HP Inc. Reports Fiscal 2017 Third Quarter Results

(a) Pursuant to the adoption of Accounting Standard Update 2016-09 “Improvements to Employee Share-Based Payment Accounting” in Q1 FY17, excess income tax benefit from stock-based compensation expense is no longer separated from operating income tax cash flows and reported as financing activity. In addition, income taxes paid on shares withheld is now required to be presented as financing activity as opposed to operating activity. The change has been adopted including prior comparative periods.

    
HP INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
    
    Three months ended
    July 31,
2017
   April 30,
2017
   July 31,
2016
Net revenue:(a)         
Personal Systems  $8,404   $7,662   $7,512 
Printing  4,698   4,743   4,423 
Corporate Investments  2   3    
Total segments  13,104   12,408   11,935 
Net revenue eliminations and other  (44)  (23)  (43)
Total net revenue  $13,060   $12,385   $11,892 
          
Earnings from continuing operations before taxes:(a)         
Personal Systems  $313   $244   $333 
Printing  813   825   903 
Corporate Investments  (20)  (26)  (35)
Total segment earnings from operations  1,106   1,043   1,201 
Corporate costs and eliminations  (52)  (48)  (45)
Stock-based compensation expense  (46)  (48)  (39)
Restructuring and other charges  (46)  (140)  (36)
Acquisition-related charges     (40 )     (20 )      
Amortization of intangible assets           (1 )     (2 )
Defined benefit plan settlement charges     (1 )     (3 )      
Non-operating retirement-related credits     34       35       38  
Interest and other, net     (56 )     (64 )     (36 )
Total earnings from continuing operations before taxes     $ 899       $ 754       $ 1,081  

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