HEWLETT-PACKARD COMPANY 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 Diluted Three Diluted Three Diluted months net months net months net ended earnings ended earnings ended earnings October per July per October per 31, 2014 share 31, 014 share 31, 2013 share -------- -------- -------- -------- -------- -------- GAAP net earnings $ 1,330 $ 0.70 $ 985 $ 0.52 $ 1,414 $ 0.73 Non-GAAP adjustments: Amortization of intangible assets 226 0.12 227 0.12 317 0.16 Restructuring charges 604 0.32 649 0.34 371 0.19 Acquisition-related charges 3 - 2 - 3 - Adjustments for taxes (149) (0.08) (165) (0.09) (146) (0.07) -------- -------- -------- -------- -------- -------- Non-GAAP net earnings $ 2,014 $ 1.06 $ 1,698 $ 0.89 $ 1,959 $ 1.01 ======== ======== ======== ======== ======== ======== GAAP earnings from operations $ 1,908 $ 1,458 $ 1,923 Non-GAAP adjustments: Amortization of intangible assets 226 227 317 Restructuring charges 604 649 371 Acquisition-related charges 3 2 3 -------- -------- -------- Non-GAAP earnings from operations $ 2,741 $ 2,336 $ 2,614 ======== ======== ======== GAAP operating margin 7% 5% 7% Non-GAAP adjustments 3% 3% 2% -------- -------- -------- Non-GAAP operating margin 10% 8% 9% ======== ======== ======== HEWLETT-PACKARD COMPANY 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) Diluted Diluted Twelve months net Twelve months net ended earnings ended earnings October 31, per October 31, per 2014 share 2013 share ------------- --------- ------------- --------- GAAP net earnings $ 5,013 $ 2.62 $ 5,113 $ 2.62 Non-GAAP adjustments: Amortization of intangible assets 1,000 0.52 1,373 0.70 Restructuring charges 1,619 0.85 990 0.51 Acquisition-related charges 11 0.01 22 0.01 Adjustments for taxes (498) (0.26) (560) (0.28) ------------- --------- ------------- --------- Non-GAAP net earnings $ 7,145 $ 3.74 $ 6,938 $ 3.56 ============= ========= ============= ========= GAAP earnings from operations $ 7,185 $ 7,131 Non-GAAP adjustments: Amortization of intangible assets 1,000 1,373 Restructuring charges 1,619 990 Acquisition-related charges 11 22 ------------- ------------- Non-GAAP earnings from operations $ 9,815 $ 9,516 ============= ============= GAAP operating margin 6% 6% Non-GAAP adjustments 3% 2% ------------- ------------- Non-GAAP operating margin 9% 8% ============= ============= HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In millions) As of October 31, ------------------------- 2014 2013 ------------ ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 15,133 $ 12,163 Accounts receivable 13,832 15,876 Financing receivables 2,946 3,144 Inventory 6,415 6,046 Other current assets 11,819 13,135 ------------ ------------ Total current assets 50,145 50,364 ------------ ------------ Property, plant and equipment 11,340 11,463 Long-term financing receivables and other assets 8,454 9,556 Goodwill and intangible assets 33,267 34,293 ------------ ------------ Total assets $ 103,206 $ 105,676 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and short-term borrowings $ 3,486 $ 5,979 Accounts payable 15,903 14,019 Employee compensation and benefits 4,209 4,436 Taxes on earnings 1,017 1,203 Deferred revenue 6,143 6,477 Other accrued liabilities 12,977 13,407 ------------ ------------ Total current liabilities 43,735 45,521 ------------ ------------ Long-term debt 16,039 16,608 Other liabilities 16,305 15,891 Stockholders' equity: HP stockholders' equity 26,731 27,269 Non-controlling interests 396 387 ------------ ------------ Total stockholders' equity 27,127 27,656 ------------ ------------ Total liabilities and stockholders' equity $ 103,206 $ 105,676 ============ ============ HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Three months ended October 31, ------------------------------ 2014 2013 -------------- -------------- Cash flows from operating activities: Net earnings $ 1,330 $ 1,414 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,075 1,120 Stock-based compensation expense 128 102 Provision for doubtful accounts and inventory 62 71 Restructuring charges 604 371 Deferred taxes on earnings 95 (952) Excess tax benefit from stock-based compensation (9) (1) Other, net 16 100 Changes in operating assets and liabilities (net of acquisitions): Accounts receivable 355 (1,542) Financing receivables 80 (84) Inventory (211) 441 Accounts payable 716 611 Taxes on earnings 18 937 Restructuring (456) (260) Other assets and liabilities (1,102) 488 -------------- -------------- Net cash provided by operating activities 2,701 2,816 -------------- -------------- Cash flows from investing activities: Investment in property, plant and equipment (956) (919) Proceeds from sale of property, plant and equipment 141 146 Purchases of available-for-sale securities and other investments (79) (450) Maturities and sales of available-for- sale securities and other investments 123 279 Payments made in connection with business acquisitions (29) - Proceeds from business diverstiture, net 6 - -------------- -------------- Net cash used in investing activities (794) (944) -------------- -------------- Cash flows from financing activities: Short-term borrowings with original maturities less than 90 days, net 59 16 Issuance of debt 272 25 Payment of debt (583) (2,248) Issuance of common stock under employee stock plans 54 9 Repurchase of common stock (750) (479) Excess tax benefit from stock-based compensation 9 1 Cash dividends paid (309) (284) -------------- -------------- Net cash used in financing activities (1,248) (2,960) -------------- -------------- Increase (decrease) in cash and cash equivalents 659 (1,088) Cash and cash equivalents at beginning of period 14,474 13,251 -------------- -------------- Cash and cash equivalents at end of period $ 15,133 $ 12,163 ============== ============== HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In millions) Twelve months ended October 31, -------------------------------- 2014 2013 --------------- --------------- (Unaudited) Cash flows from operating activities: Net earnings $ 5,013 $ 5,113 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 4,334 4,611 Stock-based compensation expense 560 500 Provision for doubtful accounts and inventory 266 336 Restructuring charges 1,619 990 Deferred taxes on earnings (34) (410) Excess tax benefit from stock-based compensation (58) (2) Other, net 81 443 Changes in operating assets and liabilities (net of acquisitions): Accounts receivable 2,017 530 Financing receivables 420 484 Inventory (580) (4) Accounts payable 1,912 541 Taxes on earnings 310 417 Restructuring (1,506) (904) Other assets and liabilities (2,021) (1,037) --------------- --------------- Net cash provided by operating activities 12,333 11,608 --------------- --------------- Cash flows from investing activities: Investment in property, plant and equipment (3,853) (3,199) Proceeds from sale of property, plant and equipment 843 653 Purchases of available-for-sale securities and other investments (1,086) (1,243) Maturities and sales of available-for- sale securities and other investments 1,347 1,153 Payments made in connection with business acquisitions (49) (167) Proceeds from business diverstiture, net 6 - --------------- --------------- Net cash used in investing activities (2,792) (2,803) --------------- --------------- Cash flows from financing activities: Short-term borrowings with original maturities less than 90 days, net 148 (154) Issuance of debt 2,875 279 Payment of debt (6,037) (5,721) Issuance of common stock under employee stock plans 297 288 Repurchase of common stock (2,728) (1,532) Excess tax benefit from stock-based compensation 58 2 Cash dividends paid (1,184) (1,105) --------------- --------------- Net cash used in financing activities (6,571) (7,943) --------------- --------------- Increase in cash and cash equivalents 2,970 862 Cash and cash equivalents at beginning of period 12,163 11,301 --------------- --------------- Cash and cash equivalents at end of period $ 15,133 $ 12,163 =============== =============== HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions) Three months ended ---------------------------------------- October 31, July 31, October 31, 2014 2014 2013 ------------ ------------ ------------ Net revenue:(a) Personal Systems $ 8,948 $ 8,649 $ 8,604 Printing 5,740 5,590 6,047 ------------ ------------ ------------ Total Printing and Personal Systems Group 14,688 14,239 14,651 Enterprise Group 7,270 6,894 7,575 Enterprise Services 5,511 5,590 5,918 Software 1,087 959 1,093 HP Financial Services 906 855 912 Corporate Investments 5 3 5 ------------ ------------ ------------ Total segments 29,467 28,540 30,154 Elimination of intersegment net revenue and other (1,061) (955) (1,023) ------------ ------------ ------------ Total HP consolidated net revenue $ 28,406 $ 27,585 $ 29,131 ============ ============ ============ Earnings before taxes:(a) Personal Systems $ 355 $ 346 $ 265 Printing 1,040 1,026 1,081 ------------ ------------ ------------ Total Printing and Personal Systems Group 1,395 1,372 1,346 Enterprise Group 1,075 966 1,092 Enterprise Services 374 228 255 Software 338 203 330 HP Financial Services 110 79 102 Corporate Investments (107) (115) (86) ------------ ------------ ------------ Total segment earnings from operations 3,185 2,733 3,039 Corporate and unallocated costs and eliminations (316) (265) (323) Stock-based compensation expense (128) (132) (102) Amortization of intangible assets (226) (227) (317) Restructuring charges (604) (649) (371) Acquisition-related charges (3) (2) (3) Interest and other, net (146) (145) (103) ------------ ------------ ------------ Total HP consolidated earnings before taxes $ 1,762 $ 1,313 $ 1,820 ============ ============ ============ (a) Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud- related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations. HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes also resulted in the transfer of operating profit among the Personal Systems, Printing, the Enterprise Group, Software and Corporate Investments segments. These changes had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions) Twelve months ended October 31, -------------------------------- 2014 2013 --------------- --------------- Net revenue:(a) Personal Systems $ 34,303 $ 32,179 Printing 22,979 23,896 --------------- --------------- Total Printing and Personal Systems Group 57,282 56,075 Enterprise Group 27,814 28,081 Enterprise Services 22,398 24,061 Software 3,933 4,021 HP Financial Services 3,498 3,629 Corporate Investments 302 24 --------------- --------------- Total segments 115,227 115,891 Elimination of intersegment net revenue and other (3,773) (3,593) --------------- --------------- Total HP consolidated net revenue $ 111,454 $ 112,298 =============== =============== Earnings before taxes:(a) Personal Systems $ 1,270 $ 980 Printing 4,185 3,933 --------------- --------------- Total Printing and Personal Systems Group 5,455 4,913 Enterprise Group 4,008 4,259 Enterprise Services 803 679 Software 872 868 HP Financial Services 389 399 Corporate Investments (199) (316) --------------- --------------- Total segment earnings from operations 11,328 10,802 Corporate and unallocated costs and eliminations (953) (786) Stock-based compensation expense (560) (500) Amortization of intangible assets (1,000) (1,373) Restructuring charges (1,619) (990) Acquisition-related charges (11) (22) Interest and other, net (628) (621) --------------- --------------- Total HP consolidated earnings before taxes $ 6,557 $ 6,510 =============== =============== (a) Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud- related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations. HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes also resulted in the transfer of operating profit among the Personal Systems, Printing, the Enterprise Group, Software and Corporate Investments segments. These changes had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) Change Three months ended (%) ------------------------------------- --------- October 31, July 31, October 31, 2014 2014 2013 Q/Q Y/Y ----------- ----------- ----------- --- --- Net revenue:(a) Printing and Personal Systems Group Personal Systems Notebooks $ 4,869 $ 4,359 $ 4,461 12% 9% Desktops 3,185 3,395 3,273 (6%) (3%) Workstations 558 579 554 (4%) 1% Other 336 316 316 6% 6% ----------- ----------- ----------- Total Personal Systems 8,948 8,649 8,604 3% 4% ----------- ----------- ----------- Printing Supplies 3,596 3,660 3,862 (2%) (7%) Commercial Hardware 1,567 1,401 1,554 12% 1% Consumer Hardware 577 529 631 9% (9%) ----------- ----------- ----------- Total Printing 5,740 5,590 6,047 3% (5%) ----------- ----------- ----------- Total Printing and Personal Systems Group 14,688 14,239 14,651 3% 0% ----------- ----------- ----------- Enterprise Group Industry Standard Servers 3,370 3,097 3,451 9% (2%) Technology Services 2,115 2,096 2,182 1% (3%) Storage 878 796 952 10% (8%) Networking 669 672 656 0% 2% Business Critical Systems 238 233 334 2% (29%) ----------- ----------- ----------- Total Enterprise Group 7,270 6,894 7,575 5% (4%) ----------- ----------- ----------- Enterprise Services Infrastructure Technology Outsourcing 3,446 3,494 3,722 (1%) (7%) Application and Business Services 2,065 2,096 2,196 (1%) (6%) ----------- ----------- ----------- Total Enterprise Services 5,511 5,590 5,918 (1%) (7%) ----------- ----------- ----------- Software 1,087 959 1,093 13% (1%) ----------- ----------- ----------- HP Financial Services 906 855 912 6% (1%) ----------- ----------- ----------- Corporate Investments 5 3 5 67% 0% ----------- ----------- ----------- Total segments 29,467 28,540 30,154 3% (2%) ----------- ----------- ----------- Elimination of intersegment net revenue and other (1,061) (955) (1,023) 11% 4% ----------- ----------- ----------- Total HP consolidated net revenue $ 28,406 $ 27,585 $ 29,131 3% (2%) =========== =========== =========== (a) Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud- related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations. HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) Twelve months ended October 31, -------------------------------- 2014 2013 --------------- --------------- Net revenue:(a) Printing and Personal Systems Group Personal Systems Notebooks $ 17,540 $ 16,029 Desktops 13,197 12,844 Workstations 2,218 2,147 Other 1,348 1,159 --------------- --------------- Total Personal Systems 34,303 32,179 --------------- --------------- Printing Supplies 14,917 15,716 Commercial Hardware 5,717 5,744 Consumer Hardware 2,345 2,436 --------------- --------------- Total Printing 22,979 23,896 --------------- --------------- Total Printing and Personal Systems Group 57,282 56,075 --------------- --------------- Enterprise Group Industry Standard Servers 12,474 12,102 Technology Services 8,466 8,788 Storage 3,316 3,475 Networking 2,629 2,526 Business Critical Systems 929 1,190 --------------- --------------- Total Enterprise Group 27,814 28,081 --------------- --------------- Enterprise Services Infrastructure Technology Outsourcing 14,038 15,223 Application and Business Services 8,360 8,838 --------------- --------------- Total Enterprise Services 22,398 24,061 --------------- --------------- Software 3,933 4,021 --------------- --------------- HP Financial Services 3,498 3,629 --------------- --------------- Corporate Investments 302 24 --------------- --------------- Total segments 115,227 115,891 --------------- --------------- Elimination of intersegment net revenue and other (3,773) (3,593) --------------- --------------- Total HP consolidated net revenue $ 111,454 $ 112,298 =============== =============== (a) Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud- related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations. HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES SEGMENT OPERATING MARGIN SUMMARY DATA (Unaudited) Three months Change in Operating ended Margin (pts) ----------- ---------------------- October 31, 2014 Q/Q Y/Y ----------- ---------- ---------- Segment operating margin:(a) Personal Systems 4.0% 0.0 pts 0.9 pts Printing 18.1% (0.3 pts) 0.2 pts Printing and Personal Systems Group 9.5% (0.1 pts) 0.3 pts Enterprise Group 14.8% 0.8 pts 0.4 pts Enterprise Services 6.8% 2.7 pts 2.5 pts Software 31.1% 9.9 pts 0.9 pts HP Financial Services 12.1% 2.9 pts 0.9 pts Corporate Investments(b) NM NM NM Total segments 10.8% 1.2 pts 0.7 pts (a) Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include (i) transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; (ii) transferring the Personal Systems trade and warranty support business from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment; (iii) transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the Technology Services business unit within the Enterprise Group segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; and (iv) transferring certain cloud- related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the Enterprise Group segment to the Corporate Investments segment. In addition, HP transferred certain intrasegment eliminations from the Enterprise Services segment and the Enterprise Group segment to corporate intersegment revenue eliminations. HP reflected these changes to its segment information in prior reporting periods on an as-if basis, which resulted in the transfer of revenue among the Personal Systems, Printing, the Enterprise Group, Enterprise Services and Software segments. These changes also resulted in the transfer of operating profit among the Personal Systems, Printing, the Enterprise Group, Software and Corporate Investments segments. These changes had no impact on HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. (b) "NM" represents not meaningful. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) Three months ended -------------------------------------- October 31, July 31, October 31, 2014 2014 2013 ------------ ------------ ------------ Numerator: GAAP net earnings $ 1,330 $ 985 $ 1,414 ============ ============ ============ Non-GAAP net earnings $ 2,014 $ 1,698 $ 1,959 ============ ============ ============ Denominator: Weighted-average shares outstanding during the reporting period 1,862 1,870 1,918 Dilutive effect of employee stock plans(a) 34 29 22 ------------ ------------ ------------ Weighted-average number of shares used to compute diluted net earnings per share 1,896 1,899 1,940 ============ ============ ============ GAAP diluted net earnings per share $ 0.70 $ 0.52 $ 0.73 ============ ============ ============ Non-GAAP diluted net earnings per share $ 1.06 $ 0.89 $ 1.01 ============ ============ ============ (a) Includes any dilutive effect of restricted stock units, restricted stock, stock options and performance-based restricted stock units. HEWLETT-PACKARD COMPANY AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) Twelve months ended October 31, ------------------------------- 2014 2013 --------------- --------------- Numerator: GAAP net earnings $ 5,013 $ 5,113 =============== =============== Non-GAAP net earnings $ 7,145 $ 6,938 =============== =============== Denominator: Weighted-average number of shares outstanding during the reporting period 1,882 1,934 Dilutive effect of employee stock plans(a) 30 16 --------------- --------------- Weighted-average number of shares used to compute diluted net earnings per share 1,912 1,950 =============== =============== GAAP diluted net earnings per share $ 2.62 $ 2.62 =============== =============== Non-GAAP diluted net earnings per share $ 3.74 $ 3.56 =============== =============== (a) Includes any dilutive effect of restricted stock units, restricted stock, stock options and performance-based restricted stock units.