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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)
ý☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: ended
January 31, 20182023
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)
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)(Zip
(650) 857-1501
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
(650) 857-1501
(Registrant’s telephone number, including area code)
Title of each class		Trading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareHPQNew 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, 20182023 was 1,641,373,766985,115,519 shares.




HP INC. AND SUBSIDIARIES
Form 10-Q
For the Quarterly Period ended January 31, 20182023
Table of Contents
Page
3
Item 1.
4
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
5559
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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Table of Contents
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 2023 plan), 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 recent 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 and tension across the Taiwan Strait and the regional and global ramifications of these events; recent volatility in global capital markets, increases in benchmark interest rates and the effects of inflation; risks associated with HP’s international operations; the effects of the COVID-19 pandemic; 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 component shortages, and the many challenges facingneed to manage HP’s businesses;global, multi-tier distribution network, limit 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 with executing HP’s strategy; the impact of macroeconomicstrategy and geopolitical trendsbusiness model changes and events; the need to manage third-party supplierstransformation; successfully innovating, developing and theexecuting HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, of HP’s productsreseller 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; successfully competing and maintaining the executionvalue proposition of HP’s products, including supplies; challenges to HP’s ability to accurately forecast inventories, demand and performancepricing, 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 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, medical epidemics or pandemics such as the COVID-19 pandemic, 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; and other risks that are described herein, including but not limited to thosethe items discussed in this Quarterly Report on Form 10-Q, and in particular, 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, 2017,2022 and that are otherwise described or updated from time to time in HP’s other filings with the Securities and Exchange Commission (“(the “SEC”). The forward-looking statements in this report are made as of the SEC”).date of this filing and HP assumes no obligation and does not intend to update these forward-looking statements.

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Table of Contents
Part I. Financial Information


ITEM 1. Financial Statements and Supplementary Data.
Index
Page
5
6
7
8
Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited)
9
910
910
11
1314
1415
1516
17
1921
2223
2428
2829
30
Note 12: Net Earnings Per Share
3332
3332
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 Three months ended January 31
2018 2017 2023 2022
In millions, except per share amounts In millions, except per share amounts
Net revenue$14,517
 $12,684
Net revenue$13,828  $17,028 
Costs and expenses:   
Costs and expenses: 
Cost of revenue11,935
 10,436
Cost of revenue11,019  13,643 
Research and development347
 296
Research and development403  418 
Selling, general and administrative1,169
 1,017
Selling, general and administrative1,331  1,468 
Restructuring and other charges31
 63
Restructuring and other charges141 68 
Acquisition-related charges42
 16
Acquisition and divestiture chargesAcquisition and divestiture charges84  20 
Amortization of intangible assets20
 —
Amortization of intangible assets85  52 
Total costs and expenses13,544
 11,828
Total costs and expenses13,063  15,669 
Earnings from operations973
 856Earnings from operations765  1,359 
Interest and other, net(68) (81)Interest and other, net(181)(32)
Earnings before taxes905
 775Earnings before taxes584  1,327 
Provision for taxes1,033
 (164)Provision for taxes(97)(241)
Net earnings$1,938
 $611
Net earnings$487  $1,086 
   
Net earnings per share: 
  
Net earnings per share: 
Basic$1.17
 $0.36
Basic$0.49  $1.00 
Diluted$1.16
 $0.36
Diluted$0.49  $0.99 
   
Cash dividends declared per share$0.28
 $0.27
   
Weighted-average shares used to compute net earnings per share: 
  
Weighted-average shares used to compute net earnings per share: 
Basic1,650
 1,704
Basic989  1,081 
Diluted1,669
 1,721
Diluted996  1,094 
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 Income
(Unaudited)
Three months ended January 31 Three months ended January 31
2018 2017 20232022
In millions In millions
Net earnings$1,938
 $611
Net earnings$487 $1,086 
Other comprehensive loss before taxes: 
  
Change in unrealized components of available-for-sale securities: 
  
Other comprehensive (loss) income before taxes:Other comprehensive (loss) income before taxes: 
Change in unrealized components of available-for-sale debt securities:Change in unrealized components of available-for-sale debt securities: 
Unrealized gains (losses) arising during the periodUnrealized gains (losses) arising during the period4 (2)
Change in unrealized components of cash flow hedges:Change in unrealized components of cash flow hedges: 
Unrealized (losses) gains arising during the period(3) 3
Unrealized (losses) gains arising during the period(623)299 
Gains reclassified into earnings(5)
—
Gains reclassified into earnings(334)(44)
(8)
3
(957)255 
   
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: 
  
Change in unrealized components of defined benefit plans: 
(Losses) gains arising during the period(Losses) gains arising during the period(38)21 
Amortization of actuarial loss and prior service benefit12
 20
Amortization of actuarial loss and prior service benefit— 6 
Curtailments, settlements and other1
 —
Curtailments, settlements and other1 — 

13
 20
(37)27 
Other comprehensive loss before taxes(476) (217)
Change in cumulative translation adjustmentChange in cumulative translation adjustment29 (10)
Other comprehensive (loss) income before taxesOther comprehensive (loss) income before taxes(961)270 
Benefit from (provision for) taxes65
 (14)
Benefit from (provision for) taxes192 (26)
Other comprehensive loss, net of taxes(411) (231)
Comprehensive income$1,527
 $380
Other comprehensive (loss) income, net of taxesOther comprehensive (loss) income, net of taxes(769)244 
Comprehensive (loss) incomeComprehensive (loss) income$(282)$1,330 
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

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HP INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
As of As of
January 31, 2018 October 31, 2017 January 31, 2023October 31, 2022
In millions, except par value 
In millions, except par value
ASSETS 
  
ASSETS  
Current assets: 
  
Current assets:  
Cash and cash equivalents$5,475
 $6,997
Accounts receivable4,396
 4,414
Cash, cash equivalents and restricted cashCash, cash equivalents and restricted cash$1,769 $3,145 
Accounts receivable, net of allowance for credit losses of $89 and $107, respectivelyAccounts receivable, net of allowance for credit losses of $89 and $107, respectively4,312 4,546 
Inventory5,655
 5,786
Inventory7,344 7,595 
Other current assets5,691
 5,121
Other current assets3,880 4,515 
Total current assets21,217
 22,318
Total current assets17,305 19,801 
Property, plant and equipment2,026
 1,878
Property, plant and equipment, netProperty, plant and equipment, net2,764 2,774 
Goodwill5,935
 5,622
Goodwill8,592 8,541 
Other non-current assets6,067
 3,095
Other non-current assets7,487 7,471 
Total assets$35,245
 $32,913
Total assets$36,148 $38,587 
LIABILITIES AND STOCKHOLDERS’ DEFICIT 
  
LIABILITIES AND STOCKHOLDERS’ DEFICIT  
Current liabilities: 
  
Current liabilities:  
Notes payable and short-term borrowings$1,529
 $1,072
Notes payable and short-term borrowings$422 $218 
Accounts payable12,848
 13,279
Accounts payable13,512 15,284 
Employee compensation and benefits706
 894
Taxes on earnings213
 214
Deferred revenue1,039
 1,012
Other accrued liabilities7,014
 5,941
Other current liabilitiesOther current liabilities11,119 10,651 
Total current liabilities23,349
 22,412
Total current liabilities25,053 26,153 
Long-term debt6,340
 6,747
Long-term debt10,337 10,796 
Other non-current liabilities8,298
 7,162
Other non-current liabilities4,488 4,556 
Commitments and contingencies

 

Stockholders’ deficit: 
  
Stockholders’ deficit:  
Preferred stock, $0.01 par value (300 shares authorized; none issued)—
 —
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)
Common stock, $0.01 par value (9,600 shares authorized; 985 and 980 shares issued and outstanding at January 31, 2023 and October 31, 2022, respectively)Common stock, $0.01 par value (9,600 shares authorized; 985 and 980 shares issued and outstanding at January 31, 2023 and October 31, 2022, respectively)10 10 
Additional paid-in capitalAdditional paid-in capital1,256 1,172 
Accumulated deficitAccumulated deficit(4,540)(4,413)
Accumulated other comprehensive (loss) incomeAccumulated other comprehensive (loss) income(456)313 
Total stockholders’ deficit(2,742) (3,408)Total stockholders’ deficit(3,730)(2,918)
Total liabilities and stockholders’ deficit$35,245
 $32,913
Total liabilities and stockholders’ deficit$36,148 $38,587 
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 Flows
(Unaudited)
Three months ended January 31 Three months ended January 31
2018 2017 20232022
In millionsIn millions
Cash flows from operating activities: 
  
Cash flows from operating activities:  
Net earnings$1,938
 $611
Net earnings$487 $1,086 
Adjustments to reconcile net earnings to net cash provided by operating activities: 
  
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:  
Depreciation and amortization129
 84
Depreciation and amortization209 197 
Stock-based compensation expense85
 75
Stock-based compensation expense167 133 
Restructuring and other charges31
 63
Restructuring and other charges141 68 
Deferred taxes on earnings(3,713) 67
Deferred taxes on earnings(136)5 
Other, net13
 19
Other, net4 186 
Changes in operating assets and liabilities, net of acquisitions: 
  
Changes in operating assets and liabilities, net of acquisitions:  
Accounts receivable272
 614
Accounts receivable244 337 
Inventory364
 (69)Inventory218 (1,277)
Accounts payable(478) (116)Accounts payable(1,712)2,035 
Net investment in leasesNet investment in leases(16)(20)
Taxes on earnings2,463
 (75)Taxes on earnings220 (6)
Restructuring and other(133) (51)Restructuring and other(92)(99)
Other assets and liabilities25
 (455)Other assets and liabilities250 (988)
Net cash provided by operating activities996
 767
Net cash (used in) provided by operating activitiesNet cash (used in) provided by operating activities(16)1,657 
Cash flows from investing activities: 
  
Cash flows from investing activities:  
Investment in property, plant and equipment(129) (101)
Proceeds from sale of property, plant and equipment110
 69
Investment in property, plant and equipment, netInvestment in property, plant and equipment, net(192)(273)
Purchases of available-for-sale securities and other investments(268) (2)Purchases of available-for-sale securities and other investments(4)— 
Maturities and sales of available-for-sale securities and other investments139
 2
Maturities and sales of available-for-sale securities and other investments1 — 
Collateral posted for derivative instruments
(608) (54)Collateral posted for derivative instruments(240)14 
Collateral returned for derivative instruments
53
 —
Payment made in connection with business acquisition, net of cash acquired(1,020) —
Payment made in connection with business acquisitions, net of cash acquiredPayment made in connection with business acquisitions, net of cash acquired— (21)
Net cash used in investing activities(1,723) (86)Net cash used in investing activities(435)(280)
Cash flows from financing activities: 
  
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
 —
Proceed from (Payment of) short-term borrowings with original maturities less than 90 days, netProceed from (Payment of) short-term borrowings with original maturities less than 90 days, net200 (400)
Proceeds from debt, net of issuance costs—
 5
Proceeds from debt, net of issuance costs52 39 
Payment of short-term borrowings with original maturities greater than 90 days(118) (3)
Payment of debt(41) (24)Payment of debt(539)(50)
Settlement of cash flow hedges—
 (4)
Net payments related to stock-based award activities(38) (34)
Stock-based award activities and othersStock-based award activities and others(79)(92)
Repurchase of common stock(462) (386)Repurchase of common stock(100)(1,508)
Cash dividends paid(230) (227)Cash dividends paid(259)(271)
Collateral returned for derivative instrumentsCollateral returned for derivative instruments(200)— 
Net cash used in financing activities(795) (638)Net cash used in financing activities(925)(2,282)
(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
Decrease in cash, cash equivalents and restricted cashDecrease in cash, cash equivalents and restricted cash(1,376)(905)
Cash, cash equivalents and restricted cash at beginning of periodCash, cash equivalents and restricted cash at beginning of period3,145 4,299 
Cash, cash equivalents and restricted cash at end of periodCash, cash equivalents and restricted cash at end of period$1,769 $3,394 
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 Stockholders’ 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 October 31, 20211,092,205 $11 $1,060 $(2,461)$(260)$(1,650)
Net earnings1,086 1,086 
Other comprehensive income, net of taxes244 244 
Comprehensive income1,330 
Issuance of common stock in connection with employee stock plans and other9,777 (106)(106)
Repurchases of common stock (Note 10)(42,082)(41)(1,458)(1,499)
Cash dividends ($0.50 per common share)(536)(536)
Stock-based compensation expense133 133 
Balance January 31, 20221,059,900 $11 $1,046 $(3,369)$(16)$(2,328)
Balance October 31, 2022979,869 $10 $1,172 $(4,413)$313 $(2,918)
Net earnings487 487 
Other comprehensive loss, net of taxes(769)(769)
Comprehensive loss(282)
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 expense167 167 
Balance January 31, 2023985,089 $10 $1,256 $(4,540)$(456)$(3,730)
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, 20172022 in theHP’s Annual Report on Form 10-K, filed on December 14, 2017.6, 2022. The Consolidated Condensed Balance Sheet for October 31, 20172022 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 change to align its segment and business unit financial reporting more closely with its current business structure. HP reflected this change 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.
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. As of January 31, 2023, the extent to which the current macroeconomic factors will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility. As the events continue to evolve with respect to the ongoing macroeconomic factors, our estimates may materially change in future periods.
Recently IssuedAdopted Accounting Pronouncements Not Yet Adopted
In February 2018,September 2022, the FASB issued guidance which eliminatesthat enhances the stranded tax effectstransparency about the use of supplier finance programs. Under the new guidance, companies that use a supplier finance program in other comprehensive income resultingconnection with the purchase of goods or services will be required to disclose information about the program to allow users of financial statements to understand the program’s nature, activity during the period, changes from the Tax Cutsperiod to period, and Jobs Act (the “TCJA”). Because the amendments only relate to the reclassification of the 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.potential magnitude. HP is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier2024, except for the amendment on roll forward information which is effective one year later. Early adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In August 2017, the FASB issued guidance, which amends the existing accounting standards for derivatives and hedging. The amendment improves the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. HP is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. HP is currently evaluating the timing and impact of this guidance on the Consolidated Condensed Financial Statements.
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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HP INC. AND SUBSIDIARIES
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, smallsmall- and medium-sized businesses (“SMBs”) and large enterprises, including customers in the government, health and education sectors. HP goes to market through its extensive channel network and direct sales.
HP’s operations are organized into three segments for financial reporting purposes:reportable segments: Personal Systems, Printing, and Corporate Investments. HP’s organizational structure is based on a number ofmany factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run itsthe business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP’s chief operating decision makerCODM to evaluate segment results. The chief operating decision makerCODM 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 offers commercial and Consumer desktopconsumer customers desktops and notebook personal computers (“PCs”),notebooks, workstations, thin clients, Commercial tablets andcommercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems (includes video conferencing solutions, cameras, headsets, voice, and other related accessories,software capabilities including all products and solutions acquired from Poly), software, support and services for the commercial and consumer markets.services. HP groups Commercialcommercial notebooks, Commercialcommercial desktops, Commercialcommercial services, Commercial tablets andcommercial mobility devices, Commercialcommercial detachables and convertibles, Workstations,workstations, retail point-of-salePOS systems and thin clients into commercial (“Commercial PCsPS”), and Consumerconsumer notebooks, Consumerconsumer desktops, Consumerconsumer services and Consumerconsumer detachables into consumer (“Consumer PCsPS”) when describing performance in these markets. Described below are HP’sCommercial and Consumer services include support and deployment, configurations and extended warranty services.
Personal Systems groups its global business capabilities within Personal Systems:into the following business units when reporting business performance:
•Commercial PCs are optimizedPS consist of endpoint computing devices and hybrid systems, for use by customers, including enterprise, public sector (which includes education), and SMBs,SMB customers, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in networked environments.the customer’s environment. Additionally, HP offers a range of services and solutions to enterprise, public sector (which includes education), and SMBsSMB customers to help them manage the lifecycle of their PCpersonal computers (“PCs”) and mobility installed base.
•Consumer PCsPS consist of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media consumption, online browsing, gamingfor entertainment, managing personal life activities, staying connected, sharing information, getting things done for work including creating content and light productivity.
staying informed and secure.
Personal Systems groups its global business capabilities into Notebooks, Desktops, WorkstationsPrinting provides consumer 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 Commercialcommercial printer hardware, Supplies, solutionssupplies, services and services, as well as scanning devices.solutions. Printing is also focused on imaging solutions in the commercial and industrial markets. Described below are HP’s global business capabilities within Printing: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”)-brandedOEM hardware 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 Solutions delivers innovative printing products, supplies, services and solutions for the home, and home business or small officeand micro business 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 and supplies to print service providers and packaging converters through the largesta wide 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& Digital Manufacturing offers a portfolio of additive manufacturing solutions and productionsupplies to help customers succeed in their additive and digital manufacturing journey. HP offers complete solutions in collaboration with an ecosystem of functional parts and functioning on an open platform facilitating the development of new 3D printing materials.
partners.
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)

Printing groups its global business capabilities into the following business units when reporting business performance:
•Commercial HardwarePrinting consists of Office Printing Solutions, Graphics Solutionsoffice printing solutions, graphics solutions and 3D Printing,printing and digital manufacturing, excluding supplies;
•Consumer Hardware includes Home Printing Solutions, 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 2018,2023, HP implemented an organizational changerealigned the Personal Systems business units reporting structure into Commercial PS and Consumer PS to align its segment and business unit financial reporting more closely with its current business structure. Thecustomer market segmentation. Additionally, in connection with certain other organizational change resulted in the transfer of long life consumables from Commercial to Supplies within the Printing segment. Certain revenues related to service arrangements,realignments, some costs which are being eliminated for the purposes of reporting HP’s consolidated net revenue,were earlier reflected under “Corporate and unallocated cost and other”, have now been reclassified from Other to the Personal Systems and Printing segments.
HP has reflected this changethese changes to its segment and business unit information in prior reporting periods on an as-if basis. The reporting change had no impact onto previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share.share (“EPS”).
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)

 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
Net revenue by segmentSegment Operating Results from Operations and business unit wasthe reconciliation to HP consolidated results were as follows:
 Three months ended January 31
 20232022
 In millions
Net revenue:
Commercial PS$6,429 $7,857 
Consumer PS2,786 4,339 
Personal Systems9,215 12,196 
Supplies2,857 3,068 
Commercial Printing1,056 1,039 
Consumer Printing699 724 
Printing4,612 4,831 
Corporate Investments1 1 
Total segment net revenue13,828 17,028 
Other— — 
Total net revenue$13,828 $17,028 
  
Earnings before taxes:
Personal Systems$497 $954 
Printing870 872 
Corporate Investments(33)(74)
Total segment earnings from operations1,334 1,752 
Corporate and unallocated costs and other(92)(120)
Stock-based compensation expense(167)(133)
Restructuring and other charges(141)(68)
Acquisition and divestiture charges(84)(20)
Amortization of intangible assets(85)(52)
Interest and other, net(181)(32)
Total earnings before taxes$584 $1,327 

13
 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, 20182023 and 20172022 summarized by plan were as follows:

Fiscal 2023 Plan
SeveranceNon-labor
Other prior-year Plans(1)
Total
In millions
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 
Total costs incurred to date as of January 31, 2023$122 $9 $865 $996 
Reflected in Consolidated Condensed Balance Sheets
Other current liabilities$67 $— $8 $75 
Accrued balance as of October 31, 2021$— $— $75 $75 
Charges— — 67 67 
Cash payments— — (98)(98)
Non-cash and other adjustments— — (7)(7)
Accrued balance as of January 31, 2022$— $— $37 $37 

13
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 plan (the “Fiscal 2017 Plan”),the Fiscal 2023 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$1.0 billion relating to labor and non-labor actions. HP estimates thatexpects to incur approximately half of$0.7 billion primarily in labor costs related to workforce reductions and 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 are distinct from ongoing operational costs. These costs primarily relate to information technology costs such as advisory, consultingthird-party professional services and non-recurring laborother costs. For the three months ended January 31, 20182023 and 2017,2022, HP incurred $13$10 million and $31$1 million of other charges, respectively.

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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 31 Three 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 202320222023202220232022
In millions In millions
Service cost$—
 $—
 $14
 $12
 $—
 $—
Service cost$— $— $9 $14 $— $— 
Interest cost113
 117
 6
 4
 4
 4
Interest cost54 40 10 6 4 2 
Expected return on plan assets(181) (169) (10) (8) (6) (6)Expected return on plan assets(65)(74)(13)(13)(3)(2)
Amortization and deferrals: 
  
  
  
  
  
Amortization and deferrals:      
Actuarial loss (gain)15
 18
 7
 10
 (4) (2)Actuarial loss (gain)5 1 1 10 (4)(4)
Prior service benefit—
 —
 (1) (1) (5) (5)
Net periodic (credit) benefit cost(53) (34) 16
 17
 (11) (9)
Prior service cost (credit)Prior service cost (credit)— — 1 2 (3)(3)
Net periodic benefit (credit) costNet periodic benefit (credit) cost(6)(33)8 19 (6)(7)
Settlement loss1
 —
 —
 —
 —
 —
Settlement loss— — 1 — — — 
Total periodic (credit) benefit cost$(52) $(34) $16
 $17
 $(11) $(9)
Total periodic benefit (credit) costTotal periodic benefit (credit) cost$(6)$(33)$9 $19 $(6)$(7)
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 2018,2023, HP anticipates making contributions of approximately $24$36 million to its non-U.S. pension plans, approximately $33$32 million to its U.S. non-qualified plan participants and approximately $7$4 million to cover benefit claims under HP’s post-retirement benefit plans. During the three months ended January 31, 2018,2023, HP contributed $11$13 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 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 permit the issuance of restricted stock awards, stock options and performance-based awards.
Stock-based compensation expense and the resulting tax benefits were 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. For 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 fair value of service-based restricted stock units. HP estimates the fair value of restricted stock units subject to performance-adjusted vesting conditions using a combinationAs part 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 conditionsFiscal 2023 Plan, HP announced a voluntary enhanced early retirement (EER) program for its U.S. employees in January 2023. Voluntary participation in the Monte Carlo simulation model wereEER program was limited to employees at least 55 years old with 10 or more years of service at HP. Employees accepted into the EER program will leave HP on dates ranging from March 15, 2023 to October 31, 2023. The U.S. defined benefit pension plan will be amended to provide that the EER benefit will be paid from the plan for electing EER participants who are current participants in the pension plan. The retirement incentive benefit will be calculated as follows:a lump sum based on years of service at HP at the time of retirement, ranging from 20 to 52 weeks of pay. All employees participating in the EER program are offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement. In addition, HP is providing up to $12,000 in employer credits under the Retirement Medical Savings Account program. HP will recognize a special termination benefits expense as restructuring and other charges.


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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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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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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%)16.6% and 21.2%18.2% for the three months ended January 31, 20182023 and 2017,2022, 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 and 2022, was primarily due to the impacttax effects of U.S. tax reform, and favorable tax rates associated with certain earnings from HP’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 $12 million of other net tax benefits. During the three months ended January 31, 2023, discrete items in the provision for taxes and excess tax benefits of $32 million, $18 millionassociated with stock options, restricted stock units and $12 million, respectively, offset by uncertain tax position charges of $43 million.performance-adjusted restricted stock units were immaterial.
During the three months ended January 31, 2017,2022, HP recorded $1$26 million of net income tax benefitcharges related to discrete items in the provision for taxes. This amountThese amounts included aincome tax benefitcharges of $17$39 million related to uncertainwithholding taxes on undistributed foreign earnings and were partially offset by income tax positions and a tax benefitbenefits of $19

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

$12 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.
Duringcharges for the three months ended January 31, 2018, in2022. In addition to the discrete items mentioned above, HP recorded excess tax benefits of $28.0$37 million onassociated with stock options, restricted stock units and performance adjustedperformance-adjusted restricted stock units which are reflected infor 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.three months ended January 31, 2022.
Uncertain Tax Positions
As of January 31, 2018,2023, the amount of gross unrecognized tax benefits was $9.8$1.0 billion, of which up to $3.4 billion$807 million would affect HP’s effective tax rate if realized. The amount ofTotal gross unrecognized tax benefits decreased by $1.0 billion$14 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.2023. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Condensed Statements of Earnings. As of January 31, 2018,2023 and 2022, HP had accrued $278$73 million and $75 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$51 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, 2023October 31, 2022
 In millions
Cash and cash equivalents$1,405 $3,145 
Restricted cash (1)
364 — 
$1,769 $3,145 
(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, 2023
In millions
Balance at beginning of period$107 
Benefit of allowance for credit losses(16)
Deductions, net of recoveries(2)
Balance at end of period$89 
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, 20182023 and October 31, 2017 were not material. The2022 and the costs associated with the salessale of trade receivables for the three months ended January 31, 20182023 and 20172022 were not material.
The following is a summary of the activity under these arrangements:

Three months ended January 31
 2023 2022
 In millions
Balance at beginning of period(1)
$185 $131 
Trade receivables sold3,679 2,967 
Cash receipts(3,753)(2,973)
Foreign currency and other17 (4)
Balance at end of period(1)
$128 $121 
(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 7:6: Supplementary Financial Information (Continued)

Inventory
 As of
 January 31, 2023October 31, 2022
 In millions
Finished goods$4,146 $4,885 
Purchased parts and fabricated assemblies3,198 2,710 
$7,344 $7,595 
 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, 2023October 31, 2022
January 31, 2018 October 31, 2017 In millions
Prepaid and other current assetsPrepaid and other current assets$1,685 $2,170 
Supplier and other receivablesSupplier and other receivables1,279 1,377 
Value-added taxes receivableValue-added taxes receivable916 968 
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
$5,691
 $5,121
$3,880 $4,515 
_________________________
(1)See Note 8, “Fair Value” and Note 9, “Financial Instruments” for detailed information.
Property, Plant and Equipment, net
 As of
 January 31, 2023October 31, 2022
 In millions
Land, buildings and leasehold improvements$2,259 $2,255 
Machinery and equipment, including equipment held for lease5,381 5,337 
7,640 7,592 
Accumulated depreciation(4,876)(4,818)
$2,764 $2,774 
 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, 2023October 31, 2022
 In millions
Deferred tax assets$2,453 $2,159 
Intangible assets1,858 1,933 
Right-of-use assets1,242 1,236 
Deposits and prepaid564 588 
Prepaid pension asset548 565 
Other822 990 
$7,487 $7,471 
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 7:6: 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, 2023October 31, 2022
 In millions
Sales and marketing programs$3,022 $2,967 
Deferred revenue1,379 1,393 
Other accrued taxes1,059 1,064 
Employee compensation and benefit803 954 
Warranty609 619 
Operating lease liabilities431 405 
Tax liability270 286 
Other3,546 2,963 
$11,119 $10,651 
 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, 2023October 31, 2022
In millions
Deferred revenue$1,187 $1,171 
Tax liability925 931 
Operating lease liabilities903 875 
Pension, post-retirement, and post-employment liabilities602 600 
Deferred tax liability52 121 
Other819 858 
$4,488 $4,556 
 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, net
 Three months ended January 31
 20232022
 In millions
Interest expense on borrowings$(143)$(61)
Loss on extinguishment of debt(8)— 
Non-operating retirement-related credits11 36 
Other, net(41)(7)
$(181)$(32)
 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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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)

Note 6: Supplementary Financial Information (Continued)

Net revenue by region
Three months ended January 31
 20232022
 In millions
Americas$5,773 $6,859 
Europe, Middle East and Africa4,640 5,936 
Asia-Pacific and Japan3,415 4,233 
Total net revenue$13,828 $17,028 

Value of Remaining Performance Obligations
    As of January 31, 2023, the estimated value of transaction price allocated to remaining performance obligations was $3.6 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $1.9 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, 2023 and October 31, 2022, HP’s contract liabilities balances were $2.5 billion respectively, and included in Other current liabilities and Other non-current liabilities in the Consolidated Condensed Balance Sheets.
The contract liabilities balance remained flat as of January 31, 2023, driven by sales of fixed-price support and maintenance services, partially offset by $0.5 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022.


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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, 2023As of October 31, 2022
 Fair Value Measured UsingFair Value Measured Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
 In millions
Assets:        
Cash Equivalents:        
Corporate debt$— $520 $— $520 $— $904 $— $904 
Government debt(1)
292 — — 292 1,289 — — 1,289 
Available-for-Sale Investments:
Financial institution instruments— 5 — 5 — 5 — 5 
Marketable securities and mutual funds18 47 — 65 17 41 — 58 
Derivative Instruments:     
Foreign currency contracts— 330 — 330 — 1,088 — 1,088 
Other derivatives— 8 — 8 — 2 — 2 
Total assets$310 $910 $— $1,220 $1,306 $2,040 $— $3,346 
Liabilities:        
Derivative Instruments:        
Interest rate contracts$— $64 $— $64 $— $78 $— $78 
Foreign currency contracts— 496 — 496 — 295 — 295 
Other derivatives— — — — — 1 — 1 
Total liabilities$— $560 $— $560 $— $374 $— $374 
 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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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8:7: 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$10.0 billion as of January 31, 2018, compared to its carrying amount of $7.9$10.8 billion at that date.January 31, 2023. The fair value of HP’s short- and long-term debt was $8.1$9.6 billion as of October 31, 2017, compared to its carrying value of $7.8$11.0 billion at that date.October 31, 2022. 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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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, 2023As of October 31, 2022
 CostGross Unrealized GainGross Unrealized LossFair ValueCostGross Unrealized GainGross Unrealized LossFair Value
 In millions
Cash Equivalents:        
Corporate debt$520 $— $— $520 $904 $— $— $904 
Government debt292 — — 292 1,289 — — 1,289 
Total cash equivalents812 — — 812 2,193 — — 2,193 
Available-for-Sale Investments:     
Financial institution instruments5 — — 5 5 — — 5 
Marketable securities and mutual funds53 12 — 65 50 8 — 58 
Total available-for-sale investments58 12 — 70 55 8 — 63 
Total cash equivalents and available-for-sale investments$870 $12 $— $882 $2,248 $8 $— $2,256 
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, 20182023 and October 31, 2017,2022, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

Contractual maturities of investments in available-for-sale debt securities were as follows:
 As of January 31, 2023
 Amortized CostFair Value
 In millions
Due in one year$18 $18 
 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 million and $37$110 million as of each of January 31, 20182023 and October 31, 2017, 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, 2023.
Derivative Instruments
HP uses derivatives to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and at times, option contracts to hedge certain foreign currency, interest rate and to a lesser extent, equityreturn on certain investment 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.
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 derivative fair values exceed contractually established thresholds which are
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8: Financial Instruments (Continued)
generally based on the credit ratings of HP and its counterparties. If HP’s or the counterparty’s credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives’ net liability position. The Company includes gross collateral posted and received in other current assets and other current liabilities in the Consolidated Condensed Balance Sheets, respectively. The fair value of derivatives with credit contingent features in a net liability position was $765$238 million and $258$82 million as of January 31, 20182023 and as of October 31, 2017,2022, respectively, all of which were fully collateralized within two business days.
Under HP’s derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP’s financial position or cash flows as of January 31, 20182023 and October 31, 2017.2022.
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, and at times, option contracts, treasury rate locks and forward 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(loss) income 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, 20182023 and 2017,2022, 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.

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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8: Financial Instruments (Continued)
Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets
The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:
 As of January 31, 2023As of October 31, 2022
 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
Derivatives designated as hedging instruments     
Fair value hedges:     
Interest rate contracts$750 $— $— $— $64 $750 $— $— $— $78 
Cash flow hedges:
Foreign currency contracts16,314 230 93 412 69 16,014 820 256 206 72 
Total derivatives designated as hedging instruments17,064 230 93 412 133 16,764 820 256 206 150 
Derivatives not designated as hedging instruments    
Foreign currency contracts4,594 7 — 15 — 4,554 12 — 17 — 
Other derivatives123 8 — — — 122 2 — 1 — 
Total derivatives not designated as hedging instruments4,717 15 — 15 — 4,676 14 — 18 — 
Total derivatives$21,781 $245 $93 $427 $133 $21,440 $834 $256 $224 $150 

25
 As of January 31, 2018 As of October 31, 2017
 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
 In millions
Derivatives designated as hedging instruments 
  
  
  
  
  
  
  
  
  
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
Total derivatives designated as hedging instruments18,401
 29
 4
 590
 227
 18,649
 92
 12
 245
 112
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
Table of Contents
HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8: Financial Instruments (Continued)
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, 20182023 and October 31, 2017,2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:

 In the Consolidated Condensed Balance Sheets  
 (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, 2023       
Derivative assets$338 $— $338 $288 $24 (1)$26 
Derivative liabilities$560 $— $560 $288 $264 (2)$8 
As of October 31, 2022       
Derivative assets$1,090 $— $1,090 $290 $616 (1)$184 
Derivative liabilities$374 $— $374 $290 $86 (2)$(2)
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:
Derivative 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 millions
Three months ended January 31
Interest rate contractFixed-rate debtInterest and other, net2023$(181)$14 $(14)
2022$(32)$(11)$11 
26
   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
    In millions     In millions
Interest rate contracts Interest and other, net $(40) $(52) Fixed-rate debt Interest and other, net $40
 $52
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 8: Financial Instruments (Continued)
The pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended January 31, 2018included in Accumulated other comprehensive (loss) income was as follows:
Three months ended January 31
20232022
In millions
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives:
Foreign currency contracts$(623)$280 
Interest rate contracts$— $19 
 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
2023202220232022
In millions
Net revenue$13,828 $17,028 $386 $57 
Cost of revenue(11,019)(13,643)(54)(14)
Other operating expenses(2,044)(2,026)(1)1 
Interest and other, net(181)(32)3 — 
Total$334 $44 
As of January 31, 2018,2023, HP expects to reclassify an estimated accumulated other comprehensive loss (“AOCI”)(loss) income of $500approximately $193 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions. The amounts ultimately reclassified into earnings could be different from the amounts previously included in AOCIAccumulated other comprehensive loss based on the change of market rate, and therefore could have a different impact on earnings.
The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Condensed Statements of Earnings for the three months ended January 31, 20182023 and 20172022 was as follows:
Gain/(loss) recognized in earnings on derivative instrument
 Three months ended January 31
 Location20232022
  In millions
Foreign currency contractsInterest and other, net$(44)$(36)
Other derivativesInterest and other, net6 (11)
Total $(38)$(47)


27
 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
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HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings (Continued)
(Unaudited)
Note 10:9: 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)

As of January 31, 2023As of October 31, 2022
As of January 31, 2018 As of October 31, 2017 Amount
Outstanding		Weighted-Average
Interest Rate		Amount
Outstanding		Weighted-Average
Interest Rate
Amount
Outstanding		 Weighted-Average
Interest Rate		 Amount
Outstanding		 Weighted-Average
Interest Rate		 In millions
In millions   In millions  
Commercial paper$966
 1.8% $943
 1.8%
Current portion of long-term debt526
 2.9% 96
 3.5%Current portion of long-term debt$171 5.5 %$165 5.4 %
Notes payable to banks, lines of credit and other37
 1.3% 33
 1.5%Notes payable to banks, lines of credit and other251 4.2 %53 0.6 %
$1,529
  
 $1,072
  
$422  $218  
Long-Term Debt
 As of
 January 31, 2023October 31, 2022
 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 2.2%, due June 20251,149 1,149 
$1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027997 997 
$850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030848 848 
$1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026999 999 
$1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031(2)
996 996 
$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 20321,000 1,000 
$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 2029(3)
5 500 
10,188 10,683 
Other borrowings at 0.51%- 8.30%, due in calendar years 2023-2029457 436 
Fair value adjustment related to hedged debt(64)(78)
Unamortized debt issuance cost(73)(80)
Current portion of long-term debt(171)(165)
Total long-term debt$10,337 $10,796 
 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 timefinance or refinance, in whole or in 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 living natural resources and land use; and socioeconomic advancement and empowerment.
(3)During the quarter ended January 31, 2023, HP repurchased or redeemed and settled $495 million of the March 2029 Notes related to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants.the August 2022 Poly acquisition.
As disclosed in Note 9,8, “Financial Instruments”, HP uses interest rate swaps to mitigate some of the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates 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, 2018,2023, HP maintained two 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. HP’s euro commercial paper program provides for the issuance of commercial paper outside of the United States

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HP INC. AND SUBSIDIARIES
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 and certain short term borrowings at any one time cannot exceed thea $6.0 billion authorizedauthorization by HP’s Board of Directors.
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HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 9: Borrowings (Continued)
Credit Facility
As of January 31, 2018,2023, 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 on May 26, 2021. Commitments under the revolving credit facility will be available until April 2, 2019.May 26, 2026. Commitment fees, interest rates and other terms of borrowing under the revolving credit facilitiesfacility vary based on HP’s external credit ratings. ratings and certain sustainability metrics. Funds borrowed under the revolving credit facility may be used for general corporate purposes.
As of January 31, 2018,2023, HP was in compliance with the financial covenants in the credit agreement 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.
Available Borrowing Resources
As of January 31, 2018,2023, HP and its subsidiaries had available borrowing resources of $742$975 million from uncommitted lines of credit in addition to the commercial paper and revolving credit facilities discussed above.facility.


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, 2018,2023, HP executed share repurchases of 203.6 million shares.shares and settled total shares for $0.1 billion. During the three months ended January 31, 2022, HP executed share repurchases of 42 million shares and settled total shares for $1.5 billion. Share repurchases executed during the three months ended January 31, 20182022 included 0.61.1 million shares settled in February 2018. During the three months ended January 31, 2018, HP settled total shares for $0.5 billion. During the three months ended January 31, 2017, HP executed share repurchases of 27 million shares and settled total shares for $0.4 billion.2022.
The shares repurchased during the three months ended January 31, 20182023 and 20172022 were all open market repurchase transactions. As of January 31, 2018,2023, HP had approximately $2.0 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.


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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 11: Stockholder’s10: Stockholders' Deficit (Continued)

Tax effects related to Other Comprehensive Income (Loss) Income
 Three months ended January 31
 20232022
 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 (provision) on unrealized (losses) gains arising during the period$106 $(32)
Tax provision on gains reclassified into earnings78 12 
184 (20)
  
Tax provision (benefit) on gains (losses) arising during the period9 (6)
Tax benefit on amortization of actuarial loss and prior service benefit— (1)
9 (7)
Tax effect on change in cumulative translation adjustment— 1 
Tax benefit (provision) on other comprehensive (loss) income$192 $(26)
 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,Income (Loss), net of taxes
 Three months ended January 31
 20232022
 In millions
Other comprehensive (loss) income, net of taxes:  
Change in unrealized components of available-for-sale debt securities:  
Unrealized gains (losses) arising during the period$3 $(2)
Change in unrealized components of cash flow hedges: 
Unrealized (losses) gains arising during the period(517)267 
Gains reclassified into earnings(256)(32)
(773)235 
Change in unrealized components of defined benefit plans:  
(Losses) gains arising during the period(29)15 
Amortization of actuarial loss and prior service benefit(1)
— 5 
Curtailments, settlements and other1 — 
(28)20 
Change in cumulative translation adjustment29 (9)
Other comprehensive (loss) income, net of taxes$(769)$244 
 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)

(1)These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans”.
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 11: Stockholder’s10: Stockholders' 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,(loss) income, net of taxes and changes were as follows:
 Three months ended January 31, 2023
 Net unrealized
gains on
available-for-sale debt
securities		Net unrealized (losses) gains on cash
flow hedges		Unrealized
components
of defined
benefit plans		Change in cumulative
translation
adjustment		Accumulated
other
comprehensive
(loss) income
 In millions
Balance at beginning of period$6 $648 $(295)$(46)$313 
Other comprehensive income (loss) before reclassifications3 (517)(29)29 (514)
Reclassifications of gains into earnings— (256)— — (256)
Reclassifications of settlements into earnings— — 1 — 1 
Balance at end of period$9 $(125)$(323)$(17)$(456)

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 12:11: Net 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
 20232022
 In millions, except per share amounts
Numerator:  
Net earnings$487 $1,086 
Denominator:  
Weighted-average shares used to compute basic net EPS989 1,081 
Dilutive effect of employee stock plans7 13 
Weighted-average shares used to compute diluted net EPS996 1,094 
Net earnings per share:  
Basic$0.49 $1.00 
Diluted$0.49 $0.99 
Anti-dilutive weighted-average stock-based compensation awards(1)
7 3 
(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, 2018,2023, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP’s financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. 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 environment 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 based 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 chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on 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 of levies to digital products, HP’s assessments of the merits of various proceedings and HP’s
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 12: Litigation and Contingencies (Continued)
estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the ongoing disputes.
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. On March 20, 2017,putative nationwide ADEA collectives, a third-party administrator notified eligible former employees of their right to opt into the defendants filed additional motions to compel arbitration as to a number of theADEA collective. This opt-in plaintiffs. On September 20, 2017, the Court granted the motions to compel arbitration as to the plaintiffsperiod closed on February 15, 2022. Plaintiffs seek monetary damages, punitive damages, 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.other relief.
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 Officeprior stay has been lifted.
Caltech Patent Litigation. On November 11, 2020, the California Institute of Technology (“Caltech”) filed a complaint against HP for patent infringement in the Russian Federation. The approximately $35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and wasfederal court for the deliveryWestern 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 installation of an IT network.8,284,833. The German PPO issued an indictment of four individuals, including one currentaccused products are HP commercial 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. On August 29, 2017, the Regional Court 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.

consumer PCs
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 13:12: Litigation and Contingencies (Continued)

as well as wireless printers that comply with the IEEE 802.11n, 802.11ac, and/or 802.11ax standards. Caltech seeks unspecified damages and other relief. The court stayed the case pending the decision by the U.S. Court of Appeals for the Federal Circuit in The California Inst. of Tech. v. Broadcom Ltd et al., Case No. 2020-2222, which was issued on February 4, 2022. On March 12, 2022, the parties filed a status report regarding whether the court should lift the stay, which remains pending.
Class ActionsIn re Authentication of Supplies
Five purported consumerHP Inc. Securities Litigation (Electrical Workers Pension Fund, Local 103, I.B.E.W. v. HP Inc., et al.).  On February 19, 2020, Electrical Workers Pension Fund, Local 103, I.B.E.W. filed a putative class actions were filedaction complaint against HP, arising out of the supplies authentication protocolDion Weisler, Catherine Lesjak, and Steven Fieler in certain OfficeJet printers.  This authentication protocol rejects some third-party ink cartridges that use non-HP security chips.  Two of the cases were dismissed, and the remaining cases have been consolidated in the United StatesU.S. District Court forin the Northern District of California, captioned In re HP Printer Firmware Update Litigation.California. The remaining plaintiffs’ operative consolidated complaint was filed on March 22, 2017, alleging eleven causescourt appointed the State of action: (1) unfair and unlawful business practices in violationRhode Island, Office of the Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.; (2) fraudulent business practices in violationGeneral Treasurer, on behalf of the Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.; (3) violationsEmployees’ Retirement System of Rhode Island and Iron Workers Local 580 Joint Funds as Lead Plaintiffs. Lead Plaintiffs filed an amended complaint, which additionally named as defendants Enrique Lores and Christoph Schell. HP and the 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. 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, HPnamed officers filed a motion to dismiss the consolidated complaint.complaint for failure to state a claim upon which relief can be granted. The court held a hearing on July 14, 2017.granted HP’s motion to dismiss and granted plaintiffs leave to amend the complaint. Plaintiffs’ second amended complaint, which no longer names Christoph Schell as a defendant, alleges, among other things, that from February 23, 2017 to October 3, 2019, HP and the named officers violated Sections 10(b) and 20(a) of the Exchange Act by making false or misleading statements about HP’s printing supplies business. It further alleges that Dion Weisler and Enrique Lores violated Sections 10(b) and 20A of the Exchange Act by allegedly selling shares of HP common stock during this period while in possession of material, non-public adverse information about HP’s printing supplies business. Plaintiffs seek compensatory damages and other relief. HP and the named officers filed a motion to dismiss the second amended complaint for failure to state a claim upon which relief can be granted. On September 15, 2021, the court granted HP’s motion. Plaintiffs appealed the decision. An appellate hearing scheduled for December 5, 2022 was cancelled as the parties have reached a settlement in principle.
York County on behalf of the County of York Retirement Fund v. HP Inc., et al., and related proceedings. On November 5, 2020, York County, on behalf of the County of York Retirement Fund, filed a putative class action complaint against HP, Dion Weisler, and Catherine Lesjak in federal court in the Northern District of California. The court appointed Maryland Electrical Industry Pension Fund as Lead Plaintiff. Lead Plaintiff filed a consolidated complaint, which additionally names as defendants Enrique Lores and Richard Bailey. The complaint alleges, among other things, that from November 5, 2015 to June 21, 2016, HP and the named current and former officers violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP’s printing supplies business. Plaintiffs seek compensatory damages and other relief. HP and the named 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 are appealing the decision. The appellate hearing was held on February 6, 2023. 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 Northern District of California, and the case was stayed pending a ruling on the motion to dismiss in York County. On January 13, 2022, stockholder Gerald Lovoi filed a derivative complaint in federal court in the Northern District of California against the same current and former officers and directors named in the Franklin action. The complaint alleges the same basic claims based on the same alleged conduct as the Franklin action and seeks similar relief. By stipulation of the parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County. Both derivative actions will remain stayed until any appeal related to the York decision has been exhausted.
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 12: Litigation and Contingencies (Continued)
Legal Proceedings re Authentication of Supplies. Since 2016, HP has from time to time been named in civil litigation, or been the subject of government investigations, involving supplies authentication protocols used in certain HP printers in multiple geographies, including but not limited to the United States, Italy, Israel, the Netherlands, and New Zealand. The supplies authentication protocols are often referred to as Dynamic Security. The core allegations in these proceedings claim misleading or inadequate consumer notifications and permissions pertaining to the use of Dynamic 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 and Israel 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 and April 2022, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers and HP Inkjet printers, respectively. Plaintiffs in both cases seek compensatory damages, restitution, injunctive relief against alleged unfair business practices, and other relief. The cases are in their early stages. In late 2022, the New Zealand competition authority opened an investigation regarding whether firmware updates and security measures allegedly restrict competition for cartridges for HP and non-HP branded printers and whether these practices constitute an alleged misuse of market power. HP has responded to requests for information, and there is no schedule for anticipated next steps.
Autonomy-Related Legal Matters
Investigations. As a result of the findings of an ongoinginternal investigation, HP has provided information to the U.K. Serious Fraud Office,government authorities, including the U.S. Department of Justice (“DOJ”) and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior tobefore and in connection with HP’s 2011 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. OnIn 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, securities fraud, and multiple counts of wire fraud. The indictment allegesalleged that Mr. Hussain engaged in a scheme to defraud purchasers and sellers of securities of Autonomy and HP about theAutonomy’s true financial performance and condition. On April 30, 2018, a jury found Mr. Hussain guilty of Autonomy’s business, its financial condition,all charges against him, and its prospects for growth.  Trialthat judgment was affirmed on appeal in this matter is scheduled to begin on February 26, 2018. OnAugust 2020. In November 15, 2016, the SEC announced that Stouffer Egan, the2018, a federal grand jury indicted Michael Lynch, former CEO of Autonomy’s U.S.-based operations, settled charges relatingAutonomy, and Stephen Chamberlain, former VP of Finance of Autonomy. The indictment charged Mr. Lynch and Mr. Chamberlain with conspiracy to commit wire fraud and multiple counts of wire fraud. On January 28, 2022, the U.K. Home Office approved U.S. demands to have Mr. Lynch extradited to face the charges. In February 2022, Mr. Lynch sought permission to appeal, and his participation in an accounting scheme to meet internal sales targets and analyst revenue expectations.request is pending. 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 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP’s acquisition of Autonomy and the financial performance of HP’s enterprise services business. The lawsuits also allege that 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, the court issued an order granting preliminary approval to the settlement. On July 24, 2015, the court held a hearing to entertain any remaining objections to the settlement and decide whether to grant final approval of the settlement. On July 30, 2015, the court granted final approval to the settlement and denied all remaining objections to the settlement. Three objectors to the settlement appealed the court’s final approval order to the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit). Plaintiffs-appellants filed their opening briefs on December 30, 2015. HP’s response brief was filed on February 29, 2016, and the reply briefs were filed on May 12, 2016. Oral argument occurred on May 15, 2017. On November 28, 2017, the final approval order was affirmed by the Ninth Circuit.
Autonomy Corporation Limited v. Michael Lynch and Sushovan Hussain. 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 by causing Autonomy group companies to engage in improper transactions and accounting practices. On October 1, 2015, Messrs. Lynch and Hussain filed their defenses. Mr. Lynch also filed a counterclaim against Autonomy Corporation Limited seeking $160 million in damages, among other things, for alleged misstatements regarding Lynch. Trial was completed in January 2020. On May 17, 2022, the court issued its final judgment, memorializing its findings that HP succeeded in substantially all of its claims and that Messrs. Lynch and Hussein engaged in fraud, and dismissing Mr. Lynch’s counterclaim. The court deferred its assessment of damages to a later, separate judgment to be issued after further submissions, but it has indicated that damages awarded may be substantially less than is claimed. 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 defenses and the asserted counter-claim on March 11, 2016. The parties are actively engagedwill share equally 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, that from August 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.
any recovery.
Environmental
HP’s operations    HP is, and products are subjectmay become a party to, variousproceedings brought by U.S., state, or other governmental entities or private third parties under federal, state, local, andor 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. HP is

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

also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred 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.
HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies underincluding 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
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Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 12: Litigation and Contingencies (Continued)
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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Table of environmental liabilities between Contents
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, 2023
In millions
Balance at beginning of period$876 
Accruals for warranties issued155 
Adjustments related to pre-existing warranties (including changes in estimates)10 
Settlements made (in cash or in kind)(201)
Balance at end of period$840 

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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


Item 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 companyCompany 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, 20182023 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.


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OVERVIEW
We are a leading global provider of personal computing and other 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, workstations, thin clients, Commercial tablets andcommercial mobility devices, retail point-of-salePOS systems, displays, hybrid systems (includes video conferencing solutions, cameras, headsets, voice, and other related accessories,software capabilities), 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 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 ordera Service, as the market begins to meet customer preference for mobile, thinner and lighter devices. The beginning of a market shift 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 the PCs becoming essential for hybrid work, learn and play.
We believe that we are well positioned due to our competitive product lineup.lineup along with our recent acquisitions in hybrid systems and remote-computing solutions.
•In Printing, our 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 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.
In addition to growing our subscription business, we are also focused on rebalancing system profitability to more upfront profitable hardware sales through our product offerings including HP+ and Big Tank.
We are committed to growing our hybrid systems, gaming, workforce services and solutions, consumer subscriptions, 3D and industrial graphics businesses at a rate faster than our core business with accretive margins in the longer term. Our ability to SMBsinnovate is helping us gain momentum in growth areas like hybrid systems and enterprise customers, such as multi-functiongaming, and PageWide printers, includingwe see significant opportunities to drive greater recurring revenues across Personal Systems and Printing. Our acquisition of Poly adds to our JetIntelligence lineup of LaserJet printers. The shift to contractualgrowth portfolio by bringing industry-leading video conferencing solutions, includes an increased focus on Managed Printcameras, headsets, voice and software capabilities. To drive more integration across our commercial services, software and security portfolio, we have created a new Workforce Services and Instant Ink, which presents strong after-market supplies opportunities. In the Graphics space, we are focused on innovations such as our Indigo 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.Solutions organization. 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 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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Management’s Discussionour products and Analysis of
Financial Condition and Results of Operations (Continued)

product mix. 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, and that we expect to continue facing in the short-term, are set forth below.
•In Personal Systems, we face challenges with continued increasesdecline in commodity costs, especially in memory,Personal Systems market due to demand softness and the uncertainty of the market’s ability to absorb price increases driven by higher commodity costs.competitive pricing environment.
•In Printing, we are seeing signs of stabilization of demand in consumerface challenges from non-original supplies (which includes imitation, refill, or remanufactured alternatives) and commercial markets, but are still experiencing an overall competitive pricingcompetitors with a favorable foreign currency environment. We obtained a numberalso obtain many Printing
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
components from single sourcessource 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 discipline, and developdeveloping and capitalizecapitalizing on market opportunities.
Macroeconomic Environment
Our business and financial performance also depend significantly on worldwide economic conditions. We face global macroeconomic challenges, particularly in light of the effects of the ongoing geopolitical conflicts in Ukraine, tensions across the Taiwan Strait, tariff-driven headwinds, uncertainty in the markets, volatility in exchange rates, inflationary trends and evolving dynamics in the global trade environment. During the first quarter of fiscal 2023, we observed significant market uncertainty, budget tightening by large enterprise for information technology hardware, lower consumer spending, inflationary pressures and a weakening U.S. dollar. These market dynamics, which we expect will continue in the short-term, have created new and different demand dynamics and have had significant impacts on our financial results.
In the first quarter of fiscal 2023, we continued to experience overall demand weakness and elevated industry wide reseller inventory, particularly in Personal Systems due to a challenging macroeconomic environment. This decline in revenue of Personal Systems is in line with market trends and we expect this to continue in the short-term. In Printing, we continued to see gradual and uneven recovery in Commercial and Consumer Printing, driven by the slow return of workers to the office. We continued to experience a competitive pricing environment, which we expect to continue in the short-term, due to the macroeconomic environment across Personal Systems and Printing. However, we are seeing improvements in logistics constraints and supply availability and expect these trends to continue. In fiscal 2023, we expect both Personal Systems and Printing markets to decline as compared to fiscal 2022.
In addition to the macroeconomic dynamics, we are exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with approximately 65% of our net revenue coming from outside the United States. As a result, our financial results can be, and particularly in recent periods have been, impacted by fluctuations in foreign currency exchange rates. We expect foreign currency fluctuations to continue to negatively impact our financial results in the fiscal 2023.
On May 31, 2022, we announced our decision to wind down business operations in Russia having already suspended all new shipments and paused our marketing and advertising activities in February 2022. In the second half of fiscal 2022, we recognized a charge of $23 million towards severance, cancellation of contracts, inventory write-downs and other one-time exit charges related to our decision.
We typically experience higher net revenues in our first and fourth quartersfiscal quarter compared to other quarters in our fiscal year due, in part, to seasonal holiday demand. Historical seasonal patterns shouldmay not be considered reliable indicatorscontinue in the future and have been impacted by supply constraints, shifts in customer behavior, continuing impacts of our future net revenues or financial performance.the macroeconomic challenges and different demand dynamics.
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 ourthis Annual Report on Form 10-K10-K.
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 new Fiscal 2023 plan is expected to run for three years through end of fiscal 2025. The three key elements of our Fiscal 2023 plan are digital transformation, portfolio optimization, and operational efficiency. We expect to invest some of the savings from these efforts across our businesses to be more efficient and advance our positions in Personal Systems and Printing, while also disrupting new industries where we see attractive growth opportunities. We also plan to use some of these savings to partially offset headwinds we expect to continue to see across our businesses in fiscal year ended October 31, 2017.2023 as a result of macroeconomic factors.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
We are on-track to achieve our targeted gross annual run-rate structural cost savings by the end of fiscal 2023. During the first quarter of fiscal 2023, we continued to digitize our customer support engagement using artificial intelligence (AI) based interactive voice response technology to deliver a more seamless and connected experience. We took actions, including headcount reductions, to optimize our cost in supply chain for core Printing, and also announced a voluntary enhanced early retirement program in the United States offering employees the opportunity to early retire.
For more information on our Fiscal 2023 Plan, see Note 3, “Restructuring and Other Charges,” and 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.

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 managementAs of January 31, 2023, the impact of current macroeconomic factors on our business continued to unfold. As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change in future periods. Management believes that there have been no significant changes during the three months ended January 31, 20182023 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, 2017,2022, except below:
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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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 detailmentioned in Note 6, “Taxes on Earnings” to the Consolidated Condensed Financial Statements in Item 1, “Basis of Part I of this report, which is incorporated herein by reference.Presentation”.

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.


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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
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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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
 20232022
 Dollars% of Net RevenueDollars% of Net Revenue
 Dollars in millions
Net revenue$13,828 100.0 %$17,028 100.0 %
Cost of revenue11,019 79.7 %13,643 80.1 %
Gross profit2,809 20.3 %3,385 19.9 %
Research and development403 2.9 %418 2.5 %
Selling, general and administrative1,331 9.6 %1,468 8.6 %
Restructuring and other charges141 1.1 %68 0.4 %
Acquisition and divestiture charges84 0.6 %20 0.1 %
Amortization of intangible assets85 0.6 %52 0.3 %
Earnings from operations765 5.5 %1,359 8.0 %
Interest and other, net(181)(1.3)%(32)(0.2)%
Earnings before taxes584 4.2 %1,327 7.8 %
Provision for taxes(97)(0.7)%(241)(1.4)%
Net earnings$487 3.5 %$1,086 6.4 %
 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 %

Net Revenue
For theThree months ended January 31, 2023 compared with three months ended January 31, 2018, total net2022
Net Revenue
Net revenue increased 14% (increased 13%decreased 18.8% (decreased 14.7% on a constant currency basis) as compared to the prior-year period.. U.S. net revenue increased 9%decreased 16.1% to $5.0$4.7 billion, whileand net revenue from international operations increased 17%decreased 20.1% to $9.5$9.1 billion. The increasedecrease in net revenue was primarily driven by growth in Notebooks, Desktopsdemand softness across Personal Systems and Supplies revenue and favorableas well as foreign currency impacts.impacts, partially offset by an increase in Commercial Printing.
A detailed discussion of the factors contributing to the changes in segment net revenue is included in “Segment Information” below.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
Gross Margin
For the three months ended January 31, 2018, our grossGross margin increased 0.1by 0.4 percentage points, as compared to the prior-year period, primarily driven by improved rate inlower commodity cost, mix shift towards Printing, due to productivity improvements, partially offset by higher commodity costsforeign currency impacts and competitive pricing in Personal Systems.
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% for the three months ended January 31, 2018, as compared to the prior-year period,decreased 3.6%, primarily due to continuing investmentlower variable compensation partially offset by the Poly acquisition and joint R&D partner funding received in Printing, including the acquisition of Samsung’s printer business.prior-year period.
Selling, General and Administrative (“SG&A”)
Selling, general and administrativeSG&A expense increased 14.9% for the three months ended January 31, 2018, as compareddecreased 9.3%, primarily due to the prior-year period, primarily drivenlower variable compensation partially offset by the acquisition of Samsung’s printer business and incremental go-to-market investments to support revenue growth.Poly acquisition.
Restructuring and Other Charges
Restructuring and other charges for the three months ended January 31, 2018 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 increased by $64 million, primarily due to the Separation.Poly acquisition.
Amortization of Intangible Assets
Amortization of intangible assets relates primarily to intangible assets resulting from acquisitions. Amortization of intangible assets increased by $33 million, primarily due to the Poly acquisition.
Interest and Other, Net
Interest and other, net expense increased $149 million, primarily due to higher interest expense on debt.
Provision for taxes
Our effective tax rate was 16.6% and 18.2% for the three months ended January 31, 2018 relates primarily to intangible assets resulting from the acquisition of Samsung’s printer business.
Interest2023 and Other, Net

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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

Interest and other, net expense decreased by $13 million for the three months ended January 31, 2018, as compared to the prior-year period, partially due to lower foreign currency transaction losses.
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%. Our effective tax rate was (114.1%) and 21.2% for the three months ended January 31, 2018 and 2017,2022, respectively. The difference between the U.S. federal statutory tax rate of 23%21% and the Company’sour effective tax rate for the three months ended January 31, 2018 is2023 and 2022, was primarily due to the impacttax effects of U.S. tax reform, 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 some of those earnings indefinitely outside the United States.
During the three months ended January 31, 2018,2023, we recorded $1.1 billion$56 million of net income tax benefits related to discrete items in the provision for taxes. As discussed in the Note 6 we have not yet completed our analysisThese amounts included $30 million 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 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, we recorded $1 million of net tax benefit related to2023, discrete items in the provision for taxes. This amount included a tax benefit of $17 million related to uncertain tax positionstaxes and a tax benefit of $19 million related to restructuring charges. Theseexcess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were offset by $26 million related to State tax provision to return adjustments and $9 million related to various other items.immaterial.

Segment Information
During the first quarter of fiscal 2023, the Company realigned the Personal Systems business units reporting structure. This realignment had no impact to the reportable segments identified by the Company. A description of the products and services for each segment 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
43
 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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Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)

Personal Systems
 Three months ended January 31
 20232022% Change
 Dollars in millions
Net revenue$9,215$12,196(24.4)%
Earnings from operations$497$954(47.9)%
Earnings from operations as a % of net revenue5.4 %7.8 % 
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)
 20232022
 Dollars in millionsPercentage Points
Commercial PS$6,429 $7,857 (11.7)%
Consumer PS2,786 4,339 (12.7)%
Total Personal Systems$9,215 $12,196 (24.4)%
 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, 20182023 compared with three months ended January 31, 20172022
Personal Systems net revenue increased 14.9% (increased 13.0%decreased 24.4% (decreased 19.7% on a constant currency basis) for the three months ended January 31, 2018 as compared to the prior-year period.2023. The net revenue increasedecrease was primarily due to growth27.9% decrease in Notebooks, Desktopscommercial and Workstations and favorable foreign currency impacts. The netconsumer client PCs unit volume due to demand softness, partially offset by increase in revenue increase was driven by a 7.3% increase in unit volume combined with a 7.1% increase inthe Poly acquisition. The average selling pricesprice (“ASPs”) as compared to the prior-year period. The increase in unit volume wasremained flat, primarily due to growth in Notebooksforeign currency impacts, offset by mix shifts.
Commercial PS net revenue decreased 18.2% primarily driven by unit decline due to demand softness, and Desktops. Theforeign currency impacts, partially offset by increase in ASPs washybrid systems revenue driven by the Poly acquisition.
Consumer PS net revenue decreased 35.8% driven by unit decline due to favorable pricing rate,demand softness and lower ASPs. The lower ASPs were driven by foreign currency impacts and positivecompetitive pricing, partially offset by mix shifts.
Consumer revenue increased 12.6% for the three months ended January 31, 2018 as compared to the prior-year period, driven by growth 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.
Personal Systems earnings from operations as a percentage of net revenue decreased by 0.22.4 percentage points for the three months ended January 31, 2018 as compared to the prior-year period.points. The decrease was primarily due todriven by a decline in gross margin and an increase in operating expenses as a percentage of revenue. The gross margin decreased primarily due to foreign currency impacts and competitive pricing, partially offset by a decrease in operating expenses. The decrease in gross margin was primarily due to an increase inlower commodity cost partially offset by higher ASPs.costs. Operating expenses as a percentage of net revenue decreasedincreased primarily due to operating expense management.driven by joint R&D partner funding received in the prior-year period and acquisition of Poly, partially offset by lower variable compensation.


Printing
 Three months ended January 31
 2018 2017 % Change
 Dollars in millions
Net revenue$5,076
 $4,464
 13.7%
Earnings from operations$801
 $714
 12.2%
Earnings from operations as a % of net revenue15.8% 16.0%  
The components of net revenue and the weighted net revenue change by business unit were as follows:
 Three months ended January 31
 20232022% Change
 Dollars in millions
Net revenue$4,612$4,831(4.5)%
Earnings from operations$870$872(0.2)%
Earnings from operations as a % of net revenue18.9 %18.1 % 
44
 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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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)
 20232022
 Dollars in millionsPercentage Points
Supplies$2,857 $3,068 (4.4)%
Commercial Printing1,056 1,039 0.4 %
Consumer Printing699 724 (0.5)%
Total Printing$4,612 $4,831 (4.5)%
(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, 20182023 compared with three months ended January 31, 20172022
Printing net revenue increased 13.7% (increased 12.4%decreased 4.5% (decreased 2.2% on a constant currency basis) for the three months ended January 31, 2018 as compared to the prior-year period.2023. The increasedecrease in net revenue was driven by increases in both Supplies and Hardware revenue, and favorable foreign currency impacts.impacts, partially offset by Commercial Printing. Net revenue forfor Supplies increased 10.4% as compared to the prior-year period,decreased 6.9%, primarily due to the acquisition of Samsung’s printer business. Printersoftening demand driven by market trends. Print hardware ASPs decreased 1.0% and unit volume increased 14.2% while1.7%. Print hardware ASPs increased 6.2% as compareddecreased primarily due to the prior-year period.foreign currency impacts and mix shifts, partially offset by disciplined pricing in Commercial Printing. The increase in printer unit volume was primarily driven by unit increasesincrease 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,Printing partially offset by the dilution impact from Samsung-branded low-end A4 products.unit decrease in Commercial Printing.
Net revenue for Commercial HardwarePrinting increased by 27.5% as compared to the prior-year period,1.6%, 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%13.5% increase in ASPs, partially offset by 7.5% decrease in printer unit volume and a 5.0% increase in ASPs. The unit volume increase was primarily driven by the Inkjet Home business.volume. The increase in ASPs was primarily driven by better discount management,disciplined pricing and mix shift to higher-end printers and favorableshifts, partially offset by foreign currency impacts.
Net revenue for Consumer Printing decreased 3.5%, primarily due to 6.4% decrease in ASPs, partially offset by 3.4% increase in printer unit volume. The decrease in ASPs was primarily driven by foreign currency impacts and competitive pricing.
Printing earnings from operations as a percentage of net revenue increased by 0.8 percentage points. The increase was driven by a lower operating expenses as a percentage of revenue, partially offset by a decline in gross margin. Operating expenses as a percentage of revenue decreased primarily due to lower variable compensation, R&D spend in innovation, and go-to-market initiative expenses. The decline in gross margin is primarily driven by 0.2 percentage pointsmix shifts and foreign currency impacts.
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 increase2023, 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.

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, 20172022 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 impactfuture cash
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Table of the TCJAContents
HP INC. AND SUBSIDIARIES
Management’s Discussion and the future cash Analysis of
Financial Condition and Results of Operations (Continued)
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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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, 2023October 31, 2022
 In millions
Cash and cash equivalents$1,405 $3,145 
Restricted cash$364 $— 
Total debt$10,759 $11,014 

Our key cash flow metrics were as follows:
Three months ended January 31
Three months ended January 31 20232022
2018 2017 In millions
In millions
Net cash provided by operating activities$996
 $767
Net cash (used in) provided by operating activitiesNet cash (used in) provided by operating activities$(16)$1,657 
Net cash used in investing activities(1,723) (86)Net cash used in investing activities(435)(280)
Net cash used in financing activities(795) (638)Net cash used in financing activities(925)(2,282)
Net increase (decrease) in cash and cash equivalents$(1,522) $43
Net decrease in cash, cash equivalents and restricted cashNet decrease in cash, cash equivalents and restricted cash$(1,376)$(905)
Operating Activities
Compared to the corresponding period in fiscal year 2017,2022, net cash provided by operating activities increaseddecreased by $229 million$1.7 billion for the three months ended January 31, 2018,2023, primarily due to an increase in other liabilities.unfavorable working capital changes and lower net earnings, partially offset by amounts collected and held on behalf of a third party for trade receivables previously sold and lower employee variable compensation payments.
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   As ofAs of
January 31, 2018 October 31, 2017 Change January 31, 2017 October 31, 2016 Change Y/Y Change January 31, 2023October 31, 2022ChangeJanuary 31, 2022October 31, 2021ChangeY/Y Change
Days of sales outstanding in accounts receivable (“DSO”)27
 29
 (2) 25
 30
 (5) 2
Days of sales outstanding in accounts receivable (“DSO”)28 28 — 27 30 (3)1 
Days of supply in inventory (“DOS”)43
 46
 (3) 39
 39
 —
 4
Days of supply in inventory (“DOS”)60 57 3 59 53 6 1 
Days of purchases outstanding in accounts payable (“DPO”)(97) (105) 8
 (94) (98) 4
 (3)Days of purchases outstanding in accounts payable (“DPO”)(110)(114)4 (119)(108)(11)9 
Cash conversion cycle(27) (30) 3
 (30) (29) (1) 3
Cash conversion cycle(22)(29)7 (33)(25)(8)11 
January 31, 20182023 as compared to January 31, 20172022
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, extent of receivables factoring, macroeconomic factors, 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 increase in DSO was primarily due to unfavorable foreign currency impactsrevenue linearity, partially offset by higher factoring.
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HP INC. AND SUBSIDIARIES
Management’s Discussion and revenue linearity.Analysis of
Financial Condition and Results of Operations (Continued)
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 was primarily due to leveraging our balance sheet, particularly through strategichigher inventory investments.in Print, offset by lower inventory in Personal Systems.
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 increasedecrease in DPO was primarily due to higher inventorylower purchasing volume.volume in Personal Systems.
Investing Activities
Compared to the corresponding period in fiscal year 2017,2022, net cash used in investing activities increased by $1.6 billion for the three months ended January 31, 2018, primarily due to payment 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.
Financing Activities
Compared to the corresponding period in fiscal year 2017, net cash used in financing activities increased by $0.2 billion for the three months ended January 31, 2018,2023, primarily due to a highercollateral posted for derivatives instruments of $0.3 billion, partially offset by decrease in net investment in property, plant and equipment of $0.1 billion.
Financing Activities
Compared to the corresponding period in fiscal year 2022, net cash used in financing activities decreased by $1.4 billion for the three months ended January 31, 2023, primarily due to lower share repurchases of $1.4 billion and short term borrowing activity of $0.6 billion, partially offset by debt repurchase/redemption and settlement of $0.5 billion.
Share Repurchases and Dividends
During the three months ended January 31, 2023, HP returned $0.4 billion to the shareholders in the form of share repurchases of $0.1 billion and cash dividends of $0.3 billion. As of January 31, 2023, HP had approximately $2.0 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. Depending on these factors, we may, from time to time, incur additional indebtedness or refinance existing indebtedness. Outstanding borrowings increaseddecreased to $7.9$10.8 billion as of January 31, 20182023 as compared to $7.8$11.0 billion as of October 31, 2017,2022, bearing weighted-average interest rates of 4.1%3.9% and 4.0%3.7% for January 31, 20182023 and October 31, 2017,2022, respectively.
Our weighted-average interest rate reflects the average effective interest 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, 2018,2023, we maintain amaintained the 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. Funds borrowed under thisthe revolving credit facility 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, 2023, we had the followingavailable borrowing resources available to obtain short or long-term financingof $975 million from uncommitted lines of credit in addition to the commercial paper and revolving credit facilities discussed above:facility.
 As of January 31, 2018
 In millions
2016 Shelf Registration StatementUnspecified
Uncommitted lines of credit$742
In December 2022, we filed a non-automatic shelf registration statement (the “2022 Shelf Registration Statement”) with the SEC to enable us, once the 2022 Shelf Registration Statement is declared effective by the SEC, to offer for sale, from time to time, in one or more offerings, $3.0 billion, in the aggregate, of debt securities, common stock, preferred stock, depository shares and warrants.
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,
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HP INC. AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
depending on the extent of such downgrade. We can access alternative sources of funding, including drawdowns under our credit facilities,facility, if necessary, to offset potential reductions in the market capacity for our commercial paper.

CONTRACTUAL AND OTHER OBLIGATIONS
Retirement and Post-Retirement Benefit Plan Contributions
As of January 31, 2018,2023, we anticipate making contributions for the remainder of fiscal year 20182023 of approximately $13$23 million to our non-U.S. pension plans, $23$26 million to cover benefit payments to U.S. non-qualified pension plan participants and $6$3 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 $0.7 billion. We expect to make future cash payments of approximately $190 million$0.3 billion in connectionfiscal year 2023 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, 2018,2023, we had approximately $2.6 billion$628 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.2022. Our exposure to market risk has not changed materially since October 31, 2017.2022.
Item 4. 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 as of the Evaluation Date that our disclosure controls and procedures were effective such that the information relating to HP, including our consolidated subsidiaries, required to be disclosed by us 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 changes 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, 2023 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, 2017,2022, 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, 2017.2022.
If we cannot continue to produce quality products and services, our reputation, business and financial performance may suffer.
In the course
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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, 2023.
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 2022— $— — 2,134,564 
December 20223,624 $27.60 3,624 2,034,564 
January 2023— $— — 2,034,564 
Total3,624  3,624  
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 20182023 were open market transactions. As of January 31, 2018,2023, HP had approximately $2.0 billion remaining under the share repurchase authorizations. From time-to-time HP intends to 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.applicable.
Item 6. Exhibits.
The Exhibit Index beginning on page 52 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
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
2(a)8-K001-044232.1November 5, 2015
2(b)8-K001-044232.2November 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-K001-044232.4November 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-Q001-044233(a)June 12, 1998
3(b)10-Q001-044233(b)March 16, 2001


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Exhibit

Number
Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
3(c)8-K001-044233.2October 22, 2015
3(d)8-K001-044233.1April 7, 2016
3(e)8-K001-044233.1July 26, 2017February 13, 2019
4(a)3(f)8-K001-044233.1February 20, 2020
4(a)S-3333-2151164.1December 15, 2016
4(b)S-3333-21516333-2151164.2December 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-K001-04423
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-K001-04423
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-K001-04423
4.2and 4.3
March 12, 2012
4(f)8-A/A001-044234.1June 23, 2006
4(g)10-Q001-044234(j)June 5, 2018
4(h)10-K001-044234(j)December 12, 2019
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 related 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-K001-044234.2September 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
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Table of Contents


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-K/A001-044234.1June 23, 2006
10(a)
Registrant’s 2004 Stock Incentive Plan.*
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, dated as of April 30, 2015, among 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, dated as of June 1, 2015, to the Term Loan Agreement, dated as of April 30, 2015, among the Registrant, the lenders named therein and JPMorgan Chase Bank, N.A., as administrative agent.
10-Q001-0442310(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, 2015

Exhibit

Number
Incorporated by Reference
Exhibit DescriptionFormFile No.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/A001-0442310(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-Q001-0442310(w)(w)March 2, 2017
10(x)(x)10(b)(b)
10-Q001-04423
10(x)(x)


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






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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(v)(v)(v)
10(w)(w)(w)
10(x)(x)(x)
10(y)(y)(y)
10(z)(z)(z)
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10(a)(a)(a)(a)
10(b)(b)(b)(b)
10(c)(c)(c)(c)
31.1

Exhibit
Number
31.2		Incorporated by Reference
Exhibit DescriptionFormFile No.Exhibit(s)Filing Date
31.2
32
101.INS
XBRL Instance Document.‡Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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.‡†
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, 2023, 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.



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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/ MARIE MYERS
Marie Myers
Chief Financial Officer
(Principal Financial Officer and
Authorized Signatory)
Date: March 1, 2023

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