All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any statements regarding the potential impact of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation; projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as future, anticipates, believes, estimates, expects, intends, plans, predicts, projects, will, would, could, can, may, and similar terms.
Risks, uncertainties and assumptions include factors relating to the effects of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation, the effects of which may give rise to or amplify the risks associated with many of these factors listed here; HPs ability to execute on its strategic plan, including the previously announced initiatives, business model changes and transformation; execution of planned structural cost reductions and productivity initiatives; HPs ability to complete any contemplated share repurchases, other capital return programs or other strategic transactions; the need to address the many challenges facing HPs businesses; the competitive pressures faced by HPs businesses; risks associated with executing HPs strategy and business model changes and transformation; successfully innovating, developing and executing HPs go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution and reseller landscape; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; successfully competing and maintaining the value proposition of HPs products, including supplies; the need to manage (and reliance on) third-party suppliers, including with respect to component shortages, and the need to manage HPs global, multi-tier distribution network, limit potential misuse of pricing programs by HPs channel partners, adapt to new or changing marketplaces and effectively deliver HPs services; challenges to HPs ability to accurately forecast inventories, demand and pricing, which may be due to HPs multi-tiered channel, sales of HPs products to unauthorized resellers or unauthorized resale of HPs products or our uneven sales cycle; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HPs business) and the anticipated benefits of the restructuring plans; the protection of HPs intellectual property assets, including intellectual property licensed from third parties; the hiring and retention of key employees; the impact of macroeconomic and geopolitical trends and events, including the effects of inflation; risks associated with HPs international operations; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; disruptions in operations from system security risks, data protection breaches, cyberattacks, extreme weather conditions, medical epidemics or pandemics such as the COVID-19 pandemic, and other natural or manmade disasters or catastrophic events; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; and other risks that are described in HPs Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and HPs other filings with the Securities and Exchange Commission.
As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HPs Quarterly Reports on Form 10-Q for the fiscal quarter ended July 31, 2021, Annual Report on Form 10-K for the fiscal year ended October 31, 2021, and HPs other filings with the Securities and Exchange Commission. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements.
HPs Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted. The content of HPs website is not incorporated by reference into this document or in any other report or document HP files with the SEC, and any references to HPs website are intended to be inactive textual references only.
HP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In millions, except per share amounts)
|Three months ended|
|July 31, 2021||April 30, 2021||July 31, 2020|
|Costs and expenses:|
|Cost of revenue||11,901||12,437||11,901|
|Research and development||477||514||359|
|Selling, general and administrative||1,408||1,483||1,156|
|Restructuring and other charges||56||39||59|
|Amortization of intangible assets||42||32||29|
|Total costs and expenses||13,908||14,515||13,515|
|Earnings from operations||1,381||1,362||779|
|Interest and other, net||(55||)||(26||)||(28||)|
|Earnings before taxes||1,326||1,336||751|
|Provision for taxes||(218||)||(108||)||(17||)|
|Net earnings per share:|
|Cash dividends declared per share||$||0.39||$||||$||0.35|
|Weighted-average shares used to compute net earnings per share:|