| 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, 2023 | April 30, 2023 | July 31, 2022 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 766 | $ | 0.76 | $ | 1,054 | $ | 1.06 | $ | 1,122 | $ | 1.08 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 75 | 0.07 | 200 | 0.20 | 13 | 0.01 | |||||||||||||||||
| Acquisition and divestiture charges | 48 | 0.05 | 74 | 0.07 | 32 | 0.03 | |||||||||||||||||
| Amortization of intangible assets | 91 | 0.09 | 86 | 0.09 | 50 | 0.05 | |||||||||||||||||
| Russia exit charges | — | — | — | — | 23 | 0.02 | |||||||||||||||||
| Debt extinguishment benefit | (115 | ) | (0.11 | ) | — | — | — | — | |||||||||||||||
| Non-operating retirement-related credits | (12 | ) | (0.01 | ) | (13 | ) | (0.01 | ) | (34 | ) | (0.03 | ) | |||||||||||
| Tax adjustments (a) | 6 | 0.01 | (616 | ) | (0.62 | ) | (140 | ) | (0.13 | ) | |||||||||||||
| Non-GAAP net earnings | $ | 859 | $ | 0.86 | $ | 785 | $ | 0.79 | $ | 1,066 | $ | 1.03 | |||||||||||
| GAAP earnings from operations | $ | 952 | $ | 747 | $ | 1,256 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 75 | 200 | 13 | ||||||||||||||||||||
| Acquisition and divestiture charges | 48 | 74 | 32 | ||||||||||||||||||||
| Amortization of intangible assets | 91 | 86 | 50 | ||||||||||||||||||||
| Russia exit charges | — | — | 23 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,166 | $ | 1,107 | $ | 1,374 | |||||||||||||||||
| GAAP operating margin | 7.2 | % | 5.8 | % | 8.6 | % | |||||||||||||||||
| Non-GAAP adjustments | 1.6 | % | 2.8 | % | 0.8 | % | |||||||||||||||||
| Non-GAAP operating margin | 8.8 | % | 8.6 | % | 9.4 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
