What changed in this filing

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Item 1. Financial Statements

2024-02-28 compared with 2023-09-11 · 260 added, 559 removed, 740 unchanged (53% of the section changed)

Financial Statements and Supplementary Data.

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 Earnings for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited)

Consolidated Condensed Statements of Comprehensive Income for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited)

Consolidated Condensed Balance Sheets as of January 3 1 , 202 4 and October 31, 202 3 (Unaudited)

Consolidated Condensed Statements of Cash Flows for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited)

Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited)

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Stockholders’ Deficit

Net Earnings Per Share

Earnings Per Share

Litigation and Contingencies

Guarantees, Indemnifications and Warranties

Revision of Prior Period Financial Statements

AND SUBSIDIARIES

Consolidated Condensed Statements of Earnings

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

In millions, except per share amounts

Net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136

Costs and expenses:

Cost of revenue 10,374 11,764 31,378 38,564

$ 12,419 $ 13,044

Services 766 754

Total net revenue 13,185 13,798

Cost of net revenue:

Services 426 422

Total cost of net revenue 10,297 11,011

Gross margin 2,888 2,787

Research and development 399 403

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Amortization of intangible assets 81 85

Russia exit charges — 23 — 23

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

Total operating expenses 1,953 2,044

Earnings from operations 935 743

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Earnings before taxes 793 562

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

Provision for taxes ( 171 ) ( 93 )

Net earnings $ 622 $ 469

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Consolidated Condensed Statements of Comprehensive Income

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

Net earnings $ 622 $ 469

Other comprehensive income (loss) before taxes:

Other comprehensive loss before taxes:

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

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

Unrealized gains arising during the period 4 4

Change in unrealized components of cash flow hedges:

Unrealized (losses) gains arising during the period ( 68 ) 280 ( 757 ) 1,182

Losses (gains) reclassified into earnings 68 ( 327 ) ( 104 ) ( 491 )

Unrealized losses arising during the period ( 162 ) ( 623 )

Gains reclassified into earnings ( 159 ) ( 334 )

( 321 ) ( 957 )

Change in unrealized components of defined benefit plans:

Gains arising during the period

Losses arising during the period ( 10 ) ( 1 )

Amortization of actuarial loss and prior service benefit 2 —

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Change in cumulative translation adjustment 20 29

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

Benefit from (provision for) taxes

3 ( 62 ) 164 ( 172 )

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

Comprehensive income $ 780 $ 1,012 $ 1,650 $ 3,638

Other comprehensive loss before taxes ( 305 ) ( 924 )

Benefit from taxes 70 183

Other comprehensive loss, net of taxes ( 235 ) ( 741 )

Comprehensive income (loss) $ 387 $ ( 272 )

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

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Consolidated Condensed Balance Sheets

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

In millions, except par value

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

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

980 and 989 shares issued and outstanding at January 31, 2024 and October 31, 2023, respectively)

Additional paid-in capital 1,579 1,505

Accumulated deficit ( 2,771 ) ( 2,361 )

Accumulated other comprehensive (loss) income ( 354 ) 285

Accumulated other comprehensive loss ( 458 ) ( 223 )

Total stockholders’ deficit ( 1,640 ) ( 1,069 )

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Consolidated Condensed Statements of Cash Flows

Nine months ended July 31

Three months ended January 31

Cash flows from operating activities:

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Other assets and liabilities ( 476 ) 279

Net cash provided by operating activities 1,596 2,559

Net cash provided by (used in) operating activities

Cash flows from investing activities:

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

Proceeds from sale of property, plant and equipment — 26

Investment in property, plant and equipment, net ( 158 ) ( 192 )

Purchases of available-for-sale securities and other investments — ( 4 )

Maturities and sales of available-for-sale securities and other investments — 1

Collateral (posted) returned for derivative instruments ( 118 ) 14

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

Collateral posted for derivative instruments

( 70 ) ( 240 )

Net cash used in investing activities ( 228 ) ( 435 )

Cash flows from financing activities:

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

Proceeds from short-term borrowings with original maturities less than 90 days, net 100 200

Proceeds from debt, net of issuance costs 92 52

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Collateral returned for derivative instruments

Settlement of cash flow hedges ( 3 ) 79

Net cash used in financing activities ( 708 ) ( 925 )

(Decrease) increase in cash, cash equivalents and restricted cash ( 1,427 ) 1,087

Decrease in cash, cash equivalents and restricted cash ( 815 ) ( 1,376 )

Cash, cash equivalents and restricted cash at beginning of period 3,232 3,145

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Paid-in Capital Accumulated

Comprehensive Income (Loss) Total Stockholders’ Deficit

Comprehensive Loss Total Stockholders’ Deficit

Number of Shares Par Value Accumulated Deficit

In millions, except number of shares in thousands

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

Balance at October 31, 2023

988,782 $ 10 $ 1,505 $ ( 2,361 ) $ ( 223 ) $ ( 1,069 )

Net earnings — — — 622 — 622

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Stock-based compensation expense — — 177 — — 177

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

Other comprehensive income, net of taxes 14 14

Comprehensive income 780

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

Cash dividends ($ 0.52 per common share)

Balance at January 31, 2024

980,397 $ 10 $ 1,579 $ ( 2,771 ) $ ( 458 ) $ ( 1,640 )

Stock-based compensation expense 91 91

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

Common Stock Additional

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Balance at October 31, 2022

Net earnings 3,155 3,155

Other comprehensive income, net of taxes 483 483

Comprehensive income 3,638

Issuance of common stock in connection with employee stock plans and other 11,452 ( 104 ) ( 104 )

Repurchases of common stock (Note 10) ( 97,719 ) ( 1 ) ( 99 ) ( 3,399 ) ( 3,499 )

Cash dividends ($ 1.00 per common share)

979,869 $ 10 $ 1,172 $ ( 4,492 ) $ 285 $ ( 3,025 )

Stock-based compensation expense 273 273

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 — — — 469 — 469

Other comprehensive loss, net of taxes — — — — ( 741 ) ( 741 )

Comprehensive income 1,650

Comprehensive loss — — — — — ( 272 )

Issuance of common stock in connection with employee stock plans and other 8,844 — ( 79 ) — — ( 79 )

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Stock-based compensation expense — — 167 — — 167

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

Balance at January 31, 2023

985,089 $ 10 $ 1,256 $ ( 4,637 ) $ ( 456 ) $ ( 3,827 )

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

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All intercompany balances and transactions have been eliminated.

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”.

Reclassifications

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

Use of Estimates

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Actual results may differ materially from those estimates.

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.

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

In September 2022, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances the transparency about the use of supplier finance programs.

Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services are required to disclose information about those programs to allow users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude.

HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which will be adopted in fiscal year 2025, in line with the effective adoption dates prescribed by the FASB.

See Note 6, “Supplementary Financial Information,” for additional disclosure related to HP’s supplier finance programs.

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.

In December 2023, the FASB issued guidance that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid.

HP is required to adopt this guidance for its annual period ending October 31, 2026.

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.

Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services will be required to disclose information about the program to allow users of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude.

HP is required to adopt the guidance in the first quarter of fiscal year 2024, except for the amendment on roll forward information which is effective one year later.

In November 2023, the FASB issued guidance that updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance on an annual and interim basis.

HP is required to adopt this guidance for its annual period ending October 31, 2025 and all interim periods thereafter.

Early adoption is permitted.

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Segment Information

HP is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services.

HP sells to individual consumers, small- and medium-sized businesses (“SMBs”) and large enterprises, including customers in the government, health and education sectors.

HP goes to market through its extensive channel network and direct sales.

HP’s operations are organized into three reportable segments:

Personal Systems, Printing, and Corporate Investments.

HP’s organizational structure is based on many factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology.

The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results.

The CODM uses several metrics to evaluate the performance of the overall business, including earnings from operations, and uses these results to allocate resources to each of the segments.

A summary description of each segment is as follows:

Personal Systems offers commercial and consumer customers desktops and notebooks, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems (includes video conferencing solutions, cameras, headsets, voice, and related software capabilities including all products and solutions acquired from Poly), software, support and services.

HP groups commercial notebooks, commercial desktops, commercial services, commercial mobility devices, commercial detachables and convertibles, workstations, retail POS systems and thin clients into commercial (“Commercial PS”), and consumer notebooks, consumer desktops, consumer services and consumer detachables into consumer (“Consumer PS”) when describing performance in these markets.

Commercial and Consumer services include support and deployment, configurations and extended warranty services.

Personal Systems offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems, software, solutions and services.

Personal Systems includes support and deployment, configurations and extended warranty services and maintains multi-operating system and multi-architecture strategies using Microsoft Windows and Google Chrome operating systems, and predominantly use processors from Intel Corporation (“Intel”) and Advanced Micro Devices, Inc.

Personal Systems groups its global business capabilities into the following business units when reporting business performance:

• Commercial PS consist of endpoint computing devices and hybrid systems, for use by enterprise, public sector (which includes education), and SMB customers, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in the customer’s environment.

Additionally, HP offers a range of services and solutions to enterprise, public sector (which includes education), and SMB customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base.

• Consumer PS consist of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, staying connected, sharing information, getting things done for work including creating content and staying informed and secure.

Printing provides consumer and commercial printer hardware, supplies, services and solutions.

Printing is also focused on imaging solutions in the commercial and industrial markets.

Described below are HP’s global business capabilities within Printing.

• Office Printing Solutions delivers HP’s office printers, supplies, services and solutions to SMBs and large enterprises.

It also includes OEM hardware and solutions.

• Home Printing Solutions delivers innovative printing products, supplies, services and solutions for the home, home business and micro business customers utilizing both HP’s Ink and Laser technologies.

• Commercial PS consists of devices and accessories, including workstations, thin clients, mobility devices and hybrid systems, for use by enterprise, public sector (which includes education), and small- and medium-sized business (“SMB”) customers.

HP offers a range of services and solutions to commercial customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base.

• Consumer PS consists of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, sharing information, and staying connected informed and secure.

Printing offers consumer and commercial printer hardware, supplies, services and solutions.

Printing is also focused on Graphics and 3D Printing and Personalization in the commercial and industrial markets.

Our global business capabilities within Printing are described below:

• Office Printing Solutions delivers HP’s office printers, supplies, services, and solutions to SMBs, public sector and large enterprises.

It also includes Original Equipment Manufacturer (“OEM”) hardware and solutions.

• Home Printing Solutions delivers innovative printing products, supplies, services and solutions for the home and home business.

• Graphics Solutions delivers large-format, commercial and industrial solutions and supplies to print service providers and packaging converters through a wide portfolio of printers and presses (HP DesignJet, HP Latex, HP Indigo and HP PageWide Web Presses).

• 3D Printing & Digital Manufacturing offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey.

• 3D Printing & Personalization offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey.

HP offers complete solutions in collaboration with an ecosystem of partners.

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Segment Information (Continued)

Printing groups its global business capabilities into the following business units when reporting business performance:

• Commercial Printing consists of office printing solutions, graphics solutions and 3D printing and digital manufacturing, excluding supplies;

• Commercial Printing consists of office printing solutions, graphics solutions and 3D printing and personalization, excluding supplies;

• Consumer Printing consists of home printing solutions, excluding supplies;

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Corporate Investments includes certain business incubation and investment projects.

The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements.

HP derives the results of the business segments directly from its internal management reporting system.

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, amortization of intangible assets and Russia exit charges.

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.

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

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

Notes to Consolidated Condensed Financial Statements (Continued)

Segment Information (Continued)

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

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

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

Three months ended January 31

Commercial PS $ 6,045 $ 6,382

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Amortization of intangible assets ( 81 ) ( 85 )

Russia exit charges — ( 23 ) — ( 23 )

Interest and other, net ( 142 ) ( 181 )

Total earnings before taxes $ 793 $ 562

Effective at the beginning of its first quarter of fiscal year 2024, HP realigned its business unit financial reporting more closely with its customer market segmentation.

The realignment resulted in the transfer of LaserJet printers net revenues from Consumer Printing to Commercial Printing.

HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of net revenues from Consumer Printing to Commercial Printing.

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

AND SUBSIDIARIES

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Summary of Restructuring Plans

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

HP’s restructuring activities summarized by plan were as follows:

Fiscal 2023 Plan

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Non-cash and other adjustments 2 — ( 2 ) —

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

Accrued balance as of January 31, 2024 $ 70 $ 14 $ — $ 84

Total costs incurred to date as of January 31, 2024 $ 445 $ 43 $ 869 $ 1,357

Reflected in Consolidated Condensed Balance Sheets

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Non-cash and other adjustments ( 2 ) ( 5 ) 1 ( 6 )

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 July 31, 2023 $ 24 $ 25 $ 1 $ 50

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

(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 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.

HP estimates that it will incur pre-tax charges of approximately $ 1.0 billion relating to labor and non-labor actions.

HP expects to incur approximately $ 0.7 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges.

HP estimates that it will incur pre-tax charges of approximately $ 1.0 billion of which approximately $ 0.7 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges.

Other charges

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

and $ 57 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.

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

For the three months ended January 31, 2024, HP incurred $ 15 million of other charges.

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

AND SUBSIDIARIES

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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 July 31

Defined Benefit Plans Non-U.S.

Defined Benefit Plans Post-Retirement Benefit Plans

2023 2022 2023 2022 2023 2022

Service cost $ — $ — $ 10 $ 14 $ 1 $ 1

Interest cost 54 41 10 5 4 2

Expected return on plan assets ( 65 ) ( 72 ) ( 13 ) ( 12 ) ( 4 ) ( 2 )

Amortization and deferrals:

Actuarial loss (gain) 4 1 1 9 ( 4 ) ( 4 )

Prior service cost (credit) — — 1 1 ( 2 ) ( 2 )

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

Settlement gain — — — ( 1 ) — —

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

Nine months ended July 31

Three months ended January 31

Defined Benefit Plans Non-U.S.

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Net periodic benefit (credit) cost 3 ( 6 ) 10 8 ( 7 ) ( 6 )

Settlement gain — — — ( 1 ) — —

Special termination benefit cost 105 — — — 34 —

Settlement loss — — — 1 — —

Total periodic benefit (credit) cost $ 3 $ ( 6 ) $ 10 $ 9 $ ( 7 ) $ ( 6 )

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non-qualified plan participants and approximately $ 3 million to cover benefit claims under HP’s post-retirement benefit plans.

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

During the three months ended January 31, 2024, HP contributed $ 11 million to its non-U.S.

pension plans, paid $ 6 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

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.

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.

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.

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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 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 the nine months ended July 31, 2023 as a restructuring charge.

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

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

The retirement incentive benefit was 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 the year ended October 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.

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 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.

In addition, HP provided 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 the year ended October 31, 2023 for the health care incentives.

AND SUBSIDIARIES

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Provision for Taxes

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 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.

HP’s effective tax rate was 21.6 % and 16.6 % for the three months ended January 31, 2024 and 2023, respectively.

The difference between the U.S.

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.

federal statutory tax rate of 21% and HP’s effective tax rate for the three months ended January 31, 2023 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, excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial.

Uncertain Tax Positions

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.

As of January 31, 2024, the amount of gross unrecognized tax benefits was $ 1.2 billion, of which up to $ 828 million would affect HP’s effective tax rate if realized.

Total gross unrecognized tax benefits increased by $ 20 million for the three months ended January 31, 2024.

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

As of January 31, 2024 and 2023, HP had accrued $ 105 million and $ 73 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

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Cash and cash equivalents $ 2,263 $ 3,107

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

Nine months ended July 31, 2023

Three months ended January 31, 2024

Balance at beginning of period $ 93

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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 July 31, 2023 and October 31, 2022 were not material.

The recourse obligations as of January 31, 2024 and October 31, 2023 were not material.

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

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

Balance at beginning of period (1)

$ 174 $ 173 $ 185 $ 131

Trade receivables sold 3,298 3,679

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Balance at end of period (1)

$ 159 $ 189 $ 159 $ 189

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

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Notes to Consolidated Condensed Financial Statements (Continued)

Supplementary Financial Information (Continued)

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Finished goods $ 3,603 $ 3,930

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Other Current Assets

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Supplier and other receivables $ 1,419 $ 1,349

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Property, Plant and Equipment, Net

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Land, buildings and leasehold improvements $ 2,348 $ 2,332

3 unchanged sentences

Other Non-Current Assets

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Deferred tax assets $ 3,230 $ 3,155

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Right-of-use assets 1,165 1,188

Deposits and prepaid 412 427

Prepaid pension and post-retirement benefit assets 395 393

Deposits and prepaids 470 474

Other 850 853

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Notes to Consolidated Condensed Financial Statements (Continued)

Supplementary Financial Information (Continued)

Other Current Liabilities

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Sales and marketing programs $ 2,920 $ 3,053

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Other Non-Current Liabilities

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Deferred revenue $ 1,373 $ 1,324

Tax liability 926 904

Operating lease liability 829 875

Operating lease liabilities 815 825

Pension, post-retirement, and post-employment liabilities 546 546

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Interest and Other, Net

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

Interest expense on borrowings $ ( 116 ) $ ( 143 )

Net gain on debt extinguishment 115 — 107 —

Non-operating retirement-related credits 14 38 40 110

Factoring costs ( 40 ) ( 32 )

( 37 ) — ( 99 ) —

Loss on extinguishment of debt — ( 8 )

Non-operating retirement-related credits 4 11

Other, net 10 ( 9 )

$ ( 142 ) $ ( 181 )

(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

Notes to Consolidated Condensed Financial Statements (Continued)

Supplementary Financial Information (Continued)

Net Revenue by Region

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

Americas $ 5,408 $ 5,747

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Value of Remaining Performance Obligations

As of July 31, 2023, the estimated value of transaction price allocated to remaining performance obligations was $ 3.7 billion.

As of January 31, 2024, the estimated value of transaction price allocated to remaining performance obligations was $ 3.8 billion.

HP expects to recognize approximately $ 1.7 billion of the unearned amount in next 12 months and $ 2.1 billion thereafter.

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Contract Liabilities

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.

As of January 31, 2024 and October 31, 2023, HP’s contract liabilities balances were $ 2.8 billion and $ 2.7 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 three months ended January 31, 2024, was primarily 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, 2023.

Supplier Finance Program s

HP facilitates voluntary supplier finance programs to provide certain suppliers the opportunity to sell their right to HP’s payment obligations to participating financial institutions.

Under this program, HP agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices.

Participation by suppliers in these programs have no impact on the payment terms and amounts due from HP.

HP does not have an economic interest in a supplier's participation in the program and is not a party to the agreement between the supplier and the financial institutions.

In connection with these programs, HP does not pledge assets or other forms of guarantees as security for the committed payment to the participating financial institutions.

HP pays a monthly service fee to a third-party administrato r that provides the supplier finance platform and related support.

HP and the participating financial institutions may terminate the agreement upon at least 30 days notice.

As of January 31, 2024 and October 31, 2023, HP had $ 5.3 billion and $ 6.6 billion respectively, in obligations outstanding (i.e., unpaid invoices) that were confirmed as valid under the supplier finance programs.

Of the amounts confirmed as valid under the program and outstanding, the amounts owed to participating financial institutions were $ 0.7 billion and $ 0.9 billion as of January 31, 2024 and October 31, 2023, respectively.

These obligations are included within the Accounts payable line item of HP’s Consolidated Condensed Balance Sheet .

AND SUBSIDIARIES

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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 July 31, 2023 As of October 31, 2022

As of January 31, 2024 As of October 31, 2023

Fair Value Measured Using Fair Value Measured Using

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Notes to Consolidated Condensed Financial Statements (Continued)

Fair Value (Continued)

Valuation Techniques

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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 $ 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 $ 9.3 billion as compared to its carrying amount of $ 9.7 billion at January 31, 2024.

The fair value of HP’s short- and long-term debt was $ 8.5 billion as compared to its carrying value of $ 9.5 billion at October 31, 2023.

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Cash Equivalents and Available-for-Sale Investments

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

As of January 31, 2024 As of October 31, 2023

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 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.

As of January 31, 2024 and October 31, 2023, 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 July 31, 2023

As of January 31, 2024

Amortized Cost Fair Value

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

These amounted to $ 112 million and $ 110 million as of July 31, 2023 and October 31, 2022, respectively.

These amounted to $ 108 million and $ 111 million as of January 31, 2024 and October 31, 2023, 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 nine months ended July 31, 2023.

No credit-related or noncredit-related impairment losses were recorded for the three months ended January 31, 2024.

Derivative Instruments

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HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets.

As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations.

Master netting agreements mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions.

To further limit credit risk, HP has collateral security agreements that allow HP’s custodian to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

generally based on the credit ratings of HP and its counterparties.

If HP’s or the counterparty’s credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives’ net liability position.

As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations.

To further limit credit risk, HP has collateral security agreements that allow HP’s custodian to hold collateral from, or require HP to post collateral to, counterparties when the net fair value of financial instruments fluctuates from contractually established thresholds.

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 $ 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.

The fair value of derivatives with credit contingent features in a net liability position was $ 119 million and $ 91 million as of January 31, 2024 and as of October 31, 2023, 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 July 31, 2023 and October 31, 2022.

This credit contingent provision did not affect HP’s financial position or cash flows as of January 31, 2024 and October 31, 2023.

Fair Value Hedges

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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 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.

During the three months ended January 31, 2024 and 2023, 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

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Notes to Consolidated Condensed Financial Statements (Continued)

Financial Instruments (Continued)

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

As of January 31, 2024 As of October 31, 2023

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 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:

As of January 31, 2024 and October 31, 2023, 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 July 31, 2023

As of January 31, 2024

Derivative assets $ 214 $ — $ 214 $ 170 $ 40 (1) $ 4

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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.

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Notes to Consolidated Condensed Financial Statements (Continued)

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:

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Notes to Consolidated Condensed Financial Statements (Continued)

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 July 31

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

2022 $ ( 70 ) $ 8 $ ( 8 )

Nine months ended July 31

Three months ended January 31

Interest rate contract Fixed-rate debt Interest and other, net 2024 $ ( 142 ) $ 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 July 31 Nine months ended July 31

2023 2022 2023 2022

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

Three months ended January 31

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

Foreign currency contracts $ ( 162 ) $ ( 623 )

Interest rate contracts $ — $ 16 $ — $ 85

The pre-tax effect of derivative instruments in cash flow hedging relationships included in earnings were as follows:

1 unchanged sentence

other comprehensive (loss) income into earnings

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

Three months ended January 31 Three months ended January 31

2024 2023 2024 2023

1 unchanged sentence

Cost of revenue ( 10,297 ) ( 11,011 ) ( 40 ) ( 54 )

Other operating expenses ( 1,870 ) ( 1,628 ) ( 6,081 ) ( 5,754 ) ( 1 ) ( 1 ) ( 3 ) —

Operating expenses ( 1,953 ) ( 2,044 ) ( 3 ) ( 1 )

Interest and other, net ( 142 ) ( 181 ) 3 3

Total $ 159 $ 334

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.

As of January 31, 2024, HP expects to reclassify an estimated accumulated other comprehensive loss of $ 33 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 nine months ended July 31, 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 as follows:

Gain/(loss) recognized in earnings on derivative instrument

Three months ended July 31 Nine months ended July 31

Three months ended January 31

Location 2024 2023

5 unchanged sentences

Notes Payable and Short-Term Borrowings

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

As of January 31, 2024 As of October 31, 2023

Outstanding Weighted-Average

6 unchanged sentences

Long-Term Debt

July 31, 2023 October 31, 2022

January 31, 2024 October 31, 2023

Dollar Global Notes (1)

11 unchanged sentences

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

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

Other borrowings at 1.58 %- 8.30 %, due in fiscal years 2024-2030

Fair value adjustment related to hedged debt ( 43 ) ( 58 )

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and socioeconomic advancement and empowerment.

(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.

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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Notes to Consolidated Condensed Financial Statements (Continued)

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.

As of January 31, 2024, HP maintained a U.S.

commercial paper program for the issuance of U.S.

1 unchanged sentence

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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Notes to Consolidated Condensed Financial Statements (Continued)

Credit Facilities

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.

As of January 31, 2024, 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.

1 unchanged sentence

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

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

As of January 31, 2024, HP was in compliance with the covenants in the credit agreements governing the revolving credit facilities.

Available Borrowing Resources

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.

As of January 31, 2024, HP had available borrowing resources of $ 1.0 billion from uncommitted lines of credit in addition to the full capacity of the revolving credit facilities.

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Stockholders’ Deficit

1 unchanged sentence

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

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 July 31 Nine months ended July 31

2023 2022 2023 2022

During the three months ended January 31, 2024, HP executed share repurchases of 17.1 million shares and settled total shares for $ 0.5 billion.

Share repurchases executed during the three months ended January 31, 2024 included 0.3 million shares settled in February 2024.

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.

The shares repurchased during the three months ended January 31, 2024 and 2023 were all open market repurchase transactions.

As of January 31, 2024, HP had approximately $ 1.5 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Taxes related to Other Comprehensive Income (Loss)

Three months ended January 31

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

Tax benefit (provision) on unrealized (losses) gains arising during the period $ — $ 1 $ ( 1 ) $ 2

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

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

Tax benefit (provision) on unrealized (losses) gains arising during the period 18 ( 159 ) 144 ( 305 )

Tax (benefit) provision on losses (gains) reclassified into earnings ( 15 ) 99 22 135

3 ( 60 ) 166 ( 170 )

Tax benefit on unrealized losses arising during the period 36 106

Tax provision on gains reclassified into earnings 32 78

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

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

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

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

— ( 3 ) ( 1 ) ( 6 )

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

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

Tax benefit on losses arising during the period 2 —

Tax benefit on other comprehensive loss $ 70 $ 183

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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 July 31 Nine months ended July 31

2023 2022 2023 2022

Other comprehensive income (loss), net of taxes:

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

Three months ended January 31

Other comprehensive loss, net of taxes:

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

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

Unrealized gains arising during the period $ 4 $ 3

Change in unrealized components of cash flow hedges:

Unrealized (losses) gains arising during the period ( 50 ) 121 ( 613 ) 877

Losses (gains) reclassified into earnings 53 ( 228 ) ( 82 ) ( 356 )

Unrealized losses arising during the period ( 126 ) ( 517 )

Gains reclassified into earnings ( 127 ) ( 256 )

( 253 ) ( 773 )

Change in unrealized components of defined benefit plans:

Gains (losses) arising during the period — 10 4 12

Losses arising during the period ( 8 ) ( 1 )

Amortization of actuarial loss and prior service benefit (1)

1 unchanged sentence

Change in cumulative translation adjustment 20 29

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

Other comprehensive loss, net of taxes $ ( 235 ) $ ( 741 )

(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”.

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

Nine months ended July 31, 2023

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

Three months ended January 31, 2024

Net unrealized

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adjustment Accumulated

comprehensive

income (loss)

comprehensive loss

Balance at beginning of period $ 7 $ 230 $ ( 437 ) $ ( 23 ) $ ( 223 )

Other comprehensive gain (loss) before reclassifications 4 ( 613 ) 4 48 ( 557 )

Other comprehensive gains (losses) before reclassifications 4 ( 126 ) ( 8 ) 20 ( 110 )

Reclassifications of gain into earnings — ( 127 ) 2 — ( 125 )

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Consolidated Condensed Statements of Earnings (Continued)

Net Earnings Per Share

Earnings Per Share

HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period.

1 unchanged sentence

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

Three months ended July 31 Nine months ended July 31

2023 2022 2023 2022

Three months ended January 31

In millions, except per share amounts

13 unchanged sentences

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 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 believes it has recorded adequate provisions for any such matters and, as of January 31, 2024, 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.

10 unchanged sentences

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.

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Notes to Consolidated Condensed Financial Statements (Continued)

Litigation and Contingencies (Continued)

Forsyth, et al.

11 unchanged sentences

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.

The parties have finalized a settlement agreement, and the court preliminarily approved it on October 26, 2023.

The Court has set the Final Approval Hearing for March 28, 2024.

India Directorate of Revenue Intelligence Proceedings .

23 unchanged sentences

Philips seeks unspecified damages and an injunction against HP, and the prior stay has been lifted.

On August 10, 2023, HP filed a motion for summary judgment of indefiniteness for all asserted claims.

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Notes to Consolidated Condensed Financial Statements (Continued)

Caltech Patent Litigation .

3 unchanged sentences

and 8,284,833.

The accused products are HP commercial and consumer PCs

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Litigation and Contingencies (Continued)

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

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.

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, 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.

Securities Litigation (Electrical Workers Pension Fund, Local 103, I.B.E.W.

HP Inc., et al.) .

On February 19, 2020, Electrical Workers Pension Fund, Local 103, I.B.E.W.

filed a putative class action complaint against HP, Dion Weisler, Catherine Lesjak, and Steven Fieler in U.S.

District Court in the Northern District of California.

The court appointed the State of Rhode Island, Office of the General Treasurer, on behalf of the Employees’ Retirement System of Rhode Island and Iron Workers Local 580 Joint Funds as Lead Plaintiffs.

Lead Plaintiffs filed an amended complaint, which additionally named as defendants Enrique Lores and Christoph Schell.

HP and the named officers filed a motion to dismiss the complaint for failure to state a claim upon which relief can be granted.

The court granted HP’s motion to dismiss and granted plaintiffs leave to amend the complaint.

Plaintiffs’ second amended complaint, which no longer names Christoph Schell as a defendant, alleges, among other things, that from February 23, 2017 to October 3, 2019, HP and the named officers violated Sections 10(b) and 20(a) of the Exchange Act by making false or misleading statements about HP’s printing supplies business.

It further alleges that Dion Weisler and Enrique Lores violated Sections 10(b) and 20A of the Exchange Act by allegedly selling shares of HP common stock during this period while in possession of material, non-public adverse information about HP’s printing supplies business.

Plaintiffs seek compensatory damages and other relief.

HP and the named officers filed a motion to dismiss the second amended complaint for failure to state a claim upon which relief can be granted.

On September 15, 2021, the court granted HP’s motion.

Plaintiffs appealed the decision.

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.

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

In August 2021, the court stayed the case pending the decision in related cases brought by Caltech against Apple and Broadcom.

On November 6, 2023, the court issued an order maintaining the stay of all discovery and deadlines pending discovery relating to whether Caltech has standing to bring suit with respect to the asserted patents and the court’s resolution of that issue.

A hearing concerning Caltech’s standing is scheduled for May 2024.

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

20 unchanged sentences

Notes to Consolidated Condensed Financial Statements (Continued)

Litigation and Contingencies (Continued)

Legal Proceedings re Authentication of Supplies .

10 unchanged sentences

Both parties have appealed.

In addition, two putative class actions have been filed against HP in federal court in California, in December 2020 and April 2022, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers and HP Inkjet printers, respectively.

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

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

Investigations .

As a result of the findings of an internal investigation, HP provided information to government authorities, including the U.S.

Department of Justice (“DOJ”) related to accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred before and in connection with HP’s 2011 acquisition of Autonomy.

In November 2016, a federal grand jury indicted Sushovan Hussain, former CFO of Autonomy on charges of conspiracy to commit wire fraud, securities fraud, and multiple counts of wire fraud.

The indictment alleged that Mr.

Hussain engaged in a scheme to defraud purchasers and sellers of securities of Autonomy and HP about Autonomy’s true financial performance and condition.

On April 30, 2018, a jury found Mr.

Hussain guilty of all charges against him, and that judgment was affirmed on appeal in August 2020.

In November 2018, a federal grand jury indicted Michael Lynch, former CEO of Autonomy, and Stephen Chamberlain, former VP of Finance of Autonomy.

The indictment charged Mr.

Lynch and Mr.

Chamberlain with conspiracy to commit wire fraud and multiple counts of wire fraud.

On January 28, 2022, the U.K.

Home Office approved U.S.

demands to have Mr.

Lynch extradited to face the charges.

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.

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.

Autonomy Corporation Limited v.

Michael Lynch and Sushovan Hussain .

In addition, two putative class actions have been filed against HP in federal court in California, in December 2020, April 2022, and one in federal court in Illinois, in January 2024, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers, in HP Inkjet printers, and in both, respectively.

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

In the case directed to Laserjet printers, plaintiffs filed a motion for class certification, and, on December 8, 2023, the court entered an order denying in full plaintiffs’ request to certify a damages class and granting certification of a narrowed injunctive relief class composed of those who did not see HP’s disclosures.

In its order, the court declined at this juncture to resolve the merits of the sufficiency of HP’s disclosures.

The other cases are in their early stages.

Autonomy-Related Legal Proceedings .

As the result of an internal investigation, HP obtained information about certain accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred before and in connection with its 2011 acquisition of Autonomy.

On April 17, 2015, four former HP subsidiaries that became subsidiaries of Hewlett Packard Enterprise at the time of the Separation (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems, Limited, and Autonomy, Inc.) initiated civil proceedings in the U.K.

High Court of Justice against two members of Autonomy’s former management, Michael Lynch and Sushovan Hussain.

The Particulars of Claim seek damages in excess of $ 5 billion from Messrs.

Lynch and Hussain for breach of their fiduciary duties by causing Autonomy group companies to engage in improper transactions and accounting practices.

On October 1, 2015, Messrs.

Lynch and Hussain filed their defenses.

Lynch also filed a counterclaim against Autonomy Corporation Limited seeking $ 160 million in damages, among other things, for alleged misstatements regarding Lynch.

Trial was completed in January 2020.

On May 17, 2022, the court issued its final judgment, memorializing its findings that HP succeeded in substantially all of its claims and that Messrs.

High Court of Justice against two members of Autonomy’s former management, Michael Lynch and Sushovan Hussain, for breach of their fiduciary duties in causing Autonomy group companies to engage in improper transactions and accounting practices.

The claims seek more than $ 5 billion in damages.

Lynch and Hussain filed defenses and Mr.

Lynch filed a counterclaim seeking $ 160 million in damages for alleged misstatements regarding Lynch.

Trial concluded in January 2020.

On May 17, 2022, the court issued its final judgment, finding that HP succeeded on substantially all claims and that Messrs.

Lynch and Hussein engaged in fraud, and dismissing Mr.

Lynch’s counterclaim.

The court deferred its assessment of damages to a later, separate judgment to be issued after further submissions, but it has indicated that damages awarded may be substantially less than is claimed.

The court deferred its damages ruling to a later, separate judgment to be issued after further proceedings, which began on February 12, 2024, but indicated that damages awarded may be substantially less than is claimed.

Litigation is unpredictable, and there can be no assurance that HP will recover damages or as to how any award of damages will compare with the amount claimed.

2 unchanged sentences

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

In addition, Messrs.

Hussein and Lynch, and Stephen Chamberlain, former VP of Finance of Autonomy, were each indicted on federal criminal charges in the Northern District of California.

On April 30, 2018, a jury found Mr.

Hussein guilty of conspiracy to commit wire fraud, securities fraud, and multiple counts of wire fraud, and that judgment was affirmed on appeal in August 2020.

Lynch and Chamberlain are set to face trial on charges of conspiracy to commit wire fraud, and multiple counts of wire fraud on March 18, 2024.

HP is continuing to cooperate with the ongoing enforcement actions.

AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

Litigation and Contingencies (Continued)

Nokia Patent Litigation .

On October 31, 2023, Nokia filed a complaint for patent infringement against HP in federal court for the District of Delaware asserting ten patents and filed two companion complaints with the U.S.

International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act against HP, asserting seven of the ten patents asserted in the federal court case.

The complaints allege that HP products that are compliant with certain video coding technology standards, including Advanced Video Coding (H.264) or High Efficiency Video Coding (H.265) standards, infringe Nokia’s patents.

In November 2023, the ITC instituted investigations on Nokia’s complaints.

On December 11, 2023, HP filed counterclaims against Nokia in the Delaware action, including claims that Nokia violated its commitments to license standard-essential patents on fair, reasonable, and non-discriminatory (“FRAND”) terms, and seeking a court determination of the proper FRAND rate.

Nokia’s patent litigation against HP also includes a lawsuit filed in November 2023 against HP and six of its subsidiaries in the European Unified Patent Court in Germany, 2 lawsuits filed in November 2023 but served in January 2024 against HP and its German subsidiary in state court in Munich, Germany, and a lawsuit filed on December 1, 2023, against a subsidiary, HP Brasil Indústria e Comércio de Equipamentos Eletrônicos Ltda.

(“HP Brazil”), in the state court in Rio de Janeiro in Brazil.

In Brazil, Nokia alleged that HP’s products contain “skip mode” technology compatible with H.264 video standards that infringes one of Nokia’s Brazilian patents.

On December 4, 2023, before HP had received service of the lawsuit, the court granted Nokia an ex parte preliminary injunction against HP Brazil’s commercialization of such products in Brazil.

HP has appealed the injunction and asked the appellate court to suspend its enforcement.

If the court does not do so, the injunction in Brazil will take effect and remain in place unless overturned on appeal, until the state court revokes or modifies it, or the case is resolved.

If HP is not successful in its defenses, it may be subject to injunctions, orders to recall products in Germany and other EU countries, or licensing demands to avoid potential disruptions to its business.

On January 31, 2024, HP Brazil filed the non-infringement defense and a patent nullity action against Nokia.

Given the procedural posture and nature of these cases, including proceedings that are in their early stages and have significant factual and legal issues to be resolved, HP is unable to make a reasonable estimate of the potential loss or range of losses that may arise from these matters.

R2 Semiconductor Litigation .

In November 2022, R2 Semiconductor, Inc.

(“R2”) filed a lawsuit in the Dusseldorf Regional Court in Germany against Intel Deutschland GmbH, HP Deutschland GmbH and certain other Intel customers.

R2 asserts one European patent is infringed by HP’s products that contain certain Intel processors.

R2 seeks an injunction prohibiting the sale of the alleged infringing products.

Intel is indemnifying HP subject to certain limitations in the parties’ agreement.

The Dusseldorf Regional Court conducted a trial on December 7, 2023 and issued an adverse judgment on February 7, 2024.

The Court’s judgment imposes an injunction prohibiting sales of the accused products in Germany, an order to stop all other infringing actions, and an order to issue a communication to commercial customers recalling the relevant products sold since March 5, 2020, which could take effect upon notice of R2’s payment of the required sureties and remain in place unless stayed or overturned on appeal or the parties reach an agreement.

On February 8, 2024, HP filed an appeal and request for a stay of the judgment pending appeal.

Given the procedural posture, the nature of the case, and the relationship with Intel, HP is unable to make a reasonable estimate of the potential loss or range of losses that might arise from this lawsuit and that would not be indemnifiable by Intel.

Litigation with Access Advance Patent Pool regarding video codecs .

Access Advance LLC (“Access Advance”) is an independent licensing administrator formed to license allegedly essential patents for standards-based video codecs, which it licenses through various licensing pools.

In late 2023, members of Access Advance’s HEVC Advance patent pool launched a patent litigation campaign against HP in Germany and Europe.

To date, three pool members, Dolby, Mitsubishi Electric (“Mitsubishi”) and Konikijke Philips N.V.

(“Philips”) have each filed patent infringement lawsuits against HP and various affiliates.

Specifically, Dolby filed a lawsuit against HP and 14 affiliates in the new Unified Patent Court (UPC) in Düsseldorf, and Mitsubishi and Philips each filed a lawsuit against HP and two affiliates in the State Court in Munich, Germany.

The complaints allege that HP products that are compliant with the High Efficiency Video Coding (H.265) standard infringe the pool members' respective patents, seek an injunction, and allege that HP has failed to act as a willing licensee of HEVC essential patents based on HP's negotiations with Access Advance.

If HP is not successful in its defenses in these suits, it may be subject to injunctions, recall orders, and claims for damages or face licensing demands to avoid potential disruptions to its business.

Given the procedural posture and nature of these cases, which are in their early stages and have significant factual and legal issues to be resolved, HP is unable to make a reasonable estimate of the potential loss or range of losses that may arise from these matters.

Environmental

24 unchanged sentences

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

Nine months ended July 31, 2023

Three months ended January 31, 2024

Balance at beginning of period $ 706

3 unchanged sentences

Balance at end of period $ 679

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