HP INC

Previous wording

We believe that we are well positioned due to our competitive product lineup along with our recent acquisitions enhancing our portfolio of hybrid systems and remote-computing solutions.

Current wording

We believe that we are well positioned due to our competitive product lineup along with our enhanced portfolio of hybrid systems and remote-computing solutions.

Previous wording

• In Personal Systems, we face challenges with a competitive pricing environment and demand softness.

Current wording

• In Personal Systems, we face challenges with a competitive pricing environment and demand softness in certain geographic regions.

Previous wording

During the three months ended January 31, 2024, we experienced continued market uncertainty, overall demand weakness due to cautious commercial spending on information technology hardware, reduced discretionary consumer spending and a competitive pricing environment across both Personal Systems and Printing, and we anticipate these trends to persist in the short-term. These market pressures created new and different demand dynamics which adversely impacted certain regional markets, specifically China. Despite the overall macroeconomic challenges, in Personal Systems we outperformed the market in units while maintaining profitability and in Printing we continue to execute on our strategy of optimizing the geographic and product mix. Our revenue declines continued to slow sequentially, consistent with the stabilizing trends we expected heading into the year.

Current wording

During the six months ended April 30, 2024, we experienced continued market uncertainty, especially in China and EMEA, demand weakness in Printing due to cautious commercial spending on information technology hardware, reduced discretionary consumer spending and a competitive pricing environment across both Personal Systems and Printing, and we anticipate these trends to persist in the short-term. Despite the overall macroeconomic challenges, in Personal Systems PC unit volume increased due to market recovery and our year over year revenue reversed this quarter.

Previous wording

We are exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with more than 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. While the foreign currency fluctuations were favorable to our financial results in Q1’24, we expect these fluctuations to have a minimal impact to our financial results in fiscal 2024.

Current wording

We are exposed to fluctuations in foreign currency exchange rates. We have a large global presence, with more than 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. While the foreign currency fluctuations were favorable to our financial results in the first half of fiscal 2024, we expect these fluctuations to have a minimal impact to our financial results in fiscal 2024.

Previous wording

In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan is expected to run through end of fiscal year 2025. The three key elements of our Fiscal 2023 Plan are digital transformation, portfolio optimization, and operational efficiency. We are on track to achieve our gross annual run-rate structural cost savings target for fiscal year 2024 as well as the overall goal exiting fiscal year 2025.

Current wording

In November 2022, we announced our Future Ready Plan (the “Fiscal 2023 Plan” or “Future Ready”) to become a more digitally enabled company, focus investments on key growth opportunities and simplify our operating model. The Fiscal 2023 Plan is expected to run through end of fiscal year 2025. The three key elements of our Fiscal 2023 Plan are digital transformation, portfolio optimization, and operational efficiency. We are on track to achieve our gross annual run-rate structural cost savings target for fiscal year 2024 as well as the overall goal exiting fiscal year 2025.

Previous wording

We enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact both our products and solutions. Additionally, we are reducing portfolio complexity, improving continuity of supply, and increasing our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also continued to reduce our structural cost through headcount reductions and are on track to achieve our overall headcount reduction goal. We expect to continue to invest some of the savings into our growth areas and our people.

Current wording

We enhanced our digital capabilities in Workforce Solutions and continued to leverage AI to positively impact our products, solutions and operations. Additionally, we are reducing portfolio complexity, improving continuity of supply, and increasing our forecast accuracy across our business to drive reduction in our cost of sales and operating expenses. We also continued to reduce our structural cost through headcount reductions and are on track to achieve our overall headcount reduction goal. We expect to continue to invest some of the savings into our growth areas and our people.

Previous wording

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 revenue and expenses, and the disclosure of contingent liabilities. Management believes that there have been no significant changes during the three months ended January 31, 2024 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, 2023.

Current wording

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 revenue and expenses, and the disclosure of contingent liabilities. Management believes that there have been no significant changes during the six months ended April 30, 2024 to the items that we disclosed as our critical accounting estimates in MD&A in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023.

Previous wording

Products net revenue includes revenue from the sale of hardware, supplies, subscriptions and software licenses. Services net revenue includes revenue from our service offerings and support on hardware devices. For the three months ended January 31, 2024, net revenue decreased 4.4% (decreased 4.9% on a constant currency basis) as compared to the prior-year period. U.S. net revenue decreased 7.0% to $4.4 billion, and net revenue from international operations decreased 3.1% to $8.8 billion. The decrease in net revenue was primarily driven by demand softness and competitive pricing in products, partially offset by favorable foreign currency impacts while services increased nominally.

Current wording

For the six months ended April 30, 2024, total net revenue decreased 2.7% (decreased 3.1% on a constant currency basis) as compared to the prior-year period. U.S. net revenue decreased 2.4% to $8.8 billion, and net revenue from international operations decreased 2.8% to $17.2 billion. The decrease in net revenue was primarily driven by products due to demand softness in Printing and competitive pricing across our segments, partially offset by net favorable foreign currency impacts. Services revenue declined nominally.

Previous wording

For the three months ended January 31, 2024, gross margin increased by 1.7 percentage points primarily driven by products gross margin due to lower commodity and logistics costs, favorable foreign currency impacts and cost savings, partially offset by competitive pricing while services gross margin increased nominally.

Current wording

For the three and six months ended April 30, 2024, gross margin increased by 1.0 and 1.4 percentage points, respectively, primarily driven by products gross margin due to lower commodity and logistics costs, favorable foreign currency impacts and cost savings, including Future Ready transformation savings, partially offset by competitive pricing and unfavorable mix shifts while services gross margin decreased.

Previous wording

SG&A expense increased 3.9% for the three months ended January 31, 2024 primarily due to higher go-to market initiatives, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

Current wording

SG&A expense increased 4.3% for the six months ended April 30, 2024, primarily due to higher go-to market initiatives, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

Previous wording

Restructuring and other charges for the three months ended January 31, 2024 primarily relate to the Fiscal 2023 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.

Current wording

Restructuring and other charges for the three and six months ended April 30, 2024 relate primarily to the Fiscal 2023 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.

Previous wording

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 compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units from acquisitions. Acquisition and divestiture charges for the three months ended January 31, 2024 decreased by $57 million primarily due to the fiscal year 2022 Poly acquisition and continuing integration progress.

Current wording

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 compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units from acquisitions. Acquisition and divestiture charges for the three and six months ended April 30, 2024 decreased by $52 million and $109 million, respectively, primarily due to reduced integration activities associated with the fiscal year 2022 Poly acquisition.

Previous wording

Amortization of intangible assets for the three months ended January 31, 2024 primarily relate to intangible assets resulting from prior acquisitions and remained flat.

Current wording

Amortization of intangible assets for the three and six months ended April 30, 2024 relates primarily to intangible assets resulting from prior acquisitions.

Previous wording

Interest and other, net expense decreased $39 million for the three months ended January 31, 2024 primarily due to lower interest expense on debt.

Current wording

Interest and other, net expense decreased $5 million and $44 million for the three and six months ended April 30, 2024, respectively, primarily due to lower interest expense on debt, partially offset by higher factoring costs.

Previous wording

HP’s effective tax rate was 21.6% for the three months ended January 31, 2024, which did not materially differ from the U.S. federal statutory tax rate of 21%.

Current wording

Our effective tax rate was 23.8% for the three months ended April 30, 2024 and 22.7% for the six months ended April 30, 2024, which did not materially differ from the U.S. federal statutory tax rate of 21%.

Previous wording

In December 2021, the Organization for Economic Cooperation and Development (“OECD”) enacted model rules for a new global minimum tax framework (“BEPS Pillar Two”), and various governments around the world have enacted, or are in the process of enacting, legislation on this. We are in the process of assessing the tax effects of Pillar Two legislation for when it comes into effect, and we plan to treat the tax as a period cost. Due to the complexities in applying the legislation, the quantitative impact of the enacted or substantively enacted legislation is not yet reasonably estimable.

Current wording

In December 2021, the Organization for Economic Cooperation and Development (“OECD”) enacted model rules for a new global minimum tax framework (“BEPS Pillar Two”), and various governments around the world have enacted, or are in the process of enacting, legislation on this. We are in the process of assessing the tax effects of Pillar Two legislation for when it comes into effect, and we plan to treat the tax as a period cost.

Previous wording

Personal Systems net revenue decreased 4.1% (decreased 4.9% on a constant currency basis) for the three months ended January 31, 2024. The net revenue decrease was primarily due to a decline in average selling price (“ASPs”) by 7.5%, offset by a 5.1% increase in commercial and consumer client PCs unit volume as we outperformed the market in units while maintaining profitability. The decline in ASPs is primarily due to competitive pricing and unfavorable mix shifts, partially offset by favorable currency impacts. Consequently, Commercial PS net revenue decreased 5.3% primarily due to a 5.1% decline in ASPs, partially offset by a 1.9% increase in units and Consumer PS net revenue decreased 1.4% primarily due to a 10.4% decline in ASPs, partially offset by a 9.8% increase in units.

Current wording

Personal Systems net revenue increased 3.1% (increased 2.3% on a constant currency basis) for the three months ended April 30, 2024. The net revenue increase was primarily due to a 6.9% increase in PCs unit volume driven by Commercial PS, partially offset by a 3.0% decline in average selling price (“ASPs”). The decline in ASPs is primarily due to competitive pricing, partially offset by favorable currency impacts and mix shifts towards Commercial PS.

Previous wording

Personal Systems earnings from operations as a percentage of net revenue increased by 0.9 percentage points. The increase was primarily driven by an increase in gross margin, partially offset by an increase in operating expenses as a percentage of revenue. Gross margin increased primarily due to lower commodity and logistics costs, favorable foreign currency impacts and cost savings, partially offset by competitive pricing. Operating expenses as a percentage of revenue increased due to higher go-to market initiatives and higher R&D partner funding received in the prior year, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

Current wording

Personal Systems earnings from operations as a percentage of net revenue increased by 0.7 percentage points. The increase was primarily driven by an increase in gross margin, partially offset by an increase in operating expenses as a percentage of revenue. Gross margin increased primarily due to lower commodity and logistics costs, cost savings including Future Ready transformation savings, and favorable foreign currency impacts, partially offset by competitive pricing. Operating expenses as a percentage of revenue increased due to continued R&D investments, higher go-to market initiatives and variable compensation, partially offset by disciplined cost management including Future Ready transformation savings.

Previous wording

Printing net revenue decreased 5.1% (decreased 4.8% on a constant currency basis) for the three months ended January 31, 2024. The decrease in net revenue was driven by Commercial Printing and Consumer Printing, while Supplies net revenue increased nominally. Printer unit volume decreased 16.5% primarily due to demand softness and Print hardware ASPs decreased 2.8% primarily due to competitive pricing and unfavorable mix shifts.

Current wording

Printing net revenue decreased 7.8% (decreased 7.4% on a constant currency basis) for the three months ended April 30, 2024. The decrease in net revenue was driven by Consumer Printing, Commercial Printing and Supplies as well as net unfavorable foreign currency impacts. Net revenue for Supplies decreased 4.7%, primarily due to decline in the installed base and usage as well as evolving market dynamics, partially offset by disciplined pricing. Printer unit volume decreased 17.1% primarily due to demand softness and Print hardware ASPs decreased 1.0% primarily due to competitive pricing.

Previous wording

Net revenue for Commercial Printing decreased by 11.6% primarily due to a 18.3% decrease in printer unit volume due to demand softness, partially offset by a 1.0% increase in ASPs. The increase in ASPs was primarily driven by mix shifts, partially offset by competitive pricing.

Current wording

Net revenue for Commercial Printing decreased 12.2%, primarily due to a 16.9% decrease in printer unit volume due to demand softness and a 2.0% decrease in ASPs. The decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable mix shifts.

Previous wording

Printing earnings from operations as a percentage of net revenue increased by 1.0 percentage point, primarily due to a increase in gross margin, partially offset by higher operating expenses as a percentage of revenue. The increase in gross margin is primarily due to lower printer unit volume, lower commodity and logistics costs, as well as cost savings. Operating expenses as a percentage of revenue increased primarily due to go-to market initiatives, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

Current wording

Printing earnings from operations as a percentage of net revenue is flat, primarily due to an increase in gross margin, offset by higher operating expenses as a percentage of revenue. The increase in gross margin is primarily due to lower printer unit mix, lower logistics costs as well as cost savings including Future Ready transformation savings. Operating expenses as a percentage of revenue increased primarily due to continued investments and higher variable compensation, partially offset disciplined cost management including Future Ready transformation savings.

Previous wording

Net revenue for Consumer Printing decreased 22.3%, primarily due to a 9.0% decrease in ASPs and 15.4% decrease in printer unit volume. The decrease in printer unit volume was primarily due to demand softness and the decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable mix shifts.

Current wording

Net revenue for Consumer Printing decreased 19.3%, primarily due to a 16.3% decrease in print unit volume and a 4.0% decrease in ASPs. The decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable mix shifts.

Previous wording

The loss from operations in Corporate Investments for the three months ended January 31, 2024 was primarily due to expenses associated with our incubation projects and investments in digital enablement.

Current wording

The loss from operations in Corporate Investments for the three and six months ended April 30, 2024 was primarily due to expenses associated with our incubation projects and investments in digital enablement.

Previous wording

We use cash generated by operations as our primary source of liquidity. We believe that current cash, cash flow from operating activities, new borrowings, available commercial paper authorization and the credit facilities will be sufficient to meet HP’s operating cash requirements, planned capital expenditures, interest and principal payments on all borrowings, pension and post-retirement funding requirements, authorized share repurchases and annual dividend payments for the foreseeable future. Additionally, if suitable acquisition opportunities arise, the Company may obtain all or a portion of 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, 2023 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.

Current wording

We use cash generated by operations as our primary source of liquidity. We believe that current cash, cash flow from operating activities, new borrowings, available commercial paper authorization and the credit facility will be sufficient to meet HP’s operating cash requirements, planned capital expenditures, interest and principal payments on all borrowings, pension and post-retirement funding requirements, authorized share repurchases and annual dividend payments for the foreseeable future. Additionally, if suitable acquisition opportunities arise, the Company may obtain all or a portion of 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, 2023 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.

Previous wording

Compared to the corresponding period in fiscal year 2023, net cash provided by operating activities increased by $0.1 billion for the three months ended January 31, 2024, primarily due to higher net earnings and favorable working capital impacts, partially offset by amounts collected and held on behalf of a third party for trade receivables previously sold and higher variable compensation payout in the current period for fiscal year 2023.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash provided by operating activities increased by $0.1 billion for the six months ended April 30, 2024, primarily due to favorable working capital impacts and higher earnings before taxes, partially offset by changes in receivables from contract manufacturers and higher variable compensation payments.

Previous wording

DSO measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for credit losses, by a 90-day average net revenue. The decrease in DSO was primarily driven by favorable revenue linearity and improved collections.

Current wording

DSO measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for credit losses, by a 90-day average net revenue. The increase in DSO was primarily due to unfavorable revenue linearity, partially offset by higher early payments.

Previous wording

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 goods sold. The increase in DOS is primarily due to strategic buys in Personal Systems and higher in-transit sea shipments, offset by inventory reduction in Print.

Current wording

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 goods sold. The increase in DOS is primarily due to strategic buys and higher sea shipments, partially offset by operational inventory improvements.

Previous wording

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 goods sold. The increase in DPO was primarily driven by favorable payment terms with vendors.

Current wording

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 goods sold. The increase in DPO was primarily due to favorable purchase linearity and higher inventory largely as a result of strategic buys.

Previous wording

Compared to the corresponding period in fiscal year 2023, net cash used in investing decreased by $0.2 billion for the three months ended January 31, 2024, primarily due to lower collateral posted for derivative instruments.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash used in investing decreased by $0.2 billion for the six months ended April 30, 2024, primarily due to lower collateral posted for derivative instruments of $0.1 billion and lower net investment in property, plant and equipment.

Previous wording

Compared to the corresponding period in fiscal year 2023, net cash used in financing activities decreased by $0.2 billion for the three months ended January 31, 2024, primarily due the lower net payment of debt of $0.4 billion and collateral returned for derivative instruments of $0.2 billion in the prior period, partially offset by a $0.4 billion increase in share repurchases.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash used in financing activities decreased by $0.2 billion for the six months ended April 30, 2024, primarily due to the lower net payment of debt of $0.5 billion and collateral returned for derivative instruments of $0.2 billion in the prior period, partially offset by a $0.5 billion increase in share repurchases.

Previous wording

During the three months ended January 31, 2024, HP returned $0.8 billion to the shareholders in the form of cash dividends of $0.3 billion and share repurchases of $0.5 billion. As of January 31, 2024, HP had approximately $1.5 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Current wording

During the six months ended April 30, 2024, HP returned $1.1 billion to the shareholders in the form of cash dividends of $0.5 billion and share repurchases of $0.6 billion. As of April 30, 2024, HP had approximately $1.4 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Previous wording

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 as well as credit rating considerations. Depending on these factors, we may, from time to time, incur additional indebtedness or repay or refinance existing indebtedness. Outstanding borrowings increased to $9.7 billion as of January 31, 2024 as compared to $9.5 billion as of October 31, 2023, bearing weighted-average interest rates of 4.2% for both January 31, 2024 and October 31, 2023.

Current wording

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 as well as credit rating considerations. Depending on these factors, we may, from time to time, incur additional indebtedness or repay or refinance existing indebtedness. Outstanding borrowings increased to $9.6 billion as of

Previous wording

As of January 31, 2024, we maintained a 5-year sustainability-linked senior unsecured committed revolving credit facility with aggregate lending commitments of $5.0 billion which will be available until May 26, 2026. In March 2023, we also entered into a $1.0 billion senior unsecured committed revolving credit facility with a 364-day maturity. Funds borrowed under the revolving credit facilities may be used for general corporate purposes.

Current wording

As of April 30, 2024, we maintained a $5.0 billion sustainability-linked senior unsecured committed revolving credit facility which will be available until May 26, 2026. Funds borrowed under the revolving credit facility may be used for general corporate purposes. Additionally, in March 2024, the $1.0 billion senior unsecured committed 364-day revolving credit facility that HP entered into in March 2023 matured in accordance with its terms.

Previous wording

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

Current wording

As of April 30, 2024, we had available borrowing resources of $0.9 billion from uncommitted lines of credit in addition to the full capacity of the revolving credit facility.

Previous wording

Our credit risk is evaluated by major independent rating agencies based upon publicly available information as well as information they obtain during our ongoing discussions. While we currently do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, a downgrade from our current credit rating may increase the cost of borrowing under our credit facility, reduce market capacity for our commercial paper, require the posting of additional collateral under some of our derivative contracts and may have a negative impact on our liquidity and capital position and our contractual business going forward, depending on the extent of such downgrade. We can access alternative sources of funding, including drawdowns under our credit facilities, if necessary, to offset potential reductions in the market capacity for our commercial paper.

Current wording

Our credit risk is evaluated by major independent rating agencies based upon publicly available information as well as information they obtain during our ongoing discussions. While we currently do not have any rating downgrade triggers that would accelerate the maturity of a material amount of our debt, a downgrade from our current credit rating may increase the cost of borrowing under our credit facility, reduce market capacity for our commercial paper, require the posting of additional collateral under some of our derivative contracts and may have a negative impact on our liquidity and capital position and our contractual business going forward, depending on the extent of such downgrade. We can access alternative sources of funding, including drawdowns under our credit facility, if necessary, to offset potential reductions in the market capacity for our commercial paper.

Previous wording

As of January 31, 2024, we anticipate making contributions for the remainder of fiscal year 2024 of approximately $34 million to our non-U.S. pension plans, $25 million to cover benefit payments to U.S. non-qualified pension plan participants and $1 million to cover benefit claims for our post-retirement benefit plans. Our policy is to fund our pension plans so that we meet the minimum contribution required 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.

Current wording

As of April 30, 2024, we anticipate making contributions for the remainder of fiscal year 2024 of approximately $12 million to our non-U.S. pension plans and $18 million to cover benefit payments to U.S. non-qualified pension plan participants. Our policy is to fund our pension plans so that we meet the minimum contribution required 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.

Previous wording

As of January 31, 2024, we had approximately $943 million of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these obligations would result from settlements with taxing authorities. For more information on our uncertain tax positions, see Note 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.

Current wording

As of April 30, 2024, we had approximately $980 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 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.