HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT NON-GAAP OPERATING MARGIN SUMMARY DATA
(Unaudited)
Three months Change in Operating
ended Margin (pts)
------------- ----------------------
July 31,
2013 Q/Q Y/Y
------------- ---------- ----------
Non-GAAP operating margin:(a)
Personal Systems 3.0% (0.2 pts) (1.7 pts)
Printing 15.6% (0.2 pts) (0.2 pts)
Printing and Personal Systems
Group(b) 8.4% (0.4 pts) (0.8 pts)
Enterprise Group 15.2% (0.7 pts) (1.9 pts)
Enterprise Services 3.3% 0.7 pts (0.5 pts)
Software 20.5% 1.4 pts 2.5 pts
HP Financial Services 11.3% 0.3 pts 0.9 pts
Corporate Investments NM NM NM
Total segments 9.3% (0.1 pts) (0.8 pts)
Total HP consolidated non-GAAP
operating margin 8.4% (0.2 pts) (0.8 pts)
(a) HP has implemented certain organizational realignments in the first
quarter of fiscal 2013. As a result of these realignments, HP has re-
evaluated its segment financial reporting structure and, effective in
the first quarter of fiscal 2013, created two new financial reporting
segments, the Enterprise Group segment and the Enterprise Services
segment, and eliminated two other financial reporting segments, the
Enterprise Servers, Storage and Networking ("ESSN") segment and the
Services segment. The Enterprise Group segment consists of the business
units within the former ESSN segment and most of the services offerings
of the Technology Services ("TS") business unit, which was previously a
part of the former Services segment. The Enterprise Services segment
consists of the Applications and Business Services ("ABS") and
Infrastructure Technology Outsourcing ("ITO") business units from the
former Services segment, along with the end-user workplace support
services business that was previously a part of the TS business unit.
Taking into account these changes, HP has the following seven financial
reporting segments: Personal Systems, Printing, the Enterprise Group,
Enterprise Services, Software, HP Financial Services and Corporate
Investments.
Also as a result of these realignments, the financial results of the
Personal Systems commercial products support business, which were
previously reported as part of the TS business unit, will now be
reported as part of the Other business unit within the Personal Systems
segment, and the financial results of the portion of the business
intelligence services business that had continued to be reported as part
of the Corporate Investments segment following the implementation of
prior realignment actions will now be reported as part of the ABS
business unit. In addition, the end-user workplace support services
business, which, as noted above, was previously a part of the TS
business unit and will now become a part of the Enterprise Services
segment, will be reported as part of the ITO business unit within that
segment.
To provide improved visibility and comparability, HP has reflected these
changes to its reporting structure in prior financial reporting periods
on an as-if basis, which has resulted in the transfer of revenue and
operating profit among the Personal Systems, the Enterprise Group,
Enterprise Services and Corporate Investments segments. These changes
had no impact on the previously reported financial results for the
Printing, Software or HP Financial Services segments. In addition, none
of these changes impacted HP's previously reported consolidated net
revenue, earnings from operations, net earnings or net earnings per
share.
(b) The Personal Systems segment and the Printing segment are structured
beneath a broader Printing and Personal Systems Group ("PPS"). While PPS
is not a financial reporting segment, HP provides financial data
aggregating the segments within it in order to provide a supplementary
view of its business.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three months ended
----------------------------------
July 31, April 30, July 31,
2013 2013 2012
---------- ---------- ----------
Numerator:
GAAP net earnings (loss) $ 1,390 $ 1,077 $ (8,857)
========== ========== ==========
Non-GAAP net earnings $ 1,676 $ 1,698 $ 1,973
========== ========== ==========
Denominator:
Weighted-average shares used to
compute basic net earnings (loss) per
share and diluted net (loss) per
share 1,929 1,935 1,971
Dilutive effect of employee stock
plans 19 12 4
---------- ---------- ----------
Weighted-average shares used to
compute diluted net earnings per
share 1,948 1,947 1,975
========== ========== ==========
GAAP net earnings (loss) per share:
Basic $ 0.72 $ 0.56 $ (4.49)
Diluted(a) $ 0.71 $ 0.55 $ (4.49)
Non-GAAP net earnings per share:
Basic $ 0.87 $ 0.88 $ 1.00
Diluted(b) $ 0.86 $ 0.87 $ 1.00
(a) GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock, but that effect is excluded
when calculating GAAP diluted net (loss) per share because it would be
anti-dilutive.
(b) Non-GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Nine months ended
July 31,
------------------------
2013 2012
----------- -----------
Numerator:
GAAP net earnings (loss) $ 3,699 $ (5,796)
=========== ===========
Non-GAAP net earnings $ 4,979 $ 5,754
=========== ===========
Denominator:
Weighted-average shares used to compute basic
net earnings (loss) per share and diluted net
(loss) per share 1,939 1,977
Dilutive effect of employee stock plans 13 15
----------- -----------
Weighted-average shares used to compute
diluted net earnings per share 1,952 1,992
=========== ===========
GAAP net earnings (loss) per share:
Basic $ 1.91 $ (2.93)
Diluted(a) $ 1.89 $ (2.93)
Non-GAAP net earnings per share:
Basic $ 2.57 $ 2.91
Diluted(b) $ 2.55 $ 2.89
(a) GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock, but that effect is excluded
when calculating GAAP diluted net (loss) per share because it would be
anti-dilutive.
(b) Non-GAAP diluted net earnings per share reflects any dilutive effect of
outstanding stock options, performance-based restricted units,
restricted stock units and restricted stock.
HP Reports Third Quarter 2013 Results
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