| 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, 2022 | April 30, 2022 | July 31, 2021 | |||||||||||||||||||||
|
Amounts
|
Diluted
net earnings per share |
Amounts
|
Diluted
net earnings per share |
Amounts
|
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 1,119 | $ | 1.08 | $ | 1,000 | $ | 0.94 | $ | 1,108 | $ | 0.92 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 13 | 0.01 | 82 | 0.07 | 56 | 0.04 | |||||||||||||||||
| Acquisition-related charges | 31 | 0.03 | 32 | 0.03 | 24 | 0.02 | |||||||||||||||||
| Amortization of intangible assets | 50 | 0.05 | 52 | 0.05 | 42 | 0.04 | |||||||||||||||||
| Russia exit charges | 23 | 0.02 | — | — | — | — | |||||||||||||||||
| Debt extinguishment costs | — | — | — | — | 16 | 0.01 | |||||||||||||||||
| Non-operating retirement-related credits | (33 | ) | (0.03 | ) | (35 | ) | (0.03 | ) | (39 | ) | (0.03 | ) | |||||||||||
| Tax adjustments (a) | (124 | ) | (0.12 | ) | 21 | 0.02 | (9 | ) | — | ||||||||||||||
| Non-GAAP net earnings | $ | 1,079 | $ | 1.04 | $ | 1,152 | $ | 1.08 | $ | 1,198 | $ | 1.00 | |||||||||||
| GAAP earnings from operations | $ | 1,272 | $ | 1,278 | $ | 1,381 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 13 | 82 | 56 | ||||||||||||||||||||
| Acquisition-related charges | 31 | 32 | 24 | ||||||||||||||||||||
| Amortization of intangible assets | 50 | 52 | 42 | ||||||||||||||||||||
| Russia exit charges | 23 | — | — | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,389 | $ | 1,444 | $ | 1,503 | |||||||||||||||||
| GAAP operating margin | 8.7 | % | 7.8 | % | 9.0 | % | |||||||||||||||||
| Non-GAAP adjustments | 0.8 | % | 1.0 | % | 0.8 | % | |||||||||||||||||
| Non-GAAP operating margin | 9.5 | % | 8.8 | % | 9.8 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
