(a) In connection with organizational realignments implemented in the first
quarter of fiscal year 2012, certain costs previously reported as Cost
of Sales have been reclassified as Selling, General and Administrative
expenses to better align those costs with the functional areas that
benefit from those expenditures.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET REVENUE, NET EARNINGS, EARNINGS FROM OPERATIONS,
OPERATING MARGIN AND EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three Three Three
months months months
ended Diluted ended Diluted ended Diluted
January earnings October earnings January earnings
31, per 31, per 31, per
2012 share 2011 share 2011 share
----------------- ----------------- -----------------
GAAP net revenue $30,036 $32,122 $32,302
Non GAAP
adjustment:
webOS device
contra revenue,
net(a) - 142 -
------- ------- -------
Non GAAP net
revenue $30,036 $32,264 $32,302
======= ======= =======
GAAP net earnings $ 1,468 $ 0.73 $ 239 $ 0.12 $ 2,605 $ 1.17
Non-GAAP
adjustments:
Amortization of
purchased
intangible
assets 466 0.24 411 0.20 425 0.19
Restructuring
charges 40 0.02 179 0.09 158 0.07
Acquisition-
related charges
in earnings from
operations 22 0.01 114 0.06 29 0.01
Impairment of
goodwill and
purchased
intangible
assets(b) - - 885 0.44 - -
Wind down of the
webOS device
business(c) - - 755 0.38 - -
Acquisition-
related charges
in interest and
other, net(d) - - 276 0.14 - -
Adjustments for
taxes (164) (0.08) (509) (0.26) (187) (0.08)
------- -------- ------- -------- ------- --------
Non-GAAP net
earnings $ 1,832 $ 0.92 $ 2,350 $ 1.17 $ 3,030 $ 1.36
======= ======== ======= ======== ======= ========
GAAP earnings from
operations $ 2,042 $ 795 $ 3,394
Non-GAAP
adjustments:
Amortization of
purchased
intangible
assets 466 411 425
Restructuring
charges 40 179 158
Acquisition-
related charges
in earnings from
operations 22 114 29
Impairment of
goodwill and
purchased
intangible
assets(b) - 885 -
Wind down of the
webOS device
business(c) - 755 -
------- ------- -------
Non-GAAP earnings
from operations $ 2,570 $ 3,139 $ 4,006
======= ======= =======
GAAP operating
margin 7% 2% 11%
Non-GAAP
adjustments 2% 8% 1%
------- ------- -------
Non-GAAP operating
margin 9% 10% 12%
======= ======= =======
