As in prior periods, the financial information set forth in this release, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2019, Annual Report on Form 10-K for the fiscal year ended October 31, 2019 and HP’s other filings with the Securities and Exchange Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted.
HP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
| Three months ended | |||||||||||
| July 31, 2019 | April 30, 2019 | July 31, 2018 | |||||||||
| Net revenue | $ | 14,603 | $ | 14,036 | $ | 14,586 | |||||
| Costs and expenses: | |||||||||||
| Cost of revenue | 11,698 | 11,307 | 11,898 | ||||||||
| Research and development | 413 | 353 | 347 | ||||||||
| Selling, general and administrative(a) | 1,376 | 1,339 | 1,289 | ||||||||
| Restructuring and other charges | 17 | 69 | 4 | ||||||||
| Acquisition-related (credits) charges | (9 | ) | 11 | 10 | |||||||
| Amortization of intangible assets | 29 | 29 | 20 | ||||||||
| Total costs and expenses | 13,524 | 13,108 | 13,568 | ||||||||
| Earnings from operations | 1,079 | 928 | 1,018 | ||||||||
| Interest and other, net(a) | (831 | ) | (45 | ) | — | ||||||
| Earnings before taxes | 248 | 883 | 1,018 | ||||||||
| Benefit from (provision for) taxes | 931 | (101 | ) | (138 | ) | ||||||
| Net earnings | $ | 1,179 | $ | 782 | $ | 880 | |||||
| Net earnings per share: | |||||||||||
| Basic | $ | 0.79 | $ | 0.51 | $ | 0.55 | |||||
| Diluted | $ | 0.78 | $ | 0.51 | $ | 0.54 | |||||
| Cash dividends declared per share | $ | 0.32 | $ | — | $ | 0.28 | |||||
| Weighted-average shares used to compute net earnings per share: | |||||||||||
| Basic | 1,499 | 1,529 | 1,601 | ||||||||
| Diluted | 1,508 | 1,536 | 1,618 | ||||||||
(a) Pursuant to adoption of Accounting Standard Update ("ASU") 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.
