What changed in this filing

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Item 1. Financial Statements

2023-05-31 compared with 2023-03-01 · 264 added, 176 removed, 825 unchanged (35% of the section changed)

Financial Statements and Supplementary Data.

Consolidated Condensed Statements of Earnings for the three months ended January 31, 2023 and 2022 (Unaudited)

Consolidated Condensed Statements of Comprehensive Income for the three months ended January 31, 2023 and 2022 (Unaudited)

Consolidated Condensed Balance Sheets as of January 31, 2023 and October 31, 2022 (Unaudited)

Consolidated Condensed Statements of Cash Flows for the three months ended January 31, 2023 and 2022 (Unaudited)

Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 202 3 and 202 2 (Unaudited)

Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 30, 202 3 and 202 2 (Unaudited)

Consolidated Condensed Balance Sheets as of April 30, 202 3 and October 31, 202 2 (Unaudited)

Consolidated Condensed Statements of Cash Flows for the six months ended April 30, 202 3 and 202 2 (Unaudited)

Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited)

13 unchanged sentences

Consolidated Condensed Statements of Earnings

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

In millions, except per share amounts

11 unchanged sentences

Earnings before taxes 602 1,239 1,186 2,566

Provision for taxes ( 97 ) ( 241 )

Benefit from (provision for) taxes 464 ( 239 ) 367 ( 480 )

Net earnings $ 1,066 $ 1,000 $ 1,553 $ 2,086

8 unchanged sentences

Consolidated Condensed Statements of Comprehensive Income

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Net earnings $ 1,066 $ 1,000 $ 1,553 $ 2,086

Other comprehensive (loss) income before taxes:

Other comprehensive income before taxes:

Change in unrealized components of available-for-sale debt securities:

Unrealized gains (losses) arising during the period 4 ( 2 )

Unrealized (loss) gains arising during the period — ( 4 ) 4 ( 6 )

Change in unrealized components of cash flow hedges:

Unrealized (losses) gains arising during the period ( 66 ) 603 ( 689 ) 902

Gains reclassified into earnings ( 334 ) ( 44 )

Losses (gains) reclassified into earnings 162 ( 120 ) ( 172 ) ( 164 )

96 483 ( 861 ) 738

Change in unrealized components of defined benefit plans:

(Losses) gains arising during the period ( 38 ) 21

Gains (losses) arising during the period 6 1 ( 32 ) 22

Amortization of actuarial loss and prior service benefit — 5 — 11

Curtailments, settlements and other ( 1 ) — — —

5 6 ( 32 ) 33

Change in cumulative translation adjustment 9 ( 32 ) 38 ( 42 )

Other comprehensive (loss) income before taxes ( 961 ) 270

Benefit from (provision for) taxes 192 ( 26 )

Other comprehensive (loss) income, net of taxes ( 769 ) 244

Comprehensive (loss) income $ ( 282 ) $ 1,330

Other comprehensive income (loss) before taxes 110 453 ( 851 ) 723

(Provision for) benefit from taxes ( 22 ) ( 90 ) 170 ( 116 )

Other comprehensive income (loss), net of taxes 88 363 ( 681 ) 607

Comprehensive income $ 1,154 $ 1,363 $ 872 $ 2,693

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

1 unchanged sentence

Consolidated Condensed Balance Sheets

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

In millions, except par value

21 unchanged sentences

Common stock, $ 0.01 par value ( 9,600 shares authorized;

985 and 980 shares issued and outstanding at January 31, 2023 and October 31, 2022, respectively)

986 and 980 shares issued and outstanding at April 30, 2023 and October 31, 2022, respectively)

Additional paid-in capital 1,344 1,172

6 unchanged sentences

Consolidated Condensed Statements of Cash Flows

Three months ended January 31

Six months ended April 30

Cash flows from operating activities:

Net earnings $ 1,553 $ 2,086

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 421 390

11 unchanged sentences

Other assets and liabilities ( 153 ) ( 555 )

Net cash (used in) provided by operating activities ( 16 ) 1,657

Net cash provided by operating activities 620 2,165

Cash flows from investing activities:

2 unchanged sentences

Maturities and sales of available-for-sale securities and other investments 18 7

Collateral posted for derivative instruments ( 240 ) 14

Collateral (posted) returned for derivative instruments ( 127 ) 14

Payment made in connection with business acquisitions, net of cash acquired ( 5 ) ( 24 )

1 unchanged sentence

Cash flows from financing activities:

Proceed from (Payment of) short-term borrowings with original maturities less than 90 days, net 200 ( 400 )

Payment of short-term borrowings with original maturities less than 90 days, net ( 10 ) ( 400 )

Proceeds from debt, net of issuance costs 117 2,060

4 unchanged sentences

Collateral returned for derivative instruments

Settlement of cash flow hedges — 59

Net cash used in financing activities ( 1,384 ) ( 1,525 )

Decrease in cash, cash equivalents and restricted cash ( 1,376 ) ( 905 )

(Decrease) increase in cash, cash equivalents and restricted cash ( 1,205 ) 178

Cash, cash equivalents and restricted cash at beginning of period 3,145 4,299

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Paid-in Capital Accumulated

Comprehensive Loss Total Stockholders’ Deficit

Comprehensive Income (Loss) Total Stockholders’ Deficit

Number of Shares Par Value Accumulated Deficit

In millions, except number of shares in thousands

Balance January 31, 2022 1,059,900 $ 11 $ 1,046 $ ( 3,369 ) $ ( 16 ) $ ( 2,328 )

Net earnings 1,000 1,000

Other comprehensive income, net of taxes 363 363

Comprehensive income 1,363

Issuance of common stock in connection with employee stock plans and other 608 ( 7 ) ( 7 )

Repurchases of common stock (Note 10) ( 27,116 ) ( 1 ) ( 28 ) ( 970 ) ( 999 )

Cash dividends 3 3

Stock-based compensation expense 70 70

Balance April 30, 2022 1,033,392 $ 10 $ 1,081 $ ( 3,336 ) $ 347 $ ( 1,898 )

Balance January 31, 2023 985,089 $ 10 $ 1,256 $ ( 4,540 ) $ ( 456 ) $ ( 3,730 )

Net earnings 1,066 1,066

Other comprehensive income, net of taxes 88 88

Comprehensive income 1,154

Issuance of common stock in connection with employee stock plans and other 787 ( 7 ) ( 7 )

Cash dividends 4 4

Stock-based compensation expense 95 95

Balance April 30, 2023 985,876 $ 10 $ 1,344 $ ( 3,470 ) $ ( 368 ) $ ( 2,484 )

Common Stock Additional

Paid-in Capital Accumulated

Comprehensive Income (Loss) Total Stockholders’ Deficit

Number of Shares Par Value Accumulated Deficit

In millions, except number of shares in thousands

Balance October 31, 2021 1,092,205 $ 11 $ 1,060 $ ( 2,461 ) $ ( 260 ) $ ( 1,650 )

7 unchanged sentences

Stock-based compensation expense 203 203

Balance January 31, 2022 1,059,900 $ 11 $ 1,046 $ ( 3,369 ) $ ( 16 ) $ ( 2,328 )

Balance April 30, 2022 1,033,392 $ 10 $ 1,081 $ ( 3,336 ) $ 347 $ ( 1,898 )

Balance October 31, 2022 979,869 $ 10 $ 1,172 $ ( 4,413 ) $ 313 $ ( 2,918 )

1 unchanged sentence

Other comprehensive loss, net of taxes ( 681 ) ( 681 )

Comprehensive loss ( 282 )

Comprehensive income 872

Issuance of common stock in connection with employee stock plans and other 9,631 ( 86 ) ( 86 )

3 unchanged sentences

Stock-based compensation expense 262 262

Balance January 31, 2023 985,089 $ 10 $ 1,256 $ ( 4,540 ) $ ( 456 ) $ ( 3,730 )

Balance April 30, 2023 985,876 $ 10 $ 1,344 $ ( 3,470 ) $ ( 368 ) $ ( 2,484 )

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

10 unchanged sentences

All intercompany balances and transactions have been eliminated.

Reclassifications

HP has reclassified certain prior-year amounts to conform to the current-year presentation.

Use of Estimates

2 unchanged sentences

Actual results may differ materially from those estimates.

As of January 31, 2023, the extent to which the current macroeconomic factors will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict.

As of April 30, 2023, the extent to which the current macroeconomic factors will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict.

As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility.

As the events continue to evolve with respect to the ongoing macroeconomic factors, our estimates may materially change in future periods.

Recently Adopted Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2021, the FASB issued guidance that enhances the transparency of government assistance by requiring annual disclosure of the types of assistance received, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements.

HP is required to adopt the guidance for its annual period ending on October 31, 2023.

Early adoption is permitted.

HP is currently evaluating the impact of this guidance on its disclosures.

In September 2022, the FASB issued guidance that enhances the transparency about the use of supplier finance programs.

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Early adoption is permitted.

HP is currently evaluating the impact of this guidance on the Consolidated Condensed Financial Statements.

HP is currently evaluating the impact of this guidance on its disclosures.

AND SUBSIDIARIES

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These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges and amortization of intangible assets.

Effective first quarter of fiscal 2023, HP realigned the Personal Systems business units reporting structure into Commercial PS and Consumer PS to align with its customer market segmentation.

Effective the first quarter of fiscal 2023, HP realigned the Personal Systems business units reporting structure into Commercial PS and Consumer PS to align with its customer market segmentation.

Additionally, in connection with certain other organizational realignments, some costs which were earlier reflected under “Corporate and unallocated cost and other” have now been reclassified to the Personal Systems and Printing segments.

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Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows:

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Commercial PS $ 5,922 $ 7,817 $ 12,351 $ 15,674

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Total segment net revenue 12,915 16,495 26,743 33,523

Other ( 2 ) ( 5 ) ( 2 ) ( 5 )

Total net revenue $ 12,913 $ 16,490 $ 26,741 $ 33,518

15 unchanged sentences

Summary of Restructuring Plans

HP’s restructuring activities for the three months ended January 31, 2023 and 2022 summarized by plan were as follows:

HP’s restructuring activities for the six months ended April 30, 2023 and 2022 summarized by plan were as follows:

Fiscal 2023 Plan

Severance Non-labor Other prior-year Plans (1)

Severance and EER Non-labor Other prior-year plans (1)

Accrued balance as of October 31, 2022 $ — $ — $ 32 $ 32

2 unchanged sentences

Non-cash and other adjustments ( 141 ) (2) ( 5 ) 3 ( 143 )

Accrued balance as of January 31, 2023 $ 67 $ — $ 8 $ 75

Total costs incurred to date as of January 31, 2023 $ 122 $ 9 $ 865 $ 996

Accrued balance as of April 30, 2023 $ 61 $ — $ 2 $ 63

Total costs incurred to date as of April 30, 2023 $ 294 $ 13 $ 867 $ 1,174

Reflected in Consolidated Condensed Balance Sheets

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Non-cash and other adjustments — — ( 32 ) ( 32 )

Accrued balance as of January 31, 2022 $ — $ — $ 37 $ 37

Accrued balance as of April 30, 2022 $ — $ — $ 47 $ 47

HP’s restructuring charges for the three months ended April 30, 2023 summarized by the plans outlined below were as follows:

Fiscal 2023 Plan

Severance and EER Non-labor Other prior-year plans (1)

For the three months ended April 30, 2023 $ 172 $ 4 $ 2 $ 178

(1) Primarily includes the fiscal 2020 plan along with other legacy plans, all of which are substantially complete.

HP does not expect any further material activity associated with these plans.

(2) Includes reclassification of liability related to the Enhanced Early Retirement (“EER”) program of $ 139 million for pension and post-retirement plan special termination benefits.

See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information.

Fiscal 2023 Plan

On November 18, 2022, HP’s Board of Directors approved the Fiscal 2023 Plan intended to enable digital transformation, portfolio optimization and operational efficiency which HP expects will be implemented through fiscal 2025.

On November 18, 2022, HP’s Board of Directors approved the Future Ready Plan (the “Fiscal 2023 Plan”) intended to enable digital transformation, portfolio optimization and operational efficiency which HP expects will be implemented through fiscal 2025.

HP expects to reduce global headcount by approximately 4,000 to 6,000 employees.

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Other charges

Other charges include non-recurring costs, including those as a result of information technology rationalization efforts, and are distinct from ongoing operational costs.

Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and transformation program management costs, and are distinct from ongoing operational costs.

These costs primarily relate to third-party professional services and other costs.

For the three months ended January 31, 2023 and 2022, HP incurred $ 10 million and $ 1 million of other charges, respectively.

For the three and six months ended April 30, 2023, HP incurred $ 22 million

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Restructuring and Other Charges (Continued)

and $ 32 million of other charges, respectively.

For the three and six months ended April 30, 2022, HP incurred $ 4 million and $ 5 million of other charges, respectively.

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements

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The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings were as follows:

Three months ended January 31

Three months ended April 30

Defined Benefit Plans Non-U.S.

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Settlement loss — — ( 1 ) — — —

Special termination benefit cost 105 — — — 34 —

Total periodic benefit (credit) cost $ 100 $ ( 33 ) $ 10 $ 17 $ 27 $ ( 7 )

Six months ended April 30

Defined Benefit Plans Non-U.S.

Defined Benefit Plans Post- Retirement Benefit Plans

2023 2022 2023 2022 2023 2022

Service cost $ — $ — $ 20 $ 28 $ — $ —

Interest cost 109 80 20 11 7 4

Expected return on plan assets ( 129 ) ( 149 ) ( 26 ) ( 25 ) ( 6 ) ( 4 )

Amortization and deferrals:

Actuarial loss (gain) 9 3 2 19 ( 8 ) ( 8 )

Prior service cost (credit) — — 3 3 ( 6 ) ( 6 )

Net periodic benefit (credit) cost ( 11 ) ( 66 ) 19 36 ( 13 ) ( 14 )

Special termination benefit cost 105 — — — 34 —

Total periodic benefit (credit) cost $ 94 $ ( 66 ) $ 19 $ 36 $ 21 $ ( 14 )

Employer Contributions and Funding Policy

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non-qualified plan participants and approximately $ 4 million to cover benefit claims under HP’s post-retirement benefit plans.

During the three months ended January 31, 2023, HP contributed $ 13 million to its non-U.S.

During the six months ended April 30, 2023, HP contributed $ 21 million to its non-U.S.

pension plans, paid $ 13 million to cover benefit payments to U.S.

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Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods.

A deterioration in the funded status of a plan could result in a need for additional contributions or an increase in net pension and post-retirement benefit costs in future periods.

A deterioration in the funded

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Retirement and Post-Retirement Benefit Plans (Continued)

status of a plan could result in a need for additional contributions or an increase in net pension and post-retirement benefit costs in future periods.

Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

Retirement Incentive Program

As part of the Fiscal 2023 Plan, HP announced a voluntary enhanced early retirement (EER) program for its U.S.

As part of the Fiscal 2023 Plan, HP announced a voluntary EER program for its U.S.

employees in January 2023.

Voluntary participation in the EER program was limited to employees at least 55 years old with 10 or more years of service at HP.

Employees accepted into the EER program will leave HP on dates ranging from March 15, 2023 to October 31, 2023.

defined benefit pension plan will be amended to provide that the EER benefit will be paid from the plan for electing EER participants who are current participants in the pension plan.

The retirement incentive benefit will be calculated as a lump sum based on years of service at HP at the time of retirement, ranging from 20 to 52 weeks of pay.

All employees participating in the EER program are offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement.

Employees accepted into the EER program are leaving HP on dates ranging from March 15, 2023 to October 31, 2023.

defined benefit pension plan was amended to provide that the EER benefit will be paid from the plan for eligible electing EER participants.

The retirement incentive benefit is calculated as a lump sum based on years of service at HP at the time of retirement, ranging from 20 to 52 weeks of pay.

As a result of this retirement incentive, HP recognized a special termination benefit (“STB”) expense of $ 105 million for each of the three and six months ended April 30, 2023 as a restructuring charge.

This expense is the present value of all additional benefits that HP will distribute from the pension plan assets.

All employees participating in the EER program were offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement, but not beyond age 65 when Medicare is available.

In addition, HP is providing up to $ 12,000 in employer credits under the Retirement Medical Savings Account program.

HP will recognize a special termination benefits expense as restructuring and other charges.

HP recognized an additional STB expense of $ 34 million as restructuring and other charges for each of the three and six months ended April 30, 2023 for the health care incentives.

AND SUBSIDIARIES

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Provision for Taxes

HP’s effective tax rate was 16.6 % and 18.2 % for the three months ended January 31, 2023 and 2022, respectively.

HP’s effective tax rate was ( 77.1 )% and 19.3 % for the three months ended April 30, 2023 and 2022, respectively, and ( 30.9 )% and 18.7 % for the six months ended April 30, 2023 and 2022, respectively.

The difference between the U.S.

federal statutory tax rate of 21% and HP’s effective tax rate for the three months ended January 31, 2023 and 2022, was primarily due to tax effects of favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world.

During the three months ended January 31, 2023, HP recorded $ 56 million of net income tax benefits related to discrete items in the provision for taxes.

These amounts included $ 30 million of income tax benefits related to restructuring charges, $ 14 million related to acquisition charges and $ 12 million of other net tax benefits.

During the three months ended January 31, 2023, discrete items in the provision for taxes and excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial.

During the three months ended January 31, 2022, HP recorded $ 26 million of net income tax charges related to discrete items in the provision for taxes.

These amounts included income tax charges of $ 39 million related to withholding taxes on undistributed foreign earnings and were partially offset by income tax benefits of $ 12 million related to restructuring charges for the three months ended January 31, 2022.

In addition to the discrete items mentioned above, HP recorded excess tax benefits of $ 37 million associated with stock options, restricted stock units and performance-adjusted restricted stock units for the three months ended January 31, 2022.

federal statutory tax rate of 21% and HP’s effective tax rate for the three and six months ended April 30, 2023 was primarily due to tax effects of internal reorganization.

The difference between the U.S.

federal statutory tax rate of 21% and HP’s effective tax rate for the three and six months ended April 30, 2022 was primarily due to tax effects of favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world.

During the three and six months ended April 30, 2023, HP recorded $ 636 million and $ 692 million, respectively, of net income tax benefits related to discrete items in the provision for taxes.

These amounts included income tax benefits of $ 691 million and $ 697 million related to tax effects of internal reorganization, $ 36 million and $ 66 million related to restructuring charges, and $ 13 million and $ 27 million related to acquisition and divestiture charges for the three and six months ended April 30, 2023, respectively.

The six months ended April 30, 2023 also included $ 11 million of other net tax benefits.

These benefits were partially offset by income tax charges of $ 62 million and $ 58 million related to audit settlements in various jurisdictions, $ 34 million and $ 36 million related to the filing of tax returns in various jurisdictions, and $ 8 million and $ 15 million of uncertain tax position charges for the three and six months ended April 30, 2023, respectively.

During the three and six months ended April 30, 2023, discrete items in the provision for taxes and excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial.

During the three and six months ended April 30, 2022, HP recorded $ 8 million and $ 35 million, respectively, of net income tax charges related to discrete items in the provision for taxes.

These amounts included income tax charges of $ 18 million related to the filing of tax returns in various jurisdictions for the six months ended April 30, 2022 and $ 17 million and $ 56 million related to withholding taxes on undistributed foreign earnings for the three and six months ended April 30, 2022, respectively.

These charges were partially offset by income tax benefits of $ 20 million and $ 31 million related to restructuring charges and $ 7 million and $ 8 million related to other tax benefits for the three and six months ended April 30, 2022, respectively.

In addition to the discrete items mentioned above, HP recorded excess tax benefits of $ 36 million associated with stock options, restricted stock units and performance-adjusted restricted stock units for the six months ended April 30, 2022.

Uncertain Tax Positions

As of January 31, 2023, the amount of gross unrecognized tax benefits was $ 1.0 billion, of which up to $ 807 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits decreased by $ 14 million for the three months ended January 31, 2023.

As of April 30, 2023, the amount of gross unrecognized tax benefits was $ 1.1 billion, of which up to $ 853 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits increased by $ 95 million for the six months ended April 30, 2023.

HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Condensed Statements of Earnings.

As of January 31, 2023 and 2022, HP had accrued $ 73 million and $ 75 million, respectively, for interest and penalties.

As of April 30, 2023 and 2022, HP had accrued $ 86 million and $ 81 million, respectively, for interest and penalties.

HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions.

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Cash, cash equivalents and restricted cash

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Cash and cash equivalents $ 1,923 $ 3,145

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The allowance for credit losses related to accounts receivable and changes were as follows:

Three months ended January 31, 2023

Six months ended April 30, 2023

Balance at beginning of period $ 107

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For arrangements involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets.

The recourse obligations as of January 31, 2023 and October 31, 2022 and the costs associated with the sale of trade receivables for the three months ended January 31, 2023 and 2022 were not material.

The recourse obligations as of April 30, 2023 and October 31, 2022 were not material.

The following is a summary of the activity under these arrangements:

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Balance at beginning of period (1)

$ 128 $ 121 $ 185 $ 131

Trade receivables sold 3,179 3,002 6,857 5,969

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Balance at end of period (1)

$ 174 $ 173 $ 174 $ 173

(1) Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets.

2 unchanged sentences

Supplementary Financial Information (Continued)

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Finished goods $ 3,986 $ 4,885

2 unchanged sentences

Other Current Assets

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Prepaid and other current assets $ 1,539 $ 2,170

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Property, Plant and Equipment, net

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Land, buildings and leasehold improvements $ 2,273 $ 2,255

3 unchanged sentences

Other Non-Current Assets

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Deferred tax assets $ 3,092 $ 2,159

1 unchanged sentence

Right-of-use assets 1,241 1,236

Deposits and prepaid 564 588

Prepaid pension asset 548 565

Prepaid pension and post-retirement benefit assets 541 679

Deposits and prepaids 504 474

Other 800 990

4 unchanged sentences

Other Current Liabilities

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Sales and marketing programs $ 2,913 $ 2,967

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Other Non-Current Liabilities

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Deferred revenue $ 1,215 $ 1,171

Tax liability 934 931

Operating lease liabilities 903 875

Operating lease liability 885 875

Pension, post-retirement, and post-employment liabilities 599 600

3 unchanged sentences

Interest and other, net

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Interest expense on borrowings $ ( 153 ) $ ( 74 ) $ ( 297 ) $ ( 136 )

1 unchanged sentence

Non-operating retirement-related credits $ 13 $ 36 25 72

Factoring costs (1)

( 30 ) — ( 62 ) —

Other, net 10 ( 1 ) 1 ( 7 )

$ ( 160 ) $ ( 39 ) $ ( 341 ) $ ( 71 )

(1) For the three and six months ended April 30, 2022, Factoring costs were included in Selling, general and administrative and were not material.

AND SUBSIDIARIES

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Net revenue by region

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Americas $ 5,452 $ 6,903 $ 11,225 $ 13,762

3 unchanged sentences

Value of Remaining Performance Obligations

As of January 31, 2023, the estimated value of transaction price allocated to remaining performance obligations was $ 3.6 billion.

As of April 30, 2023, the estimated value of transaction price allocated to remaining performance obligations was $ 3.7 billion.

HP expects to recognize approximately $ 1.7 billion of the unearned amount in next 12 months and $ 2.0 billion thereafter.

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Contract Liabilities

As of January 31, 2023 and October 31, 2022, HP’s contract liabilities balances were $ 2.5 billion respectively, and included in Other current liabilities and Other non-current liabilities in the Consolidated Condensed Balance Sheets.

The contract liabilities balance remained flat as of January 31, 2023, driven by sales of fixed-price support and maintenance services, partially offset by $ 0.5 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022.

As of April 30, 2023 and October 31, 2022, HP’s contract liabilities balances were $ 2.6 billion and $ 2.5 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Consolidated Condensed Balance Sheets.

The increase in the contract liabilities balance for the six months ended April 30, 2023, was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 0.8 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022.

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The following table presents HP’s assets and liabilities that are measured at fair value on a recurring basis:

As of January 31, 2023 As of October 31, 2022

As of April 30, 2023 As of October 31, 2022

Fair Value Measured Using Fair Value Measured Using

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The portion of HP’s debt that is hedged is reflected in the Consolidated Condensed Balance Sheets as an amount equal to the debt’s carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates.

The fair value of HP’s short- and long-term debt was $ 10.0 billion as compared to its carrying amount of $ 10.8 billion at January 31, 2023.

The fair value of HP’s short- and long-term debt was $ 9.9 billion as compared to its carrying amount of $ 10.6 billion at April 30, 2023.

The fair value of HP’s short- and long-term debt was $ 9.6 billion as compared to its carrying value of $ 11.0 billion at October 31, 2022.

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Cash Equivalents and Available-for-Sale Investments

As of January 31, 2023 As of October 31, 2022

As of April 30, 2023 As of October 31, 2022

Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value

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All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents.

As of January 31, 2023 and October 31, 2022, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity.

As of April 30, 2023 and October 31, 2022, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity.

The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

Contractual maturities of investments in available-for-sale debt securities were as follows:

As of January 31, 2023

As of April 30, 2023

Amortized Cost Fair Value

1 unchanged sentence

Non-marketable equity securities in privately held companies are included in Other non-current assets in the Consolidated Condensed Balance Sheets.

These amounted to $ 110 million as of each of January 31, 2023 and October 31, 2022.

These amounted to $ 111 million and $ 110 million as of April 30, 2023 and October 31, 2022, respectively.

HP determines credit losses on cash equivalents and available-for-sale debt securities at the individual security level.

All instruments are considered investment grade.

No credit-related or noncredit-related impairment losses were recorded for the three months ended January 31, 2023.

No credit-related or noncredit-related impairment losses were recorded for the three and six months ended April 30, 2023.

Derivative Instruments

HP uses derivatives to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities.

As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and option contracts to hedge certain foreign currency, interest rate and return on certain investment exposures.

HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and option contracts to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities.

HP may designate its derivative contracts as fair value hedges or cash flow hedges and classifies the cash flows with the activities that correspond to the underlying hedged items.

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The Company includes gross collateral posted and received in other current assets and other current liabilities in the Consolidated Condensed Balance Sheets, respectively.

The fair value of derivatives with credit contingent features in a net liability position was $ 238 million and $ 82 million as of January 31, 2023 and as of October 31, 2022, respectively, all of which were fully collateralized within two business days.

The fair value of derivatives with credit contingent features in a net liability position was $ 176 million and $ 82 million as of April 30, 2023 and as of October 31, 2022, respectively, all of which were fully collateralized within two business days.

Under HP’s derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating.

This credit contingent provision did not affect HP’s financial position or cash flows as of January 31, 2023 and October 31, 2022.

This credit contingent provision did not affect HP’s financial position or cash flows as of April 30, 2023 and October 31, 2022.

Fair Value Hedges

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however, hedges related to long-term procurement arrangements extend several years.

For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value of the derivative instrument in Accumulated other comprehensive (loss) income as a separate component of Stockholders’ deficit in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings.

For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of Stockholders’ deficit in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings.

HP reports the changes in the fair value of the derivative instrument in the same financial statement line item as changes in the fair value of the hedged item.

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For foreign currency options, forward contracts and forward starting swaps designated as cash flow hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates.

During the three months ended January 31, 2023 and 2022, no portion of the hedging instruments’ gain or loss was excluded from the assessment of effectiveness for fair value and cash flow hedges.

During the three and six months ended April 30, 2023 and 2022, no portion of the hedging instruments’ gain or loss was excluded from the assessment of effectiveness for fair value and cash flow hedges.

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:

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Financial Instruments (Continued)

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:

As of January 31, 2023 As of October 31, 2022

As of April 30, 2023 As of October 31, 2022

Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities

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Total derivatives $ 20,670 $ 230 $ 58 $ 298 $ 127 $ 21,440 $ 834 $ 256 $ 224 $ 150

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Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

Offsetting of Derivative Instruments

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HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements.

As of January 31, 2023 and October 31, 2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:

As of April 30, 2023 and October 31, 2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:

In the Consolidated Condensed Balance Sheets

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Collateral Net Amount

As of January 31, 2023

As of April 30, 2023

Derivative assets $ 288 $ — $ 288 $ 242 $ 39 (1) $ 7

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Effect of Derivative Instruments in the Consolidated Condensed Statements of Earnings

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Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship were as follows:

Derivative Instrument Hedged Item Location Year Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded Gain/(loss) recognized in earnings on derivative instruments Gain/(loss) recognized in earnings on hedged item

Three months ended January 31

Three months ended April 30

Interest rate contract Fixed-rate debt Interest and other, net 2023 $ ( 160 ) $ 7 $ ( 7 )

2022 $ ( 39 ) $ ( 31 ) $ 31

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Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

Six months ended April 30

Interest rate contract Fixed-rate debt Interest and other, net 2023 $ ( 341 ) $ 21 $ ( 21 )

2022 $ ( 71 ) $ ( 42 ) $ 42

The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive (loss) income was as follows:

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives:

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other comprehensive (loss) income into earnings

Three months ended January 31 Three months ended January 31

Three months ended April 30 Six months ended April 30 Three months ended April 30 Six months ended April 30

2023 2022 2023 2022 2023 2022 2023 2022

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Total $ ( 162 ) $ 120 $ 172 $ 164

As of January 31, 2023, HP expects to reclassify an estimated accumulated other comprehensive (loss) income of approximately $ 193 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions.

The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive loss based on the change of market rate, and therefore could have different impact on earnings.

The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Condensed Statements of Earnings for the three months ended January 31, 2023 and 2022 was as follows:

As of April 30, 2023, HP expects to reclassify an estimated accumulated other comprehensive loss of $ 82 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions.

The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive (loss) income based on the change of market rate, and therefore could have different impact on earnings.

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Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2023 and 2022 was as follows:

Gain/(loss) recognized in earnings on derivative instrument

Three months ended January 31

Three months ended April 30 Six months ended April 30

Location 2023 2022 2023 2022

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Notes Payable and Short-Term Borrowings

As of January 31, 2023 As of October 31, 2022

As of April 30, 2023 As of October 31, 2022

Outstanding Weighted-Average

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Long-Term Debt

January 31, 2023 October 31, 2022

April 30, 2023 October 31, 2022

Dollar Global Notes (1)

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and socioeconomic advancement and empowerment.

(3) During the quarter ended January 31, 2023, HP repurchased or redeemed and settled $ 495 million of the March 2029 Notes related to the August 2022 Poly acquisition.

(3) During the six months ended April 30, 2023, HP repurchased or redeemed and settled $ 497 million of the March 2029 Notes related to the August 2022 Poly acquisition.

As disclosed in Note 8, “Financial Instruments”, HP uses interest rate swaps to mitigate some of the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates.

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Commercial Paper

As of January 31, 2023, HP maintained two commercial paper programs.

program provides for the issuance of U.S.

As of April 30, 2023, HP maintained a U.S.

commercial paper program for the issuance of U.S.

dollar-denominated commercial paper up to a maximum aggregate principal amount of $ 6.0 billion.

HP’s euro commercial paper program provides for the issuance of commercial paper outside of the United States denominated in U.S.

dollars, euros or British pounds up to a maximum aggregate principal amount of $ 6.0 billion or the equivalent in those alternative currencies.

The combined aggregate principal amount of commercial paper outstanding under those programs and certain short term borrowings at any one time cannot exceed a $ 6.0 billion authorization by HP’s Board of Directors.

The principal amount outstanding under this program and certain short-term borrowings at any time cannot exceed a $ 6.0 billion authorization by HP’s Board of Directors.

Table of Contents 10

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Borrowings (Continued)

Credit Facility

As of January 31, 2023, HP maintained a $ 5.0 billion sustainability-linked senior unsecured committed revolving credit facility, which HP entered into on May 26, 2021.

Commitments under the revolving credit facility will be available until May 26, 2026.

Commitment fees, interest rates and other terms of borrowing under the revolving credit facility vary based on HP’s external credit ratings and certain sustainability metrics.

Funds borrowed under the revolving credit facility may be used for general corporate purposes.

As of January 31, 2023, HP was in compliance with the covenants in the credit agreement governing the revolving credit facility.

Credit Facilities

As of April 30, 2023, HP maintained a $ 5.0 billion sustainability-linked senior unsecured committed revolving credit facility, which HP entered into in May 2021, and a $ 1.0 billion senior unsecured committed 364-day revolving credit facility, which HP entered into in March 2023.

Commitments under the $ 5.0 billion revolving credit facility will be available until May 26, 2026 and commitments under the $ 1.0 billion 364-day revolving credit facility will be available until March 19, 2024.

Commitment fees, interest rates and other terms of borrowing under the revolving credit facilities vary based on HP’s external credit ratings and, for the $ 5.0 billion facility, certain sustainability metrics.

Funds borrowed under the revolving credit facilities may be used for general corporate purposes.

As of April 30, 2023, HP was in compliance with the covenants in the credit agreements governing the revolving credit facilities.

Available Borrowing Resources

As of January 31, 2023, HP had available borrowing resources of $ 975 million from uncommitted lines of credit in addition to the revolving credit facility.

As of April 30, 2023, HP had available borrowing resources of $ 1.2 billion from uncommitted lines of credit in addition to the revolving credit facilities.

Stockholders’ Deficit

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HP’s share repurchase program authorizes both open market and private repurchase transactions.

During the three months ended January 31, 2023, HP executed share repurchases of 3.6 million shares and settled total shares for $ 0.1 billion.

During the three months ended January 31, 2022, HP executed share repurchases of 42 million shares and settled total shares for $ 1.5 billion.

Share repurchases executed during the three months ended January 31, 2022 included 1.1 million shares settled in February 2022.

The shares repurchased during the three months ended January 31, 2023 and 2022 were all open market repurchase transactions.

As of January 31, 2023, HP had approximately $ 2.0 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

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Notes to Consolidated Condensed Financial Statements (Continued)

Stockholders' Deficit (Continued)

There were no share repurchases during the three months ended April 30, 2023.

During the six months ended April 30, 2023, HP executed share repurchases of 3.6 million shares and settled total shares for $ 0.1 billion.

During the three and six months ended April 30, 2022, HP executed share repurchases of 27 million shares and 69 million shares and settled total shares for $ 1.0 billion and $ 2.5 billion respectively.

Share repurchases executed during the three and six months ended April 30, 2022 included 1 million shares settled in May 2022.

The shares repurchased during the six months ended April 30, 2023 and 2022 were all open market repurchase transactions.

As of April 30, 2023, HP had approximately $ 2.0 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Tax effects related to Other Comprehensive Income (Loss)

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Tax effect on change in unrealized components of available-for-sale debt securities:

Tax provision on unrealized gains arising during the period $ ( 1 ) $ —

Tax benefit (provision) on unrealized (losses) gains arising during the period $ — $ 1 $ ( 1 ) $ 1

Tax effect on change in unrealized components of cash flow hedges:

Tax benefit (provision) on unrealized (losses) gains arising during the period 20 ( 114 ) 126 ( 146 )

Tax provision on gains reclassified into earnings 78 12

Tax (benefit) provision on losses (gains) reclassified into earnings ( 41 ) 24 37 36

( 21 ) ( 90 ) 163 ( 110 )

Tax effect on change in unrealized components of defined benefit plans:

Tax (provision) benefit on gains (losses) arising during the period ( 1 ) — 8 ( 6 )

Tax benefit on amortization of actuarial loss and prior service benefit — ( 1 ) — ( 2 )

Tax provision on curtailments, settlements and other — ( 1 ) — ( 1 )

( 1 ) ( 2 ) 8 ( 9 )

Tax effect on change in cumulative translation adjustment — 1 — 2

Tax benefit (provision) on other comprehensive (loss) income $ 192 $ ( 26 )

Tax (provision) benefit on other comprehensive income (loss) $ ( 22 ) $ ( 90 ) $ 170 $ ( 116 )

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Notes to Consolidated Condensed Financial Statements (Continued)

Stockholders' Deficit (Continued)

Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes

Three months ended January 31

Other comprehensive (loss) income, net of taxes:

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

Other comprehensive income (loss), net of taxes:

Change in unrealized components of available-for-sale debt securities:

Unrealized gains (losses) arising during the period $ 3 $ ( 2 )

Unrealized (losses) gains arising during the period $ — $ ( 3 ) $ 3 $ ( 5 )

Change in unrealized components of cash flow hedges:

Unrealized (losses) gains arising during the period ( 46 ) 489 ( 563 ) 756

Gains reclassified into earnings ( 256 ) ( 32 )

Losses (gains) reclassified into earnings 121 ( 96 ) ( 135 ) ( 128 )

75 393 ( 698 ) 628

Change in unrealized components of defined benefit plans:

(Losses) gains arising during the period ( 29 ) 15

Gains (losses) arising during the period 5 1 ( 24 ) 16

Amortization of actuarial loss and prior service benefit (1)

Curtailments, settlements and other ( 1 ) ( 1 ) — ( 1 )

4 4 ( 24 ) 24

Change in cumulative translation adjustment 9 ( 31 ) 38 ( 40 )

Other comprehensive (loss) income, net of taxes $ ( 769 ) $ 244

Other comprehensive income (loss), net of taxes $ 88 $ 363 $ ( 681 ) $ 607

(1) These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans”.

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Notes to Consolidated Condensed Financial Statements (Continued)

Stockholders' Deficit (Continued)

The components of Accumulated other comprehensive (loss) income, net of taxes and changes were as follows:

Three months ended January 31, 2023

The components of Accumulated other comprehensive income (loss), net of taxes and changes were as follows:

Six months ended April 30, 2023

Net unrealized

gains (losses) on

available-for-sale debt

securities Net unrealized (losses) gains on cash

securities Net unrealized gains (losses) on cash

flow hedges Unrealized

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comprehensive

(loss) income

income (loss)

Balance at beginning of period $ 6 $ 648 $ ( 295 ) $ ( 46 ) $ 313

Other comprehensive income (loss) before reclassifications 3 ( 517 ) ( 29 ) 29 ( 514 )

Reclassifications of gains into earnings — ( 256 ) — — ( 256 )

Reclassifications of settlements into earnings — — 1 — 1

Other comprehensive gain (loss) before reclassifications 3 ( 563 ) ( 24 ) 38 ( 546 )

Reclassifications of gain into earnings — ( 135 ) — — ( 135 )

Balance at end of period $ 9 $ ( 50 ) $ ( 319 ) $ ( 8 ) $ ( 368 )

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A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows:

Three months ended January 31

Three months ended April 30 Six months ended April 30

2023 2022 2023 2022

In millions, except per share amounts

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HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated.

HP believes it has recorded adequate provisions for any such matters and, as of January 31, 2023, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP’s financial statements.

HP believes it has recorded adequate provisions for any such matters and, as of April 30, 2023, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP’s financial statements.

HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case.

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HP, other companies and various industry associations have opposed the extension of levies to the digital environment and certain requirements for business sales exemptions, and have advocated alternative models of compensation to rights holders.

Based on industry opposition to the extension of levies to digital products, HP’s assessments of the merits of various proceedings and HP’s

Based on industry opposition to the extension of levies to digital products, HP’s assessments of the merits of various proceedings and HP’s estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the ongoing disputes.

AND SUBSIDIARIES

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Litigation and Contingencies (Continued)

estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the ongoing disputes.

Forsyth, et al.

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and 8,284,833.

The accused products are HP commercial and consumer PCs

The accused products are HP commercial and consumer PCs as well as wireless printers that comply with the IEEE 802.11n, 802.11ac, and/or 802.11ax standards.

Caltech seeks unspecified damages and other relief.

The court stayed the case pending the decision by the U.S.

Court of Appeals for the Federal Circuit in

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Litigation and Contingencies (Continued)

as well as wireless printers that comply with the IEEE 802.11n, 802.11ac, and/or 802.11ax standards.

Caltech seeks unspecified damages and other relief.

The court stayed the case pending the decision by the U.S.

Court of Appeals for the Federal Circuit in The California Inst.

The California Inst.

Broadcom Ltd et al.

2020-2222, which was issued on February 4, 2022.

On March 12, 2022, the parties filed a status report regarding whether the court should lift the stay, which remains pending.

On May 3, 2023, the parties filed a joint status report requesting the court maintain the stay pending the Supreme Court’s decision on Apple and Broadcom’s petition for writ of certiorari to the Supreme Court.

In re HP Inc.

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Plaintiffs appealed the decision.

An appellate hearing scheduled for December 5, 2022 was cancelled as the parties have reached a settlement in principle.

The parties settled and the motion for preliminary approval of settlement was filed on March 3, 2023.

Under the terms of the settlement, HP agreed to pay an amount that is immaterial to HP.

The district court granted preliminary approval of the settlement on April 7, 2023 with the final approval hearing scheduled for July 28, 2023.

York County on behalf of the County of York Retirement Fund v.

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On March 3, 2022, the court granted the motion to dismiss with prejudice.

Plaintiffs are appealing the decision.

The appellate hearing was held on February 6, 2023.

Plaintiffs appealed the decision.

On April 11, 2023, the appellate court reversed the district court’s decision and remanded the case to the district court for further proceedings consistent with the appellate opinion, including consideration of HP’s other arguments for dismissal.

On May 17, 2021, stockholder Scott Franklin filed a derivative complaint against certain current and former officers and directors in federal court in the District of Delaware.

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The derivative plaintiff seeks compensatory damages, governance reforms, and other relief.

By court order following stipulations by the parties, the case was transferred to the Northern District of California, and the case was stayed pending a ruling on the motion to dismiss in York County.

On January 13, 2022, stockholder Gerald Lovoi filed a derivative complaint in federal court in the Northern District of California against the same current and former officers and directors named in the Franklin action.

The complaint alleges the same basic claims based on the same alleged conduct as the Franklin action and seeks similar relief.

By stipulation of the parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County .

Both derivative actions will remain stayed until any appeal related to the York decision has been exhausted.

By stipulation of the parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County and exhaustion of all related appeals.

Both derivative actions will remain stayed while the district court considers on remand HP’s other arguments for dismissal.

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In late 2022, the New Zealand competition authority opened an investigation regarding whether firmware updates and security measures allegedly restrict competition for cartridges for HP and non-HP branded printers and whether these practices constitute an alleged misuse of market power.

HP has responded to requests for information, and there is no schedule for anticipated next steps.

In May 2023, HP was notified that this investigation has been closed with no adverse action.

Autonomy-Related Legal Matters

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Lynch extradited to face the charges.

In February 2022, Mr.

Lynch sought permission to appeal, and his request is pending.

Lynch’s request for permission to appeal this decision was denied on April 21, 2023, and Mr.

Lynch has been extradited to the United States.

HP is continuing to cooperate with the ongoing enforcement actions.

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Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise will share equally in any recovery.

Environmental

HP is, and may become a party to, proceedings brought by U.S., state, or other governmental entities or private third parties under federal, state, local, or foreign environmental laws, including the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), known as “Superfund,” or state laws similar to CERCLA.

HP is also conducting

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Litigation and Contingencies (Continued)

environmental investigations or remediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with environmental agencies.

Environmental

HP is also conducting environmental investigations or remediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with environmental agencies.

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HP’s aggregate product warranty liabilities and changes were as follows:

Three months ended January 31, 2023

Six months ended April 30, 2023

Balance at beginning of period $ 876

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements