HP to Resume Share Repurchase Program - Seite 2

Use of non-GAAP financial information
To supplement HP's historical and forecasted financial results presented on a GAAP basis, HP provides forecasts of non-GAAP diluted net earnings per share and free cash flow. A reconciliation of the adjustments to GAAP is included in this news release. In addition, an explanation of the ways in which HP's management uses these non-GAAP measures to evaluate its business, the substance behind HP's management's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP's management compensates for those limitations, and the substantive reasons why HP's management believes that these non-GAAP measures provide useful information to investors is included under further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for diluted net earnings per share or cash flow from operations prepared in accordance with GAAP.

Use of non-GAAP financial measures
To supplement HP's historical and forecasted financial results presented on a GAAP basis, HP provides forecasts of non-GAAP diluted net earnings per share and free cash flow. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share. The GAAP measure most directly comparable to free cash flow is cash flow from operations.

Use and economic substance of non-GAAP financial measures used by HP
Non-GAAP diluted net earnings per share is defined to exclude the effects of any restructuring charges, charges relating to the amortization of intangible assets and certain other acquisition-related charges recorded or expected to be recorded during the relevant period. In addition, non-GAAP diluted net earnings per share are adjusted by the amount of additional taxes or tax benefit associated with each non-GAAP item. Free cash flow is defined as cash flow from operations less net capital expenditures. Net capital expenditures is defined as investments in property, plant and equipment less proceeds from the sale or property, plants and equipment. HP's management uses free cash flow for the purpose of determining the amount of cash available for investment in HP's businesses, funding acquisitions, repurchasing stock and other purposes. HP's management also uses free cash flow to evaluate HP's historical and prospective liquidity.