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, 2022 | October 31, 2021 | ||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||
| GAAP net earnings | $ | 3,203 | $ | 3.05 | $ | 6,503 | $ | 5.33 | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring and other charges | 233 | 0.22 | 245 | 0.20 | |||||||||||
| Acquisition and divestiture charges | 318 | 0.30 | 68 | 0.06 | |||||||||||
| Amortization of intangible assets | 228 | 0.22 | 154 | 0.13 | |||||||||||
| Russia exit charges | 23 | 0.02 | — | — | |||||||||||
| Debt extinguishment costs | — | — | 16 | 0.01 | |||||||||||
| Oracle litigation proceeds | — | — | (2,304 | ) | (1.89 | ) | |||||||||
| Defined benefit plan settlement gains | — | — | (37 | ) | (0.03 | ) | |||||||||
| Non-operating retirement-related credits | (138 | ) | (0.13 | ) | (153 | ) | (0.13 | ) | |||||||
| Tax adjustments (a) | 422 | 0.40 | 128 | 0.11 | |||||||||||
| Non-GAAP net earnings | $ | 4,289 | $ | 4.08 | $ | 4,620 | $ | 3.79 | |||||||
| GAAP earnings from operations | $ | 4,676 | $ | 5,302 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Restructuring and other charges | 233 | 245 | |||||||||||||
| Acquisition and divestiture charges | 318 | 68 | |||||||||||||
| Amortization of intangible assets | 228 | 154 | |||||||||||||
| Russia exit charges | 23 | — | |||||||||||||
| Non-GAAP earnings from operations | $ | 5,478 | $ | 5,769 | |||||||||||
| GAAP operating margin | 7.4 | % | 8.4 | % | |||||||||||
| Non-GAAP adjustments | 1.3 | % | 0.7 | % | |||||||||||
| Non-GAAP operating margin | 8.7 | % | 9.1 | % | |||||||||||
(a) Includes tax impact on non-GAAP adjustments.
