| 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) |
| Twelve months ended | |||||||||||||||||
| October 31, 2020 | October 31, 2019 | ||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||
| GAAP net earnings | $ | 2,844 | $ | 2.00 | $ | 3,152 | $ | 2.07 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 462 | 0.33 | 275 | 0.17 | |||||||||||||
| Acquisition-related charges | 16 | 0.01 | 35 | 0.02 | |||||||||||||
| Amortization of intangible assets | 113 | 0.08 | 116 | 0.08 | |||||||||||||
| Non-operating retirement-related credits | (225 | ) | (0.16 | ) | (68 | ) | (0.04 | ) | |||||||||
| Debt extinguishment costs | 40 | 0.03 | — | — | |||||||||||||
| Defined benefit plan settlement charges | 214 | 0.15 | — | — | |||||||||||||
| Tax adjustments (a) | (230 | ) | (0.16 | ) | (101 | ) | (0.06 | ) | |||||||||
| Non-GAAP net earnings | $ | 3,234 | $ | 2.28 | $ | 3,409 | $ | 2.24 | |||||||||
| GAAP earnings from operations | $ | 3,462 | $ | 3,877 | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Restructuring and other charges | 462 | 275 | |||||||||||||||
| Acquisition-related charges | 16 | 35 | |||||||||||||||
| Amortization of intangible assets | 113 | 116 | |||||||||||||||
| Non-GAAP earnings from operations | $ | 4,053 | $ | 4,303 | |||||||||||||
| GAAP operating margin | 6.1 | % | 6.6 | % | |||||||||||||
| Non-GAAP adjustments | 1.1 | % | 0.7 | % | |||||||||||||
| Non-GAAP operating margin | 7.2 | % | 7.3 | % | |||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
