAP net earnings | $ | 1,068 | $ | 0.83 | $ | 668 | $ | 0.49 | $ | 678 | $ | 0.46 | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||
| Restructuring and other charges | 121 | 0.10 | 31 | 0.02 | 291 | 0.20 | ||||||||||||||||||||
| Acquisition-related charges | 6 | — | 2 | — | — | — | ||||||||||||||||||||
| Amortization of intangible assets | 29 | 0.02 | 29 | 0.02 | 26 | 0.02 | ||||||||||||||||||||
| Non-operating retirement-related credits | (38) | (0.03) | (57) | (0.04) | (57) | (0.04) | ||||||||||||||||||||
| Defined benefit plan settlement charges | — | — | 214 | 0.16 | — | — | ||||||||||||||||||||
| Tax adjustments (a) | 2 | — | (52) | (0.03) | 18 | 0.01 | ||||||||||||||||||||
| Non-GAAP net earnings | $ | 1,188 | $ | 0.92 | $ | 835 | $ | 0.62 | $ | 956 | $ | 0.65 | ||||||||||||||
| GAAP earnings from operations | $ | 1,321 | $ | 992 | $ | 865 | ||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||
| Restructuring and other charges | 121 | 31 | 291 | |||||||||||||||||||||||
| Acquisition-related charges | 6 | 2 | — | |||||||||||||||||||||||
| Amortization of intangible assets | 29 | 29 | 26 | |||||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,477 | $ | 1,054 | $ | 1,182 | ||||||||||||||||||||
| GAAP operating margin | 8.4% | 6.5% | 5.9% | |||||||||||||||||||||||
| Non-GAAP adjustments | 1.0% | 0.4% | 2.2% | |||||||||||||||||||||||
| Non-GAAP operating margin | 9.4% | 6.9% | 8.1% | |||||||||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
