| 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, 2021 | October 31, 2020 | ||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||
| GAAP net earnings | $ | 6,503 | $ | 5.33 | $ | 2,844 | $ | 2.00 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 245 | 0.20 | 462 | 0.33 | |||||||||||||
| Acquisition-related charges | 68 | 0.06 | 16 | 0.01 | |||||||||||||
| Amortization of intangible assets | 154 | 0.13 | 113 | 0.08 | |||||||||||||
| Debt extinguishment costs | 16 | 0.01 | 40 | 0.03 | |||||||||||||
| Oracle litigation proceeds | (2,304 | ) | (1.89 | ) | — | — | |||||||||||
| Defined benefit plan settlement (gains) charges | (37 | ) | (0.03 | ) | 214 | 0.15 | |||||||||||
| Non-operating retirement-related credits | (153 | ) | (0.13 | ) | (225 | ) | (0.16 | ) | |||||||||
| Tax adjustments (a) | 128 | 0.11 | (230 | ) | (0.16 | ) | |||||||||||
| Non-GAAP net earnings | $ | 4,620 | $ | 3.79 | $ | 3,234 | $ | 2.28 | |||||||||
| GAAP earnings from operations | $ | 5,302 | $ | 3,462 | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 245 | 462 | |||||||||||||||
| Acquisition-related charges | 68 | 16 | |||||||||||||||
| Amortization of intangible assets | 154 | 113 | |||||||||||||||
| Non-GAAP earnings from operations | $ | 5,769 | $ | 4,053 | |||||||||||||
| GAAP operating margin | 8.4 | % | 6.1 | % | |||||||||||||
| Non-GAAP adjustments | 0.7 | % | 1.1 | % | |||||||||||||
| Non-GAAP operating margin | 9.1 | % | 7.2 | % | |||||||||||||
