(a) Effective at the beginning of its first quarter of fiscal 2016, HP
implemented a reporting change to provide better transparency to its
segment operating results. This reporting change resulted in the
exclusion of certain market-related factors such as interest cost,
expected return on plan assets, amortized actuarial gains or losses,
and impacts from other market-related factors related to its defined
benefit pension and post-retirement benefit plans from its segment
operating results ("Non-operating retirement-related
credits/(charges)"). This change also resulted in the exclusion of
certain plan curtailments, settlements and special termination benefits
related to its defined benefit pension and post-retirement benefit
plans from HP's segment operating results. Segment operating results
will continue to include service costs and amortization of prior
service costs associated with HP's defined benefit pension and post-
retirement benefit plans. The reporting change had an immaterial impact
to previously reported segment net revenue and earnings from
operations. This change had no impact on HP's previously reported
consolidated net revenue, earnings from operations, net earnings or net
earnings per share.
HP INC. AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Three months ended Change (%)
---------------------------- -----------
October July 31, October
31, 2016 2016 31, 2015 Q/Q Y/Y
-------- -------- -------- ---- ----
Net revenue:
Personal Systems
Notebooks $ 4,636 $ 4,303 $ 4,384 8% 6%
Desktops 2,572 2,455 2,530 5% 2%
Workstations 489 476 472 3% 4%
Other 321 278 308 15% 4%
-------- -------- --------
Total Personal Systems 8,018 7,512 7,694 7% 4%
-------- -------- --------
Printing
Supplies 2,835 2,840 3,239 (0.2)% (12)%
Commercial Hardware 1,395 1,290 1,366 8% 2%
Consumer Hardware 328 293 360 12% (9)%
-------- -------- --------
Total Printing 4,558 4,423 4,965 3% (8)%
-------- -------- --------
Corporate Investments 1 -- 4 100% (75)%
-------- -------- --------
Total segments 12,577 11,935 12,663 5% (1)%
-------- -------- --------
Intersegment net revenue
eliminations and other(a) (65) (43) (397) NM NM
-------- -------- --------
Total net revenue $ 12,512 $ 11,892 $ 12,266 5% 2%
======== ======== ========
(a) "NM" represents not meaningful.
HP INC. AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions)
Twelve months ended Change
October 31, (%)
-------------------- -------
2016 2015 Y/Y
--------- --------- -------
Net revenue:
Personal Systems
Notebooks $ 16,982 $ 17,271 (2)%
Desktops 9,956 10,941 (9)%
Workstations 1,870 2,018 (7)%
Other 1,179 1,290 (9)%
--------- ---------
Total Personal Systems 29,987 31,520 (5)%
--------- ---------
Printing
Supplies 11,875 13,979 (15)%
Commercial Hardware 5,131 5,466 (6)%
Consumer Hardware 1,254 1,787 (30)%
--------- ---------
Total Printing 18,260 21,232 (14)%
--------- ---------
Corporate Investments 7 20 (65)%
--------- ---------
Total segments 48,254 52,772 (9)%
--------- ---------
Intersegment net revenue eliminations and
other(a) (16) (1,309) NM
--------- ---------
Total net revenue $ 48,238 $ 51,463 (6)%
========= =========
(a) "NM" represents not meaningful.
HP INC. AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY DATA
(Unaudited)
Change in Operating
Three months ended Margin (pts)
-------------------------- -------------------
October July 31, October
31, 2016 2016 31, 2015 Q/Q Y/Y
-------- -------- -------- --------- ---------
Segment operating margin:(a)
Personal Systems 4.3% 4.4% 3.7% (0.1) pts 0.6 pts
Printing 14.0% 20.4% 16.9% (6.4) pts (2.9) pts
Corporate Investments(b) NM NM NM NM NM
Total segments 7.6% 10.1% 8.7% (2.5) pts (1.1) pts
(a) Effective at the beginning of its first quarter of fiscal 2016, HP
implemented a reporting change to provide better transparency to its
segment operating results. This reporting change resulted in the
exclusion of certain market-related factors such as interest cost,
expected return on plan assets, amortized actuarial gains or losses,
and impacts from other market-related factors related to its defined
benefit pension and post-retirement benefit plans from its segment
operating results ("Non-operating retirement-related
credits/(charges)"). This change also resulted in the exclusion of
certain plan curtailments, settlements and special termination benefits
related to its defined benefit pension and post-retirement benefit
plans from HP's segment operating results. Segment operating results
will continue to include service costs and amortization of prior
service costs associated with HP's defined benefit pension and post-
retirement benefit plans. The reporting change had an immaterial impact
to previously reported segment net revenue and earnings from
operations. This change 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.
HP INC. AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions, except per share amounts)
Three months ended
-----------------------------
October July 31, October
31, 2016 2016 31, 2015
--------- --------- ---------
Numerator:
GAAP net earnings from continuing operations $ 513 $ 843 $ 1,515
========= ========= =========
Non-GAAP net earnings $ 614 $ 826 $ 548
========= ========= =========
Denominator:
Weighted-average shares outstanding during
the reporting period 1,712 1,711 1,802
Dilutive effect of employee stock plans(a) 17 14 19
--------- --------- ---------
Weighted-average shares used to compute
diluted net earnings per share 1,729 1,725 1,821
========= ========= =========
GAAP diluted net earnings per share from
continuing operations $ 0.30 $ 0.49 $ 0.83
========= ========= =========
Non-GAAP diluted net earnings per share $ 0.36 $ 0.48 $ 0.30
========= ========= =========
(a) Includes any dilutive effect of restricted stock units, stock options
and performance-based awards.
HP INC. AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions, except per share amounts)
Twelve months
ended October 31,
-----------------
2016 2015
-------- --------
Numerator:
GAAP net earnings from continuing operations $ 2,666 $ 3,718
-------- --------
Non-GAAP net earnings $ 2,787 $ 2,679
======== ========
Denominator:
Weighted-average shares outstanding during the reporting
period 1,730 1,814
Dilutive effect of employee stock plans(a) 13 22
-------- --------
Weighted-average shares used to compute diluted net
earnings per share 1,743 1,836
======== ========
GAAP diluted net earnings per share from continuing
operations $ 1.53 $ 2.02
======== ========
Non-GAAP diluted net earnings per share $ 1.60 $ 1.46
======== ========
(a) Includes any dilutive effect of restricted stock units, stock options
and performance-based awards.
HP Inc. Reports Fiscal 2016 Full-Year and Fourth Quarter Results
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