Compensation for limitations associated with use of non-GAAP financial measures
HP compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review those reconciliations carefully.
Usefulness of non-GAAP financial measures to investors
HP believes that providing net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) to investors in addition to the related GAAP financial measures provides investors with greater transparency to the information used by HPs management in its financial and operational decision making and allows investors to see HPs results through the eyes of management. HP further believes that providing this information better enables HPs investors to understand HPs operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HPs management to evaluate and measure such performance and financial condition. Disclosure of these non-GAAP financial measures also facilitates comparisons of HPs operating performance with the performance of other companies in HPs industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.
HP Inc. Media Relations
HP Inc. Investor Relations