What changed in this filing

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Item 1. Financial Statements

2023-09-11 compared with 2023-05-31 · 361 added, 151 removed, 938 unchanged (35% of the section changed)

Financial Statements and Supplementary Data.

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 Earnings for the three and nine months ended July 3 1 , 2023 and 2022 (Unaudited)

Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended July 3 1 , 2023 and 2022 (Unaudited)

Consolidated Condensed Balance Sheets as of July 3 1 , 2023 and October 31, 2022 (Unaudited)

Consolidated Condensed Statements of Cash Flows for the ni ne months ended July 3 1 , 2023 and 2022 (Unaudited)

Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited)

11 unchanged sentences

Guarantees, Indemnifications and Warranties

Revision of Prior Period Financial Statements

AND SUBSIDIARIES

Consolidated Condensed Statements of Earnings

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

8 unchanged sentences

Amortization of intangible assets 91 50 262 154

Russia exit charges — 23 — 23

Total costs and expenses 12,244 13,392 37,459 44,318

2 unchanged sentences

Earnings before taxes 936 1,186 2,085 3,677

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

(Provision for) benefit from taxes ( 170 ) ( 64 ) 204 ( 522 )

Net earnings $ 766 $ 1,122 $ 2,289 $ 3,155

8 unchanged sentences

Consolidated Condensed Statements of Comprehensive Income

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Net earnings $ 766 $ 1,122 $ 2,289 $ 3,155

Other comprehensive income before taxes:

Other comprehensive income (loss) before taxes:

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

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

Unrealized gains (losses) arising during the period 1 ( 1 ) 5 ( 7 )

Change in unrealized components of cash flow hedges:

3 unchanged sentences

Change in unrealized components of defined benefit plans:

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

Gains arising during the period

Amortization of actuarial loss and prior service benefit — 5 — 16

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

5 6 ( 32 ) 33

Change in cumulative translation adjustment 10 ( 14 ) 48 ( 56 )

Other comprehensive income (loss) before taxes 11 ( 48 ) ( 803 ) 655

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

Benefit from (provision for) taxes

3 ( 62 ) 164 ( 172 )

Other comprehensive income (loss), net of taxes 14 ( 110 ) ( 639 ) 483

3 unchanged sentences

Consolidated Condensed Balance Sheets

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

In millions, except par value

21 unchanged sentences

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

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

988 and 980 shares issued and outstanding at July 31, 2023 and October 31, 2022, respectively)

Additional paid-in capital 1,435 1,172

6 unchanged sentences

Consolidated Condensed Statements of Cash Flows

Six months ended April 30

Nine months ended July 31

Cash flows from operating activities:

16 unchanged sentences

Cash flows from investing activities:

Investment in property, plant and equipment, net ( 322 ) ( 451 )

Investment in property, plant and equipment ( 459 ) ( 647 )

Proceeds from sale of property, plant and equipment — 26

Purchases of available-for-sale securities and other investments ( 6 ) ( 50 )

4 unchanged sentences

Cash flows from financing activities:

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

Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net 190 ( 400 )

Proceeds from debt, net of issuance costs 177 4,086

Payment of debt ( 587 ) ( 96 )

Payment of debt and associated costs ( 1,654 ) ( 141 )

Stock-based award activities and others ( 86 ) ( 88 )

15 unchanged sentences

In millions, except number of shares in thousands

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

Balance at April 30, 2022 1,033,392 $ 10 $ 1,081 $ ( 3,399 ) $ 348 $ ( 1,960 )

Net earnings 1,122 1,122

Other comprehensive income, net of taxes 363 363

Other comprehensive loss, net of taxes ( 110 ) ( 110 )

Comprehensive income 1,012

1 unchanged sentence

Repurchases of common stock (Note 10) ( 28,522 ) ( 30 ) ( 971 ) ( 1,001 )

Cash dividends 3 3

Cash dividends ($ 0.50 per common share)

( 506 ) ( 506 )

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 )

Balance at July 31, 2022 1,005,938 $ 10 $ 1,130 $ ( 3,754 ) $ 238 $ ( 2,376 )

Balance at April 30, 2023 985,876 $ 10 $ 1,344 $ ( 3,579 ) $ ( 368 ) $ ( 2,593 )

Net earnings 766 766

2 unchanged sentences

Issuance of common stock in connection with employee stock plans and other 2,344 — —

Cash dividends 4 4

Cash dividends ($ 0.52 per common share)

( 523 ) ( 523 )

Stock-based compensation expense 91 91

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

Balance at July 31, 2023 988,220 $ 10 $ 1,435 $ ( 3,336 ) $ ( 354 ) $ ( 2,245 )

Common Stock Additional

3 unchanged sentences

In millions, except number of shares in thousands

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

Balance at October 31, 2021 1,092,205 $ 11 $ 1,060 $ ( 2,470 ) $ ( 245 ) $ ( 1,644 )

Net earnings 3,155 3,155

6 unchanged sentences

Stock-based compensation expense 273 273

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 )

Balance at July 31, 2022 1,005,938 $ 10 $ 1,130 $ ( 3,754 ) $ 238 $ ( 2,376 )

Balance at October 31, 2022 979,869 $ 10 $ 1,172 $ ( 4,492 ) $ 285 $ ( 3,025 )

Net earnings 2,289 2,289

6 unchanged sentences

Stock-based compensation expense 353 353

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

Balance at July 31, 2023 988,220 $ 10 $ 1,435 $ ( 3,336 ) $ ( 354 ) $ ( 2,245 )

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.

Revision of Prior Period Financial Statements

In connection with the preparation of HP’s Consolidated Condensed Financial Statements for the three and nine months ended July 31, 2023, the Company identified an accounting error related to a revenue contract in the Personal Systems segment.

HP has revised its prior period financial statements to correct this error, as well as other immaterial errors, which impacted the last quarter and annual period of fiscal year 2020 and all the subsequent periods through the second quarter of fiscal year 2023.

The Company evaluated the error and determined that the related impacts were not material to its financial statements for the annual periods when they occurred, but that correcting the error would be material to the Company’s results of operations for the three and nine months ended July 31, 2023.

The Company has corrected these errors in the Consolidated Condensed Financial Statements for all prior periods presented herein.

Revisions to the Company’s previously reported disclosures have been reflected in Note 2, “Segment Information”;

Note 3, “Restructuring and Other Charges”;

Note 5, “Taxes on Earnings”;

Note 6, “Supplementary Financial Information”;

Note 10, “Stockholders’ Deficit”;

and Note 11, “Net Earnings Per Share”.

A summary of the revisions to the Company’s previously reported financial statements is provided in Note 14, “Revision of Prior Period Financial Statements”.

Use of Estimates

2 unchanged sentences

Actual results may differ materially from those estimates.

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

49 unchanged sentences

HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments.

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 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.

1 unchanged sentence

HP has reflected these changes to its prior reporting periods on an as-if basis.

The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, net earnings or net earnings per share (“EPS”).

The realignment change had no impact to previously reported segment net revenue, consolidated net revenue, net earnings or net earnings per share (“EPS”).

AND SUBSIDIARIES

2 unchanged sentences

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

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

20 unchanged sentences

Amortization of intangible assets ( 91 ) ( 50 ) ( 262 ) ( 154 )

Russia exit charges — ( 23 ) — ( 23 )

Interest and other, net ( 16 ) ( 70 ) ( 357 ) ( 141 )

4 unchanged sentences

Summary of Restructuring Plans

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

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

Fiscal 2023 Plan

4 unchanged sentences

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

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

Accrued balance as of July 31, 2023 $ 42 $ 18 $ 1 $ 61

Total costs incurred to date as of July 31, 2023 $ 318 $ 38 $ 868 $ 1,224

Reflected in Consolidated Condensed Balance Sheets

Other current liabilities $ 42 $ 6 $ 1 $ 49

Other non-current liabilities $ — $ 12 $ — $ 12

Accrued balance as of October 31, 2021 $ — $ — $ 90 $ 90

2 unchanged sentences

Non-cash and other adjustments — — ( 36 ) ( 36 )

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:

Accrued balance as of July 31, 2022 $ — $ — $ 20 $ 20

HP’s restructuring charges for the three months ended July 31, 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

For the three months ended July 31, 2023 $ 24 $ 25 $ 1 $ 50

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

10 unchanged sentences

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

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)

For the three and nine months ended July 31, 2023, HP incurred $ 25 million

and $ 57 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.

For the three and nine months ended July 31, 2022, HP incurred $ 7 million and $ 12 million of other charges, respectively.

AND SUBSIDIARIES

2 unchanged sentences

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 April 30

Three months ended July 31

Defined Benefit Plans Non-U.S.

8 unchanged sentences

Net periodic benefit (credit) cost ( 7 ) ( 30 ) 9 17 ( 5 ) ( 5 )

Settlement loss — — ( 1 ) — — —

Special termination benefit cost 105 — — — 34 —

Settlement gain — — — ( 1 ) — —

Total periodic benefit (credit) cost $ ( 7 ) $ ( 30 ) $ 9 $ 16 $ ( 5 ) $ ( 5 )

Six months ended April 30

Nine months ended July 31

Defined Benefit Plans Non-U.S.

8 unchanged sentences

Net periodic benefit (credit) cost ( 18 ) ( 96 ) 28 53 ( 18 ) ( 19 )

Settlement gain — — — ( 1 ) — —

Special termination benefit cost 105 — — — 34 —

5 unchanged sentences

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

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

During the nine months ended July 31, 2023, HP contributed $ 27 million to its non-U.S.

pension plans, paid $ 20 million to cover benefit payments to U.S.

15 unchanged sentences

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.

As a result of this retirement incentive, HP recognized a special termination benefit (“STB”) expense of $ 105 million for the nine months ended July 31, 2023 as a restructuring charge.

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

1 unchanged sentence

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

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.

HP recognized an additional STB expense of $ 34 million as restructuring and other charges for the nine months ended July 31, 2023 for the health care incentives.

AND SUBSIDIARIES

2 unchanged sentences

Provision for Taxes

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.

HP’s effective tax rate was 18.2 % and 5.4 % for the three months ended July 31, 2023 and 2022, respectively, and ( 9.8 )% and 14.2 % for the nine months ended July 31, 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 and six months ended April 30, 2023 was primarily due to tax effects of internal reorganization.

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

For the nine months ended July 31, 2023, the difference 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.

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

During the three and nine months ended July 31, 2023, HP recorded $ 32 million and $ 724 million, respectively, of net income tax benefits related to discrete items in the provision for taxes.

The nine months ended July 31, 2023 included benefits of $ 697 million related to tax effects of internal reorganization.

The three and nine months ended July 31, 2023 also included benefits of $ 16 million and $ 82 million related to restructuring charges, $ 51 million and $ 15 million related to the filing of tax returns in various jurisdictions, and $ 10 million and $ 37 million related to acquisition and divestiture charges, respectively.

These benefits were partially offset by income tax charges of $ 2 million and $ 60 million related to audit settlements in various jurisdictions, $ 17 million and $ 32 million of uncertain tax position charges, and $ 27 million and $ 25 million related to extinguishment of debt for the three and nine months ended July 31, 2023, respectively.

During the three and nine months ended July 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 and nine months ended July 31, 2022, HP recorded $ 150 million and $ 111 million, respectively, of net income tax benefits related to discrete items in the provision for taxes.

These amounts included income tax benefits of $ 167 million and $ 150 million related to the filing of tax returns in various jurisdictions for the three and nine months ended July 31, 2022 and $ 3 million and $ 31 million related to restructuring charges for the three and nine months ended July 31, 2022, respectively.

The three and nine months ended July 31, 2022 also included $ 87 million of tax benefits related to internal reorganization.

These benefits were partially offset by income tax charges of $ 98 million and $ 93 million related to uncertain tax positions and $ 10 million and $ 19 million related to audit settlements in various jurisdictions for the three and nine months ended July 31, 2022, respectively.

The nine months ended July 31, 2022 also included tax charges of $ 55 million related to withholding taxes on undistributed foreign earnings.

In addition to the discrete items mentioned above, HP recorded excess tax benefits of $ 32 million associated with stock options, restricted stock units and performance-adjusted restricted stock units for the nine months ended July 31, 2022.

Uncertain Tax Positions

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.

As of July 31, 2023, the amount of gross unrecognized tax benefits was $ 1.2 billion, of which up to $ 861 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits increased by $ 106 million for the nine months ended July 31, 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 April 30, 2023 and 2022, HP had accrued $ 86 million and $ 81 million, respectively, for interest and penalties.

As of July 31, 2023 and 2022, HP had accrued $ 98 million and $ 76 million, respectively, for interest and penalties.

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

8 unchanged sentences

Cash, cash equivalents and restricted cash

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Cash and cash equivalents $ 1,673 $ 3,145

4 unchanged sentences

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

Six months ended April 30, 2023

Nine months ended July 31, 2023

Balance at beginning of period $ 107

6 unchanged sentences

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 April 30, 2023 and October 31, 2022 were not material.

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

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

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

10 unchanged sentences

Supplementary Financial Information (Continued)

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Finished goods $ 4,171 $ 4,885

2 unchanged sentences

Other Current Assets

April 30, 2023 October 31, 2022

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

July 31, 2023 October 31, 2022

Supplier and other receivables 1,868 1,377

Prepaid and other current assets 1,451 2,086

Value-added taxes receivable 862 968

1 unchanged sentence

Property, Plant and Equipment, net

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Land, buildings and leasehold improvements $ 2,305 $ 2,255

3 unchanged sentences

Other Non-Current Assets

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Deferred tax assets $ 3,054 $ 2,167

9 unchanged sentences

Other Current Liabilities

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Sales and marketing programs $ 3,031 $ 2,984

8 unchanged sentences

Other Non-Current Liabilities

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Deferred revenue $ 1,271 $ 1,171

6 unchanged sentences

Interest and other, net

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Interest expense on borrowings $ ( 134 ) $ ( 96 ) $ ( 429 ) $ ( 229 )

Loss on extinguishment of debt — — ( 8 ) —

Net gain on debt extinguishment 115 — 107 —

Non-operating retirement-related credits 14 38 40 110

3 unchanged sentences

$ ( 16 ) $ ( 70 ) $ ( 357 ) $ ( 141 )

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

(1) For the three and nine months ended July 31, 2022, Factoring costs were included in Selling, general and administrative and were not material.

AND SUBSIDIARIES

2 unchanged sentences

Net revenue by region

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

4 unchanged sentences

Value of Remaining Performance Obligations

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

As of July 31, 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.

5 unchanged sentences

Contract Liabilities

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.

As of July 31, 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 nine months ended July 31, 2023, was primarily driven by sales of fixed-price support and maintenance services, partially offset by $ 1.0 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022.

AND SUBSIDIARIES

10 unchanged sentences

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

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

As of July 31, 2023 As of October 31, 2022

Fair Value Measured Using Fair Value Measured Using

38 unchanged sentences

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 $ 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 $ 9.1 billion as compared to its carrying amount of $ 9.7 billion at July 31, 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.

11 unchanged sentences

Cash Equivalents and Available-for-Sale Investments

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

As of July 31, 2023 As of October 31, 2022

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

10 unchanged sentences

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

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.

As of July 31, 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 April 30, 2023

As of July 31, 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 $ 111 million and $ 110 million as of April 30, 2023 and October 31, 2022, respectively.

These amounted to $ 112 million and $ 110 million as of July 31, 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 and six months ended April 30, 2023.

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

Derivative Instruments

12 unchanged sentences

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 $ 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.

The fair value of derivatives with credit contingent features in a net liability position was $ 174 million and $ 82 million as of July 31, 2023 and 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 April 30, 2023 and October 31, 2022.

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

Fair Value Hedges

14 unchanged sentences

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 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.

During the three and nine months ended July 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.

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

3 unchanged sentences

Financial Instruments (Continued)

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

As of July 31, 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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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 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:

As of July 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:

In the Consolidated Condensed Balance Sheets

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Collateral Net Amount

As of April 30, 2023

As of July 31, 2023

Derivative assets $ 254 $ — $ 254 $ 222 $ 31 (1) $ 1

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(2) Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Effect of Derivative Instruments in the Consolidated Condensed Statements of Earnings

AND SUBSIDIARIES

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Financial Instruments (Continued)

Effect of Derivative Instruments in the Consolidated Condensed Statements of Earnings

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 April 30

Three months ended July 31

Interest rate contract Fixed-rate debt Interest and other, net 2023 $ ( 16 ) $ ( 6 ) $ 6

2022 $ ( 70 ) $ 8 $ ( 8 )

Six months ended April 30

Nine months ended July 31

Interest rate contract Fixed-rate debt Interest and other, net 2023 $ ( 357 ) $ 15 $ ( 15 )

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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 April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

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

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

Foreign currency contracts $ ( 68 ) $ 264 $ ( 757 ) $ 1,097

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other comprehensive (loss) income into earnings

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

Three months ended July 31 Nine months ended July 31 Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022 2023 2022 2023 2022

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Total $ ( 68 ) $ 327 $ 104 $ 491

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.

As of July 31, 2023, HP expects to reclassify an estimated accumulated other comprehensive loss of $ 49 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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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:

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 nine months ended July 31, 2023 and 2022 was as follows:

Gain/(loss) recognized in earnings on derivative instrument

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

Location 2023 2022 2023 2022

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Notes Payable and Short-Term Borrowings

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

As of July 31, 2023 As of October 31, 2022

Outstanding Weighted-Average

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Interest Rate

Commercial Paper $ 200 5.5 % $ — — %

Current portion of long-term debt 178 6.1 % 165 5.4 %

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Long-Term Debt

April 30, 2023 October 31, 2022

July 31, 2023 October 31, 2022

Dollar Global Notes (1)

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$ 500 issued at par at a price of 100 % at 4.75 %, due March 2029 (3)

10,188 10,683

Other borrowings at 1.58 %- 8.30 %, due in calendar years 2023-2030

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and socioeconomic advancement and empowerment.

(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.

(3) During the nine months ended July 31, 2023, HP repurchased or redeemed and settled $ 497 million of the March 2029 Notes related to the August 2022 Poly acquisition

(4) During the nine months ended July 31, 2023, HP repurchased and settled $ 1.15 billion in aggregate principal amount of various Global Notes.

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.

Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.

Commercial Paper

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.

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.

Extinguishment of Debt

In July 2023, HP commenced and completed a tender offer to purchase approximately $ 1.15 billion in aggregate principal amount of its outstanding US Dollar 1.45 % Global Notes due June 17, 2026, 3.40 % Global Notes due June 17, 2030 and 4.20 %

Table of Contents 10

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Borrowings (Continued)

Global Notes due April 15, 2032 .

This extinguishment of debt resulted in a net gain of $ 115 million, which was recorded within Interest and other, net on the Consolidated Condensed Statements of Earnings.

Commercial Paper

As of July 31, 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.

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.

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.

As of July 31, 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.

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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.

As of July 31, 2023, HP was in compliance with the covenants in the credit agreements governing the revolving credit facilities.

Available Borrowing Resources

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.

As of July 31, 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.

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.

There were no share repurchases during the three months ended July 31, 2023.

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

During the three and nine months ended July 31, 2022, HP executed share repurchases of 29 million shares and 98 million shares and settled total shares for $ 1.0 billion and $ 3.5 billion respectively.

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

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

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Stockholders' Deficit (Continued)

Tax effects related to Other Comprehensive Income (Loss)

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

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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 (provision) on gains (losses) arising during the period — — ( 1 ) —

Tax benefit on amortization of actuarial loss and prior service benefit — ( 3 ) — ( 5 )

2 unchanged sentences

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

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

Tax benefit (provision) on other comprehensive income (loss) $ 3 $ ( 62 ) $ 164 $ ( 172 )

AND SUBSIDIARIES

2 unchanged sentences

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

Three months ended April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

1 unchanged sentence

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

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

Unrealized gains (losses) arising during the period $ 1 $ — $ 4 $ ( 5 )

Change in unrealized components of cash flow hedges:

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Curtailments, settlements and other — ( 1 ) — ( 2 )

4 4 ( 24 ) 24

Change in cumulative translation adjustment 10 ( 14 ) 48 ( 54 )

2 unchanged sentences

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

Six months ended April 30, 2023

Nine months ended July 31, 2023

Net unrealized

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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 April 30 Six months ended April 30

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

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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 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 believes it has recorded adequate provisions for any such matters and, as of July 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 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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Some European countries are expected to implement legislation to introduce or extend existing levy schemes to digital devices.

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 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.

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

Based on the exemption of levies on business sales and industry opposition to increasing 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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Plaintiffs seek monetary damages, punitive damages, and other relief.

In June 2023, the parties reached an agreement in principle to resolve this matter.

The parties are negotiating a formal settlement agreement that, if finalized, would be submitted to the District Court for approval.

The case is presently stayed until a hearing for preliminary approval of the settlement set for October 26, 2023.

India Directorate of Revenue Intelligence Proceedings .

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and 8,284,833.

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

The accused products are HP commercial and consumer PCs

AND SUBSIDIARIES

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Litigation and Contingencies (Continued)

The California Inst.

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.

In August 2021, the court stayed the case pending the decision by the U.S.

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

Broadcom Ltd et al.

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

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.

2020-2222, which was issued on February 4, 2022, and a request for further review of that decision by the Supreme Court was denied.

On August 16, 2023, the parties informed the court that the stay should be lifted on September 5, 2023.

In re HP Inc.

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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.

The district court granted preliminary approval of the settlement on April 7, 2023.

On September 6, 2023, the court issued an order approving the settlement and directing entry of final judgment.

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

9 unchanged sentences

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 June 27, 2023, the district court issued an order setting the briefing schedule for a renewed motion to dismiss.

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.

10 unchanged sentences

Legal Proceedings re Authentication of Supplies .

Since 2016, HP has from time to time been named in civil litigation, or been the subject of government investigations, involving supplies authentication protocols used in certain HP printers in multiple geographies, including but not limited to the United States, Italy, Israel, the Netherlands, and New Zealand.

The supplies authentication protocols are often referred to as Dynamic Security.

3 unchanged sentences

If HP is not successful in its defense of these cases or investigations, it could be subject to damages, penalties, significant settlement demands, or injunctive relief that may be costly or may disrupt operations.

Certain of these proceedings in Italy, the Netherlands and Israel have been resolved, have concluded, or have concluded subject only to HP’s pending appeal.

Certain of these proceedings in Italy, the Netherlands, Israel, Australia and New Zealand have been resolved, have concluded, or have concluded subject only to HP’s pending appeal.

Civil litigation filed by Digital Revolution B.V.

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Plaintiffs in both cases seek compensatory damages, restitution, injunctive relief against alleged unfair business practices, and other relief.

The cases are in their early stages.

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.

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

In the case directed to Laserjet printers, plaintiffs have filed a motion for class certification.

The case involving Inkjet printers remains in its early stages.

Autonomy-Related Legal Matters

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Lynch has been extradited to the United States.

Trial on the charges against Mr.

Lynch and Mr.

Chamberlain is set to begin on March 18, 2024, in federal court in the Northern District of California.

HP is continuing to cooperate with the ongoing enforcement actions.

46 unchanged sentences

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

Six months ended April 30, 2023

Nine months ended July 31, 2023

Balance at beginning of period $ 876

3 unchanged sentences

Balance at end of period $ 753

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Revision of Prior Period Financial Statements

The Company has revised certain prior period financial statements to correct for an accounting error related to a revenue contract as well as other immaterial errors.

See Note 1, “Basis of Presentation” for further information.

A summary of revisions to the Company’s previously reported financial statements is presented below.

Revised Consolidated Condensed Statements of Earnings

For the three months ended January 31, 2023 For the three months ended January 31, 2022

As reported Adjustment As revised As reported Adjustment As revised

In millions, except per share amounts

Net revenue $ 13,828 $ ( 30 ) $ 13,798 $ 17,028 $ ( 15 ) $ 17,013

Cost of revenue $ 11,019 $ ( 8 ) $ 11,011 $ 13,643 $ ( 21 ) $ 13,622

Research and development $ 403 $ — $ 403 $ 418 $ 60 $ 478

Total costs and expenses $ 13,063 $ ( 8 ) $ 13,055 $ 15,669 $ 39 $ 15,708

Earnings from operations $ 765 $ ( 22 ) $ 743 $ 1,359 $ ( 54 ) $ 1,305

Interest and other, net $ ( 181 ) $ — $ ( 181 ) $ ( 32 ) $ 2 $ ( 30 )

Earnings before taxes $ 584 $ ( 22 ) $ 562 $ 1,327 $ ( 52 ) $ 1,275

Provision for taxes $ ( 97 ) $ 4 $ ( 93 ) $ ( 241 ) $ 18 $ ( 223 )

Net earnings $ 487 $ ( 18 ) $ 469 $ 1,086 $ ( 34 ) $ 1,052

Basic earnings per share $ 0.49 $ ( 0.02 ) $ 0.47 $ 1.00 $ ( 0.03 ) $ 0.97

Diluted earnings per share $ 0.49 $ ( 0.02 ) $ 0.47 $ 0.99 $ ( 0.03 ) $ 0.96

For the three months ended April 30, 2023 For the six months ended April 30, 2023

As reported Adjustment As revised As reported Adjustment As revised

In millions, except per share amounts

Net revenue $ 12,913 $ ( 6 ) $ 12,907 $ 26,741 $ ( 36 ) $ 26,705

Cost of revenue $ 9,984 $ 9 $ 9,993 $ 21,003 $ 1 $ 21,004

Total costs and expenses $ 12,151 $ 9 $ 12,160 $ 25,214 $ 1 $ 25,215

Earnings from operations $ 762 $ ( 15 ) $ 747 $ 1,527 $ ( 37 ) $ 1,490

Earnings before taxes $ 602 $ ( 15 ) $ 587 $ 1,186 $ ( 37 ) $ 1,149

Benefit from taxes

$ 464 $ 3 $ 467 $ 367 $ 7 $ 374

Net earnings $ 1,066 $ ( 12 ) $ 1,054 $ 1,553 $ ( 30 ) $ 1,523

Basic earnings per share $ 1.08 $ ( 0.02 ) $ 1.06 $ 1.57 $ ( 0.03 ) $ 1.54

Diluted earnings per share $ 1.07 $ ( 0.01 ) $ 1.06 $ 1.56 $ ( 0.03 ) $ 1.53

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

For the three months ended April 30, 2022 For the six months ended April 30, 2022

As reported Adjustment As revised As reported Adjustment As revised

In millions, except per share amounts

Net revenue $ 16,490 $ ( 15 ) $ 16,475 $ 33,518 $ ( 30 ) $ 33,488

Cost of revenue $ 13,157 $ 21 $ 13,178 $ 26,800 $ — $ 26,800

Research and development $ 425 $ — $ 425 $ 843 $ 60 $ 903

Restructuring and other charges $ 82 $ ( 15 ) $ 67 $ 150 $ ( 15 ) $ 135

Total costs and expenses $ 15,212 $ 6 $ 15,218 $ 30,881 $ 45 $ 30,926

Earnings from operations $ 1,278 $ ( 21 ) $ 1,257 $ 2,637 $ ( 75 ) $ 2,562

Interest and other, net $ ( 39 ) $ ( 2 ) $ ( 41 ) $ ( 71 ) $ — $ ( 71 )

Earnings before taxes $ 1,239 $ ( 23 ) $ 1,216 $ 2,566 $ ( 75 ) $ 2,491

Provision for taxes

$ ( 239 ) $ 4 $ ( 235 ) $ ( 480 ) $ 22 $ ( 458 )

Net earnings $ 1,000 $ ( 19 ) $ 981 $ 2,086 $ ( 53 ) $ 2,033

Basic earnings per share $ 0.95 $ ( 0.02 ) $ 0.93 $ 1.96 $ ( 0.05 ) $ 1.91

Diluted earnings per share $ 0.94 $ ( 0.02 ) $ 0.92 $ 1.94 $ ( 0.05 ) $ 1.89

For the three months ended July 31, 2022 For the nine months ended July 31, 2022

As reported Adjustment As revised As reported Adjustment As revised

In millions, except per share amounts

Net revenue $ 14,664 $ ( 16 ) $ 14,648 $ 48,182 $ ( 46 ) $ 48,136

Research and development $ 368 $ — $ 368 $ 1,211 $ 60 $ 1,271

Restructuring and other charges $ 13 $ — $ 13 $ 163 $ ( 15 ) $ 148

Total costs and expenses $ 13,392 $ — $ 13,392 $ 44,273 $ 45 $ 44,318

Earnings from operations $ 1,272 $ ( 16 ) $ 1,256 $ 3,909 $ ( 91 ) $ 3,818

Earnings before taxes $ 1,202 $ ( 16 ) $ 1,186 $ 3,768 $ ( 91 ) $ 3,677

Provision for taxes $ ( 83 ) $ 19 $ ( 64 ) $ ( 563 ) $ 41 $ ( 522 )

Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ ( 50 ) $ 3,155

Basic earnings per share $ 1.09 $ 0.01 $ 1.10 $ 3.05 $ ( 0.05 ) $ 3.00

Diluted earnings per share $ 1.08 $ — $ 1.08 $ 3.01 $ ( 0.04 ) $ 2.97

Revised Consolidated Condensed Statements of Comprehensive Income (Loss)

For the three months ended January 31, 2023 For the three months ended January 31, 2022

As reported Adjustment As revised As reported Adjustment As revised

Net earnings $ 487 $ ( 18 ) $ 469 $ 1,086 $ ( 34 ) $ 1,052

(Losses) gains on unrealized components of defined benefit plans

$ ( 38 ) $ 37 $ ( 1 ) $ 21 $ ( 20 ) $ 1

Other comprehensive (loss) income before taxes

$ ( 961 ) $ 37 $ ( 924 ) $ 270 $ ( 20 ) $ 250

Benefit from (provision for) taxes

$ 192 $ ( 9 ) $ 183 $ ( 26 ) $ 6 $ ( 20 )

Other comprehensive (loss) income, net of taxes

$ ( 769 ) $ 28 $ ( 741 ) $ 244 $ ( 14 ) $ 230

Comprehensive (loss) income

$ ( 282 ) $ 10 $ ( 272 ) $ 1,330 $ ( 48 ) $ 1,282

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

For the three months ended April 30, 2023 For the six months ended April 30, 2023

As reported Adjustment As revised As reported Adjustment As revised

Net earnings $ 1,066 $ ( 12 ) $ 1,054 $ 1,553 $ ( 30 ) $ 1,523

Gains (losses) on unrealized components of defined benefit plans $ 6 $ — $ 6 $ ( 32 ) $ 37 $ 5

Other comprehensive income (loss) before taxes

$ 110 $ — $ 110 $ ( 851 ) $ 37 $ ( 814 )

(Provision for) benefit from taxes

$ ( 22 ) $ — $ ( 22 ) $ 170 $ ( 9 ) $ 161

Other comprehensive income (loss), net of taxes

$ 88 $ — $ 88 $ ( 681 ) $ 28 $ ( 653 )

Comprehensive income $ 1,154 $ ( 12 ) $ 1,142 $ 872 $ ( 2 ) $ 870

For the three months ended April 30, 2022 For the six months ended April 30, 2022

As reported Adjustment As revised As reported Adjustment As revised

Net earnings $ 1,000 $ ( 19 ) $ 981 $ 2,086 $ ( 53 ) $ 2,033

Gains on unrealized components of defined benefit plans

$ 1 $ — $ 1 $ 22 $ ( 20 ) $ 2

Other comprehensive income before taxes

$ 453 $ — $ 453 $ 723 $ ( 20 ) $ 703

Provision for taxes

$ ( 90 ) $ — $ ( 90 ) $ ( 116 ) $ 6 $ ( 110 )

Other comprehensive income, net of taxes

$ 363 $ — $ 363 $ 607 $ ( 14 ) $ 593

Comprehensive income $ 1,363 $ ( 19 ) $ 1,344 $ 2,693 $ ( 67 ) $ 2,626

For the three months ended July 31, 2022 For the nine months ended July 31, 2022

As reported Adjustment As revised As reported Adjustment As revised

Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ ( 50 ) $ 3,155

Gains on unrealized components of defined benefit plans

$ 10 $ — $ 10 $ 32 $ ( 20 ) $ 12

Other comprehensive (loss) income before taxes

$ ( 48 ) $ — $ ( 48 ) $ 675 $ ( 20 ) $ 655

Provision for taxes

$ ( 62 ) $ — $ ( 62 ) $ ( 178 ) $ 6 $ ( 172 )

Other comprehensive (loss) income, net of taxes

$ ( 110 ) $ — $ ( 110 ) $ 497 $ ( 14 ) $ 483

Comprehensive income $ 1,009 $ 3 $ 1,012 $ 3,702 $ ( 64 ) $ 3,638

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Revised Consolidated Condensed Balance Sheets

For the fiscal years ended October 31

As reported Adjustment As revised

Inventory $ 7,595 $ 19 $ 7,614

Other current assets $ 4,515 $ ( 84 ) $ 4,431

Total current assets $ 19,801 $ ( 65 ) $ 19,736

Other non-current assets $ 7,471 $ ( 28 ) $ 7,443

Total assets $ 38,587 $ ( 93 ) $ 38,494

Accounts payable $ 15,284 $ 19 $ 15,303

Other current liabilities $ 10,651 $ 17 $ 10,668

Total current liabilities $ 26,153 $ 36 $ 26,189

Other non-current liabilities $ 4,556 $ ( 22 ) $ 4,534

Accumulated deficit $ ( 4,413 ) $ ( 79 ) $ ( 4,492 )

Accumulated other comprehensive income $ 313 $ ( 28 ) $ 285

Total stockholders’ deficit $ ( 2,918 ) $ ( 107 ) $ ( 3,025 )

Total liabilities and stockholders’ deficit $ 38,587 $ ( 93 ) $ 38,494

Revised Consolidated Condensed Statements of Cash Flows

For the three months ended January 31, 2023

For the three months ended January 31, 2022

As reported Adjustment As revised As reported Adjustment As revised

Cash flows from operating activities:

Net earnings $ 487 $ ( 18 ) $ 469 $ 1,086 $ ( 34 ) $ 1,052

Deferred taxes on earnings $ ( 136 ) $ ( 4 ) $ ( 140 ) $ 5 $ — $ 5

Accounts receivable

$ 244 $ — $ 244 $ 337 $ 25 $ 362

$ 218 $ 12 $ 230 $ ( 1,277 ) $ — $ ( 1,277 )

Accounts payable

$ ( 1,712 ) $ ( 19 ) $ ( 1,731 ) $ 2,035 $ — $ 2,035

Taxes on earnings $ 220 $ — $ 220 $ ( 6 ) $ ( 17 ) $ ( 23 )

Other assets and liabilities $ 250 $ 29 $ 279 $ ( 988 ) $ 26 $ ( 962 )

Net cash (used in) provided by operating activities

$ ( 16 ) $ — $ ( 16 ) $ 1,657 $ — $ 1,657

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

For the six months ended April 30, 2023

For the six months ended April 30, 2022

As reported Adjustment As revised As reported Adjustment As revised

Cash flows from operating activities:

Net earnings $ 1,553 $ ( 30 ) $ 1,523 $ 2,086 $ ( 53 ) $ 2,033

Restructuring and other charges

$ 341 $ — $ 341 $ 150 $ ( 15 ) $ 135

Deferred taxes on earnings $ ( 817 ) $ ( 8 ) $ ( 825 ) $ ( 5 ) $ 4 $ ( 1 )

Accounts receivable

$ 426 $ — $ 426 $ 91 $ 25 $ 116

$ 354 $ 20 $ 374 $ ( 1,270 ) $ — $ ( 1,270 )

Accounts payable

$ ( 1,914 ) $ ( 19 ) $ ( 1,933 ) $ 981 $ — $ 981

Taxes on earnings $ 329 $ 1 $ 330 $ ( 23 ) $ ( 25 ) $ ( 48 )

Other assets and liabilities $ ( 153 ) $ 36 $ ( 117 ) $ ( 555 ) $ 64 $ ( 491 )

Net cash provided by operating activities $ 620 $ — $ 620 $ 2,165 $ — $ 2,165

For the nine months ended July 31, 2022

As reported Adjustment As revised

Cash flows from operating activities:

Net earnings $ 3,205 $ ( 50 ) $ 3,155

Restructuring and other charges $ 163 $ ( 15 ) $ 148

Deferred taxes on earnings $ 47 $ 4 $ 51

Accounts receivable $ 1,076 $ 25 $ 1,101

Taxes on earnings $ ( 120 ) $ ( 45 ) $ ( 165 )

Other assets and liabilities $ ( 1,677 ) $ 81 $ ( 1,596 )

Net cash provided by operating activities $ 2,559 $ — $ 2,559

Revised Segment Information

The Personal Systems segment results were revised for these corrections within Note 2, “Segment Information”, which resulted in a decrease in segment net revenue and segment earnings from operations of $ 16 million for the three months ended July 31, 2022 and decrease in segment net revenue and segment earnings from operations of $ 46 million and $ 106 million, respectively, for the nine months ended July 31, 2022.

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