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Table of Contents
Part I. Financial Information



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
☒
(Mark One)
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: ended
January 31, 20182024
Or
o☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number
1-4423

HP INC.
(Exact name of registrant as specified in its charter)
Delaware
Delaware94-1081436
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer

identification no.)
1501 Page Mill Road Palo Alto, California94304
Palo Alto,California(Zip code)
(Address of principal executive offices)
(650) 857-1501
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class(Zip code)Trading Symbol(s)Name of each exchange on which registered
(650) 857-1501
(Registrant’s telephone number, including area code)
Common stock, par value $0.01 per share		HPQNew York Stock Exchange


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý☒ No o☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý☒ No o☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒Accelerated filer ☐
Large accelerated filer ý
Accelerated filer o
Non-accelerated filer o
(Do not check if a smaller reporting company)
Smaller reporting companyo
Emerging growth companyo
Non-accelerated filer  ☐Smaller reporting company☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐
Indicate by check mark whether the registrant is a shell company (as defined byin Rule 12b-2 of the Exchange Act). Yes o☐ No ý☒
The number of shares of HP Inc. common stock outstanding as of January 31, 20182024 was 1,641,373,766980,731,959 shares.




HP INC. AND SUBSIDIARIES
Form 10-Q
For the Quarterly Period ended January 31, 20182024
Table of Contents
Page
3
Item 1.
45
Item 2.
4138
Item 3.
5149
Item 4.
5149
Item 1.
5250
Item 1A.
5250
Item 2.
5251
Item 3.
5351
Item 4.
5351
Item 5.
5351
Item 6.
5351
5452
5560
In this report on Form 10-Q, for all periods presented, “we”, “us”, “our”, the “company”, the “Company”, “HP” and “HP Inc.” refer to HP Inc. (formerly Hewlett-Packard Company) and its consolidated subsidiaries.



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Forward-Looking Statements
This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I, contains forward-looking statements based on current expectations and assumptions that involve risks uncertainties and assumptions.uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries (“HP”) which may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any statements regarding the impact of the COVID-19 pandemic; projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges;charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the Fiscal 2023 Plan (as defined below)), net revenue or profitability improvements;improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or disputes;other litigation matters; any statements of expectation or belief including with respectas to the timing and expected benefits of acquisitions and other business combination and investment transactions;transactions (including the acquisition of Plantronics, Inc. (“Poly”)); and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms. Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to the impact of macroeconomic and geopolitical trends, changes and events, including the Russian invasion of Ukraine, tension across the Taiwan Strait, the Israel-Hamas conflict, other hostilities in the Middle East and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, increases in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP’s international operations; the effects of global pandemics, such as COVID-19, or other public health crises; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the need to addressmanage (and reliance on) third-party suppliers, including with respect to supply constraints and component shortages, and the many challenges facingneed to manage HP’s businesses;global, multi-tier distribution network and potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; HP’s ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; execution of planned structural cost reductions and productivity initiatives; HP’s ability to complete any contemplated share repurchases, other capital return programs or other strategic transactions; the competitive pressures faced by HP’s businesses; risks associated withsuccessfully innovating, developing and executing HP’s strategy; the impact of macroeconomicgo-to-market strategy, including online, omnichannel and geopolitical trendscontractual sales, in an evolving distribution, reseller and events; the need to manage third-party suppliers and the distribution of HP’s products and the delivery of HP’s services effectively; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations;customer landscape; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends;trends, including artificial intelligence; successfully competing and maintaining the executionvalue proposition of HP’s products, including supplies and performanceservices; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of contracts by HP and its suppliers, customers, clients and partners; the hiring and retentionHP’s products to unauthorized resellers or unauthorized resale of key employees;HP’s products or our uneven sales cycle; integration and other risks associated with business combination and investment transactions; the results of theour restructuring plans (including the Fiscal 2023 Plan), including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of theour restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; the hiring and retention of key employees; disruptions in operations from system security risks, data protection breaches, cyberattacks, extreme weather conditions or other effects of climate change, and other natural or manmade disasters or catastrophic events; the impact of changes into federal, state, local and foreign laws and regulations, including environmental regulations and tax laws, including uncertaintieslaws; our aspirations related to the interpretationenvironmental, social and application of the Tax Cutsgovernance matters; potential impacts, liabilities and Jobs Act of 2017 on HP’s tax obligations and effective tax rate; the resolution ofcosts from pending or potential investigations, claims and disputes; our use of artificial intelligence; the effectiveness of our internal control over financial reporting; and other risks that are described herein, including, but not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular,as well as the risks discussed in Part I, Item 1A “Risk Factors” of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2017,2023 and that are otherwise described or updated from time to time in HP’s other filings with the Securities and Exchange Commission (“(the “SEC”). HP’s Fiscal 2023 Plan includes HP's efforts to take advantage of future growth opportunities, including but not limited to, investments to drive growth, investments in our people, improving product mix, driving structural cost savings and other productivity measures. Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the
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longer-term. These structural cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP’s expectations on the SEC”).longer-term sustainability of such structural cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP’s evolving business models, future investment decisions, market environment and technology landscape. The forward-looking statements in this report are made as of the date of this filing and HP assumes no obligation and does not intend to update these forward-looking statements.

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Part I. Financial Information


ITEM 1. Financial Statements and Supplementary Data.
Index
Page
56
67
78
89
Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited)
10
911
911
1112
1314
1415
1516
17
1921
2223
2428
2830
3032
3332
33
Note 14: Guarantees, Indemnifications and Warranties
3837
Note 15: Acquisitions
39
Note 16: Intangibles
39



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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
 Three months ended January 31
 20242023
 In millions, except per share amounts
Net revenue:
Products$12,419 $13,044 
Services766 754 
Total net revenue13,185 13,798 
Cost of net revenue:
Products9,871 10,589 
Services426 422 
Total cost of net revenue10,297 11,011 
Gross margin2,888 2,787 
Research and development399 403 
Selling, general and administrative1,383 1,331 
Restructuring and other charges63 141 
Acquisition and divestiture charges27 84 
Amortization of intangible assets81 85 
Total operating expenses1,953 2,044 
Earnings from operations935 743 
Interest and other, net(142)(181)
Earnings before taxes793 562 
Provision for taxes(171)(93)
Net earnings$622 $469 
Net earnings per share:
Basic$0.63 $0.47 
Diluted$0.62 $0.47 
Weighted-average shares used to compute net earnings per share:
Basic995 989 
Diluted1,002 996 
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

6
 Three months ended January 31
 2018 2017
 In millions, except per share amounts
Net revenue$14,517
 $12,684
Costs and expenses:   
Cost of revenue11,935
 10,436
Research and development347
 296
Selling, general and administrative1,169
 1,017
Restructuring and other charges31
 63
Acquisition-related charges42
 16
Amortization of intangible assets20
 —
Total costs and expenses13,544
 11,828
Earnings from operations973
 856
Interest and other, net(68) (81)
Earnings before taxes905
 775
Provision for taxes1,033
 (164)
Net earnings$1,938
 $611
    
Net earnings per share: 
  
Basic$1.17
 $0.36
Diluted$1.16
 $0.36
    
Cash dividends declared per share$0.28
 $0.27
    
Weighted-average shares used to compute net earnings per share: 
  
Basic1,650
 1,704
Diluted1,669
 1,721
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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
(Unaudited)
 Three months ended January 31
 20242023
 In millions
Net earnings$622 $469 
Other comprehensive loss before taxes:
Change in unrealized components of available-for-sale debt securities:
Unrealized gains arising during the period4 4 
Change in unrealized components of cash flow hedges:
Unrealized losses arising during the period(162)(623)
Gains reclassified into earnings(159)(334)
(321)(957)
Change in unrealized components of defined benefit plans:
Losses arising during the period(10)(1)
Amortization of actuarial loss and prior service benefit2 — 
Curtailments, settlements and other— 1 
(8)— 
Change in cumulative translation adjustment20 29 
Other comprehensive loss before taxes(305)(924)
Benefit from taxes70 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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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive IncomeBalance Sheets
(Unaudited)
 Three months ended January 31
 2018 2017
 In millions
Net earnings$1,938
 $611
Other comprehensive loss before taxes: 
  
Change in unrealized components of available-for-sale securities: 
  
Unrealized (losses) gains arising during the period(3) 3
Gains reclassified into earnings(5)
—
 (8)
3
    
Change in unrealized components of cash flow hedges: 
  
Unrealized losses arising during the period(551) (169)
Losses (gains) reclassified into earnings70
 (71)

(481) (240)
Change in unrealized components of defined benefit plans: 
  
Amortization of actuarial loss and prior service benefit12
 20
Curtailments, settlements and other1
 —

13
 20
Other comprehensive loss before taxes(476) (217)
Benefit from (provision for) taxes65
 (14)
Other comprehensive loss, net of taxes(411) (231)
Comprehensive income$1,527
 $380
 As of
 January 31, 2024October 31, 2023
 
In millions, except par value
ASSETS  
Current assets:  
Cash, cash equivalents and restricted cash$2,417 $3,232 
Accounts receivable, net of allowance for credit losses of $84 and $93, respectively3,804 4,237 
Inventory6,928 6,862 
Other current assets3,709 3,646 
Total current assets16,858 17,977 
Property, plant and equipment, net2,807 2,827 
Goodwill8,610 8,591 
Other non-current assets7,571 7,609 
Total assets$35,846 $37,004 
LIABILITIES AND STOCKHOLDERS’ DEFICIT  
Current liabilities:  
Notes payable and short-term borrowings$359 $230 
Accounts payable13,255 14,046 
Other current liabilities10,243 10,212 
Total current liabilities23,857 24,488 
Long-term debt9,301 9,254 
Other non-current liabilities4,328 4,331 
Stockholders’ deficit:  
Preferred stock, $0.01 par value (300 shares authorized; none issued)— — 
Common stock, $0.01 par value (9,600 shares authorized; 980 and 989 shares issued and outstanding at January 31, 2024 and October 31, 2023, respectively)10 10 
Additional paid-in capital1,579 1,505 
Accumulated deficit(2,771)(2,361)
Accumulated other comprehensive loss(458)(223)
Total stockholders’ deficit(1,640)(1,069)
Total liabilities and stockholders’ deficit$35,846 $37,004 
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HP INC. AND SUBSIDIARIES
Consolidated Condensed Balance SheetsStatements of Cash Flows
(Unaudited)
 As of
 January 31, 2018 October 31, 2017
 
In millions, except par value 
ASSETS 
  
Current assets: 
  
Cash and cash equivalents$5,475
 $6,997
Accounts receivable4,396
 4,414
Inventory5,655
 5,786
Other current assets5,691
 5,121
Total current assets21,217
 22,318
Property, plant and equipment2,026
 1,878
Goodwill5,935
 5,622
Other non-current assets6,067
 3,095
Total assets$35,245
 $32,913
LIABILITIES AND STOCKHOLDERS’ DEFICIT 
  
Current liabilities: 
  
Notes payable and short-term borrowings$1,529
 $1,072
Accounts payable12,848
 13,279
Employee compensation and benefits706
 894
Taxes on earnings213
 214
Deferred revenue1,039
 1,012
Other accrued liabilities7,014
 5,941
Total current liabilities23,349
 22,412
Long-term debt6,340
 6,747
Other non-current liabilities8,298
 7,162
Commitments and contingencies

 

Stockholders’ deficit: 
  
Preferred stock, $0.01 par value (300 shares authorized; none issued)—
 —
Common stock, $0.01 par value (9,600 shares authorized; 1,641 and 1,650 shares issued and outstanding at January 31, 2018 and October 31, 2017, respectively)          16
 16
Additional paid in capital417
 380
Retained deficit(1,346) (2,386)
Accumulated other comprehensive loss(1,829) (1,418)
Total stockholders’ deficit(2,742) (3,408)
Total liabilities and stockholders’ deficit$35,245
 $32,913
 Three months ended January 31
 20242023
In millions
Cash flows from operating activities:  
Net earnings$622 $469 
Adjustments to reconcile net earnings to net cash provided by operating activities:  
Depreciation and amortization205 209 
Stock-based compensation expense177 167 
Restructuring and other charges63 141 
Deferred taxes on earnings(5)(140)
Other, net(20)4 
Changes in operating assets and liabilities, net of acquisitions:  
Accounts receivable446 244 
Inventory(47)230 
Accounts payable(744)(1,731)
Net investment in leases(62)(16)
Taxes on earnings49 220 
Restructuring and other(87)(92)
Other assets and liabilities(476)279 
Net cash provided by (used in) operating activities121 (16)
Cash flows from investing activities:  
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 for derivative instruments(70)(240)
Net cash used in investing activities(228)(435)
Cash flows from financing activities:  
Proceeds from short-term borrowings with original maturities less than 90 days, net100 200 
Proceeds from debt, net of issuance costs92 52 
Payment of debt and associated costs(49)(539)
Stock-based award activities and others(76)(79)
Repurchase of common stock(500)(100)
Cash dividends paid(275)(259)
Collateral returned for derivative instruments— (200)
Net cash used in financing activities(708)(925)
Decrease in cash, cash equivalents and restricted cash(815)(1,376)
Cash, cash equivalents and restricted cash at beginning of period3,232 3,145 
Cash, cash equivalents and restricted cash at end of period$2,417 $1,769 
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash FlowsStockholders’ Deficit
(Unaudited)
 Common StockAdditional
Paid-in Capital		 Accumulated
Other
Comprehensive Loss		 Total Stockholders’ Deficit
Number of SharesPar ValueAccumulated Deficit
 In millions, except number of shares in thousands
Balance at October 31, 2023988,782 $10 $1,505 $(2,361)$(223)$(1,069)
Net earnings— — — 622 — 622 
Other comprehensive loss, net of taxes— — — — (235)(235)
Comprehensive income— — — — — 387 
Issuance of common stock in connection with employee stock plans and other8,677 — (76)— — (76)
Repurchases of common stock (Note 10)(17,062)— (27)(487)— (514)
Cash dividends ($0.55 per common share)— — — (545)— (545)
Stock-based compensation expense— — 177 — — 177 
Balance at January 31, 2024980,397 $10 $1,579 $(2,771)$(458)$(1,640)
 Three months ended January 31
 2018 2017
 In millions
Cash flows from operating activities: 
  
Net earnings$1,938
 $611
Adjustments to reconcile net earnings to net cash provided by operating activities: 
  
Depreciation and amortization129
 84
Stock-based compensation expense85
 75
Restructuring and other charges31
 63
Deferred taxes on earnings(3,713) 67
Other, net13
 19
Changes in operating assets and liabilities, net of acquisitions: 
  
Accounts receivable272
 614
Inventory364
 (69)
Accounts payable(478) (116)
Taxes on earnings2,463
 (75)
Restructuring and other(133) (51)
Other assets and liabilities25
 (455)
Net cash provided by operating activities996
 767
Cash flows from investing activities: 
  
Investment in property, plant and equipment(129) (101)
Proceeds from sale of property, plant and equipment110
 69
Purchases of available-for-sale securities and other investments(268) (2)
Maturities and sales of available-for-sale securities and other investments139
 2
Collateral posted for derivative instruments
(608) (54)
Collateral returned for derivative instruments
53
 —
Payment made in connection with business acquisition, net of cash acquired(1,020) —
Net cash used in investing activities(1,723) (86)
Cash flows from financing activities: 
  
(Payments of) Proceeds from short-term borrowings with original maturities less than 90 days, net(106) 35
Proceeds from short-term borrowings with original maturities greater than 90 days200
 —
Proceeds from debt, net of issuance costs—
 5
Payment of short-term borrowings with original maturities greater than 90 days(118) (3)
Payment of debt(41) (24)
Settlement of cash flow hedges—
 (4)
Net payments related to stock-based award activities(38) (34)
Repurchase of common stock(462) (386)
Cash dividends paid(230) (227)
Net cash used in financing activities(795) (638)
(Decrease) Increase in cash and cash equivalents(1,522) 43
Cash and cash equivalents at beginning of period6,997
 6,288
Cash and cash equivalents at end of period$5,475
 $6,331
Supplemental schedule of non-cash activities: 
  
Purchase of assets under capital leases$90
 $40

 Common StockAdditional
Paid-in Capital		 Accumulated
Other
Comprehensive Income (Loss)		 Total Stockholders’ Deficit
Number of SharesPar ValueAccumulated Deficit
 In millions, except number of shares in thousands
Balance at October 31, 2022979,869 $10 $1,172 $(4,492)$285 $(3,025)
Net earnings— — — 469 — 469 
Other comprehensive loss, net of taxes— — — — (741)(741)
Comprehensive loss— — — — — (272)
Issuance of common stock in connection with employee stock plans and other8,844 — (79)— — (79)
Repurchases of common stock (Note 10)(3,624)— (4)(96)— (100)
Cash dividends ($0.53 per common share)— — — (518)— (518)
Stock-based compensation expense— — 167 — — 167 
Balance at January 31, 2023985,089 $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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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 1: Basis of Presentation
Separation Transaction
On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise Company (“Hewlett Packard Enterprise”), Hewlett-Packard Company’s former enterprise technology infrastructure, software, services and financing businesses (the “Separation”). In connection with the Separation, Hewlett-Packard Company changed its name to HP Inc. (“HP”) and entered into a separation and distribution agreement as well as various other agreements with Hewlett Packard Enterprise that provide a framework for the relationships between the parties, including among others a tax matters agreement, an employee matters agreement, a transition service agreement, a real estate matters agreement, a master commercial agreement and an information technology service agreement. For more information on the impacts of these agreements, see Note 6, “Taxes on Earnings”, Note 7, “Supplementary Financial Information”, Note 13, “Litigation and Contingencies” and Note 14, “Guarantees, Indemnifications and Warranties”.
Basis of Presentation
The accompanying Consolidated Condensed Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The interim financial information is unaudited but reflects all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the Consolidated Condensed Financial Statements for the fiscal year ended October 31, 20172023 in theHP’s Annual Report on Form 10-K, filed on December 14, 2017.18, 2023. The Consolidated Condensed Balance Sheet for October 31, 20172023 was derived from audited financial statements.
Principles of Consolidation
The Consolidated Condensed Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. All intercompany balances and transactions have been eliminated.
Reclassifications
HP implemented an organizational changehas reclassified certain prior-year amounts to align its segment and business unit financial reporting more closely with its current business structure. HP reflected this changeconform to its segment and business unit information in prior reporting periods on an as-if basis. The reporting changes had no impact on previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share (“EPS”). See Note 2, “Segment Information”, for a further discussion of HP’s segment and business unit realignments.the current-year presentation.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP’s Consolidated Condensed Financial Statements and accompanying notes. Actual results couldmay differ materially from those estimates.
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 February 2018,December 2023, the FASB issued guidance which eliminatesthat enhances the strandedtransparency of income tax effects in other comprehensive income resulting from the Tax Cuts and Jobs Act (the “TCJA”). Because the amendments only relatedisclosures by expanding annual disclosure requirements related to the reclassification of therate reconciliation and income tax effects of the TCJA, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected.taxes paid. HP is required to adopt thethis guidance in the first quarter of fiscal year 2020. Earlierfor its annual period ending October 31, 2026. Early adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.its disclosures.
In August 2017,November 2023, the FASB issued guidance which amends the existing accounting standards for derivativesthat updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and hedging. The amendment improves the financial reporting of hedging relationshipsinformation used to better represent the economic results ofassess segment performance on an entity’s risk management activities in its financial statementsannual and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP.interim basis. HP is required to adopt thethis guidance in the first quarter of fiscal year 2020. Earlierfor its annual period ending October 31, 2025 and all interim periods thereafter. Early adoption is permitted. HP is currently evaluating the timing and impact of this guidance on the Consolidated Condensed Financial Statements.its disclosures.
In January 2017, the FASB issued guidance, which amends the existing accounting standards for business combinations. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. HP is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 1: Basis of Presentation (Continued)

In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to present the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. HP is required to adopt the guidance retrospectively in the first quarter of fiscal year 2019. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. It also requires modified retrospective transition with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. HP is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. HP is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.    
In June 2016, the FASB issued guidance, which requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. HP is required to adopt the guidance in the first quarter of fiscal year 2021. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In February 2016, the FASB issued guidance, which amends the existing accounting standards for leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than twelve months. HP is required to adopt the guidance in the first quarter of fiscal year 2020 using a modified retrospective approach. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements. 
In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The guidance primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. HP is required to adopt the guidance in the first quarter of fiscal year 2019. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with other amendments related specifically to equity securities without readily determinable fair values applied prospectively. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In May 2014, the FASB issued guidance, which amends the existing accounting standards for revenue recognition. The amendments (Topic 606) are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments may be applied retrospectively to each prior period presented (“full retrospective method”) or retrospectively with the cumulative effect recognized as of the date of initial application (“modified retrospective method”). HP will adopt the new revenue standard in the first quarter of fiscal 2019 and intends to apply the modified retrospective method. Based on the initial assessment, it is not anticipated that the adoption will have a material impact on the amount or timing of revenue recognized in the Consolidated Condensed Financial Statements. We continue to make progress on assessing the overall impact of adoption of the standard on our business processes, systems and controls.

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


Note 2.2: 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’s operations are organized into three segments for financial reporting purposes:reportable segments: Personal Systems, Printing, and Corporate Investments. HP’s organizational structure is based on a number of factors that the chief operating decision maker uses to evaluate, view
Personal Systems offers commercial and run its business operations, which include, but are not limited to, customer baseconsumer desktops and homogeneity of productsnotebooks, detachables and technology. The segments are based on this organizational structure and information reviewed by HP’s chief operating decision maker to evaluate segment results. The chief operating decision maker 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 provides Commercial and Consumer desktop and notebook personal computers (“PCs”),convertibles, workstations, thin clients, Commercial tablets andcommercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems, software, solutions and other related accessories, software,services. Personal Systems includes support and deployment, configurations and extended warranty services for the commercial and consumer markets. HP groups Commercial notebooks, Commercial desktops, Commercial services, Commercial tabletsmaintains multi-operating system and mobility devices, Commercial detachablesmulti-architecture strategies using Microsoft Windows and convertibles, Workstations, retail point-of-saleGoogle Chrome operating systems, and thin clients into Commercial PCspredominantly use processors from Intel Corporation (“Intel”) and Consumer notebooks, Consumer desktops, Consumer services and Consumer detachables into Consumer PCs when describing performance in these markets. Described below are HP’s global business capabilities within Personal Systems:Advanced Micro Devices, Inc. (“AMD”).
Commercial PCs are optimized for use by customers, including enterprise and SMBs, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in networked environments. Additionally, HP offers a range of services and solutions to enterprise and SMBs to help them manage the lifecycle of their PC and mobility installed base.
Consumer PCs are optimized for consumer usage, focusing on multi-media consumption, online browsing, gaming and light productivity.
Personal Systems groups its global business capabilities into Notebooks, Desktops, Workstations and Other when reporting business performance.
Notebooks consists of Consumer notebooks, Commercial notebooks, Mobile workstations and Commercial tablets and mobility devices;
Desktops includes Consumer desktops, Commercial desktops, thin clients, and retail point-of-sale systems;
Workstations consists of Desktop Workstations and accessories; and
Other consists of Consumer and Commercial services as well as other Personal Systems capabilities.
Printing provides Consumer and Commercial printer hardware, Supplies, solutions and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial 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 Samsung Electronics Co., Ltd (“Samsung”)-branded and Original Equipment Manufacturer (“OEM”) hardware, supplies and solutions. HP goes to market through its extensive channel network and directly with HP sales. Ongoing key initiatives include design and deployment of A3 products and solutions for the copier and multifunction printer market, printer security solutions, PageWide solutions and award-winning JetIntelligence LaserJet products.
Home Printing Solutions delivers innovative printing products and solutions for the home and home business or small office customers utilizing both HP’s Ink and Laser technologies. Initiatives such as Instant Ink and Continuous Ink Supply System provide business model innovation to benefit and expand HP’s existing customer base, while new innovations like Sprocket drive print relevance for a mobile generation.
Graphics Solutions deliverslarge-format, commercial and industrial solutions to print service providers and packaging converters through the largest portfolio of printers and presses (HP DesignJet, HP Latex, HP Scitex, HP Indigo and HP PageWide Web Presses).
3D Printing delivers HP’s Multi-Jet Fusion 3D Printing Solution designed for prototyping and production of functional parts and functioning on an open platform facilitating the development of new 3D printing materials.
Printing groups its global business capabilities into the following business units when reporting business performance:

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 2: Segment Information (Continued)

•Commercial HardwarePS consists of Officedevices 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 Solutions,is also focused on Graphics Solutions and 3D Printing excluding supplies;
and Personalization in the commercial and industrial markets. Our global business capabilities within Printing are described below:
Consumer Hardware •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 & 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.
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 personalization, excluding supplies;
•ConsumerPrinting consists of home printing solutions, excluding supplies; and
•Supplies comprises a set of highly innovative consumable products, ranging from Inkink and Laserlaser cartridges to media, graphics supplies and 3D Printing suppliesprinting and Samsung-branded A4 and A3 supplies and OEMdigital manufacturing supplies, for recurring use in Consumerconsumer and Commercial Hardware.
commercial hardware.
Corporate Investments includes HP Labs and 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 market-related retirement credits,infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition-relatedacquisition and divestiture charges and amortization of intangible assets, defined benefit plan settlement charges.assets.
Realignment
Effective at the beginning of its first quarter of fiscal year 2018, HP implemented an organizational change to align its segment and business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of long life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements, which are being eliminated for the purposes of reporting HP’s consolidated net revenue, have now been reclassified from Other to segments. HP has reflected this change to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact on previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
Segment Operating Results from Operations
 Personal
Systems		 Printing Corporate
Investments		 Total
Segments		 Other Total
 In millions
Three months ended January 31, 2018 
  
  
  
  
   
Net revenue$9,440
 $5,076
 $1
 $14,517
 $—
  $14,517
Earnings (loss) from operations$337
 $801
 $(19) $1,119
  
   
Three months ended January 31, 2017 
  
  
  
  
   
Net revenue$8,216
 $4,464
 $2
 $12,682
 $2
  $12,684
Earnings (loss) from operations$312
 $714
 $(23) $1,003
  
   
The reconciliation of segment operating results to HP consolidated results was as follows:

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 2: Segment Information (Continued)

Segment Operating Results and the reconciliation to HP consolidated results were as follows:
 Three months ended January 31
 20242023
In millions
Net revenue:
Commercial PS$6,045 $6,382 
Consumer PS2,764 2,803 
Personal Systems8,809 9,185 
Supplies2,863 2,857 
Commercial Printing1,227 1,388 
Consumer Printing285 367 
Printing4,375 4,612 
Corporate Investments2 1 
Total segment net revenue13,186 13,798 
Other(1)— 
Total net revenue$13,185 $13,798 
Earnings before taxes:
Personal Systems$537 $475 
Printing872 870 
Corporate Investments(37)(33)
Total segment earnings from operations1,372 1,312 
Corporate and unallocated costs and other(89)(92)
Stock-based compensation expense(177)(167)
Restructuring and other charges(63)(141)
Acquisition and divestiture charges(27)(84)
Amortization of intangible assets(81)(85)
Interest and other, net(142)(181)
Total earnings before taxes$793 $562 
 Three months ended January 31
 2018 2017
 In millions
Net Revenue:
Total segments$14,517
 $12,682
Other—
 2
Total net revenue$14,517
 $12,684
Earnings before taxes: 
  
Total segment earnings from operations$1,119
 $1,003
Corporate and unallocated costs and other33
 7
Stock-based compensation expense(85) (75)
Restructuring and other charges(31) (63)
Acquisition-related charges(42) (16)
Amortization of intangible assets(20) —
Defined benefit plan settlement charges(1) —
Interest and other, net(68) (81)
Total earnings before taxes          $905
 $775
Realignment
Net revenue by segment andEffective at the beginning of its first quarter of fiscal year 2024, HP realigned its business unit was as follows: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”).
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 Three months ended January 31
 2018 2017
 In millions
Notebooks$5,595
 $4,890
Desktops2,955
 2,534
Workstations543
 491
Other347
 301
Personal Systems9,440
 8,216
Supplies3,351
 3,035
Commercial Hardware1,070
 839
Consumer Hardware655
 590
Printing5,076
 4,464
Corporate Investments1
 2
Total segment net revenue14,517
 12,682
Other—
 2
Total net revenue$14,517
 $12,684
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 3: Restructuring and Other Charges
Summary of Restructuring Plans
HP’s restructuring activities for the three months ended January 31, 2018 and 2017 summarized by plan were as follows:

Fiscal 2023 Plan
Severance and EERNon-labor
Other prior-year plans(1)
Total
In millions
Accrued balance as of October 31, 2023$88 $18 $2 $108 
Charges43 2 3 48 
Cash payments(63)(6)(3)(72)
Non-cash and other adjustments2 — (2)— 
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
Other current liabilities$70 $3 $— $73 
Other non-current liabilities$— $11 $— $11 
Accrued balance as of October 31, 2022$— $— $32 $32 
Charges122 9 — 131 
Cash payments(53)(4)(25)(82)
Non-cash and other adjustments(2)(5)1 (6)
Accrued balance as of January 31, 2023$67 $— $8 $75 
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Table(1)     Primarily includes the fiscal 2020 plan along with other legacy plans, all of Contents
which are substantially complete. HP INC. AND SUBSIDIARIESdoes not expect any further material activity associated with these plans.
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 3: Restructuring and Other Charges (Continued)

 Fiscal 2017 Plan Fiscal 2015 Plan Fiscal 2012 Plan 
 Severance Infrastructure and other 
Severance and PRP(1)
 Infrastructure and other 
Severance and EER(2)
 Infrastructure and other Total
 In millions 
Accrued balance as of October 31, 2017$76
 $19
 $6
 $2
 $3
 $2
 $108
Charges12
 6
 —
 —
 —
 —
 18
Cash payments(60) (25) —
 (2) —
 —
 (87)
Non-cash and other adjustments2
 —
 —
 —
 —
 —
 2
Accrued balance as of January 31, 2018$30
 $—
 $6
 $—
 $3
 $2
 $41
Total costs incurred to date as of January 31, 2018$153
 $100
 $171
 $27
 $1,075
 $44
 $1,570
Reflected in Consolidated Condensed Balance Sheets
 
 
 
 
 
 
Other accrued liabilities$30
 $—
 $6
 $—
 $3
 $1
 $40
Other non-current liabilities—
 —
 —
 —
 —
 1
 1
Accrued balance as of October 31, 2016$24
 $—
 $21
 $4
 $7
 $2
 $58
Charges24
 1
 6
 —
 1
 —
 32
Cash payments(8) (1) (24) (2) (2) —
 (37)
Non-cash and other adjustments—
 —
 1
 —
 —
 —
 1
Accrued balance as of January 31, 2017$40
 $—
 $4
 $2
 $6
 $2
 $54
(1)
PRP represents Phased Retirement Program.
(2)
EER represents Enhanced Early Retirement.
Fiscal 20172023 Plan
On October 10, 2016,November 18, 2022, HP’s Board of Directors approved a restructuring planthe Future Ready Plan (the “Fiscal 20172023 Plan”), intended to enable digital transformation, portfolio optimization and operational efficiency which itHP expects will be implemented through fiscal year 2019.2025. HP expects to reduce global headcount by approximately 4,000 to 6,000 employees. HP estimates that it will incur aggregate pre-tax charges of approximately $500 million relating$1.0 billion of which approximately $0.7 billion primarily in labor costs related to laborworkforce reductions and non-labor actions. HP estimates that approximately half of the expected cumulative pre-taxremaining costs will relate to severance and the remaining will relate to infrastructure, non-labor actions and other charges, as described below. HP expects around 4,000 employees to exit by the end of fiscal year 2019.
Fiscal 2015 Plan
In connection with the Separation, on September 14, 2015, HP’s Board of Directors approved a cost savings plan (the “Fiscal 2015 Plan”), which includes labor and non-labor actions. The Fiscal 2015 Plan was considered substantially complete as of October 31, 2016 and HP does not expect any further activity associated with this plan.
Fiscal 2012 Plan
HP initiated a restructuring plan in fiscal year 2012 (the “Fiscal 2012 Plan”), which includes severance and infrastructure costs. The Fiscal 2012 Plan is considered substantially complete as of October 31, 2016 and HP does not expect any further activity associated with this plan.charges.
Other Chargescharges
Other charges include non-recurring costs, including those as a result of Separation,information technology rationalization efforts and transformation program management costs, and are distinct from ongoing operational costs. These costs primarily relate to information technology costs such as advisory, consultingthird-party professional services and other non-recurring labor costs. For the three months ended January 31, 2018 and 2017,2024, HP incurred $13 million and $31$15 million of other charges, respectively.charges. For the three months ended January 31, 2023, HP incurred $10 million of other charges.

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Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 4: Retirement and Post-Retirement Benefit Plans
The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings were as follows:

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 4: Retirement and Post-Retirement Benefit Plans (Continued)

Three months ended January 31Three months ended January 31
U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans U.S. Defined Benefit PlansNon-U.S. Defined Benefit PlansPost- Retirement Benefit Plans
2018 2017 2018 2017 2018 2017 202420232024202320242023
In millions In millions
Service cost$—
 $—
 $14
 $12
 $—
 $—
Interest cost113
 117
 6
 4
 4
 4
Expected return on plan assets(181) (169) (10) (8) (6) (6)
Amortization and deferrals: 
  
  
  
  
  
Actuarial loss (gain)15
 18
 7
 10
 (4) (2)
Prior service benefit—
 —
 (1) (1) (5) (5)
Net periodic (credit) benefit cost(53) (34) 16
 17
 (11) (9)
Actuarial loss (gain)
Actuarial loss (gain)
Prior service cost (credit)
Net periodic benefit (credit) cost
Settlement loss1
 —
 —
 —
 —
 —
Total periodic (credit) benefit cost$(52) $(34) $16
 $17
 $(11) $(9)
Settlement loss
Settlement loss
Total periodic benefit (credit) cost
Total periodic benefit (credit) cost
Total periodic benefit (credit) cost
Employer Contributions and Funding Policy
HP’s policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.
During fiscal year 2018,2024, HP anticipates making contributions of approximately $24$45 million to its non-U.S. pension plans, approximately $33$31 million to its U.S. non-qualified plan participants and approximately $7$3 million to cover benefit claims under HP’s post-retirement benefit plans. During the three months ended January 31, 2018,2024, HP contributed $11 million to its non-U.S. pension plans, paid $10$6 million to cover benefit payments to U.S. non-qualified plan participants and paid $1$2 million to cover benefit claims under HP’s post-retirement benefit plans.
HP’s pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

Retirement Incentive Program
Note 5: Stock-Based Compensation
HP’s stock-based compensation plans permitAs part of the issuanceFiscal 2023 Plan, HP announced a voluntary EER program for its U.S. employees in January 2023. Voluntary participation in the EER program was limited to employees at least 55 years old with 10 or more years of restricted stock awards, stock options and performance-based awards.
Stock-based compensationservice at HP. Employees accepted into the EER program left HP on dates ranging from March 15, 2023 to October 31, 2023. The U.S. 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 andof $105 million for the resulting tax benefits wereyear ended October 31, 2023 as follows:
 Three months ended January 31
 2018 2017
 In millions
Stock-based compensation expense$85
 $75
Income tax benefit(19) (24)
Stock-based compensation expense, net of tax$66
 $51
Restricted Stock Awards
Restricted stock awards are non-vested stock awards that may include grants of restricted stock or restricted stock units. Fora restructuring charge. This expense is the three months ended January 31, 2018 and 2017, HP granted only restricted stock units. HP uses the closing stock price on the grant date to estimate the fairpresent value of service-based restricted stock units.all additional benefits that HP estimateswill distribute from the fair value of restricted stock units subject to performance-adjusted vesting conditions using a combination of the closing stock price on the grant date and the Monte Carlo simulation model. The weighted-average fair value and the assumptions used to measure the fair value of restricted stock units subject to performance-adjusted vesting conditionspension plan assets.
All employees participating in the Monte Carlo simulation modelEER 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 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 follows:restructuring and other charges for the year ended October 31, 2023 for the health care incentives.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 5: Stock-Based Compensation (Continued)

 Three months ended January 31
 2018 2017
Weighted-average fair value(1)
$24
 $20
Expected volatility(2)
29.8% 30.5%
Risk-free interest rate(3)
1.9% 1.4%
Expected performance period in years(4)
2.9
 2.9
(1)
The weighted-average fair value was based on performance-adjusted restricted stock units granted during the period.
(2)
The expected volatility was estimated using the historical volatility derived from HP’s common stock.
(3)
The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.
(4)
The expected performance period was estimated based on the length of the remaining performance period from the grant date.
A summary of restricted stock unit activity was as follows:
 Three months ended January 31, 2018
 Shares Weighted-Average
Grant Date Fair Value
Per Share
 In thousands  
Outstanding at beginning of period31,822
 $14
Granted13,428
 $21
Vested(12,670) $14
Forfeited(216) $16
Outstanding at end of period32,364
 $17
As of January 31, 2018, there was $350 million of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units, which HP expects to recognize over the remaining weighted-average vesting period of 1.5 years.
Stock Options
HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of the Monte Carlo simulation model and a lattice model, as these awards contain market conditions. HP did not grant any stock options for the three months ended January 31, 2018 and 2017. A summary of stock option activity was as follows:
 Three months ended January 31, 2018
 Shares Weighted-
Average
Exercise Price		 Weighted-
Average
Remaining
Contractual
Term		 Aggregate
Intrinsic Value
 In thousands   In years In millions
Outstanding at beginning of period18,067
 $13
    
Exercised(3,277) $13
    
Forfeited and expired(10) $14
    
Outstanding at end of period14,780
 $13
 3.9 $123
Vested and expected to vest14,628
 $13
 3.8 $122
Exercisable11,156
 $13
 3.3 $96
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of the first quarter of fiscal year 2018. The aggregate intrinsic value is the difference between HP’s closing stock price on the last trading day of the first quarter of fiscal

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 5: Stock-Based Compensation (Continued)

year 2018 and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised for the three months ended January 31, 2018 was $30 million.
As of January 31, 2018, there was $4 million of unrecognized pre-tax, stock-based compensation expense related to unvested stock options, which HP expects to recognize over the remaining weighted-average vesting period of 0.6 years.
In January 2018, the Board approved an amendment and restatement of the HP’s 2004 Stock Incentive Plan, which included retiring 80 million shares from the plan’s share reserves.

Note 6:5: Taxes on Earnings
Tax Matters Agreement and Other Income Tax Matters
In connection with the Separation, HP entered into the tax matters agreement (“TMA”) with Hewlett Packard Enterprise, effective on November 1, 2015, that governs the rights and obligations of HP and Hewlett Packard Enterprise for certain pre-Separation tax liabilities. The TMA provides that HP and Hewlett Packard Enterprise will share certain pre-Separation income tax liabilities. In certain jurisdictions, HP and Hewlett Packard Enterprise have joint and several liability for past income tax liabilities and accordingly, HP could be legally liable under applicable tax law for such liabilities and required to make additional tax payments.
In addition, if the distribution of Hewlett Packard Enterprise’s common shares to the HP stockholders is determined to be taxable, Hewlett Packard Enterprise and HP would share the tax liability equally, unless the taxability of the distribution is the direct result of action taken by either Hewlett Packard Enterprise or HP subsequent to the distribution, in which case the party causing the distribution to be taxable would be responsible for any taxes imposed on the distribution.
Upon completion of the Separation on November 1, 2015, HP recorded income tax indemnification receivables from Hewlett Packard Enterprise for certain income tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by Hewlett Packard Enterprise under the TMA. The actual amount that Hewlett Packard Enterprise may be obligated to pay HP could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. The net receivable as of January 31, 2018 was $1.7 billion.
Provision for Taxes
On December 22, 2017, the TCJA was signed by the President of the United States and enacted into law. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017 (the “Effective Date”), or in the case of certain other provisions, January 1, 2018.
When a U.S federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment. As a result of the TCJA, HP has calculated a U.S. federal statutory corporate income tax rate of 23% for the fiscal year ending October 31, 2018 and applied this rate in computing the first quarter of fiscal year 2018 income tax provision. The U.S. federal statutory corporate income tax rate of 23% is the weighted daily average rate between the pre-enactment U.S. federal statutory tax rate of 35% applicable to HP’s 2018 fiscal year prior to the Effective Date and the post-enactment U.S. federal statutory tax rate of 21% applicable to the 2018 fiscal year thereafter. HP expects the U.S. federal statutory rate to be 21% for fiscal years beginning after October 31, 2018.
Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period”. During the measurement period, impacts of the TCJA are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed.
SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the TCJA.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

As of January 31, 2018, HP has not completed its accounting for the tax effects of the TCJA, however, in certain cases HP has made a reasonable estimate of the effects for remeasurement on its existing deferred tax balances and the one-time transition tax. With respect to the Global Intangible Low Taxed Income (“Global Minimum Tax”) provisions and realizability of our deferred tax assets, further discussed below, HP has not been able to make a reasonable estimate and continue to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. The impact of the TCJA may differ materially from this estimate due to changes in interpretations and assumptions HP has made, additional guidance that may be issued and actions HP may take as a result of the TCJA. The impacts of HP's estimates are described further below.
While HP has not yet completed its analysis to the impact on its deferred tax balances, HP recorded provisional income tax expense of $1.2 billion related to the remeasurement of its deferred tax assets and liabilities that will reverse at the new 21% rate. However, HP is still analyzing certain aspects of the TCJA and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.
The TCJA also includes a one-time mandatory deemed repatriation transition tax on the net accumulated post-1986 earnings and profits (“E&P”) of a U.S. taxpayer’s foreign subsidiaries. HP has computed a provisional deemed repatriation tax of approximately $3.2 billion of which more than half is expected to be offset with existing and future tax attributes reducing HP’s cash outlay. Companies may elect to pay this tax over 8 years and HP intends to make this election. HP has not yet completed its calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based, in part, on the amount of those earnings held in cash and other specified assets. This amount may change when HP finalizes the calculation of post-1986 E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.
As a result of the deemed repatriation tax noted above, which is based on HP’s total post-1986 deferred foreign income, HP redetermined $5.5 billion of its U.S. deferred tax liability on those unremitted earnings with a provisional tax payable of $3.2 billion, as noted above. This resulted in a net benefit. This tax benefit is provisional as HP is still analyzing certain aspects of the legislation and refining calculations, which could potentially materially affect the measurement of these amounts.
In January 2018, the FASB released guidance on the accounting for tax on the Global Minimum Tax provisions of TCJA. The Global Minimum Tax provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to Global Minimum Tax inclusions or to treat any taxes on Global Minimum Tax inclusions as period cost are both acceptable methods subject to an accounting policy election. HP is still evaluating whether to make a policy election to treat the Global Minimum Tax as a period cost or to provide U.S. deferred taxes on foreign temporary differences that are expected to generate Global Minimum Tax income when they reverse in future years. In addition HP is still evaluating the realizability of certain deferred tax assets. There could be additional changes including a further write down, an increase in the valuation allowance and/or other changes to HP's deferred taxes once it completes these evaluations.
As a result of U.S. tax reform, HP revised its estimated annual effective tax rate to reflect the change in the U.S. federal statutory tax rate from 35% to 23%. HP’s effective tax rate was (114.1%)21.6% and 21.2%16.6% for the three months ended January 31, 20182024 and 2017,2023, respectively. The difference between the U.S. federal statutory tax rate of 23%21% and HP’s effective tax rate for the three months ended January 31, 2018 is2023 was primarily due to the impacttax effects of U.S. tax reform, and favorable tax rates associated with certain earnings from HP’sHP's operations in lower-tax jurisdictions throughout the world. For the three months ended January 31, 2017 HP’s effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world. HP has not provided U.S. taxes for all foreign earnings because HP plans to reinvest some of those earnings indefinitely outside the United States.
During the three months ended January 31, 2018,2023, HP recorded $1.1 billion$56 million of net income tax benefits related to discrete items in the provision for taxes. As noted above, HP has not yet completed its analysisThese amounts included $30 million of the full impact of TCJA however HP recorded a provisional tax benefit of $1.1 billion related to $5.5 billion net benefit for the decrease in our deferred tax liability on unremitted foreign earnings, partially offset by $3.2 billion net expense for the repatriation tax payable in installments over eight years and $1.2 billion net expense for remeasurement of our deferred tax assets and liabilities for the revaluation of our deferred assets and liabilities to the new U.S. tax rate of 21%. This amount also includedincome tax benefits related to audit settlements,restructuring charges, $14 million related to acquisition charges and other tax benefits of $32 million, $18 million and $12 million respectively, offset by uncertainof other net tax position charges of $43 million.
benefits. During the three months ended January 31, 2017, HP recorded $1 million of net tax benefit related to discrete items in the provision for taxes. This amount included a tax benefit of $17 million related to uncertain tax positions and a tax benefit of $19

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

million related to restructuring and other charges. These tax benefits were offset by $26 million related to the state tax provision to return adjustments and $9 million related to various other items.
During the three months ended January 31, 2018, in addition to the discrete items mentioned above, HP recorded2023, excess tax benefits of $28.0 million, onassociated with stock options, restricted stock units and performance adjustedperformance-adjusted restricted stock units which are reflected in the Consolidated Condensed Statements of Earnings as a component of the provision for income taxes as a result of the early adoption in fiscal 2017 of ASU 2016-09 -“Improvements to Employee Share- Based Payment Accounting”. See Note 1, “Basis of Presentation”, for more details regarding the adoption.were immaterial.
Uncertain Tax Positions
As of January 31, 2018,2024, the amount of gross unrecognized tax benefits was $9.8$1.2 billion, of which up to $3.4 billion$828 million would affect HP’s effective tax rate if realized. The amount ofTotal gross unrecognized tax benefits decreasedincreased by $1.0 billion$20 million for the three months ended January 31, 2018. HP continues to record its tax liabilities related to uncertain tax positions and certain liabilities for which it has joint and several liability with Hewlett Packard Enterprise.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 January 31, 2018,2024 and 2023, HP had accrued $278$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. HP expects to complete resolution of certain tax years with various tax authorities within the next 12 months. It is also possible that other federal, foreign and state tax issues may be concluded within the next 12 months. HP believes it is reasonably possible that its existing gross unrecognized tax benefits may be reduced by up to $1.5 billion$39 million within the next 12 months.months, affecting HP’s effective tax rate if realized.

HP is subject to income tax in the United States and approximately 60 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The Internal Revenue Service (“IRS”) is conducting an audit of HP’s 2018 and 2019 income tax returns.
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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings (Continued)
(Unaudited)
Note 7:6: Supplementary Financial Information

Cash, cash equivalents and restricted cash
 As of
 January 31, 2024October 31, 2023
 In millions
Cash and cash equivalents$2,263 $3,107 
Restricted cash(1)
154 125 
$2,417 $3,232 
(1)    Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.
Accounts Receivable
 As of
 January 31, 2018 October 31, 2017
 In millions
Accounts receivable$4,504
 $4,515
Allowance for doubtful accounts(108) (101)
 $4,396
 $4,414
The allowance for doubtful accountscredit losses related to accounts receivable and changes were as follows:
 Three months ended January 31, 2018
 In millions
Balance at beginning of period$101
Provision for doubtful accounts7
Balance at end of period$108
Three months ended January 31, 2024
In millions
Balance at beginning of period$93 
Benefit of allowance for credit losses(6)
Deductions, net of recoveries(3)
Balance at end of period$84 
HP hasutilizes certain third-party arrangements consistingin the normal course of revolving short-term financing, whichbusiness as part of HPs cash and liquidity management and also to provide liquidity to certain partners in order to facilitate their working capital requirements. These financing arrangements, which in certain circumstances may contain partial recourse, result in a transfer of HP’s receivables and risk to the third party.third-party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are derecognizedde-recognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third partythird-party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from the similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of January 31, 20182024 and October 31, 2017 were not material. The costs associated with the sales of trade receivables for the three months ended January 31, 2018 and 20172023 were not material.
The following is a summary of the activity under these arrangements:

Three months ended January 31
 2024 2023
 In millions
Balance at beginning of period(1)
$141 $185 
Trade receivables sold3,298 3,679 
Cash receipts(3,232)(3,753)
Foreign currency and other5 17 
Balance at end of period(1)
$212 $128 
(1)    Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 7: Supplementary Financial Information (Continued)

Inventory
 As of
 January 31, 2024October 31, 2023
 In millions
Finished goods$3,603 $3,930 
Purchased parts and fabricated assemblies3,325 2,932 
$6,928 $6,862 

 Three months ended January 31
 2018 2017
 In millions
Balance at beginning of period(1)
$147
 $149
Trade receivables sold2,936
 2,449
Cash receipts(2,921) (2,493)
Foreign currency and other10
 (1)
Balance at end of period(1)
$172
 $104
(1) Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Condensed Balance Sheets.
Inventory
 As of
 January 31, 2018 October 31, 2017
 In millions
Finished goods$3,768
 $3,857
Purchased parts and fabricated assemblies1,887
 1,929
 $5,655
 $5,786
Other Current Assets
As of
As of January 31, 2024October 31, 2023
January 31, 2018 October 31, 2017 In millions
In millions
Value-added taxes receivable$867
 $857
Available-for-sale investments(1)
1,266
 1,149
Supplier and other receivables2,445
 1,891
Prepaid and other current assets1,113
 1,224
Value-added taxes receivable
$5,691
 $5,121
$
$
$
_________________________
(1)See Note 8, “Fair Value” and Note 9, “Financial Instruments” for detailed information.
Property, Plant and Equipment, Net
 As of
 January 31, 2024October 31, 2023
 In millions
Land, buildings and leasehold improvements$2,348 $2,332 
Machinery and equipment, including equipment held for lease5,452 5,384 
7,800 7,716 
Accumulated depreciation(4,993)(4,889)
$2,807 $2,827 
 As of
 January 31, 2018 October 31, 2017
 In millions
Land, buildings and leasehold improvements$1,894
 $2,082
Machinery and equipment, including equipment held for lease4,040
 3,876
 5,934
 5,958
Accumulated depreciation(3,908) (4,080)
 $2,026
 $1,878

Other Non-Current Assets
 As of
 January 31, 2018 October 31, 2017
 In millions
Income tax indemnifications receivable$1,713
 $1,695
Deferred tax assets2,648
 342
Other(1)
1,706
 1,058
 $6,067
 $3,095
 As of
 January 31, 2024October 31, 2023
 In millions
Deferred tax assets$3,230 $3,155 
Intangible assets1,519 1,593 
Right-of-use assets1,165 1,188 
Deposits and prepaid412 427 
Prepaid pension and post-retirement benefit assets395 393 
Other850 853 
$7,571 $7,609 


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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 7: Supplementary Financial Information (Continued)

(1)    Includes available-for-sale investments of $58 million and $61 million as of January 31, 2018 and October 31, 2017, respectively.
Other AccruedCurrent Liabilities
 As of
 January 31, 2024October 31, 2023
 In millions
Sales and marketing programs$2,920 $3,053 
Deferred revenue1,424 1,424 
Other accrued taxes1,071 994 
Employee compensation and benefit648 1,046 
Warranty572 569 
Operating lease liabilities459 430 
Tax liability282 217 
Other2,867 2,479 
$10,243 $10,212 
 As of
 January 31, 2018 October 31, 2017
 In millions
Other accrued taxes$960
 $895
Warranty677
 660
Sales and marketing programs2,725
 2,441
Other2,652
 1,945
 $7,014
 $5,941

Other Non-Current Liabilities
 As of
 January 31, 2024October 31, 2023
In millions
Deferred revenue$1,373 $1,324 
Tax liability926 904 
Operating lease liabilities815 825 
Pension, post-retirement, and post-employment liabilities546 546 
Deferred tax liability31 44 
Other637 688 
$4,328 $4,331 
 As of
 January 31, 2018 October 31, 2017
 In millions
Pension, post-retirement, and post-employment liabilities$1,930
 $1,999
Deferred tax liability100
 1,410
Tax liability4,254
 2,005
Deferred revenue945
 921
Other1,069
 827
 $8,298
 $7,162

Interest and other, netOther, Net
 Three months ended January 31
 2024 2023
 In millions
Interest expense on borrowings$(116)$(143)
Factoring costs(40)(32)
Loss on extinguishment of debt— (8)
Non-operating retirement-related credits4 11 
Other, net10 (9)
$(142)$(181)

19
 Three months ended January 31
 2018 2017
 In millions
Interest expense on borrowings$(87) $(73)
Foreign exchange loss(13) (29)
Other, net32
 21
 $(68) $(81)


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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Net Revenue by Region
Three months ended January 31
 2024 2023
 In millions
Americas$5,408 $5,747 
Europe, Middle East and Africa4,668 4,636 
Asia-Pacific and Japan3,109 3,415 
Total net revenue$13,185 $13,798 
Value of Remaining Performance Obligations
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.
HP has elected the practical expedients and accordingly does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations if:
•the contract has an original expected duration of one year or less; or
•the revenue from the performance obligation is recognized over time on an as-invoiced basis when the amount corresponds directly with the value to the customer; or
•the portion of the transaction price that is variable in nature is allocated entirely to a wholly unsatisfied performance obligation.
The remaining performance obligations are subject to change and may be affected by various factors, such as termination of contracts, contract modifications and adjustment for currency.
Contract Liabilities
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 Programs
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 administrator 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.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8:7: Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.
Fair Value Hierarchy
HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement:
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.
Level 3—Unobservable inputs for the asset or liability.
The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs.
The following table presents HP’s assets and liabilities that are measured at fair value on a recurring basis:
 As of January 31, 2024As of October 31, 2023
 Fair Value Measured UsingFair Value Measured Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
 In millions
Assets:        
Cash Equivalents:        
Corporate debt$— $502 $— $502 $— $589 $— $589 
Government debt(1)
1,029 — — 1,029 1,900 — — 1,900 
Available-for-Sale Investments:
Financial institution instruments— 3 — 3 — 3 — 3 
Marketable securities and mutual funds43 49 — 92 33 45 — 78 
Derivative Instruments:     
Foreign currency contracts— 212 — 212 — 489 — 489 
Other derivatives— 2 — 2 — — — — 
Total assets$1,072 $768 $— $1,840 $1,933 $1,126 $— $3,059 
Liabilities:        
Derivative Instruments:        
Interest rate contracts$— $43 $— $43 $— $58 $— $58 
Foreign currency contracts— 248 — 248 — 212 — 212 
Other derivatives— — — — — 2 — 2 
Total liabilities$— $291 $— $291 $— $272 $— $272 
 As of January 31, 2018 As of October 31, 2017
 Fair Value Measured Using   Fair Value Measured Using  
 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
 In millions
Assets: 
  
  
  
  
  
  
  
Cash Equivalents: 
  
  
  
  
  
  
  
Corporate debt$—
 $1,180
 $—
 $1,180
 $—
 $1,390
 $—
 $1,390
Financial institution instruments—
 —
 —
 —
 —
 6
 —
 6
Government debt(1)
2,833
 —
 —
 2,833
 3,902
 100
 —
 4,002
Available-for-Sale Investments:               
Corporate debt—
 667
 —
 667
 —
 629
 —
 629
Financial institution instruments—
 77
 —
 77
 —
 78
 —
 78
Government debt(1)
—
 522
 —
 522
 —
 442
 —
 442
Mutual funds52
 —
 —
 52
 49
 —
 —
 49
Marketable equity securities6
 —
 —
 6
 6
 6
 —
 12
Derivative Instruments:       
  
  
  
  
Foreign currency contracts—
 51
 —
 51
 —
 110
 10
 120
Other derivatives—
 4
 —
 4
 —
 1
 —
 1
Total Assets$2,891
 $2,501
 $—
 $5,392
 $3,957
 $2,762
 $10
 $6,729
Liabilities: 
  
  
  
  
  
  
  
Derivative Instruments: 
  
  
  
  
  
  
  
Interest rate contracts$—
 $52
 $—
 $52
 $—
 $12
 $—
 $12
Foreign currency contracts—
 782
 5
 787
 —
 358
 2
 360
Total Liabilities$—
 $834
 $5
 $839
 $—
 $370
 $2
 $372
__________________
(1)Government debt includes instruments such as U.S. treasury notes, U.SU.S. agency securities and non-U.S. government bonds. Money market funds invested in government debt and traded in active markets are included in Level 1.
There were no transfers between levels within the fair value hierarchy during the three months ended January 31, 2018.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8: Fair Value (Continued)

Valuation Techniques
Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments wasis based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data.
Derivative Instruments: From time to time, HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 9,8, “Financial Instruments” for a further discussion of HP’s use of derivative instruments.
Other Fair Value Disclosures
Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considering its own credit risk. 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 $8.1$9.3 billion as of January 31, 2018, compared to its carrying amount of $7.9$9.7 billion at that date.January 31, 2024. The fair value of HP’s short- and long-term debt was $8.1$8.5 billion as of October 31, 2017, compared to its carrying value of $7.8$9.5 billion at that date.October 31, 2023. If measured at fair value in the Consolidated Condensed Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy.
Other Financial Instruments: For the balance of HP’s financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in Other accruedcurrent liabilities on the Consolidated Condensed Balance Sheets, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed Balance Sheets, these other financial instruments would be classified inas Level 2 or Level 3 of the fair value hierarchy.
Non-Marketable Equity Investments and Non-Financial Assets: HP’s non-marketable equity investments andare measured at cost less impairment, adjusted for observable price changes. HP’s non-financial assets, such as goodwill, intangible assets, goodwill and property, plant and equipment, are recorded at fair value in the period of acquisition and a subsequentan impairment charge is recognized. If measured at fair value in the Consolidated Condensed Balance Sheets non-marketable equity investments and non-financial assetsthese would generally be classified within Level 3 of the fair value hierarchy.



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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)



Note 9:8: Financial Instruments
Cash Equivalents and Available-for-Sale Investments
 As of January 31, 2018 As of October 31, 2017
 Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value
 In millions
Cash Equivalents: 
  
  
  
  
  
  
  
Corporate debt$1,180
 $—
 $—
 $1,180
 $1,390
 $—
 $—
 $1,390
Financial institution instruments—
 —
 —
 —
 6
 —
 —
 6
Government debt2,833
 —
 —
 2,833
 4,002
 —
 —
 4,002
Total cash equivalents4,013
 —
 —
 4,013
 5,398
 —
 —
 5,398
Available-for-Sale Investments: 
  
  
  
  
  
  
  
Corporate debt (1)
669
 —
 (2) 667
 629
 —
 —
 629
Financial institution instruments (1)
77
 —
 —
 77
 78
 —
 —
 78
Government debt (1)
524
 —
 (2) 522
 443
 —
 (1) 442
Marketable equity securities
4
 2
 —
 6
 5
 7
 —
 12
Mutual funds42
 10
 —
 52
 39
 10
 —
 49
Total available-for-sale investments1,316
 12
 (4) 1,324
 1,194
 17
 (1) 1,210
Total cash equivalents and available-for-sale investments$5,329
 $12
 $(4) $5,337
 $6,592
 $17
 $(1) $6,608
                
(1) HP classifies its marketable debt securities as available-for-sale investments within Other current assets on the Consolidated Condensed Balance Sheets, including those with maturity dates beyond one year, based on their highly liquid nature and availability for use in current operations.
 As of January 31, 2024As of October 31, 2023
 CostGross Unrealized GainGross Unrealized LossFair ValueCostGross Unrealized GainGross Unrealized LossFair Value
 In millions
Cash Equivalents:        
Corporate debt$502 $— $— $502 $589 $— $— $589 
Government debt1,029 — — 1,029 1,900 — — 1,900 
Total cash equivalents1,531 — — 1,531 2,489 — — 2,489 
Available-for-Sale Investments:     
Financial institution instruments3 — — 3 3 — — 3 
Marketable securities and mutual funds40 52 — 92 40 38 — 78 
Total available-for-sale investments43 52 — 95 43 38 — 81 
Total cash equivalents and available-for-sale investments$1,574 $52 $— $1,626 $2,532 $38 $— $2,570 
All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of January 31, 20182024 and October 31, 2017,2023, 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 January 31, 2024
 Amortized CostFair Value
 In millions
Due in one year$3 $3 
 As of January 31, 2018
 Amortized
Cost		 Fair Value
 In millions
Due in one year or less$761
 $759
Due in one to five years$509
 $507
EquityNon-marketable equity securities in privately held companies include cost basis and equity method investments and are included in Other non-current assets onin the Consolidated Condensed Balance Sheets. These amounted to $39$108 million and $37$111 million as of January 31, 20182024 and October 31, 2017,2023, respectively.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 9: Financial Instruments (Continued)

determines credit losses on cash equivalents and available-for-sale debt securities at the individual security level. All instruments are considered investment grade. No credit-related or noncredit-related impairment losses were recorded for the three months ended January 31, 2024.
Derivative Instruments
HP uses derivativesderivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and option contracts to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps and, at times, option contracts to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP may designate its derivative contracts as fair value hedges or cash flow hedges and classifies the cash flows with the activities that correspond to the underlying hedged items. Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets.
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

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 HPHP’s custodian to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivativethe net fair values exceedvalue of financial instruments fluctuates from contractually established thresholds which are generally based onthresholds.The Company includes gross collateral posted and received in other current assets and other current liabilities in 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.Consolidated Condensed Balance Sheets, respectively. The fair value of derivatives with credit contingent features in a net liability position was $765$119 million and $258$91 million as of January 31, 20182024 and as of October 31, 2017,2023, 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 January 31, 20182024 and October 31, 2017.2023.
Fair Value Hedges
HP enters into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates by achieving a primarily U.S. dollar London Interbank Offered Rate (“LIBOR”)-based floatingon HP’s future interest expense.payments.
For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net onin the Consolidated Condensed Statements of Earnings in the period of change.
Cash Flow Hedges
HP uses forward contracts,option contracts, treasury rate locks and at times, option contractsforward starting swaps designated as cash flow hedges to protect against the foreign currency exchange and interest rate risks inherent in its forecasted net revenue, and, to a lesser extent, cost of revenue, operating expenses and intercompany loans denominated in currencies other than the U.S. dollar.debt issuance. HP’s foreign currency cash flow hedges mature generallypredominantly within twelve months. However,months; however, hedges related to longer-termlong-term procurement arrangements extend several years and forward contracts associated with intercompany loans extend for the duration of the loan term, which typically range from two to five years.
For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of the derivative instrument in accumulatedAccumulated other comprehensive loss as a separate component of stockholders’Stockholders’ deficit onin the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portionchanges in the fair value of its cash flow hedgesthe derivative instrument in the same financial statement line item as changes in the fair value of the hedged item.
Other Derivatives
Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps to hedge its executive deferred compensation plan liability.
For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.
Hedge Effectiveness
For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged item with the change in fair value of the derivative. For foreign currency options, forward contracts and forward contractsstarting 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. HP

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 9: Financial Instruments (Continued)

recognizes any ineffective portion ofDuring the hedge in the Consolidated Condensed Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Condensed Statements of Earnings in the period they arise.
As ofthree months ended January 31, 20182024 and 2017,2023, no portion of the hedging instruments’ gain or loss was excluded from the assessment of effectiveness for fair value and cash flow hedges. Hedge ineffectiveness for fair value and cash flow hedges recognized in earnings were not material for the three months ended January 31, 2018 and 2017.
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

As of January 31, 2018 As of October 31, 2017 As of January 31, 2024As of October 31, 2023
Outstanding
Gross
Notional		 Other Current Assets Other
Non-Current
Assets		 Other
Accrued
Liabilities		 Other
Non-Current
Liabilities		 Outstanding
Gross
Notional		 Other
Current
Assets		 Other
Non-Current
Assets		 Other
Accrued
Liabilities		 Other
Non-Current
Liabilities		 Outstanding Gross NotionalOther Current AssetsOther Non-Current AssetsOther Current LiabilitiesOther Non-Current LiabilitiesOutstanding Gross NotionalOther Current AssetsOther Non-Current AssetsOther Current LiabilitiesOther Non-Current Liabilities
In millions In millions
Derivatives designated as hedging instruments 
  
  
  
  
  
  
  
  
  
Derivatives designated as hedging instruments  
Fair value hedges: 
  
  
  
  
  
  
  
  
  
Fair value hedges:  
Interest rate contracts$2,500
 $—
 $—
 $1
 $51
 $2,500
 $—
 $—
 $—
 $12
Cash flow hedges: 
  
  
  
  
  
  
  
  
  
Foreign currency contracts15,901
 29
 4
 589
 176
 16,149
 92
 12
 245
 100
Foreign currency contracts
Foreign currency contracts
Total derivatives designated as hedging instruments
Total derivatives designated as hedging instruments
Total derivatives designated as hedging instruments18,401
 29
 4
 590
 227
 18,649
 92
 12
 245
 112
Derivatives not designated as hedging instruments 
  
  
  
  
  
  
  
  
  
Derivatives not designated as hedging instruments  
Foreign currency contracts4,515
 18
 —
 22
 —
 5,801
 16
 —
 15
 —
Other derivatives142
 4
 —
 —
 —
 123
 1
 —
 —
 —
Total derivatives not designated as hedging instruments4,657
 22
 —
 22
 —
 5,924
 17
 —
 15
 —
Total derivatives$23,058
 $51
 $4
 $612
 $227
 $24,573
 $109
 $12
 $260
 $112
Offsetting of Derivative Instruments
HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of January 31, 20182024 and October 31, 2017,2023, 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  
 (i)(ii)(iii) = (i)–(ii)(iv)(v)(vi) = (iii)–(iv)–(v)
Gross Amounts Not Offset
 Gross Amount
Recognized		Gross Amount
Offset		Net Amount
Presented		Derivatives
Financial
Collateral		 Net Amount
 In millions
As of January 31, 2024       
Derivative assets$214 $— $214 $170 $40 (1)$4 
Derivative liabilities$291 $— $291 $170 $109 (2)$12 
As of October 31, 2023       
Derivative assets$489 $— $489 $178 $291 (1)$20 
Derivative liabilities$272 $— $272 $178 $89 (2)$5 
26
Table(1)Represents the cash collateral posted by counterparties as of Contentsthe respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.
(2)Represents the collateral posted by HP INC. AND SUBSIDIARIES
Notesincluding 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 Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 9: Financial Instruments (Continued)

 In the Consolidated Condensed Balance Sheets    
       Gross Amounts Not Offset    
 
Gross Amount
Recognized
(i)
Gross Amount
Offset
(ii)
Net Amount
Presented
(iii) = (i)–(ii)
 
Derivatives
(iv)
 
Financial
Collateral
(v)
   
Net Amount
(vi) = (iii)–(iv)–(v)
 In millions
As of January 31, 2018 
  
  
  
  
    
Derivative assets$55
 $—
 $55
 $51
 $—
(1) 
 $4
Derivative liabilities$839
 $—
 $839
 $51
 $770
(2) 
 $18
As of October 31, 2017 
  
  
  
  
    
Derivative assets$121
 $—
 $121
 $108
 $4
(1) 
 $9
Derivative liabilities$372
 $—
 $372
 $108
 $219
(2) 
 $45

(1)
Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.
(2)
Represents the collateral posted by HP through 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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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 9: Financial Instruments (Continued)

the respective reporting date.
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 for the three months ended January 31, 2018 and 2017 were as follows:
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Derivative InstrumentDerivative InstrumentHedged ItemLocationYearTotal amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recordedGain/(loss) recognized in earnings on derivative instrumentsGain/(loss) recognized in earnings on hedged item
In millionsIn millions
  Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument Location Three months ended January 31, 2018 Three months ended January 31, 2017 Hedged Item Location Three months ended January 31, 2018 Three months ended January 31, 2017
Three months ended January 31
   In millions     In millions
Interest rate contracts Interest and other, net $(40) $(52) Fixed-rate debt Interest and other, net $40
 $52
Three months ended January 31
Three months ended January 31
Interest rate contract
Interest rate contract
Interest rate contract
2023
The pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended January 31, 2018included in Accumulated other comprehensive (loss) income was as follows:
Three months ended January 31
20242023
In millions
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives:
Foreign currency contracts$(162)$(623)
 Loss Recognized in
Other Comprehensive
Income (“OCI”) on Derivatives (Effective Portion)		 
(Loss) Gain Reclassified from Accumulated OCI Into
Earnings (Effective Portion)
 Three months ended January 31, 2018 Three months ended January 31, 2017 Location Three months ended January 31, 2018 Three months ended January 31, 2017
 In millions   In millions
  Cash flow hedges: 
  
    
  
Foreign currency contracts$(551) $(169) Net revenue $(52) $76
  
  
 Cost of revenue (18) —
  
  
 Interest and other, net —
 (5)
Total$(551) $(169)   $(70) $71
The pre-tax effect of derivative instruments in cash flow hedging relationships included in earnings were as follows:

Total amounts of income/(expense) line items in the statement of financial performance in which the effects of cash flow hedges are recordedGain/(loss) reclassified from Accumulated 
other comprehensive (loss) income into earnings
Three months ended January 31Three months ended January 31
2024202320242023
In millions
Net revenue$13,185 $13,798 $199 $386 
Cost of revenue(10,297)(11,011)(40)(54)
Operating expenses(1,953)(2,044)(3)(1)
Interest and other, net(142)(181)3 3 
Total$159 $334 
As of January 31, 2018,2024, HP expects to reclassify an estimated accumulated other comprehensive loss (“AOCI”) of $500$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 AOCIAccumulated other comprehensive (loss) income based on the change of market rate, and therefore could have a different impact on earnings.
The pre-tax effect of derivative instruments not designated as hedging instruments in the Consolidated Condensed Statements of Earnings for the three months ended January 31, 2018 and 2017 was as follows:
26
 Gain (Loss) Recognized in Earnings on Derivatives
 Location Three months ended January 31, 2018 Three months ended January 31, 2017
   In millions
Foreign currency contractsInterest and other, net $(17) $(2)
Other derivativesInterest and other, net 2
 3
Total  $(15) $1

Note 10: Borrowings
Notes Payable and Short-Term Borrowings

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 10: Borrowings (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 as follows:
Gain/(loss) recognized in earnings on derivative instrument
 Three months ended January 31
 Location20242023
  In millions
Foreign currency contractsInterest and other, net$1 $(44)
Other derivativesInterest and other, net4 6 
Total $5 $(38)

27
 As of January 31, 2018 As of October 31, 2017
 Amount
Outstanding		 Weighted-Average
Interest Rate		 Amount
Outstanding		 Weighted-Average
Interest Rate
 In millions   In millions  
Commercial paper$966
 1.8% $943
 1.8%
Current portion of long-term debt526
 2.9% 96
 3.5%
Notes payable to banks, lines of credit and other37
 1.3% 33
 1.5%
 $1,529
  
 $1,072
  
Table of Contents
HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings (Continued)
(Unaudited)
Note 9: Borrowings
Notes Payable and Short-Term Borrowings
 As of January 31, 2024As of October 31, 2023
 Amount
Outstanding		Weighted-Average
Interest Rate		Amount
Outstanding		Weighted-Average
Interest Rate
 In millions
Commercial Paper$100 5.5 %$— — %
Current portion of long-term debt193 5.9 %179 6.0 %
Notes payable to banks, lines of credit and other66 1.2 %51 1.0 %
$359  $230  
Long-Term Debt
 As of
 January 31, 2024October 31, 2023
 In millions
U.S. Dollar Global Notes(1)
  
$1,200 issued at discount to par at a price of 99.863% at 6.00%, due September 2041$1,199 $1,199 
$1,150 issued at discount to par at a price of 99.769% at 2.20%, due June 20251,149 1,149 
$1,000 issued at discount to par at a price of 99.718% at 3.00%, due June 2027999 999 
$850 issued at discount to par at a price of 99.790% at 3.40%, due June 2030503 503 
$1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026521 521 
$1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031(2)
997 997 
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029999 999 
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032676 676 
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028899 899 
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 20331,097 1,097 
$500 issued at par at a price of 100% at 4.75%, due March 20293 3 
9,042 9,042 
Other borrowings at 1.58%-8.30%, due in fiscal years 2024-2030549 506 
Fair value adjustment related to hedged debt(43)(58)
Unamortized debt issuance cost(54)(57)
Current portion of long-term debt(193)(179)
Total long-term debt$9,301 $9,254 
 As of
 January 31, 2018 October 31, 2017
 In millions
U.S. Dollar Global Notes(1)
 
  
2009 Shelf Registration Statement: 
  
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020$648
 $648
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 20211,249
 1,249
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021999
 999
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 20211,498
 1,498
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022499
 499
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 20411,199
 1,199
2012 Shelf Registration Statement: 
  
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019102
 102
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019300
 300
 6,494
 6,494
Other, including capital lease obligations, at 0.51%-8.49%, due in calendar years 2018-2025424
 360
Fair value adjustment related to hedged debt(34) 8
Less: Unamortized debt issuance cost(18) (19)
Less: current portion of long-term debt(526) (96)
Total long-term debt$6,340
 $6,747
(1)
(1)HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt.
In December 2016, HP filed a shelf registration statement (the “2016 Shelf Registration Statement”) with the SECterms thereof. The U.S. Dollar Global Notes are senior unsecured debt.
(2)HP allocated an amount equal to enable the companynet proceeds to offer for sale, from time to time,finance or refinance, in onewhole or more offerings, an unspecified amountin part, environmentally and socially responsible eligible projects in the following eight areas: renewable energy; green buildings; energy efficiency; clean transportation; pollution prevention and control; eco-efficient and/or circular economy products, production technologies and processes; environmentally sustainable management of debt securities, common stock, preferred stock, depositary sharesliving natural resources and warrants.land use; and socioeconomic advancement and empowerment.

As disclosed in Note 9,8, “Financial Instruments”,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 by achieving a primarily U.S. dollar LIBOR-based floating interest expense.rates. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps.
Interest expense on borrowings recognized as “Interest and other, net” in the Consolidated Condensed Statements of Earnings during the three months ended January 31, 2018 and 2017 was $87 million and $73 million, respectively.
Commercial Paper
On November 1, 2015, HP’s Board of Directors authorized HP to borrow up to a total outstanding principal balance of $4.0 billion, or the equivalent in foreign currencies, for the use and benefit of HP and HP’s subsidiaries, by the issuance of commercial paper or through the execution of promissory notes, loan agreements, letters of credit, agreements for lines of credit or overdraft facilities. HP increased the issuance authorization under its commercial paper program from $4.0 billion to $6.0 billion in November 2017. As of January 31, 2018,2024, HP maintained twoa U.S. commercial paper programs. HP’s U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $6.0 billion. The principal amount outstanding under this program and certain short-term borrowings at any time cannot exceed a $6.0 billion authorization by HP’s euro commercial paper program provides for the issuanceBoard of commercial paper outside of the United StatesDirectors.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 10: Borrowings (Continued)

denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $6.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $6.0 billion authorized by HP’s Board of Directors.
Credit FacilityFacilities
As of January 31, 2018,2024, HP maintainsmaintained a $4.0$5.0 billion sustainability-linked senior unsecured committed revolving credit facility, to support the issuance of commercial paper or for general corporate purposes.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 April 2, 2019.May 26, 2026 and commitments under the $1.0 billion 364-day revolving credit facility will be available until March 19, 2024. Commitment fees, interest rates and other terms of borrowing under the revolving credit facilities vary based on HP’s external credit ratings. ratings and, for the $5.0 billion facility, certain sustainability metrics. Funds borrowed under the revolving credit facilities may be used for general corporate purposes.
As of January 31, 2018,2024, HP was in compliance with the financial covenants in the credit agreementagreements governing the revolving credit facility.
In December 2017, HP also entered into an additional revolving credit facility with certain institutional lenders that provides HP with $1.5 billion of available borrowings until November 30, 2018.facilities.
Available Borrowing Resources
As of January 31, 2018,2024, HP and its subsidiaries had available borrowing resources of $742 million$1.0 billion from uncommitted lines of credit in addition to the commercial paper andfull capacity of the revolving credit facilities discussed above.facilities.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Note 11:10: Stockholders’ Deficit
Share Repurchase Program
HP’s share repurchase program authorizes both open market and private repurchase transactions. During the three months ended January 31, 2018,2024, HP executed share repurchases of 2017.1 million shares.shares and settled total shares for $0.5 billion. Share repurchases executed during the three months ended January 31, 20182024 included 0.60.3 million shares settled in February 2018.2024. During the three months ended January 31, 2018, HP settled total shares for $0.5 billion. During the three months ended January 31, 2017,2023, HP executed share repurchases of 273.6 million shares and settled total shares for $0.4$0.1 billion.
The shares repurchased during the three months ended January 31, 20182024 and 20172023 were all open market repurchase transactions. As of January 31, 2018,2024, HP had approximately $2.0$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
 20242023
 In millions
Tax effect on change in unrealized components of available-for-sale debt securities:  
Tax provision on unrealized gains arising during the period$— $(1)
Tax effect on change in unrealized components of cash flow hedges: 
Tax benefit on unrealized losses arising during the period36 106 
Tax provision on gains reclassified into earnings32 78 
68 184 
Tax effect on change in unrealized components of defined benefit plans:  
Tax benefit on losses arising during the period2 — 
2 — 
Tax benefit on other comprehensive loss$70 $183 

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 11: Stockholder’s Deficit (Continued)

Tax effects related to Other Comprehensive (Loss) Income
 Three months ended January 31
 2018 2017
 In millions
Tax effect on change in unrealized components of available-for-sale securities: 
  
Tax benefit (provision) on unrealized (losses) gains arising during the period$1
 $(1)
 1
 (1)
Tax effect on change in unrealized components of cash flow hedges:   
Tax benefit (provision) on unrealized (losses) gains arising during the period70
 (3)
Tax (benefit) provision on losses (gains) reclassified into earnings(3) 4
 67
 1
Tax effect on change in unrealized components of defined benefit plans: 
  
Tax provision on amortization of actuarial loss and prior service benefit(3) (6)
Tax provision on curtailments, settlements and other—
 (8)
 (3) (14)
Tax benefit (provision) on other comprehensive loss$65
 $(14)
Changes and reclassifications related to Other Comprehensive Loss, net of taxes
 Three months ended January 31
 20242023
 In millions
Other comprehensive loss, net of taxes:
Change in unrealized components of available-for-sale debt securities:
Unrealized gains arising during the period$4 $3 
Change in unrealized components of cash flow hedges:
Unrealized losses arising during the period(126)(517)
Gains reclassified into earnings(127)(256)
(253)(773)
Change in unrealized components of defined benefit plans:
Losses arising during the period(8)(1)
Amortization of actuarial loss and prior service benefit(1)
2 — 
Curtailments, settlements and other— 1 
(6)— 
Change in cumulative translation adjustment20 29 
Other comprehensive loss, net of taxes$(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”.
 Three months ended January 31
 2018 2017
 In millions
Other comprehensive loss, net of taxes: 
  
Change in unrealized components of available-for-sale securities: 
  
Unrealized (losses) gains arising during the period$(2) $2
Gains reclassified into earnings(5) —
 (7) 2
Change in unrealized components of cash flow hedges:   
Unrealized losses arising during the period(481) (172)
Losses (gains) reclassified into earnings(1)
67
 (67)
 (414) (239)
Change in unrealized components of defined benefit plans: 
  
Amortization of actuarial loss and prior service benefit(2)
9
 14
Settlements and other1
 (8)
 10
 6
Other comprehensive loss, net of taxes$(411) $(231)
(1)
Reclassification of pre-tax gains on cash flow hedges into the Consolidated Condensed Statements of Earnings was as follows:

 Three months ended January 31
 2018 2017
 In millions
Net revenue$52
 $(76)
Cost of revenue18
 —
Interest and other, net—
 5
Total$70
 $(71)

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 11: Stockholder’s Deficit (Continued)

(2)
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 accumulatedAccumulated other comprehensive loss, net of taxes and changes were as follows:
 Three months ended January 31, 2024
 Net unrealized
gains (losses) on
available-for-sale debt
securities		Net unrealized gains (losses) on cash
flow hedges		Unrealized
components
of defined
benefit plans		Change in cumulative
translation
adjustment		Accumulated
other
comprehensive loss
 In millions
Balance at beginning of period$7 $230 $(437)$(23)$(223)
Other comprehensive gains (losses) before reclassifications4 (126)(8)20 (110)
Reclassifications of gain into earnings— (127)2 — (125)
Balance at end of period$11 $(23)$(443)$(3)$(458)

31
 Three months ended January 31, 2018
 Net unrealized
gains on
available-for-sale
securities		 Net unrealized
gains (losses) on cash
flow hedges		 Unrealized
components
of defined
benefit plans		 Accumulated
other
comprehensive
loss
 In millions
Balance at beginning of period$12
 $(240) $(1,190) $(1,418)
Other comprehensive loss before reclassifications(2) (481) —
 (483)
Reclassifications of (gains) losses into earnings(5) 67
 9
 71
Reclassifications of curtailments and settlements into earnings—
 —
 1
 1
Balance at end of period$5
 $(654) $(1,180) $(1,829)


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Notes to Consolidated Condensed Financial Statements of Earnings (Continued)
(Unaudited)

Note 12: Net11: Earnings Per Share
HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards,units, stock options, performance-based awards and shares purchased under the 20112021 employee stock purchase plan.
A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows:
 Three months ended January 31
 20242023
 In millions, except per share amounts
Numerator:
Net earnings$622 $469 
Denominator:
Weighted-average shares used to compute basic net EPS995 989 
Dilutive effect of employee stock plans7 7 
Weighted-average shares used to compute diluted net EPS1,002 996 
Net earnings per share:
Basic$0.63 $0.47 
Diluted$0.62 $0.47 
Anti-dilutive weighted-average stock-based compensation awards(1)
6 7 
(1)HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.

 Three months ended January 31
 2018 2017
 In millions, except per share amounts
Numerator: 
  
Net earnings$1,938
 $611
Denominator: 
  
Weighted-average shares used to compute basic net EPS1,650
 1,704
Dilutive effect of employee stock plans19
 17
Weighted-average shares used to compute diluted net EPS1,669
 1,721
Net earnings per share: 
  
Basic$1.17
 $0.36
Diluted$1.16
 $0.36
Anti-dilutive weighted-average options(1)
—
 9
(1)
HP excludes stock options and restricted stock units where the assumed proceeds exceed the average market price from the calculation of diluted net EPS because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.

Note 13:12: Litigation and Contingencies
HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of intellectual property,IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of January 31, 2018,2024, 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. Pursuant to the separation and distribution agreement entered into with Hewlett Packard Enterprise Company (“Hewlett Packard Enterprise”), HP shares responsibility with Hewlett Packard Enterprise for certain matters, as indicated below, and Hewlett Packard Enterprise has agreed to indemnify HP in whole or in part with respect to certain matters. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP’s potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies.
Litigation, Proceedings and Investigations
Copyright Levies.  Proceedings are ongoing or have been concluded involving HP in certain European countries, including litigation in Belgium and other countries, seeking to imposechallenging the imposition or modifythe modification of levies regimes upon IT equipment (such as multifunction devices (“MFDs”) and PCs), alleging that these devices enablePCs or printers) or the productionrestrictions to exonerate the application of private copies of copyrighted materials.copying levies on devices purchased by business users. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some European countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them tointroduce or extend existing levy schemes while other European countries have phased out levies or are expected to limit the scope of levy schemes and applicability in the digital hardware environment, particularly with respect to sales to business users.devices. HP, other companies and various industry associations have opposed the extension of levies to the digital environmentproduct and certain requirements for business sales exemptions and have advocated alternative models of compensation to rights holders.

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13: Litigation and Contingencies (Continued)

Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested by extrajudicial means that HP amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated basedBased on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambersexemption of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on business sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with European Union (“EU”) law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. On October 23, 2013, the Court of Appeal in Brussels stayed the proceedings and referred several questions to the Court of Justice of the European Union (“CJEU”) relating to whether the Belgian reprographic copyright levies system is in conformity with EU law. The case was heard by the CJEU on January 29, 2015 and on November 12, 2015, the CJEU published its judgment providing that a national legislation such as the Belgian one at issue in the main proceedings is incompatible with EU law on multiple legal points, as argued by HP. The Court of Appeal issued an appealable decision on May 12, 2017 providing that Belgian reprographic copyright levies are due notwithstanding the lack of conformity of the system with EU law in certain aspects. Applicable levies are to be calculated based on the objective speed of each MFD as established by an expert appointed by the Court of Appeal. HP appealed this decision before the Belgian Supreme Court on January 18, 2018. Based on industry opposition to the extension ofincreasing 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.
Hewlett-Packard Company v. Oracle Corporation.  On June 15, 2011, HP filed suit against Oracle Corporation (“Oracle”) in California Superior Court in Santa Clara County in connection with Oracle’s March 2011 announcement that it was discontinuing software support for HP’s Itanium-based line of mission-critical servers. HP asserted, among other things, that Oracle’s actions breached the contract that was signed by the parties as part of the settlement of the litigation relating to Oracle’s hiring of Mark Hurd. The matter eventually progressed to trial, which was bifurcated into two phases. HP prevailed in the first phase of the trial, in which the court ruled that the contract at issue required Oracle to continue to offer its software products on HP’s Itanium-based servers for as long as HP decided to sell such servers. The second phase of the trial was then postponed by Oracle’s appeal of the trial court’s denial of Oracle’s “anti-SLAPP” motion, in which Oracle argued that HP’s damages claim infringed on Oracle’s First Amendment rights. On August 27, 2015, the California Court of Appeals rejected Oracle’s appeal. The matter was remanded to the trial court for the second phase of the trial, which began on May 23, 2016 and was submitted to the jury on June 29, 2016. On June 30, 2016, the jury returned a verdict in favor of HP, awarding HP approximately $3.0 billion in damages, which included approximately $1.7 billion for past lost profits and $1.3 billion for future lost profits. On October 20, 2016, the court entered judgment for HP for this amount with interest accruing until the judgment is paid. Oracle’s motion for a new trial was denied on December 19, 2016, and Oracle filed its notice of appeal from the trial court’s judgment on January 17, 2017. On February 2, 2017, HP filed a notice of cross-appeal challenging the trial court’s denial of prejudgment interest. The schedule for appellate briefing and argument has not yet been established. HP expects that the appeals process could take several years to complete. Litigation is unpredictable, and there can be no assurance that HP will recover damages, or that any award of damages will be for the amount awarded by the jury’s verdict. The amount ultimately awarded, if any, would be recorded in the period received. No adjustment has been recorded in the financial statements in relation to this potential award. Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise will share equally in any recovery from Oracle once Hewlett Packard Enterprise has been reimbursed for all costs incurred in the prosecution of the action prior to the Separation.
Forsyth, et al. vs.v. HP Inc. and Hewlett Packard Enterprise. This is a purported class and collective action filed on August 18, 2016 in the United States District Court, Northern District of California, against HP and Hewlett Packard Enterprise (“HPE”) alleging the defendants violated the Federal Age Discrimination in Employment Act (“ADEA”), the California Fair Employmentfederal and Housing Act, California public policy and the California Business and Professions Codestate law by terminating older workers and replacing them with younger workers. PlaintiffsIn their most recent complaint, plaintiffs seek to certifyrepresent (1) a putative nationwide federal Age Discrimination in Employment Act (ADEA) collective class action under the ADEA comprised of all U.S. residents employed by defendantsformer HP Inc. employees 40 years of age and older who had their employment terminated pursuant tounder a workforce reduction (“WFR”)WFR plan onin or after May 23, 20122014 or 2015, depending on state law; and who were 40 years of age or older. Plaintiffs also seek to represent(2) a putative Rule 23 class under California law comprised of all personsformer HP Inc. employees 40 years orof age and older employed by defendantswho had their employment terminated in the state of California and

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13: Litigation and Contingencies (Continued)

terminated pursuant tounder a WFR plan onin or after May 23, 2012. FollowingExcluded from the putative collective and class are employees who (a) signed a partialWaiver and General Release Agreement at termination, or (b) signed an Agreement to Arbitrate Claims. Similar claims are pending against HPE. Because the court granted plaintiffs’ motion to dismiss, a motion to strike and a motion to compel arbitration that the defendants filed in November 2016, the plaintiffs amended their complaint.  New plaintiffs were added, but the plaintiffs agreed that the class period for the nationwide collective action should be shortened and now starts on December 9, 2014. On January 30, 2017, the defendants filed another partial motion to dismiss and motions to compel arbitration as to severalpreliminary certification of the plaintiffs. Onputative nationwide ADEA collectives, a third-party administratornotified eligible former employees of their right to opt into the ADEA collective. This opt-in period closed on February 15, 2022. Plaintiffs seek monetary damages, punitive damages, and other relief. In June 2023, the parties reached an agreement in principle to resolve this matter. The parties 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 20, 2017, the defendants filed additional motions to compel arbitration as to a number of the opt-in plaintiffs. On September 20, 2017, the Court granted the motions to compel arbitration as to the plaintiffs and opt-ins who signed WFR release agreements (17 individuals), and also stayed the entire case until the arbitrations are completed. On November 30, 2017, three named plaintiffs and twelve opt-in plaintiffs filed a single arbitration demand.  On December 22, 2017, the defendants filed a motion to (1) stay the case pending arbitrations and (2) enjoin the demanded arbitration and require each plaintiff to file a separate arbitration demand.  On February 6, 2018, the Court granted the motion to stay and denied the motion to enjoin.28, 2024.
India Directorate of Revenue Intelligence Proceedings.On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the “DRI”) issued show cause notices to Hewlett-Packard India Sales Private Limited (“HP India”), a subsidiary of HP, seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties.penalties and interest. Prior to the issuance of the show cause notices, HP India deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI’s agreement to not seize HP India products and spare parts and to notor interrupt the transaction of business by HP India.
On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HP India and the named individuals of approximately $386 million, of which HP India had already deposited $9 million. On December 11, 2012, HP India voluntarily deposited an additional $10 million in connection with the products-related show cause notice. The differential duty demand is subject to interest. On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HP India and certain of the named individuals of approximately $17 million, of which HP India had already deposited $7 million. After the order, HP India deposited an additional $3 million in connection with the parts-related show cause notice so as to avoid certain penalties.
HP India filed appeals of the Commissioner’s orders before the Customs, Excise and Service Tax Appellate Tribunal (the “Customs Tribunal”) along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HP India to deposit an additional $24 million against the products order, which HP India deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HP India filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP India and the individuals already granted until final disposition of the appeals. On February 7, 2014, the Customs Tribunal granted HP India’s application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner’s orders. The Customs Tribunalorders and rejected HP India’s request to remand the matter to the Commissioner on procedural grounds. The Customs Tribunal cancelled hearings scheduled to reconvene on April 6,in 2015, 2016 and again on November 3, 2015 and April 11, 2016 were canceled at the request ofJanuary 2019. On January 20, 2021, the Customs Tribunal.Tribunal held a virtual hearing during which the judge allowed HP’s application for a physical hearing on the merits as soon as practicable, which will be scheduled when physical hearings resume at court. Pursuant to the separation and distribution agreement, Hewlett Packard Enterprise has agreed to indemnify HP in part, based on the extent to which any liability arises from the products and spare parts of Hewlett Packard Enterprise’s businesses.
Russia GPO Anti-Corruption InvestigationPhilips Patent Litigation.  The German Public Prosecutor’s Office (“German PPO” In September 2020, Koninklijke Philips N.V. and Philips North America LLC (collectively, “Philips”) has been conductingfiled a complaint against HP for patent infringement in federal court for the District of Delaware and filed a companion complaint with the U.S. International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act against HP and 8 other sets of respondents. Both complaints allege that certain digital video-capable devices and components thereof infringe four of Philips’ patents. In October 2020, the ITC instituted an investigation, into allegationsand Philips later withdrew two of the four patents. On March 23, 2022, the ITC rendered a final determination that currentno violation of Section 337 has occurred. Philips did not appeal and former employees of HP engagedelected to resume litigation with its case in bribery, embezzlementfederal court. Philips seeks unspecified damages and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary ofan injunction against HP, and the General Prosecutor’s Office of the Russian Federation. The approximately $35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO also requested that HP be made an associated party to the case, and, if that request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees.prior stay has been lifted. On August 29, 2017, the Regional Court10, 2023, HP filed a motion for summary judgment of Leipzig decided not to admit the matter to trial. If affirmed, this ruling will result in the termination of the prosecution. The German PPO has appealed this decision. The appeal is currently pending with the Higher Regional Court in Dresden.

indefiniteness for all asserted claims.
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13: Litigation and Contingencies (Continued)

Class Actions re AuthenticationCaltech Patent Litigation. On November 11, 2020, the California Institute of Supplies
Five purported consumer class actions wereTechnology (“Caltech”) filed a complaint against HP arising outfor patent infringement in the federal court for the Western District of Texas. On March 19, 2021, Caltech filed an amendment to this same complaint. The complaint as amended alleges infringement of five of Caltech’s patents, U.S. Patent Nos. 7,116,710; 7,421,032; 7,716,552; 7,916,781; and 8,284,833. The accused products are HP commercial and consumer PCs as well as wireless printers that comply with the IEEE 802.11n, 802.11ac, and/or 802.11ax standards. Caltech seeks unspecified damages and other relief. 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 supplies authentication protocol in certain OfficeJet printers.  This authentication protocol rejects some third-party ink cartridges that use non-HP security chips.  TwoCounty of York Retirement Fund v. HP Inc., et al., and related proceedings. On November 5, 2020, York County, on behalf of the cases were dismissed,County of York Retirement Fund, filed a putative class action complaint against HP, Dion Weisler, and the remaining cases have been consolidatedCatherine Lesjak in the United States District Court forfederal court in the Northern District of California, captioned In re HP Printer Firmware Update Litigation.California. The remaining plaintiffs’ operativecourt appointed Maryland Electrical Industry Pension Fund as Lead Plaintiff. Lead Plaintiff filed a consolidated complaint, was filed on March 22, 2017, alleging eleven causes of action: (1) unfairwhich additionally names as defendants Enrique Lores and unlawful business practices in violation of the Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.; (2) fraudulent business practices in violation of the Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.; (3) violations of the False Advertising Law, Cal. Bus. & Prof. Code § 17500, et seq.; (4) violations of the Consumer Legal Remedies Act, Cal. Civ. Code § 1750, et seq.; (5) violations of the Texas Deceptive Trade Practices ‒ Consumer Protection Act, Tex. Bus. & Com. Code Ann. § 17.01, et seq.; (6) violations of the Washington Consumer Protection Act, Wash. Rev. Code Ann. § 19.86.010, et seq.; (7) violations of the New Jersey Consumer Fraud Act, New Jersey Statutes Ann. 56:8-1, et seq.; (8) violations of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030, et seq.; (9) violations of the California Computer Data Access and Fraud Act, Cal. Penal Code § 502; (10) Trespass to Chattels; and (11) Tortious Interference with Contractual Relations and/or Prospective Economic Advantage.Richard Bailey. The plaintiffs seek to certify a primary class of all persons in the United States who purchased or owned the OfficeJet printers in question, and they alternatively seek to certify subclasses of all such printer purchasers or owners in California, Texas, Washington, and/or New Jersey. On April 21, 2017, HP filed a motion to dismiss the consolidated complaint. The court held a hearing on July 14, 2017. HP’s motion to dismiss remains pending.
Autonomy-Related Legal Matters
Investigations.  As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice (“DOJ”) and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP’s acquisition of Autonomy. On January 19, 2015, the U.K. Serious Fraud Office notified HP that it was closing its investigation and had decided to cede jurisdiction of the investigation to the U.S. authorities. On November 14, 2016, the DOJ announced that a federal grand jury indicted Sushovan Hussain, the former CFO of Autonomy, on charges of conspiracy to commit wire fraud and multiple counts of wire fraud.  The indictmentcomplaint alleges, that Hussain engaged in a scheme to defraud purchasers and sellers of securities of Autonomy and HP about the true performance of Autonomy’s business, its financial condition, and its prospects for growth.  Trial in this matter is scheduled to begin on February 26, 2018. On November 15, 2016, the SEC announced that Stouffer Egan, the former CEO of Autonomy’s U.S.-based operations, settled charges relating to his participation in an accounting scheme to meet internal sales targets and analyst revenue expectations.  HP is continuing to cooperate with the ongoing enforcement actions.
Litigation.  As described below, HP is involved in various stockholder litigation relating to, among other things, its October 2011 acquisition of Autonomy and its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within Hewlett Packard Enterprise’s software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP’s statements that, based on HP’s findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP’s acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of HP’s Board of Directors and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. Pursuant to the separation and distribution agreement, HP and Hewlett Packard Enterprise share equally the cost and any damages arising from these litigation matters. These matters include the following:

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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13: Litigation and Contingencies (Continued)

In re Hewlett-Packard Shareholder Derivative Litigation (the “Federal Court Derivative Action”) consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 5, 2015 to June 21, 2016, HP and the defendantsnamed current and former officers violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related toabout HP’s acquisition of Autonomyprinting supplies business. Plaintiffs seek compensatory damages and other relief. HP and the financial performancenamed officers filed a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. On March 3, 2022, the court granted the motion to dismiss with prejudice. Plaintiffs appealed the decision.On April 11, 2023, the appellate court reversed the district court’s decision and remanded the case to the district court for further proceedings consistent with the appellate opinion, including consideration of HP’s enterprise services business. The lawsuits also allege thatother arguments for dismissal. On June 27, 2023, the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP’s acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP’s acquisition of Autonomy and Autonomy’s Intelligent Data Operating Layer technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in “abuse of control” over HP, corporate waste and were unjustly enriched. The litigation was stayed until June 2014. The lead plaintiff filed a stipulation of proposed settlement on June 30, 2014. The court declined to grant preliminary approval to this settlement, and, on December 19, 2014, also declined to grant preliminary approval to a revised version of the settlement. On January 22, 2015, the lead plaintiff moved for preliminary approval of a further revised version of the settlement. On March 13, 2015, thedistrict court issued an order granting preliminary approvalsetting the briefing schedule for a renewed motion to dismiss. On May 17, 2021, stockholder Scott Franklin filed a derivative complaint against certain current and former officers and directors in federal court in the District of Delaware. Plaintiff purports to bring the action on behalf of HP, which he has named as a nominal defendant, and he makes substantially the same factual allegations as in the York County securities complaint, bringing claims for breach of fiduciary duty and violations of securities laws. The derivative plaintiff seeks compensatory damages, governance reforms, and other relief. By court order following stipulations by the parties, the case was transferred to the settlement.Northern District of California, and the case was stayed pending a ruling on the motion to dismiss in York County and exhaustion of all related appeals. On July 24, 2015,January 13, 2022, stockholder Gerald Lovoi filed a derivative complaint in federal court in the court held a hearing to entertain any remaining objections toNorthern District of California against the settlementsame current and decide whether to grant final approvalformer officers and directors named in the Franklin action. The complaint alleges the same basic claims based on the same alleged conduct as the Franklin action and seeks similar relief. By stipulation of the settlement. On July 30, 2015,parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County and exhaustion of all related appeals. Both derivative actions will remain stayed while the district court granted final approvalconsiders on remand HP’s other arguments for dismissal.
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Legal Proceedings re Authentication of Supplies. Since 2016, HP has from time to time been named in civil litigation, or been the settlement and denied all remaining objections to the settlement. Three objectors to the settlement appealed the court’s final approval ordersubject of government investigations, involving supplies authentication protocols used in certain HP printers in multiple geographies, including but not limited to the United States, CourtItaly, Israel,the Netherlands, Australia and New Zealand. The supplies authentication protocols are often referred to as Dynamic Security. The core allegations in these proceedings claim misleading or inadequate consumer notifications and permissions pertaining to the use of AppealsDynamic Security, the installation of firmware updates, or the potential inability of cartridges with clone chips or circuitry to work in HP printers with Dynamic Security. Plaintiffs base or have based their claims on various legal theories, including but not limited to unfair competition, computer trespass, and similar statutory claims. Among other relief, Plaintiffs have sought or seek money damages and in certain cases have or may seek injunctive relief against the use or operation of Dynamic Security or relief requiring interoperability. If HP is not successful in its defense of these cases or investigations, it could be subject to damages, penalties, significant settlement demands, or injunctive relief that may be costly or may disrupt operations. Certain of these proceedings in Italy, the Netherlands, Israel, Australia and New Zealand have been resolved, have concluded, or have concluded subject only to HP’s pending appeal. Civil litigation filed by Digital Revolution B.V. (trading as 123Inkt) against HP Nederlands B.V., et al. (Netherlands) in March 2020, including its competition claim, remains pending. Both parties have appealed. 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 the Ninth Circuit (the “Ninth Circuit). Plaintiffs-appellants filed their opening briefsclass certification, and, on December 30, 2015.8, 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 response brief was filed on February 29, 2016,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 the reply briefs were filed on May 12, 2016. Oral argumentmisrepresentations at Autonomy that occurred on May 15, 2017. On November 28, 2017, the final approval order was affirmed by the Ninth Circuit.
Autonomy Corporation Limited v. Michael Lynchbefore and Sushovan Hussain.in connection with its 2011 acquisition of Autonomy. On April 17, 2015, four former-HPformer 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 byin causing Autonomy group companies to engage in improper transactions and accounting practices. On October 1, 2015,The claims seek more than $5 billion in damages. Messrs. Lynch and Hussain filed their defenses.defenses and Mr. Lynch also filed a counterclaim against Autonomy Corporation Limited seeking $160 million in damages among other things, 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 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. The amount ultimately awarded, if any, would be recorded in the period received. No adjustment has been recorded in the financial statements in relation to this potential award. Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise subsidiary claimants filed their replies to the defenseswill share equally in any recovery. In addition, Messrs. Hussein and the asserted counter-claimLynch, and Stephen Chamberlain, former VP of Finance of Autonomy, were each indicted on March 11, 2016. The parties are actively engagedfederal criminal charges in the disclosure process. A six-month trial is scheduled to begin on March 25, 2019. 
In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things,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 fromjudgment was affirmed on appeal in August 2020. Messrs. 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, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP’s 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP’s enterprise services business and by failing to restrict participants from investing in HP stock. On August 16, 2013, HP filed a motion to dismiss the lawsuit. On March 31, 2014, the court granted HP’s motion to dismiss this action with leave to amend. On July 16, 2014, the plaintiffs filed a second amended complaint containing substantially similar allegations and seeking substantially similar relief as the first amended complaint. On June 15, 2015, the court granted HP’s motion to dismiss the second amended complaint in its entirety and denied plaintiffs leave to file another amended complaint. On July 2, 2015, plaintiffs appealed the court’s order to the Ninth Circuit. Oral argument occurred on May 15, 2017. On January 9, 2018, the Ninth Circuit affirmed the lower court’s dismissal.
Environmental
HP’s operations and products are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of HP’s products and the recycling, treatment and disposal of those products. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, and the energy consumption associated with those products, including requirements relating to climate change.2024. HP is

continuing to cooperate with the ongoing enforcement actions.
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13: 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 legislationinjunctions, orders to recall products in an increasing numberGermany 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 jurisdictionsthese cases, including proceedings that makes producers of electrical goods, including computersare in their early stages and printers, financially responsible for specified collection, recycling, treatmenthave significant factual and disposal of past and future covered products (sometimes referredlegal issues to as “product take-back legislation”). HP could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become noncompliant with environmental laws. HP’s potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.
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 theState 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
    HP is, and may become a party to, or otherwise involved in, proceedings brought by U.S., state, or other governmental entities or private third parties under federal, state, local, or foreign environmental agencies underlaws, including the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), known as “Superfund,” or state laws similar to CERCLA, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs.CERCLA. HP is also conducting environmental investigations or remediationsremediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with state environmental agencies.
The separation and distribution agreement includes provisions that provide for the allocation
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HP and Hewlett Packard Enterprise including certain remediation obligations; responsibilities arising from the chemical and materials composition of their respective products, their safe use and their energy consumption; obligations under product take back legislation that addresses the collection, recycling, treatment and disposal of products; and other environmental matters. HP will generally be responsible for environmental liabilities relatedINC. AND SUBSIDIARIES
Notes to the properties and other assets, including products, allocated to HP under the separation and distribution agreement and other ancillary agreements. Under these agreements, HP will indemnify Hewlett Packard Enterprise for liabilities for specified ongoing remediation projects, subject to certain limitations, and Hewlett Packard Enterprise has a payment obligation for a specified portion of the cost of those remediation projects. In addition, HP will share with Hewlett Packard Enterprise other environmental liabilities as set forth in the separation and distribution agreement. HP is indemnified in whole or in part by Hewlett Packard Enterprise for liabilities arising from the assets assigned to Hewlett Packard Enterprise and for certain environmental matters as detailed in the separation and distribution agreement.Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 14:13: Guarantees, Indemnifications and Warranties
Guarantees
In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote.
Cross-Indemnifications with Hewlett Packard Enterprise
On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise, Hewlett-Packard Company’s former enterprise technology infrastructure, software, services and financing businesses. The separation and distribution agreement provides for cross-indemnities between HP and Hewlett Packard Enterprise for liabilities allocated to the respective party pursuant to the terms of such agreement. For information on cross-indemnifications with Hewlett Packard Enterprise for litigation matters, see Note 12, “Litigation and Contingencies”.
Indemnifications
In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third partythird-party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the vendors’ and customers’ use of HP’s software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial.
Cross-Indemnifications with Hewlett Packard Enterprise
UnderHP records tax indemnification receivables from various third parties for certain tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by those same third parties under existing legal agreements. HP records a tax indemnification payable to various third parties under these agreements when management believes that it is both probable that a liability has been incurred and the separation and distribution agreement,amount can be reasonably estimated. The actual amount that the third parties pay or may be obligated to pay HP agreed to indemnify Hewlett Packard Enterprise, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to HP as part of the Separation. Hewlett Packard Enterprise similarly agreed to indemnify HP, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to Hewlett Packard Enterprise as part of the Separation. HP expects Hewlett Packard Enterprise to fully perform under the terms of the separation and distribution agreement.
For informationcould vary depending on the cross-indemnifications related to theoutcome of certain unresolved tax matter agreements and litigations effective upon the Separation on November 1, 2015, see Note 6, “Taxes on Earnings”, and Note 13, “Litigation and Contingencies”, respectively.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


matters, which may not be resolved for several years.
Warranties
HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation.
HP’s aggregate product warranty liabilities and changes were as follows:
Three months ended January 31, 2024
In millions
Balance at beginning of period$706 
Accruals for warranties issued183 
Adjustments related to pre-existing warranties (including changes in estimates)19 
Settlements made (in cash or in kind)(229)
Balance at end of period$679 

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 Three months ended January 31, 2018
 In millions
Balance at beginning of period$898
Accruals for warranties issued246
Adjustments related to pre-existing warranties (including changes in estimates)(5)
Settlements made (in cash or in kind)(226)
Balance at end of period$913

Note 15: Acquisitions
On November 1, 2017, HP completed the acquisition of Samsung’s printer business. With this acquisition, HP now offers the industry’s strongest portfolio of A3 multifunction printers that deliver the simplicity of printers with the high performance of copiers. The fully integrated portfolio, including next generation PageWide technologies, offers opportunities to grow managed print and document services as sales models shift from transactional to contractual. HP reports the financial results of the above business in the Printing segment.
The table below presents the preliminary purchase price allocation for HP's acquisition as of November 1, 2017 and reflects various preliminary fair value estimates and analyses, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period as valuations are finalized. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair values of certain tangible assets and liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill. HP expects to continue to obtain information to assist it in determining the fair value of the net assets acquired at the acquisition date during the measurement period.
 In millions
Goodwill
$313
Amortizable intangible assets520
Net assets assumed
190
Total fair value of consideration
$1,023


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


Note 16: Intangibles

HP’s intangible assets were composed of:
 Weighted-Average Useful Lives As of January 31, 2018 As of October 31, 2017
  Gross Accumulated Amortization Net Gross Accumulated Amortization Net
 In years In millions In millions
Customer contracts, customer lists and distribution agreements8 $112
 $85
 $27
 $85
 $84
 $1
Developed and core technology and patents7 591
 115
 476
 98
 96
 2
Total intangible assets  $703
 $200
 $503
 $183
 $180
 $3

During the three months ended January 31, 2018, the increase in gross intangible assets was primarily due to intangible assets resulting from the acquisition of Samsung’s printer business. The reported amounts are based on preliminary fair value estimates of the assets acquired.

As of January 31, 2018, estimated future amortization expense related to intangible assets was as follows:
Fiscal yearIn millions
Remainder of 2018$59
201979
202079
202179
202279
Thereafter128
Total$503


ItemITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is organized as follows:
Overview.  A discussion of our business and other highlights affecting the company to provide context for the remainder of this MD&A.
Critical Accounting Policies and Estimates.  A discussion of accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.
Results of Operations.  An analysis of our operations financial results comparing the three months ended January 31, 2018 to the prior-year period. A discussion of the results of operations is followed by a more detailed discussion of the results of operations by segment.
Liquidity and Capital Resources.  An analysis of changes in our cash flows and a discussion of our liquidity and financial condition.
Contractual and Other Obligations.  An overview of contractual obligations, retirement and post-retirement benefit plan contributions, cost-saving plans, uncertain tax positions and off-balance sheet arrangements of our operations.

The discussion of financial condition and results of our operations that follows provides information that will assist the reader in understanding our Consolidated Condensed Financial Statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Consolidated Condensed Financial Statements. This discussion should be read in conjunction with our Consolidated Condensed Financial Statements and the related notes that appear elsewhere in this document.

OVERVIEW
We are a leading global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. We sell to individual consumers, SMBs and large enterprises, including customers in the government, health, and education sectors.
We have three segments for financial reporting purposes:reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers Commercialcommercial and Consumer desktopconsumer desktops and notebook PCs,notebooks, detachables and convertibles, workstations, thin clients, Commercial tablets andcommercial mobility devices, retail point-of-salePOS systems, displays, hybrid systems, software, solutions, and other related accessories, software, support, and services for the commercial and consumer markets.services. The Printing segment provides Consumerconsumer and Commercialcommercial printer hardware, Supplies,supplies, solutions and services, as well as scanning devices.services. Corporate Investments include HP Labs and certain business incubation and investment projects.
•In Personal Systems, our long-term strategic focus is on on:
◦profitable growth through hyperinnovation, market segmentation with respect to and simplification of our portfolio
◦enhanced innovation in multi-operating systems, multi-architecture, geography, customer segments and other key attributes. Additionally, we are attributes;
◦investing in premiumendpoint services and mobility form factors suchsolutions. We are focused on services, including Device as convertible notebooks, detachable notebooks, and mobility devices in order to meet customer preference for mobile, thinner and lighter devices. The beginning of a Service, as the market shiftshifts to contractual solutions, includes an increased focus on Deviceand accelerating in attractive adjacencies such as a Service. hybrid systems; and
◦driving innovation to enable productivity and collaboration with PCs becoming essential for hybrid work, learning and play.
We believe that we are well positioned due to our competitive product lineup.lineup along with our recent acquisitions enhancing our portfolio of hybrid systems and remote-computing solutions.
•In Printing, our long-term strategic focus is on businesson:
◦offering innovative printing a shift tosolutions and contractual solutions to serve consumers, SMBs and Graphics, as well as large enterprises through our Instant Ink Services, HP+ and Managed Print Services solutions;
◦providing digital printing solutions for industrial graphics segments and applications including commercial publishing, labels, packaging, and textiles; and
◦expanding our footprint in the 3D printing marketplace. Business printing includes deliveringacross digital manufacturing and strategic applications.
Certain aspects of our business are identified as key growth areas, and we are committed to growing these at a rate faster than our core business with accretive margins in the longer term. The key growth areas are comprised of;
•Hybrid Systems: Video conferencing solutions, to SMBscameras, headsets, voice, and enterprise customers,related software capabilities
•Gaming: Gaming PCs, HyperX and gaming accessories
•Workforce Solutions: Managed services (Managed Print Service and Device-as-a-Service), digital services and lifecycle services
•Consumer Subscriptions: Instant Ink, other consumer subscriptions and consumer digital services
•Industrial Graphics: Large Format Industrial, Page Wide Press (PWP), Indigo and Page Wide Industrial packaging solutions and supplies
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•3D & Personalization: Portfolio of additive manufacturing solutions and supplies including end-to-end solutions such as multi-functionmolded fiber, footwear and PageWide printers, includingorthotics
We believe our JetIntelligence lineup of LaserJet printers. The shiftability to contractual solutions includes an increased focus on Managed Print Servicesinnovate will help us gain momentum in growth areas like hybrid systems and Instant Ink, which presents strong after-market supplies opportunities. In the Graphics space,gaming, and we are focused on innovations such assee significant opportunities to drive greater recurring revenues across Personal Systems and Printing. Our Workforce Solutions organization drives integration across our Indigocommercial services, software and Latex product offerings. We plan to continue to focus on shifting the mix in the installed base to higher value units and expanding our innovative Ink, Laser, Graphics and 3D printing programs.security portfolio. We continue to executebuild on strong portfolios like Instant Ink to grow our key initiatives of focusing on high-value products targeted at high usage categoriesConsumer Subscription business. In Industrial Graphics, we are driving the shift from analog to digital in segments like labels and introducing new revenue delivery models. Our focus is on placing higherpackaging. In 3D and Personalization, we are creating end-to-end solutions that we believe can capture more value printer units which offer strong annuity of toner and ink, the design and deployment of A3 products and solutions, accelerating growth in Graphic solutions and 3D printing.with our differentiated technology.
We continue to experience challenges that are representative of the trends and uncertainties that may affect our industry, generally, and our business and financial results, of operations.specifically, and we expect these challenges to continue in the short-term. One set of challenges relates to dynamic market trends, such as flat PC devicethe current macroeconomic environment and home printing markets.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

our products. A second set of challenges relates to changes in the competitive landscape. Our primary competitors are exerting competitive pressure in targeted areas and are entering new markets, our emerging competitors are introducing new technologies and business models, and our alliance partners in some businesses are increasingly becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution.execution in an evolving distribution and reseller landscape, with increasing online and omnichannel presence. Additional challenges we face at the segment level are set forth below.
•    In Personal Systems, we face challenges with continued increases in commodity costs, especially in memory,a competitive pricing environment and the uncertainty of the market’s ability to absorb price increases driven by higher commodity costs.demand softness.
•    In Printing, we are seeing signs of stabilization of demand in consumerface challenges from our competitors with a favorable foreign currency environment and commercial markets, but are still experiencing an overall competitive pricing environment.non-original supplies (which includes imitation, refill, or remanufactured alternatives). We obtained a number ofalso obtain many Printing components from single sourcessource suppliers due to technology, availability, price, quality, or other considerations. For instance, we source the majority of our A4 and a portion of our A3 portfolio of laser printer engines and laser toner cartridges from Canon. Any decision by either party to not renew our agreement with Canon or to limit or reduce the scope of the agreement could adversely affect our net revenue from LaserJet products; however, we have a long-standing business relationship with Canon and anticipate renewal of this agreement. We are also seeing increases in commodity costs, such as oil prices, impacting our bill of materials.
Our business and financial performance also depend significantly on worldwide economic conditions. Accordingly, we face global macroeconomic challenges such as the June 23, 2016 referendum by British voters to exit the European Union (commonly known as “Brexit”), uncertainty in the markets, volatility in exchange rates and weaker macroeconomic conditions. The impact of these and other global macroeconomic challenges on our business cannot be known at this time.
To address these challenges, we continue to pursue innovation with a view towards developing new products and services aligned with generating market demand and meeting the needs of our customers and partners. In addition, we need to continue to improvework on improving our operations and adapting our business models, with a particular focus on enhancing our end-to-end processes, analytics, efficiencies and efficiencies.simplification of our product portfolio. We also need to continue to optimizework on optimizing our sales coverage models, alignaligning our sales incentives with our strategic goals, improveimproving channel execution strengthenand inventory, production and backlog management, strengthening our capabilities in our areas of strategic focus, effective cost management, strengthening our pricing strategy, and developdeveloping and capitalizecapitalizing on market opportunities.
Macroeconomic Environment
Our business and financial performance depend significantly on worldwide economic conditions. We typicallyface global macroeconomic challenges such as ongoing geopolitical conflicts (including the Russian invasion of Ukraine, tensions across the Taiwan Strait, the Israel-Hamas conflict and other hostilities in the Middle East), uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. We also experience higher net revenuesseasonality in our first and fourth quarters compared to other quarters in our fiscal year due in part to seasonal holiday demand. Historical seasonal patterns should not be considered reliable indicatorsthe sale of our futureproducts and services which may be affected by general economic conditions.
During the three months ended January 31, 2024, we experienced continued market uncertainty, overall demand weakness due to cautious commercial spending on information technology hardware, reduced discretionary consumer spending and a competitive pricing environment across both Personal Systems and Printing, and we anticipate these trends to persist in the short-term. These market pressures created new and different demand dynamics which adversely impacted certain regional markets, specifically China.Despite the overall macroeconomic challenges, in Personal Systems we outperformed the market in units while maintaining profitability and in Printing we continue to execute on our strategy of optimizing the geographic and product mix. Our revenue declines continued to slow sequentially, consistent with the stabilizing trends we expected heading into the year.
We are exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with more than 65% of our net revenues orrevenue coming from outside the United States. As a result, our financial performance.results can be, and particularly in recent periods have been, impacted by fluctuations in foreign currency exchange rates. While the foreign currency fluctuations were favorable to our financial results in Q1’24, we expect these fluctuations to have a minimal impact to our financial results in fiscal 2024.
For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the sectionssection entitled “Risk Factors” in Item 1A of Part II of this report and Item 1A of part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2017.2023.
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Transformation Update
In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan is expected to run through end of fiscal year 2025. The three key elements of our Fiscal 2023 Plan are digital transformation, portfolio optimization, and operational efficiency. We are on track to achieve our gross annual run-rate structural cost savings target for fiscal year 2024 as well as the overall goal exiting fiscal year 2025.
We enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact both our products and solutions. Additionally, we are reducing portfolio complexity, improving continuity of supply, and increasing our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also continued to reduce our structural cost through headcount reductions and are on track to achieve our overall headcount reduction goal. We expect to continue to invest some of the savings into our growth areas and our people.
See “Risk Factors—We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring may adversely affect our business” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023. For more information on our Fiscal 2023 Plan, see Note 3, “Restructuring and Other Charges,” to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES
MD&A is based on our Consolidated Condensed Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenuesrevenue and expenses, and the disclosure of contingent liabilities. Our managementManagement believes that there have been no significant changes during the three months ended January 31, 20182024 to the items that we disclosed as our critical accounting policies and estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended October 31, 2017, except below:2023.
Taxes on Earnings
The TCJA made significant changes to the U.S. tax law. The TCJA lowered our U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a one-time transition tax on accumulated foreign earnings. During the three months ended January 31, 2018, we recognized a $1.1 billion tax benefit which was considered a provisional estimate under the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (“SAB”) No. 118.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

In December 2017, the SEC staff issued SAB No. 118, which addresses how a company recognizes provisional estimates when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the TCJA. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the TCJA may differ from the provisional estimates due to changes in interpretations of the TCJA, and legislative action to address questions that arise because of the TCJA, by changes in accounting standard for income taxes and related interpretations in response to the TCJA, and updates or changes to estimates used in the provisional amounts. We have determined that the $5.5 billion net benefit from the decrease in our deferred tax liability on unremitted foreign earnings, $3.2 billion of tax expense for the one-time transition tax on accumulated earnings of foreign subsidiaries, the $1.2 billion of tax expense for deferred tax asset re-measurement were each provisional amounts and reasonable estimates as of January 31, 2018. Resolution of the provisional estimates of the TCJA effects that are different from the assumptions made by us could have a material impact on our financial condition and operating results.
Prior to TCJA our effective tax rate included the impact of certain undistributed foreign earnings for which we have not provided U.S. federal taxes because we had planned to reinvest such earnings indefinitely outside the United States. We plan distributions of foreign earnings based on projected cash flow needs as well as the working capital and long-term investment requirements of our foreign subsidiaries and our domestic operations. Based on these assumptions, we estimate the amount we expect to indefinitely invest outside the United States and the amounts we expect to distribute to the United States and provide the U.S. federal taxes due on amounts expected to be distributed to the United States. Further, as a result of certain employment actions and capital investments we have undertaken, income from manufacturing activities in certain jurisdictions is subject to reduced tax rates and, in some cases, is wholly exempt from taxes for fiscal years through 2027. Material changes in our estimates of cash, working capital and long-term investment requirements in the various jurisdictions in which we do business could impact how future earnings are repatriated to the United States, and our related future effective tax rate. The effects of the TCJA related to these policies are referenced and discussed in detail in Note 6, “Taxes on Earnings” to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
ACCOUNTING PRONOUNCEMENTS
For a summary of recent accounting pronouncements applicable to our Consolidated Condensed Financial Statements see Note 1, “Basis of Presentation”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.


RESULTS OF OPERATIONS
Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue. As a result, our net revenue growth has been impacted, and we expect it will continue to be impacted, by fluctuations in foreign currency exchange rates. In order to provide a framework for assessing performance excluding the impact of foreign currency fluctuations, we supplement the year-over-year percentage change in net revenue with the year-over-year percentage change in net revenue on a constant currency basis, which excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly average exchange rates from the comparative period and excluding any hedging activities fromimpact recognized in the prior-yearcurrent period, and does not adjustwithout adjusting for any repricing or demand impacts from changes in foreign currency exchange rates. This information is provided so that net revenue can be viewed with and without the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our net revenue results and trends, as management does not believe that the excluded items are reflective of ongoing operating results. The constant currency measures are provided in addition to, and not as a substitute for, the year-over-year percentage change in net revenue on a GAAP basis. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

Results of operations in dollars and as a percentage of net revenue were as follows:
 Three months ended January 31
 20242023
 Dollars% of Net RevenueDollars% of Net Revenue
 Dollars in millions
Net revenue:
Products$12,419 94.2 %$13,044 94.5 %
Services766 5.8 %754 5.5 %
Total net revenue13,185 100.0 %13,798 100.0 %
Cost of net revenue:
Products(1)
9,871 79.5 %10,589 81.2 %
Services(2)
426 55.6 %422 56.0 %
Total cost of net revenue10,297 78.1 %11,011 79.8 %
Gross Margin2,888 21.9 %2,787 20.2 %
Research and development399 3.0 %403 2.9 %
Selling, general and administrative1,383 10.5 %1,331 9.7 %
Restructuring and other charges63 0.5 %141 1.0 %
Acquisition and divestiture charges27 0.2 %84 0.6 %
Amortization of intangible assets81 0.6 %85 0.6 %
Total operating expenses1,953 14.8 %2,044 14.8 %
Earnings from operations935 7.1 %743 5.4 %
Interest and other, net(142)(1.1)%(181)(1.3)%
Earnings before taxes793 6.0 %562 4.1 %
Provision for taxes(171)(1.3)%(93)(0.7)%
Net earnings$622 4.7 %$469 3.4 %
 Three months ended January 31
 2018 2017
 Dollars % of Net Revenue Dollars % of Net Revenue
 Dollars in millions
Net revenue$14,517
 100.0 % $12,684
 100.0 %
Cost of revenue(11,935) (82.2)% (10,436) (82.3)%
Gross profit2,582
 17.8 % 2,248
 17.7 %
Research and development(347) (2.4)% (296) (2.3)%
Selling, general and administrative(1,169) (8.0)% (1,017) (8.1)%
Restructuring and other charges(31) (0.2)% (63) (0.5)%
Acquisition-related charges(42) (0.3)% (16) (0.1)%
Amortization of intangible assets(20) (0.2)% —
 — %
Earnings from operations973
 6.7 % 856
 6.7 %
Interest and other, net(68) (0.5)% (81) (0.6)%
Earnings before taxes905
 6.2 % 775
 6.1 %
Provision for taxes1,033
 7.1 % (164) (1.3)%
Net earnings$1,938
 13.3 % $611
 4.8 %
(1)Products cost of net revenue as a percentage of net revenue is calculated as a percentage of product net revenue.
(2)Services cost of net revenue as a percentage of net revenue is calculated as a percentage of services net revenue.
Net Revenue
Products net revenue includes revenue from the sale of hardware, supplies, subscriptions and software licenses. Services net revenue includes revenue from our service offerings and support on hardware devices. For the three months ended January 31, 2018, total2024, net revenue increased 14% (increased 13%decreased 4.4% (decreased 4.9% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 9%decreased 7.0% to $5.0$4.4 billion, whileand net revenue from international operations increased 17%decreased 3.1% to $9.5$8.8 billion. The increasedecrease in net revenue was primarily driven by growthdemand softness and competitive pricing in Notebooks, Desktops and Supplies revenue andproducts, partially offset by favorable foreign currency impacts.impacts while services increased nominally.
A detailed discussion of the factors contributing to the changes in segment net revenue is included in “Segment Information” below.
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Gross Margin
For the three months ended January 31, 2018, our2024, gross margin increased 0.1by 1.7 percentage points as compared to the prior-year period, primarily driven by improved rate in Printingproducts gross margin due to productivity improvements,lower commodity and logistics costs, favorable foreign currency impacts and cost savings, partially offset by higher commodity costs in Personal Systems.competitive pricing while services gross margin increased nominally.
A detailed discussion of the factors contributing to the changes in segment gross margins is included under “Segment Information” below.
Operating Expenses
Research and Development
Research and development (“R&D”)
R&D expense increased 17.2%decreased 1.0% for the three months ended January 31, 2018, as compared to the prior-year period,2024, primarily due to continuing investmentlower variable compensation and disciplined cost management, partially offset by higher R&D partner funding received in Printing, including the acquisition of Samsung’s printer business.prior period.
Selling, General and Administrative (“SG&A”)
Selling, general and administrativeSG&A expense increased 14.9%3.9% for the three months ended January 31, 2018, as compared2024 primarily due to the prior-year period, primarily drivenhigher go-to market initiatives, partially offset by the acquisition of Samsung’s printer businesslower variable compensation and incremental go-to-market investments to support revenue growth.disciplined cost management including Future Ready transformation savings.
Restructuring and Other Charges
Restructuring and other charges for the three months ended January 31, 20182024 primarily relate primarily to the Fiscal 2017 Plan2023 Plan. For more information, see Note 3, “Restructuring and other charges”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Acquisition and Divestiture Charges
Acquisition and divestiture charges primarily include direct third-party professional and legal fees, integration and divestiture-related costs, non-cash adjustments to the fair value of certain acquired assets, such as inventory, and certain non-recurring costs, including those as a resultcompensation charges related to cash settlement of restricted stock units and performance-based restricted stock units from acquisitions. Acquisition and divestiture charges for the Separation.three months ended January 31, 2024 decreased by $57 million primarily due to the fiscal year 2022 Poly acquisition and continuing integration progress.
Amortization of Intangible Assets
Amortization of intangible assets for the three months ended January 31, 2018 relates2024 primarily relate to intangible assets resulting from the acquisition of Samsung’s printer business.prior acquisitions and remained flat.
Interest and Other, Net

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

Interest and other, net expense decreased by $13$39 million for the three months ended January 31, 2018, as compared to the prior-year period, partially2024 primarily due to lower foreign currency transaction losses.interest expense on debt.
Provision for Taxes
As a result of U.S. tax reform, we revised our estimated annual effective tax rate to reflect the change in the U.S. federal statutory tax rate from 35% to 23%. OurHP’s effective tax rate was (114.1%) and 21.2%21.6% for the three months ended January 31, 2018 and 2017, respectively. The difference between2024, which did not materially differ from the U.S. federal statutory tax rate of 23%21%.
In December 2021, the Organization for Economic Cooperation and Development (“OECD”) enacted model rules for a new global minimum tax framework (“BEPS Pillar Two”), and various governments around the Company’s effectiveworld have enacted, or are in the process of enacting, legislation on this. We are in the process of assessing the tax rateeffects of Pillar Two legislation for the three months ended January 31, 2018 is primarily due to the impact of U.S. tax reform,when it comes into effect, and favorable tax rates associated with certain earnings from our operations in lower-tax jurisdictions throughout the world. For the three months ended January 31, 2017 our effective tax rate generally differs from the U.S. federal statutory rate of 35% due to favorable tax rates associated with certain earnings from our operations in lower-tax jurisdictions throughout the world. We have not provided U.S. taxes for all foreign earnings because we plan to reinvest sometreat the tax as a period cost. Due to the complexities in applying the legislation, the quantitative impact of those earnings indefinitely outside the United States.
During the three months ended January 31, 2018, we recorded $1.1 billion of net tax benefits related to discrete items in the provision for taxes. As discussed in the Note 6 we haveenacted or substantively enacted legislation is not yet completed our analysisreasonably estimable.

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Table of the full impact of TCJA however we recorded a provisional tax benefit of $1.1 billion related to $5.5 billion net benefit for the decrease in our deferred tax liability on unremitted foreign earnings, partially offset by $3.2 billion net expense for the repatriation tax payable in installments over eight years and $1.2 billion net expense for remeasurement of our deferred tax assets and liabilities for the revaluation of our deferred assets and liabilities to the new US rate of 21%. This amount also included tax benefits related to audit settlements, acquisition charges and other tax benefits of $32 million, $18 million and $12 million, respectively, offset by uncertain tax position charges of $43 million.Contents
During the three months ended January 31, 2017, we recorded $1 million of net tax benefit related to discrete items in the provision for taxes. This amount included a tax benefit of $17 million related to uncertain tax positions and a tax benefit of $19 million related to restructuring charges. These tax benefits were offset by $26 million related to State tax provision to return adjustments and $9 million related to various other items.
Segment Information
During the first quarter of fiscal year 2024, HP realigned its business unit financial reporting more closely with its customer market segmentation. A description of the products and services for each segment and the business unit realignment can be found in Note 2, “Segment Information” to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference. Future changes to this organizational structure may result in changes to the segments disclosed.
Realignment
Effective at the beginning of its first quarter of fiscal year 2018, HP implemented an organizational change to align its segment and business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of long-life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements, which are being eliminated for the purposes of reporting HP’s consolidated net revenue, have now been reclassified from Other to segments. HP has reflected this change to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact on previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.

Personal Systems
 Three months ended January 31
 20242023% Change
 Dollars in millions
Net revenue$8,809$9,185(4.1)%
Earnings from operations$537$47513.1 %
Earnings from operations as a % of net revenue6.1 %5.2 % 
 Three months ended January 31
 2018 2017 % Change
 Dollars in millions
Net revenue$9,440
 $8,216
 14.9%
Earnings from operations$337
 $312
 8.0%
Earnings from operations as a % of net revenue3.6% 3.8%  

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)


The components of net revenue and the weighted net revenue change by business unit were as follows:
 Three months ended January 31
 Net Revenue
Weighted Net Revenue Change(1)
 20242023
 Dollars in millionsPercentage Points
Commercial PS$6,045 $6,382 (3.7)
Consumer PS2,764 2,803 (0.4)
Total Personal Systems$8,809 $9,185 (4.1)
 Three months ended January 31, 2018
 Net Revenue Weighted Net Revenue Change
 2018 2017 
 Dollars in millions Percentage Points
Notebooks$5,595
 $4,890
 8.6
Desktops2,955
 2,534
 5.1
Workstations543
 491
 0.6
Other347
 301
 0.6
Total Personal Systems$9,440
 $8,216
 14.9
(1)Weighted Net Revenue Change Percentage Points measures contribution of each business unit towards overall segment revenue growth. It is calculated by dividing the change in revenue of each business unit from the prior-year period by total segment revenue for the prior-year period.
Three months ended January 31, 20182024 compared with three months ended January 31, 20172023
Personal Systems net revenue increased 14.9% (increased 13.0%decreased 4.1% (decreased 4.9% on a constant currency basis) for the three months ended January 31, 2018 as compared to the prior-year period.2024. The net revenue increasedecrease was primarily due to growth in Notebooks, Desktops and Workstations and favorable foreign currency impacts. The net revenue increase was driven by a 7.3% increase in unit volume combined with a 7.1% increasedecline in average selling pricesprice (“ASPs”) as compared to the prior-year period. Theby 7.5%, offset by a 5.1% increase in commercial and consumer client PCs unit volume wasas we outperformed the market in units while maintaining profitability. The decline in ASPs is primarily due to growthcompetitive pricing and unfavorable mix shifts, partially offset by favorable currency impacts. Consequently, Commercial PS net revenue decreased 5.3% primarily due to a 5.1% decline in Notebooks and Desktops. TheASPs, partially offset by a 1.9% increase in ASPs wasunits and Consumer PS net revenue decreased 1.4% primarily due to favorable pricing rate, foreign currency impacts and positive mix shifts.
Consumer revenue increased 12.6% for the three months ended January 31, 2018 as compared to the prior-year period, drivena 10.4% decline in ASPs, partially offset by growtha 9.8% increase in Notebooks and Desktops as a result of higher unit volume combined with higher ASPs. Commercial revenue increased 16.2% as compared to the prior-year period, driven by growth in Notebooks, Desktops and Workstations.
Net revenue increased 16.6% in Desktops, 14.4% in Notebooks and 10.6% in Workstations as compared to the prior-year period.units.
Personal Systems earnings from operations as a percentage of net revenue decreasedincreased by 0.20.9 percentage points for the three months ended January 31, 2018 as compared to the prior-year period.points. The decreaseincrease was primarily due to a declinedriven by an increase in gross margin, partially offset by a decreasean increase in operating expenses. The decrease in grossexpenses as a percentage of revenue. Gross margin wasincreased primarily due to an increase inlower commodity and logistics costs, favorable foreign currency impacts and cost savings, partially offset by higher ASPs.competitive pricing. Operating expenses as a percentage of net revenue decreased primarilyincreased due to operating expense management.higher go-to market initiatives and higher R&D partner funding received in the prior year, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

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Printing
Three months ended January 31Three months ended January 31
2018 2017 % Change 20242023% Change
Dollars in millions Dollars in millions
Net revenue$5,076
 $4,464
 13.7%Net revenue$4,375$4,612(5.1)%
Earnings from operations$801
 $714
 12.2%Earnings from operations$872$8700.2 %
Earnings from operations as a % of net revenue15.8% 16.0%  
Earnings from operations as a % of net revenue19.9 %18.9 % 
The components of net revenue and the weighted net revenue change by business unit were as follows:
 Three months ended January 31
 Net Revenue
Weighted Net Revenue Change(1)
 20242023
 Dollars in millionsPercentage Points
Supplies$2,863 $2,857 0.1 
Commercial1,227 1,388 (3.5)
Consumer285 367 (1.7)
Total Printing$4,375 $4,612 (5.1)
 Three months ended January 31
 Net Revenue Weighted Net Revenue Change
 2018 2017 
 Dollars in millions Percentage Points
Supplies$3,351
 $3,035
 7.1
Commercial Hardware1,070
 839
 5.2
Consumer Hardware655
 590
 1.4
Total Printing5,076
 4,464
 13.7

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Table(1)Weighted Net Revenue Change Percentage Points measures contribution of Contents
HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysiseach business unit towards overall segment revenue growth. It is calculated by dividing the change in revenue of
Financial Condition and Results of Operations (Continued)

each business unit from the prior-year period by total segment revenue for the prior-year period.
Three months ended January 31, 20182024 compared with three months ended January 31, 20172023
Printing net revenue increased 13.7% (increased 12.4%decreased 5.1% (decreased 4.8% on a constant currency basis) for the three months ended January 31, 2018 as compared to the prior-year period.2024. The increasedecrease in net revenue was driven by increases in bothCommercial Printing and Consumer Printing, while Supplies net revenue increased nominally. Printer unit volume decreased 16.5% primarily due to demand softness and Hardware revenue,Print hardware ASPs decreased 2.8% primarily due to competitive pricing and favorable foreign currency impacts. unfavorable mix shifts.
Net revenue for Supplies increased 10.4% as compared to the prior-year period,Commercial Printing decreased by 11.6% primarily due to the acquisition of Samsung’s printer business. Printer unit volume increased 14.2% while ASPs increased 6.2% as compared to the prior-year period. The increasea 18.3% decrease in printer unit volume was primarily driven by unit increases in Consumer and Commercial Hardware, including the Samsung-branded printers. Printer ASPs increased primarily due to a mix shift to higher-end printers and favorable foreign currency impacts,demand softness, partially offset by the dilution impact from Samsung-branded low-end A4 products.
Net revenue for Commercial Hardware increased by 27.5% as compared to the prior-year period, primarily due to revenue from Samsung-branded printers (net of 25% SKU reductions for the three months ended January 31, 2018), A3 LaserJet and PageWide printers.
Net revenue for Consumer Hardware increased 11.0% as compared to the prior-year period, primarily due to a 6.9%1.0% increase in printer unit volume and a 5.0% increase in ASPs. The unit volume increase was primarily driven by the Inkjet Home business. The increase in ASPs was primarily driven by better discount management, mix shiftshifts, partially offset by competitive pricing.
Net revenue for Consumer Printing decreased 22.3%, primarily due to higher-end printersa 9.0% decrease in ASPs and 15.4% decrease in printer unit volume. The decrease in printer unit volume was primarily due to demand softness and the decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable foreign currency impacts.mix shifts.
Printing earnings from operations as a percentage of net revenue decreasedincreased by 0.21.0 percentage pointspoint, primarily due to a increase in gross margin, partially offset by higher operating expenses as a percentage of revenue. The increase in gross margin is primarily due to lower printer unit volume, lower commodity and logistics costs, as well as cost savings. Operating expenses as a percentage of revenue increased primarily due to go-to market initiatives, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.
Corporate Investments
The loss from operations in Corporate Investments for the three months ended January 31, 2018 as compared to the prior-year period, primarily due to an increase in operating expenses, partially offset by improved gross margin. The gross margin increase2024 was primarily driven by operational improvements and favorable foreign currency impacts, partially offset by lower Supplies mix. Operating expenses increased primarily driven by the acquisition of Samsung’s printer business and increases in investments in key growth initiatives and go-to-market.
Corporate Investments
The loss from operations in Corporate Investments for the three months ended January 31, 2018 was primarily due to expenses associated with our incubation projects.projects and investments in digital enablement.
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LIQUIDITY AND CAPITAL RESOURCES
We use cash generated by operations as our primary source of liquidity. We believe that internally generatedcurrent cash, flows are generallycash flow from operating activities, new borrowings, available commercial paper authorization and the credit facilities will be sufficient to support ourmeet HP’s operating businesses,cash requirements, planned capital expenditures, restructuring activities, maturing debt, income taxinterest and principal payments on all borrowings, pension and post-retirement funding requirements, authorized share repurchases and annual dividend payments for the paymentforeseeable future. Additionally, if suitable acquisition opportunities arise, the Company may obtain all or a portion of stockholder dividends, in addition to investments and share repurchases. We are able to supplement this short-term liquidity, if necessary, with broad access to capital markets and credit facilities made available by various domestic and foreign financial institutions.the required financing through additional borrowings. While our access to capital markets may be constrained and our cost of borrowing may increase under certain business, market and economic conditions, our access to a variety of funding sources to meet our liquidity needs is designed to facilitate continued access to capital resources under all such conditions. Our liquidity is subject to various risks including the risks identified in the section entitled “Risk Factors” in Item 1A of Part I in our Annual Report on Form 10-K for the fiscal year ended October 31, 20172023 and the market risks identified in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in Item 3 of Part I of this report, which are incorporated herein by reference.report.
Our cash balances are held in numerous locations throughout the world, with the majority of those amounts held outside of the United States. We utilize a variety of planning and financing strategies in an effort to ensure that our worldwide cash is available when and where it is needed. Our cash position remains strong, and we expect that our cash balances, anticipated cash flow generated from operations and access to capital markets will be sufficient to cover our expected near-term cash outlays.
Amounts held outside of the United StatesU.S. are generally utilized to support non-U.S. liquidity needsalthough a portion of those amounts and may from time to time be subject to short-term intercompany loans into the United States. Where local restrictions prevent an efficient intercompany transfer of funds or restrict repatriation of earnings, our intent is that cash balances would remain outside of the United States and we would meet liquidity needs through ongoing cash flows, external borrowings or both. The TCJA made significant changesdistributed to the U.S. Repatriations of amounts held outside the U.S. generally will not be taxable from a U.S. federal tax law, including a one-time transition tax on accumulated foreign earnings. The payments associated with this one-time transition tax will be paid over eight years beginning 2019. We expect a significant portion of the cash and cash equivalents held by our foreign subsidiaries will no longerperspective but may be subject to U.S.state income tax consequences upon a subsequent repatriation to the United States as a result of the transition tax on accumulatedor foreign earnings. However, a portion of this cash may still be subject to foreign income tax or withholding tax consequences upon repatriation. As we evaluate the impact of the TCJA and the future cash needs of our operations, we may revise the amount of foreign earnings considered to be permanently reinvested in our foreign subsidiaries and how to utilize such funds, including reducing our gross debt level, returning capital to shareholders with a focus on incremental share repurchase or other uses.

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)


Liquidity
Our cash, cash equivalents and restricted cash and total debt were as follows: 
 As of
 January 31, 2024October 31, 2023
 In millions
Cash and cash equivalents$2,263 $3,107 
Restricted cash$154 $125 
Total debt$9,660 $9,484 

Our key cash flow metrics were as follows:
Three months ended January 31
Three months ended January 31 20242023
2018 2017 In millions
In millions
Net cash provided by operating activities$996
 $767
Net cash provided by (used in) operating activities
Net cash used in investing activities(1,723) (86)
Net cash used in financing activities(795) (638)
Net increase (decrease) in cash and cash equivalents$(1,522) $43
Net decrease in cash, cash equivalents and restricted cash
Operating Activities
Compared to the corresponding period in fiscal year 2017,2023, net cash provided by operating activities increased by $229 million$0.1 billion for the three months ended January 31, 2018,2024, primarily due to an increasehigher net earnings and favorable working capital impacts, partially offset by amounts collected and held on behalf of a third party for trade receivables previously sold and higher variable compensation payout in other liabilities.the current period for fiscal year 2023.
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Key Working Capital Metrics
Management utilizes current cash conversion cycle information to manage HP’sour working capital levels.level. Our working capital metrics and cash conversion cycle impacts were as follows:
As of As of  
January 31, 2018 October 31, 2017 Change January 31, 2017 October 31, 2016 Change Y/Y ChangeJanuary 31, 2024October 31, 2023ChangeJanuary 31, 2023October 31, 2022ChangeY/Y Change
Days of sales outstanding in accounts receivable (“DSO”)27
 29
 (2) 25
 30
 (5) 2
Days of supply in inventory (“DOS”)43
 46
 (3) 39
 39
 —
 4
Days of purchases outstanding in accounts payable (“DPO”)(97) (105) 8
 (94) (98) 4
 (3)
Cash conversion cycle(27) (30) 3
 (30) (29) (1) 3
January 31, 20182024 as compared to January 31, 20172023
The cash conversion cycle is the sum of days of DSO and DOS less DPO. Items which may cause the cash conversion cycle in a particular period to differ from a long-term sustainable ratehistorical trends include, but are not limited to, changes in business mix, changes in payment terms and timing, timing and extent of receivables factoring, seasonal trends and the timing of revenue recognition and inventory purchases within the period.
DSO measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for doubtful accounts,credit losses, by a 90-day average net revenue. The increasedecrease in DSO was primarily due to unfavorable foreign currency impactsdriven by favorable revenue linearity and revenue linearity.improved collections.
DOS measures the average number of days from procurement to sale of our product. DOS is calculated by dividing ending inventory by a 90-day average cost of revenue.goods sold. The increase in DOS wasis primarily due to leveraging our balance sheet, particularly through strategic buys in Personal Systems and higher in-transit sea shipments, offset by inventory investments.reduction in Print.
DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average cost of revenue.goods sold. The increase in DPO was primarily due to higher inventory purchasing volume.driven by favorable payment terms with vendors.
Investing Activities
Compared to the corresponding period in fiscal year 2017,2023, net cash used in investing activities increaseddecreased by $1.6$0.2 billion for the three months ended January 31, 2018,2024, primarily due to paymentlower collateral posted for the acquisition of Samsung’s printer business of $1.0 billion and collateral related to our derivatives of $0.5 billion, which are classified as available-for-sale investments within Other current assets.derivative instruments.
Financing Activities
Compared to the corresponding period in fiscal year 2017,2023, net cash used in financing activities increaseddecreased by $0.2 billion for the three months ended January 31, 2018,2024, primarily due the lower net payment of debt of $0.4 billion and collateral returned for derivative instruments of $0.2 billion in the prior period, partially offset by a $0.4 billion increase in share repurchases.
Share Repurchases and Dividends
During the three months ended January 31, 2024, HP returned $0.8 billion to a higherthe shareholders in the form of cash dividends of $0.3 billion and share repurchases of $0.5 billion. As of January 31, 2024, HP had approximately $1.5 billion remaining under the share repurchase settlement amount.authorizations approved by HP’s Board of Directors.
For more information on our share repurchases, see Note 10, “Stockholders’ Deficit”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Capital Resources

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

Debt Levels
We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital and targeted capital structure.structure as well as credit rating considerations. Depending on these factors, we may, from time to time, incur additional indebtedness or repay or refinance existing indebtedness. Outstanding borrowings increased to $7.9$9.7 billion as of January 31, 20182024 as compared to $7.8$9.5 billion as of October 31, 2017,2023, bearing weighted-average interest rates of 4.1% and 4.0%4.2% for both January 31, 20182024 and October 31, 2017, respectively.2023.
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Our weighted-average interest rate reflects the average effective rate on our borrowings prevailing during the period and reflects the impacteffect of interest rate swaps. For more information on our interest rate swaps, see Note 9,8, “Financial Instruments”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
As of January 31, 2018,2024, we maintainmaintained a 5-year sustainability-linked senior unsecured committed revolving credit facility with aggregate lending commitments of $4.0$5.0 billion which will be available until April 2, 2019 and is primarily to support the issuance of commercial paper.May 26, 2026. In March 2023, we also entered into a $1.0 billion senior unsecured committed revolving credit facility with a 364-day maturity. Funds borrowed under thisthe revolving credit facilityfacilities may also be used for general corporate purposes. As of January 31, 2018 we had $966 billion of commercial paper outstanding.
We increased our issuance authorization under our commercial paper program from $4.0 billion to $6.0 billion in November 2017. In December 2017, we also entered into an additional revolving credit facility with certain institutional lenders that provides us with $1.5 billion of available borrowing until November 30, 2018.
Available Borrowing Resources
WeAs of January 31, 2024, we had the followingavailable borrowing resources available to obtain short or long-term financingof $1.0 billion from uncommitted lines of credit in addition to the commercial paper andfull capacity of the revolving credit facilities discussed above:
 As of January 31, 2018
 In millions
2016 Shelf Registration StatementUnspecified
Uncommitted lines of credit$742
facilities.
For more information on our borrowings, see Note 10,9, “Borrowings”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Credit Ratings
Our credit risk is evaluated by major independent rating agencies based upon publicly available information as well as information obtained inthey obtain during our ongoing discussions with them.discussions. While we currently do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, previous downgrades have increaseda downgrade from our current credit rating may increase the cost of borrowing under our credit facilities, have reducedfacility, reduce market capacity for our commercial paper, and have requiredrequire the posting of additional collateral under some of our derivative contracts. In addition, any further downgrade to our credit ratings by any rating agenciescontracts and may further impact us in a similar manner, and, depending on the extent of any such downgrade, could have a negative impact on our liquidity and capital position.position and our contractual business going forward, depending on the extent of such downgrade. We can access alternative sources of funding, including drawdowns under our credit facilities, if necessary, to offset potential reductions in the market capacity for our commercial paper.

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CONTRACTUAL AND OTHER OBLIGATIONS
Retirement and Post-Retirement Benefit Plan Contributions
As of January 31, 2018,2024, we anticipate making contributions for the remainder of fiscal year 20182024 of approximately $13$34 million to our non-U.S. pension plans, $23$25 million to cover benefit payments to U.S. non-qualified pension plan participants and $6$1 million to cover benefit claims for our post-retirement benefit plans. Our policy is to fund our pension plans so that we meet at least the minimum contribution requirements, as establishedrequired by local government, funding and taxing authorities. For more information on our retirement and post-retirement benefit plans, see Note 4, “Retirement and Post-Retirement Benefit Plans”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Cost Savings Plan
As a result of our approved restructuring plans, we expect to make future cash payments of approximately $0.4 billion. We expect to make future cash payments of approximately $190 million$0.2 billion in connectionfiscal year 2024 with our cost savings plansremaining cash payments through fiscal year 2019.2025. For more information on our restructuring activities that are part of our cost improvements, see Note 3, “Restructuring and Other Charges”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Uncertain Tax Positions

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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

As of January 31, 2018,2024, we had approximately $2.6 billion$943 million of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these obligations would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 6,5, “Taxes on Earnings”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.
Payment of one-time transition taxes under the TCJA
The TCJA made significant changes to U.S. tax law resulting in a one-time gross transition tax on accumulated foreign earnings of $3.2 billion. We expect the actual cash payments for the tax to be much lower as we expect to reduce the overall liability by more than half once existing and future credits and other balanceOff-balance sheet attributes are used.
.
OFF-BALANCE SHEET ARRANGEMENTSarrangements
As part of our ongoing business, we have not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
We haveHP utilizes certain third-party short-term financing arrangements intendedin the normal course of business as part of HPs cash and liquidity management and also to provide liquidity to certain partners to facilitate thetheir working capital requirements of certain customers.requirements. For more information on our third-party short-term financing arrangements, see Note 7,6, “Supplementary Financial Information”, to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.


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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For quantitative and qualitative disclosures about market risk affecting HP, see “Quantitative and Qualitative Disclosures About Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2017, which is incorporated herein by reference.2023. Our exposure to market risk has not changed materially since October 31, 2017.2023.

Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report (the “Evaluation Date”). Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of the Evaluation Date, that our disclosure controls and procedures were not effective such thatdue to the information relating to HP, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to HP’s management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of any changesmaterial weakness in our internal control over financial reporting described below.
Material Weakness
As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023, we previously identified a material weakness in internal control over financial reporting. The material weakness resulted from undue reliance on information generated from certain software solutions affecting net revenue without effectively designed information technology general controls (“ITGCs”), specifically around user access and change management. Information generated from these software solutions is used by management in accounting for net revenue, including estimating variable consideration, and certain of these software solutions are used in the processing of revenue-related transactions.
This material weakness did not result in any errors. While this material weakness did not result in a material misstatement of our financial statements, there is a reasonable possibility that it could have resulted in a material misstatement in the Company's annual or interim consolidated financial statements that would not be detected. Accordingly, we determined that it constituted a material weakness.
With respect to the material weakness above, management, under the oversight of the Audit Committee, is in the process of designing appropriate ITGCs specific to the impacted software solutions. While we have taken steps to implement our remediation plan, the material weakness will not be considered remediated until the enhanced controls operate for a sufficient period of time and management has concluded, through testing, that the related controls are effective. The Company will monitor the effectiveness of its remediation plan and refine its remediation plan as appropriate.
Changes in Internal Control over Financial Reporting
As described above, we are taking steps to remediate the material weakness in our internal control over financial reporting. Other than in connection with the remediation process described above, no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our most recently completed fiscal quarter. Based on that evaluation, our principal executive officer and principal financial officer concluded that there has not been any change in our internal control over financial reporting during thatthe quarter ended January 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION


Item 1. Legal Proceedings.
Information with respect to this item may be found in Note 13,12, “Litigation and Contingencies” to the Consolidated Condensed Financial Statements in Item 1 of Part I of this report, which is incorporated herein by reference.

Item 1A. Risk Factors.
Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2017,2023, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common and capital stock. Other than the risk factor set forth below, thereThere have been no material changes in our risk factors since our Annual Report on Form 10-K for the fiscal year ended October 31, 2017.2023.
If we cannot continue to produce quality products and services, our reputation, business and financial performance may suffer.
In the course
50
Table of conducting our business, we must address quality and security issues associated with our products and services, including defects in our engineering, design and manufacturing processes, unsatisfactory performance under service contracts, and unsatisfactory performance or malicious acts by third-party contractors or subcontractors or their employees.  Our business is also exposed to the risk of defects in third-party components included in our products, including security vulnerabilities, as illustrated by the recent “Spectre” and “Meltdown” side-channel exploit threats. In order to address quality and security issues, we work extensively with our customers and suppliers and engage in product testing to determine the causes of problems and to develop and implement effective solutions.  However, the products and services that we offer are complex, and our regular testing and quality control efforts may not be completely effective in controlling or detecting all quality and security issues or errors, particularly with respect to defects or security vulnerabilities in components manufactured by third parties. Contents
If we are unable to determine the cause or find an effective solution to address quality and security issues with our products, we may delay shipment to customers, which would delay revenue recognition and receipt of customer payments and could adversely affect our net revenue, cash flows and profitability.  In addition, after products are delivered, quality and security issues may require us to repair or replace such products.  Addressing quality and security issues can be expensive and may result in additional warranty, repair, replacement and other costs, adversely affecting our financial performance. In the event of security vulnerabilities or other issues with third party components, we may have to rely on third parties to provide mitigation techniques such as firmware updates. Furthermore, mitigation techniques for vulnerabilities in third-party components may be ineffective or may result in adverse performance, system instability and data loss or corruption. If new or existing customers have difficulty operating our products or are dissatisfied with our services, our results of operations could be adversely affected, and we could face possible claims if we fail to meet our customers’ expectations.  In addition, quality and security issues, including those resulting from defects or security vulnerabilities in third-party components, can impair our relationships with new or existing customers and adversely affect our brand and reputation, which could, in turn, adversely affect our results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.Proceeds
Recent Sales of Unregistered Securities
There were no unregistered sales of equity securities during the period covered by this report.
Issuer Purchases of Equity Securities
The table below provides information regarding the Company’s share repurchases during the three months ended January 31, 2024.
PeriodTotal
Number
of Shares
Purchased		 Average
Price Paid
per Share		 Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs		 Approximate Dollar
Value of Shares
that May Yet Be
Purchased under the
Plans or Programs
 In thousands, except per share amounts
November 20177,830
 $21.50
 7,830
 $2,292,144
December 20176,753
 $21.21
 6,753
 $2,148,919
January 20186,665
 $22.56
 6,665
 $1,998,535
Total21,248
  
 21,248
  
PeriodTotal
Number
of Shares
Purchased		Average
Price Paid
per Share		Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs		Approximate Dollar
Value of Shares
that May Yet Be
Purchased under the
Plans or Programs
 In thousands, except per share amounts
November 2023— $— — $2,034,564 
December 20233,667 $30.30 3,667 $1,923,463 
January 202413,082 $29.73 13,082 $1,534,564 
Total16,749  16,749  
On October 10, 2016, HP’s Board of Directors authorized $3.0 billion for future repurchases of its outstanding shares of common stock. ThisThe Company’s share repurchase program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions. HP intendsOn February 22, 2020, HP’s Board of Directors increased HP’s remaining share repurchase authorization to use repurchases from time to time to offset the dilution created by shares issued under

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employee stock plans and to repurchase shares opportunistically.$15.0 billion in total. All share repurchases settled in the first quarter of fiscal year 20182024 were open market transactions. As of January 31, 2018,2024, HP had approximately $2.0$1.5 billion remaining under the share repurchase authorizations. From time-to-time HP may repurchase shares opportunistically and to offset the dilution created by shares issued under employee stock plans.


Item 3. Defaults Upon Senior Securities.
None.

Item 4. Mine Safety Disclosures.
Not applicable.

Item 5. Other Information.
Not applicable.Our directors and officers (as defined in Exchange Act Rule 16a-1(f)) may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Exchange Act. During the three months ended January 31, 2024, no such plans or other arrangements were adopted or terminated.

Item 6. Exhibits.
The Exhibit Index beginning on page 5252 of this report sets forth a list of exhibits.

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
51
HP INC.
/s/ Catherine A. Lesjak
Catherine A. Lesjak
Chief Financial Officer
(Principal Financial Officer and
Authorized Signatory)
Table of Contents
Date: March 1, 2018


HP INC. AND SUBSIDIARIES
EXHIBIT INDEX


Exhibit
Number
Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFormFile No.Exhibit(s)Exhibit(s)Filing Date
2(a)8-K8-K001-044232.1001-044232.1November 5, 2015
2(b)8-K8-K001-044232.2001-044232.2November 5, 2015
2(c)8-K001-044232.3November 5, 2015
2(d)
Employee Matters Agreement, dated as of October 31, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company.**
8-K8-K001-044232.4001-044232.4November 5, 2015
2(e)3(a)8-K001-044232.5November 5, 2015
2(f)
Master Commercial Agreement, dated as of November 1, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company.**
8-K001-044232.6November 5, 2015
2(g)
Information Technology Service Agreement, dated as of November 1, 2015, by and between Hewlett-Packard Company and HP Enterprise Services, LLC.**
8-K001-044232.7November 5, 2015
3(a)
Registrant’s Certificate of Incorporation.
10-Q10-Q001-044233(a)001-044233(a)June 12, 1998
3(b)10-Q10-Q001-044233(b)001-044233(b)March 16, 2001

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Exhibit
Number
Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFormFile No.Exhibit(s)Exhibit(s)Filing Date
3(c)8-K8-K001-044233.2001-044233.2October 22, 2015
3(d)8-K8-K001-044233.1001-044233.1April 7, 2016
3(e)10-K8-K001-044233(e)001-044233.1July 26, 2017December 18, 2023
4(a)3(f)8-K001-044233.1February 20, 2020
4(a)S-3S-3333-2151164.1333-2151164.1December 15, 2016
4(b)S-3S-3333-2151164.2333-215164.2December 15, 2016
4(c)
Form of Registrant’s 3.750% Global Note due December 1, 2020 and form of related Officers’ Certificate.
8-K001-044234.2 and 4.3December 2, 2010
4(d)Form of Registrant’s 4.300% Global Note due June 1, 2021 and form of related Officers’ Certificate.8-K001-04423
4.5 and 4.6
June 1, 2011
4(e)Form of Registrant’s 4.375% Global Note due September 15, 2021 and 6.000% Global Note due September 15, 2041 and form of related Officers’ Certificate.8-K8-K001-04423001-04423
4.4, 4.5 and 4.6
September 19, 2011
4(f)4(d)Form of Registrant’s 4.650% Global Note due December 9, 2021 and related Officers’ Certificate.8-K8-K001-04423001-04423
4.3 and 4.4
December 12, 2011
4(g)4(e)Form of Registrant’s 4.050% Global Note due September 15, 2022 and related Officers’ Certificate.8-K8-K001-04423001-04423
4.2and 4.3
March 12, 2012

4(f)
Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
4(h)Form of Registrant’s 2.750% Global Note due January 14, 2019 and Floating Rate Global Note due January 14, 2019 and related Officers’ Certificate.8-K001-04423
4.1, 4.2 and 4.3
January 14, 2014
4(i)
Specimen certificate for the Registrant’s common stock.
8-A/A8-K/A001-044234.1001-044234.1June 23, 2006
10(a)4(g)S-8333-1142534.1April 7, 2004
10(b)
Registrant’s Excess Benefit Retirement Plan, amended and restated as of January 1, 2006.*
8-K001-0442310.2September 21, 2006
10(c)
Hewlett-Packard Company Cash Account Restoration Plan, amended and restated as of January 1, 2005.*
8-K001-0442399.3November 23, 2005
10(d)
Registrant’s 2005 Pay-for-Results Plan, as amended.*
10-K001-0442310(h)December 14, 2011
10(e)
Registrant’s Executive Severance Agreement.*
10-Q001-0442310(u)(u)June 13, 2002
10(f)
Registrant’s Executive Officers Severance Agreement.*
10-Q001-0442310(v)(v)June 13, 2002
10(g)
Form letter regarding severance offset for restricted stock and restricted units.*
8-K001-0442310.2March 22, 2005
10(h)
Form of Agreement Regarding Confidential Information and Proprietary Developments (California).*
8-K001-0442310.2January 24, 2008
10(i)
Form of Agreement Regarding Confidential Information and Proprietary Developments (Texas).*
10-Q001-0442310(o)(o)March 10, 2008
10(j)
Form of Stock Option Agreement for Registrant’s 2004 Stock Incentive Plan.*
10-Q001-0442310(p)(p)March 10, 2008
10(k)
Form of Option Agreement for Registrant’s 2000 Stock Plan.*
10-Q001-0442310(t)(t)June 6, 2008
10(1)
Form of Common Stock Payment Agreement for Registrant’s 2000 Stock Plan.*
10-Q001-0442310(u)(u)June 6, 2008
10(m)
Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*
10-K001-0442310(y)(y)December 18, 2008

Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
10(n)
First Amendment to the Hewlett-Packard Company Excess Benefit Retirement Plan.*
10-Q001-0442310(b)(b)(b)March 10, 2009
10(o)
Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*
10-K001-0442310(i)(i)(i)December 15, 2010
10(p)
Form of Agreement Regarding Confidential Information and Proprietary Developments (California—new hires).*
10-K001-0442310(j)(j)(j)December 15, 2010
10(q)
Form of Agreement Regarding Confidential Information and Proprietary Developments (California—current employees).*
10-K001-0442310(k)(k)(k)December 15, 2010
10(r)
Second Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan, as amended effective February 28, 2013.*
8-K001-0442310.2March 21, 2013
10(s)
Form of Stock Notification and Award Agreement for awards of restricted stock units.*
10-Q001-0442310(u)(u)March 11, 2014
10(t)
Form of Stock Notification and Award Agreement for awards of foreign stock appreciation rights.*
10-Q001-0442310(v)(v)March 11, 2014
10(u)
Form of Stock Notification and Award Agreement for long-term cash awards.*
10-Q001-0442310(w)(w)March 11, 2014
10(v)
Form of Stock Notification and Award Agreement for awards of non-qualified stock options.*
10-Q001-0442310(x)(x)March 11, 2014
10(w)
Form of Grant Agreement for grants of performance-adjusted restricted stock units.*
10-Q001-0442310(y)(y)March 11, 2014
10(x)
Form of Stock Notification and Award Agreement for awards of restricted stock.*
10-Q001-0442310(z)(z)March 11, 2014
10(y)
Form of Stock Notification and Award Agreement for awards of performance-contingent non-qualified stock options.*
10-Q001-0442310(a)(a)(a)March 11, 2014

Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
10(z)
Form of Grant Agreement for grants of performance-contingent non-qualified stock options.*
10-Q001-0442310(b)(b)(b)March 11, 2014
10(a)(a)
Form of Grant Agreement for grants of restricted stock units.*
10-Q001-0442310(c)(c)(c)March 11, 2015
10(b)(b)
Form of Grant Agreement for grants of foreign stock appreciation rights.*
10-Q001-0442310(d)(d)(d)March 11, 2015
10(c)(c)
Form of Grant Agreement for grants of long-term cash awards.*
10-Q001-0442310(e)(e)(e)March 11, 2015
10(d)(d)
Form of Grant Agreement for grants of non-qualified stock options.*
10-Q001-0442310(f)(f)(f)March 11, 2015
10(e)(e)
Form of Grant Agreement for grants of performance-adjusted restricted stock units.*
10-Q001-0442310(g)(g)(g)March 11, 2015
10(f)(f)
Form of Grant Agreement for grants of restricted stock awards.*
10-Q001-0442310(h)(h)(h)March 11, 2015
10(g)(g)
Form of Grant Agreement for grants of performance-contingent non-qualified stock options.*
10-Q001-0442310(i)(i)(i)March 11, 2015
10(h)(h)
Term Loan Agreement,Supplemental Indenture, dated as of April 30, 2015, amongMarch 26, 2018, to the Registrant, the lenders named therein and JPMorgan Chase Bank, N.A., as administrative agent.
10-Q001-0442310(b)(b)(b)June 8, 2015
10(i)(i)
Amendment,Indenture, dated as of June 1, 2015, to2000, by and between the Term LoanRegistrant and The Bank of New York Mellon Trust Company, N.A.
10-Q001-044234(j)June 5, 2018
4(h)10-K001-044234(h)December 18, 2023
4(i)8-K001-044234.1June 17, 2020
4(j)Form of 2.200% notes due 2025 and related Officers’ Certificate.8-K001-04423
4.2 and 4.5
June 17, 2020
4(k)Form of 3.000% notes due 2027 and related Officers’ Certificate.8-K001-04423
4.3 and 4.5
June 17, 2020
4(l)Form of 3.400% notes due 2030 and related Officers’ Certificate.8-K001-04423
4.4 and 4.5
June 17, 2020
4(m)8-K001-044234.2June 21, 2021
4(n)8-K001-044234.3June 21, 2021
4(o)Form of 4.000% notes due 2029 and JPMorgan Chaserelated Officers’ Certificate.8-K001-04423
4.2 and 4.4
March 31, 2022
4(p)Form of 4.200% notes due 2032 and related Officers’ Certificate.8-K001-04423
4.3 and 4.4
March 31, 2022
4(q)Form of 4.750% notes due 2028 and related Officers’ Certificate.8-K001-04423
4.2 and 4.4
June 21, 2022
4(r)Form of 5.500% notes due 2033 and related Officers’ Certificate.8-K001-04423
4.3 and 4.4
June 21, 2022
4(s)8-K10-Q001-044234.2001-0442310(c)(c)(c)June 8, 2015
10(j)(j)
Five-Year Credit Agreement, dated as of April 2, 2014, as Amended and Restated as of November 1, 2015, among the Registrant, the lenders named therein and Citibank, N.A., as administrative processing agent and co-administrative agent, and JPMorgan Chase Bank, N.A., as co-administrative agent.
8-K001-0442310.1November 5, 2015September 7, 2022

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Exhibit
Number		 Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
10(a)S-8333-1142534.1April 7, 2004
10(b)8-K001-0442310.2September 21, 2006
10(c)8-K001-0442399.3November 23, 2005
10(d)8-K001-0442310.2January 24, 2008
10(e)10-Q001-0442310(o)(o)March 10, 2008
10(f)10-Q001-0442310(p)(p)March 10, 2008
10(g)10-Q001-0442310(u)(u)June 6, 2008
10(h)10-Q001-0442310(b)(b)(b)March 10, 2009
10(i)10-K001-0442310(i)(i)(i)December 15, 2010
10(j)10-K001-0442310(j)(j)(j)December 15, 2010
10(k)10-K001-0442310(k)(k)(k)December 15, 2010
10(1)8-K001-0442310.2March 21, 2013
10(m)10-Q001-0442310(v)(v)March 11, 2014
10(n)10-Q001-0442310(w)(w)March 11, 2014
10(o)10-Q001-0442310(x)(x)March 11, 2014
10(p)10-Q001-0442310(a)(a)(a)March 11, 2014
10(q)10-Q001-0442310(b)(b)(b)March 11, 2014
10(r)10-Q001-0442310(e)(e)(e)March 11, 2015
10(s)10-Q001-0442310(f)(f)(f)March 11, 2015
10(t)10-Q001-0442310(i)(i)(i)March 11, 2015
10(u) 10-K 001-04423 10(e)(e)(e) December 16, 2015
10(v) 10-K 001-04423 10(f)(f)(f) December 16, 2015
10(w) 10-K 001-04423 10(g)(g)(g) December 16, 2015

54
Table of Contents

Exhibit
Number
Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFormFile No.Exhibit(s)Exhibit(s)Filing Date
10(k)(k)10(x)
10-K001-0442310(e)(e)(e)December 16, 2015
10(l)(l)
Form of Grant Agreement for grants of performance-contingent non-qualified stock options.*
10-K001-0442310(f)(f)(f)
December16, 2015
10(m)(m)
Form of Grant Agreement for grants of non-qualified stock options.*
10-K001-0442310(g)(g)(g)
December 16, 2015

10(n)(n)
Registrant’s 2005 Executive Deferred Compensation Plan, amended and restated effective November 1, 2015.2017.*
10-Q10-K/A001-04423001-0442310(n)(n)10(n)(n)March 3, 2016December 15, 2017
10(o)(o)10(y)
10-Q001-0442310(o)(o)10(p)(p)March 3, 20165, 2020
10(p)(p)10(z)
10-Q001-0442310(p)(p)March 3, 2016
10(q)(q)10(a)(a)
10-Q001-0442310(q)(q)March 3, 2016
10(r)(r)
Form of Stock Notification and Award Agreement for awards of restricted stock units.*
10-Q001-0442310(r)(r)March 3, 2016
10(s)(s)
Form of Stock Notification and Award Agreement for awards of performance-adjusted restricted stock units.*
10-Q001-0442310(s)(s)March 3, 2016
10(t)(t)
Form of Amendment to Award Agreements for awards of restricted stock units or performance-adjusted restricted stock units, effective January 1, 2016.*
10-Q001-0442310(t)(t)March 3, 2016
10(u)(u)
First Amendment to Severance and Long-Term Incentive Change in Control Plan for Executive Officers, as amended and restated effective November 1, 2015.*
10-K001-0442310(u)(u)December 15, 2016
10(v)(v)
Second Amendment to Severance and Long-Term Incentive Change in Control Plan for Executive Officers, as amended and restated effective November 1, 2015.*
10-Q001-0442310(v)(v)March 2, 2017
10(w)(w)
2017 Amendment to the Hewlett-Packard Company Cash Account Restoration Plan.*
10-Q10-Q001-0442310(w)(w)001-0442310(w)(w)March 2, 2017
10(x)(x)10(b)(b)
10-Q10-Q001-0442310(x)(x)
001-04423
10(x)(x)

March 2, 2017
10(y)(y)10(c)(c)
10-Q10-Q001-0442310(y)(y)
001-04423
10(y)(y)

March 2, 2017
10(z)(z)10(d)(d)
10-Q001-04423
10(z)(z)

March 2, 2017
10(a)(a)(a)
Form of Grant Agreement for grants of restricted stock units (for use from November 1, 2016).*
10-Q001-04423
10(a)(a)(a)

March 2, 2017
10(b)(b)(b)
Second Amended and Restated HP Inc. 2004 Stock Incentive Plan (as amended effective January 29, 2018).*‡

10-Q001-0442310(b)(b)(b)March 1, 2018
10(c)(c)(c)10(e)(e)
10-Q001-0442310(c)(c)(c)

March 1, 2018
10(f)(f)
10(d)(d)(d)
10(e)(e)(e)
Form of Grant Agreement for grants of restricted stock units for directors (for use from November 1, 2017).*‡

10-Q001-0442310(e)(e)(e)March 1, 2018
10(f)(f)(f)10(g)(g)
10-Q001-0442310(f)(f)(f)March 1, 2018
31.110(h)(h)
10-K001-0442310(g)(g)(g)December 13, 2018
10(i)(i)10-K001-0442310(h)(h)(h)December 13, 2018
10(j)(j)10-Q001-0442310(j)(j)(j)March 5, 2019
10(k)(k)10-Q001-0442310(k)(k)(k)March 5, 2019
10(l)(l)10-Q001-0442310(l)(l)(l)August 29, 2019
10(m)(m)10-K001-0442310(m)(m)(m)December 12, 2019
10(n)(n)10-K001-0442310(n)(n)(n)December 12, 2019





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Table of Contents

Exhibit
Number		Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
10(o)(o)10-Q001-0442310(m)(m)(m)March 5, 2020
10(p)(p)10-Q001-0442310(n)(n)(n)March 5, 2020
10(q)(q)10-Q001-0442310(o)(o)(o)March 5, 2020
10(r)(r)10-Q001-0442310(p)(p)(p)March 5, 2020
10(s)(s)10-Q001-0442310(q)(q)(q)March 5, 2020
10(t)(t)10-Q001-0442310(r)(r)(r)June 5, 2020
10(u)(u)10-Q001-0442310(s)(s)(s)June 5, 2020
10(v)(v)10-Q001-0442310(t)(t)(t)June 5, 2020
10(w)(w)10-K001-0442310(x)(x)(x)December 10, 2020
10(x)(x)10-K001-0442310(y)(y)(y)December 10, 2020
10(y)(y)10-Q001-0442310(x)(x)(x)March 5, 2021
10(z)(z)10-Q001-0442310(y)(y)(y)March 5, 2021
10(a)(a)(a)10-Q001-0442310(z)(z)(z)March 5, 2021
10(b)(b)(b)10-Q001-0442310(a)(a)(a)(a)March 5, 2021
10(c)(c)(c)10-Q001-0442310(b)(b)(b)(b)March 5, 2021
10(d)(d)(d)10-Q001-0442310(c)(c)(c)(c)March 5, 2021
10(e)(e)(e)10-Q001-0442310(d)(d)(d)(d)March 5, 2021
10(f)(f)(f)10-Q001-0442310(e)(e)(e)(e)March 5, 2021







56
Table of Contents

Exhibit
Number		Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
10(g)(g)(g)10-Q001-0442310(f)(f)(f)(f)March 5, 2021
10(h)(h)(h)8-K001-0442310.1June 1, 2021
10(i)(i)(i)10-Q001-0442310(j)(j)(j)September 3, 2021
10(j)(j)(j)10-Q001-0442310(j)(j)(j)March 7, 2022
10(k)(k)(k)10-Q001-0442310(k)(k)(k)March 7, 2022
10(l)(l)(l)10-Q001-0442310(l)(l)(l)March 7, 2022
10(m)(m)(m)10-Q001-0442310(m)(m)(m)March 7, 2022
10(n)(n)(n)10-Q001-0442310(n)(n)(n)March 7, 2022
10(o)(o)(o)10-Q001-0442310(o)(o)(o)March 7, 2022
10(p)(p)(p)8-K001-0442310.1April 22, 2022
10(q)(q)(q)8-K001-0442310.1August 26, 2022
10(r)(r)(r)S-8333-2671514.4August 29, 2022
10(s)(s)(s)S-8333-2671514.5August 29, 2022
10(t)(t)(t)10-K001-0442310(t)(t)(t)December 6, 2022
10(u)(u)(u)10-Q001-0442310(u)(u)(u)March 1, 2023
10(v)(v)(v)10-Q001-0442310(v)(v)(v)March 1, 2023
10(w)(w)(w)10-Q001-0442310(w)(w)(w)March 1, 2023
10(x)(x)(x)10-Q001-0442310(x)(x)(x)March 1, 2023
10(y)(y)(y)10-Q001-0442310(y)(y)(y)March 1, 2023
10(z)(z)(z)10-Q001-0442310(z)(z)(z)March 1, 2023
57
Table of Contents

10(a)(a)(a)(a)10-Q001-0442310(a)(a)(a)(a)March 1, 2023
10(b)(b)(b)(b)10-Q001-0442310(b)(b)(b)(b)March 1, 2023
10(c)(c)(c)(c)10-Q001-0442310(c)(c)(c)(c)March 1, 2023
10(d)(d)(d)(d)2023 Amendment to the HP Inc. Cash Account Restoration Plan.*10-Q001-0442310(d)(d)(d)(d)May 31, 2023
10(e)(e)(e)(e)Third Amendment to the HP Inc. Excess Benefit Plan.*10-Q001-0442310(e)(e)(e)(e)May 31, 2023
10(f)(f)(f)(f)
10(g)(g)(g)(g)
10(h)(h)(h)(h)
10(i)(i)(i)(i)
10(j)(j)(j)(j)
10(k)(k)(k)(k)
10(l)(l)(l)(l)
31.1

31.2
Exhibit
Number
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
31.2
32
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.†
101.INS101.SCH
XBRL Instance Document.‡
101.SCH
Inline XBRL Taxonomy Extension Schema Document.‡†
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.‡†
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.‡†
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.‡†
58
Table of Contents

101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.‡†
104The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended January 31, 2024, formatted in Inline XBRL (included within the Exhibit 101 attachments).†



*    Indicates management contract or compensatory plan, contract or arrangement.
**    Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(b)(2)601(a)(5) of Registration S-K. A copy of any omitted schedule and/or exhibit will be furnished supplementally to the SEC upon request.
‡†    Filed herewith.
††    Furnished herewith.

The registrant agrees to furnish to the Commission supplementally upon request a copy of (1) any instrument with respect to long-term debt not filed herewith as to which the total amount of securities authorized thereunder does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis and (2) any omitted schedules to any material plan of acquisition, disposition or reorganizationagreements set forth above.



62
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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HP INC.
/s/ TIMOTHY BROWN
Timothy Brown
Interim Chief Financial Officer
(Principal Financial Officer and
Authorized Signatory)
Date: February 28, 2024

60