| 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 | |||||||||||||||||||||||
| January 31, 2020 | October 31, 2019 | January 31, 2019 | |||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||
| GAAP net earnings | $ | 678 | $ | 0.46 | $ | 388 | $ | 0.26 | $ | 803 | $ | 0.51 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 291 | 0.20 | 134 | 0.09 | 55 | 0.04 | |||||||||||||||||
| Acquisition-related charges | — | — | 23 | 0.02 | 10 | 0.01 | |||||||||||||||||
| Amortization of intangible assets | 26 | 0.02 | 29 | 0.02 | 29 | 0.02 | |||||||||||||||||
| Non-operating retirement-related credits | (57 | ) | (0.04 | ) | (25 | ) | (0.02 | ) | (12 | ) | (0.01 | ) | |||||||||||
| Tax adjustments (a) | 18 | 0.01 | 350 | 0.23 | (76 | ) | (0.05 | ) | |||||||||||||||
| Non-GAAP net earnings | $ | 956 | $ | 0.65 | $ | 899 | $ | 0.60 | $ | 809 | $ | 0.52 | |||||||||||
| GAAP earnings from operations | $ | 865 | $ | 944 | $ | 926 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Restructuring and other charges | 291 | 134 | 55 | ||||||||||||||||||||
| Acquisition-related charges | — | 23 | 10 | ||||||||||||||||||||
| Amortization of intangible assets | 26 | 29 | 29 | ||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 1,182 | $ | 1,130 | $ | 1,020 | |||||||||||||||||
| GAAP operating margin | 6 | % | 6 | % | 6 | % | |||||||||||||||||
| Non-GAAP adjustments | 2 | % | 1 | % | 1 | % | |||||||||||||||||
| Non-GAAP operating margin | 8 | % | 7 | % | 7 | % | |||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
