HP INC

Previous wording

We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail POS systems, displays, hybrid systems, software, solutions, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions and services. Corporate Investments include certain business incubation and investment projects.

Current wording

We have three reportable segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktops and notebooks (including HP’s portfolio of AI PCs), detachables and convertibles, workstations, thin clients, commercial mobility devices, retail POS systems, displays, hybrid systems, software, solutions including endpoint security, and services. The Printing segment provides consumer and commercial printer hardware, supplies, solutions including endpoint security and services. Corporate Investments include certain business incubation and investment projects.

Previous wording

◦driving innovation to enable productivity and collaboration with PCs becoming essential for hybrid work, learning and play.

Current wording

◦driving innovation to enable productivity and collaboration with PCs becoming essential for hybrid work, learning and play in a secure environment.

Previous wording

• In Printing, we face challenges from our competitors with a favorable foreign currency environment and non-original supplies (which includes imitation, refill, or remanufactured alternatives). We also obtain many Printing components from single source suppliers due to technology, availability, price, quality, or other considerations.

Current wording

• In Printing, we face challenges from changing customer behaviors as well as competitors with a favorable foreign currency environment and non-original supplies (which includes imitation, refill, or remanufactured alternatives). We also obtain many Printing components from single source suppliers due to technology, availability, price, quality, or other considerations.

Previous 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.

Current wording

During the nine months ended July 31, 2024, we experienced continued demand softness, especially in China, increasing commodity costs, 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 Commercial PS recovery resulting in quarterly total net revenue growth.

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 the first half of fiscal 2024, 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 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. While the foreign currency fluctuations were unfavorable to our financial results in the nine months ended July 31, 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” 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.

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 accelerating our expected cumulative savings target for fiscal year 2024 and are on track to achieve our overall program savings.

Previous 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.

Current wording

Since announcing our Fiscal 2023 Plan, we have 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 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.

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 nine months ended July 31, 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

For the three months ended April 30, 2024, net revenue decreased 0.8% (decreased 1.2% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 2.4% to $4.4 billion, and net revenue from international operations decreased 2.5% to $8.4 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 increased PC units in Personal Systems due to market recovery and net favorable foreign currency impacts. Services revenue remained flat.

Current wording

For the three months ended July 31, 2024, net revenue increased 2.4% (increased 3.0% on a constant currency basis) as compared to the prior-year period. U.S. net revenue increased 2.9% to $5.0 billion, and net revenue from international operations increased 2.2% to $8.5 billion. The increase in products net revenue was primarily driven by Commercial PS, partially offset by lower hardware units in Printing and unfavorable currency impacts. Services net revenue remained flat.

Previous 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.

Current wording

For the nine months ended July 31, 2024, total net revenue decreased 1.0% (decreased 1.1% on a constant currency basis) as compared to the prior-year period. U.S. net revenue decreased 0.6% to $13.8 billion, and net revenue from international operations decreased 1.2% to $25.7 billion. The decrease in products net revenue was primarily driven by demand softness in Printing, partially offset by Commercial PS. Services net revenue remained flat.

Previous 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.

Current wording

For the nine months ended July 31, 2024, gross margin increased 0.9 percentage points, primarily driven by products gross margin due to lower commodity and logistics costs, and cost savings, including Future Ready transformation savings, partially offset by competitive pricing and mix shifts towards Personal Systems while services gross margin decreased.

Previous wording

R&D expense increased 6.3% and 2.7% for the three and six months ended April 30, 2024, respectively, primarily due to continued investments, partially offset by lower variable compensation and disciplined cost management including Future Ready transformation savings.

Current wording

R&D expense increased 16.7% for the three months ended July 31, 2024 primarily due to continued investments in innovation and people, partially offset by disciplined cost management including Future Ready transformation savings.

Previous wording

SG&A expense increased 4.7% for the three months ended April 30, 2024 primarily due higher variable compensation and go-to market initiatives, partially offset by disciplined cost management including Future Ready transformation savings.

Current wording

SG&A expense increased 7.8% and 5.4% for the three and nine months ended July 31, 2024, respectively, primarily due higher investment in people and go-to market initiatives, partially offset by disciplined cost management including Future Ready transformation savings.

Previous 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.

Current wording

Restructuring and other charges for the three and nine months ended July 31, 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 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.

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 nine months ended July 31, 2024 decreased by $26 million and $134 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 and six months ended April 30, 2024 relates primarily to intangible assets resulting from prior acquisitions.

Current wording

Amortization of intangible assets decreased for the three and nine months ended July 31, 2024 and relates to intangible assets resulting from prior acquisitions.

Previous 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.

Current wording

Interest and other, net expense increased $97 million and $53 million for the three and nine months ended July 31, 2024, respectively, primarily due to the net gain on extinguishment of debt as well as retirement benefits associated with our EER program in the prior year period, partially offset by lower interest expense on debt.

Previous 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%.

Current wording

Our effective tax rate was 22.6% for the three months ended July 31, 2024 and 22.7% for the nine months ended July 31, 2024, which did not materially differ from the U.S. federal statutory tax rate of 21%.

Previous 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.

Current wording

Personal Systems net revenue increased 4.9% (increased 5.3% on a constant currency basis) for the three months ended July 31, 2024. The net revenue increase was primarily due to a 3.6% increase in average selling price (“ASPs”) and a 1.1% increase in PCs unit volume driven by Commercial PS, partially offset by unfavorable currency impacts. The increase in ASPs is primarily due to disciplined pricing and mix shifts towards Commercial PS, partially offset by unfavorable currency impacts.

Previous wording

Commercial PS net revenue increased 5.5% primarily due to a 11.7% increase in units driven by market recovery, partially offset by a 4.5% decline in ASPs. The decline in ASPs is primarily due to unfavorable mix shifts and competitive pricing, partially offset by favorable foreign currency impacts.

Current wording

Commercial PS net revenue increased 7.7% primarily due to a 5.5% increase in units driven by market recovery and a 2.2% increase in ASPs. The increase in ASPs is primarily due to favorable mix shifts and disciplined pricing, partially offset by unfavorable currency impacts.

Previous wording

Consumer PS net revenue decreased 3.1% primarily due to a 1.0% decrease in units as a result of demand softness and a 2.4% decline in ASPs. The decline in ASPs was primarily due to competitive pricing, partially offset by favorable mix shifts and foreign currency impacts.

Current wording

Consumer PS net revenue decreased 1.4% primarily due to a 5.6% decrease in units as a result of demand softness, partially offset by 3.9% increase in ASPs. The increase in ASPs was primarily due to disciplined pricing and favorable mix shifts, partially offset by unfavorable currency impacts.

Previous 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.

Current wording

Personal Systems earnings from operations as a percentage of net revenue decreased by 0.2 percentage points. The decrease was primarily driven by an increase in operating expenses as a percentage of revenue, partially offset by an increase in gross margin. Gross margin increased primarily due to disciplined pricing and cost savings including Future Ready transformation savings, partially offset by higher commodity costs. Operating expenses as a percentage of revenue increased due to continued investments in innovation and people, partially offset by disciplined cost management including Future Ready transformation savings.

Previous wording

Personal Systems net revenue decreased 0.7% (decreased 1.5% on a constant currency basis) for the six months ended April 30, 2024. The net revenue decrease was primarily due to a 5.4% decline in average selling price, partially offset by a 6.0% increase in commercial and consumer PCs unit volume driven by market recovery. The decline in ASPs is primarily due to competitive pricing.

Current wording

Personal Systems net revenue increased 1.2% (increased 0.8% on a constant currency basis) for the nine months ended July 31, 2024. The net revenue increase was primarily due to a 4.2% increase in PCs unit volume in both Commercial and Consumer PS due to market recovery, partially offset by a 2.3% decline in ASPs. The decline in ASPs is primarily due to competitive pricing, partially offset by favorable mix shifts and currency impacts.

Previous wording

Commercial PS net revenue decreased 0.1% primarily due to a 4.9% decline in average selling price, largely offset by a 6.7% increase in PC unit volume. The decline in ASPs is primarily due to unfavorable mix shifts and competitive pricing.

Current wording

Commercial PS net revenue increased 2.5% primarily due to a 6.3% increase in PC unit volume, partially offset by a 2.5% decline in ASPs. The decline in ASPs is primarily due to unfavorable mix shifts and competitive pricing, partially offset by favorable currency impacts.

Previous wording

Consumer PS net revenue decreased 2.1% due to a 6.9% decline in average selling price, partially offset by a 4.8% increase in PC unit volume. The lower ASPs were driven by competitive pricing.

Current wording

Consumer PS net revenue decreased 1.9% due to a 3.2% decline in ASPs, partially offset by a 1.0% increase in PC unit volume. The lower ASPs were driven by competitive pricing, partially offset by favorable currency impacts.

Previous wording

Personal Systems earnings from operations as a percentage of net revenue increased by 0.9 percentage points. The increase was 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 cost as well as Future Ready transformation savings and favorable foreign currency impacts, partially offset by competitive pricing. Operating expenses as a percentage of revenue increased primarily driven by continued R&D investments and higher go-to market initiatives, 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 0.5 percentage points. The increase was 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 cost as well as Future Ready transformation savings and favorable foreign currency impacts, partially offset by competitive pricing. Operating expenses as a percentage of revenue increased primarily driven by continued investments in innovation and higher go-to market initiatives, partially offset by disciplined cost management including Future Ready transformation savings.

Previous 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.

Current wording

Printing net revenue decreased 2.8% (decreased 1.9% on a constant currency basis) for the three months ended July 31, 2024. The decrease in net revenue was driven by Commercial Printing and Supplies as well as net unfavorable foreign currency impacts. Net revenue for Supplies decreased 2.3%, primarily due to decline in the installed base and usage, partially offset by disciplined pricing. Printer unit volume decreased 1.6% primarily due to demand softness, particularly in China. Printer hardware ASPs increased 0.4% due to favorable mix partially offset by competitive pricing, particularly from our Japanese competitors with a favorable foreign currency environment.

Previous 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.

Current wording

Net revenue for Commercial Printing decreased 5.0%, primarily due to a 4.3% decrease in printer unit volume due to demand softness, partially offset by a 2.0% increase in ASPs. The increase in ASPs was primarily driven by favorable mix shifts, partially offset by competitive pricing.

Previous 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.

Current wording

Printing earnings from operations as a percentage of net revenue decreased by 1.3 percentage points, primarily due to an increase in operating expenses as a percentage of revenue, partially offset by an increase in gross margin. The increase in gross margin is primarily due to disciplined pricing in Supplies and cost savings including Future Ready transformation savings. Operating expenses as a percentage of revenue increased primarily due to continued investments in innovation and people, partially offset by disciplined cost management including Future Ready transformation savings.

Previous wording

Printing net revenue decreased 6.5% (decreased 6.1% on a constant currency basis) for the six 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 2.3%, primarily due to decline in the installed base and usage as well as evolving market dynamics. Print unit volume decreased 16.8% primarily due to demand weakness and hardware ASPs decreased 2.0%. Print hardware ASPs decreased primarily due to competitive pricing and unfavorable mix shifts.

Current wording

Printing net revenue decreased 5.3% (decreased 4.8% on a constant currency basis) for the nine months ended July 31, 2024. The decrease in net revenue was driven by Commercial Printing, Consumer Printing and Supplies as well as net unfavorable foreign currency impacts. Net revenue for Supplies decreased 2.3%, primarily due to decline in the installed base and usage. Printer unit volume decreased 12.2% primarily due to demand softness and hardware ASPs decreased 1.5%. Print hardware ASPs decreased primarily due to unfavorable mix shifts and competitive pricing, particularly from our Japanese competitors with a favorable foreign currency environment.

Previous wording

Net revenue for Commercial Printing decreased by 11.9%, primarily due to a 17.6% decrease in print unit volume and a 0.5% decrease in ASPs. The decrease in ASPs was primarily driven by competitive pricing, partially offset by favorablemix shifts.

Current wording

Net revenue for Commercial Printing decreased by 9.8%, primarily due to a 13.7% decrease in printer unit volume while ASPs increased 0.2%. The increase in ASPs was primarily driven by favorable mix shifts, partially offset by competitive pricing and currency impacts.

Previous 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.

Current wording

Net revenue for Consumer Printing decreased 13.3%, primarily due to a 11.3% decrease in printer unit volume and a 2.3% decrease in ASPs. The decrease in ASPs was primarily driven by competitive pricing, partially offset by favorable mix shifts and currency impacts.

Previous wording

Printing earnings from operations as a percentage of net revenue increased by 0.6 percentage points. The increase was driven by an 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 mix, lower commodity and logistics costs, as well as cost savings including Future Ready transformation savings. Operating expenses as a percentage of revenue increased primarily due continued investments, partially offset by disciplined cost management including Future Ready transformation savings.

Current wording

Printing earnings from operations as a percentage of net revenue decreased by 0.1 percentage points. The decrease was driven by an increase in operating expenses as a percentage of revenue, partially offset by an increase in gross margin. The increase in gross margin is primarily due to favorable mix as well as cost savings including Future Ready transformation savings. Operating expenses as a percentage of revenue increased primarily due to investment in people, partially offset by disciplined cost management including Future Ready transformation savings.

Previous 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.

Current wording

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

Previous 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.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash provided by operating activities increased by $0.5 billion for the nine months ended July 31, 2024, primarily due to favorable working capital impacts and changes in receivables from contract manufacturers, partially offset by lower earnings before taxes.

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 increase in DSO was primarily due to unfavorable revenue linearity, partially offset by higher early payments.

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.

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 and higher sea shipments, partially offset by operational inventory improvements.

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 in Personal Systems, partially offset by operational inventory improvement.

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 due to favorable purchase linearity and higher inventory largely as a result of strategic buys.

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 payment terms and higher inventory driven by strategic buys in Personal Systems.

Previous 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.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash used in investing activities decreased by $0.1 billion for the nine months ended July 31, 2024, primarily due to lower collateral posted for derivative instruments of $0.1 billion.

Previous 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.

Current wording

Compared to the corresponding period in fiscal year 2023, net cash used in financing activities decreased by $0.5 billion for the nine months ended July 31, 2024, primarily due to the lower net payment of debt of $1.4 billion and collateral returned for derivative instruments of $0.2 billion in the prior period, partially offset by a $1.1 billion increase in share repurchases.