PARKER HANNIFIN CORP

Previous wording

FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2023

Current wording

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024

Previous wording

The ongoing disruption within the global supply chain and labor markets has impacted our business. We continue to manage the challenging supply chain environment through our "local for local" manufacturing strategy, ongoing supplier management process, and broadened supply base. While the inflationary cost environment showed signs of moderating, we continue to manage its impact through a variety of cost and pricing measures, including continuous improvement and lean initiatives. Additionally, we strategically manage our workforce and discretionary spending. At the same time, we are appropriately addressing the ongoing needs of our business so that we continue to serve our customers.

Current wording

We continue to manage the challenging supply chain environment through our "local for local" manufacturing strategy, ongoing supplier management process, and broadened supply base. We continue to monitor inflation and manage its impact through a variety of cost and pricing measures, including continuous improvement and lean initiatives. Additionally, we strategically manage our workforce and discretionary spending. At the same time, we are appropriately addressing the ongoing needs of our business so that we continue to serve our customers.

Previous wording

Net sales increased for the current-year quarter due to higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. Currency exchange rate changes increased net sales during the current-year quarter by approximately $25 million, of which approximately $16 million and $9 million were attributable to the Diversified Industrial and Aerospace Systems Segments, respectively. The impact of divestiture activity decreased sales by approximately $13 million during the current-year quarter.

Current wording

Net sales increased for the current-year quarter due to higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. The effect of currency exchange rate changes decreased net sales during the current-year quarter by approximately $31 million. The change was driven by a decrease of approximately $37 million in the Diversified Industrial Segment, partially offset by an increase of approximately $6 million within the Aerospace Systems Segment. The impact of divestiture activity decreased sales by approximately $16 million during the current-year quarter.

Previous wording

Net sales increased for the first six months of fiscal 2024 due to higher sales in both the Aerospace Systems and Diversified Industrial Segments. The acquisition of Meggitt (the "Acquisition") increased sales by approximately $501 million during the first six months of fiscal 2024. The effect of currency rate changes increased net sales during the first six months of fiscal 2024 by approximately $65 million, of which $52 million and $13 million were attributable to the Diversified Industrial and Aerospace Systems Segments, respectively. The impact of divestiture activity decreased sales by approximately $38 million during the first six months of fiscal 2024.

Current wording

Net sales increased for the first nine months of fiscal 2024 due to higher sales in the Aerospace Systems Segment, partially offset by lower sales in the Diversified Industrial Segment. The acquisition (the "Acquisition") of Meggitt plc ("Meggitt") increased sales by approximately $501 million during the first nine months of fiscal 2024. The effect of currency exchange rate changes increased net sales during the first nine months of fiscal 2024 by approximately $33 million, of which $19 million and $14 million were attributable to the Aerospace Systems and Diversified Industrial Segments, respectively. The impact of divestiture activity decreased sales by approximately $54 million during the first nine months of fiscal 2024.

Previous wording

Gross profit margin (calculated as net sales minus cost of sales, divided by net sales) increased in the current-year quarter and first six months of fiscal 2024 due to higher margins in both segments resulting from price increases, favorable product mix and moderating material costs. In addition, cost of sales in the prior-year quarter and first six months of fiscal 2023 included $112 million and $130 million, respectively, of amortization expense related to the step-up in inventory to fair value resulting from the Acquisition.

Current wording

Gross profit margin (calculated as net sales minus cost of sales, divided by net sales) increased in both the current-year quarter and first nine months of fiscal 2024 due to higher margins in both segments resulting from price increases, favorable product mix, moderating material costs, cost containment initiatives and operational efficiencies. In addition, cost of sales in the prior-year quarter and first nine months of fiscal 2023 included $38 million and $168 million, respectively, of amortization expense related to the step-up in inventory to fair value resulting from the Acquisition.

Previous wording

Cost of sales also included business realignment and acquisition integration charges of $9 million and $6 million for the current and prior-year quarter, respectively, and $18 million and $9 million for the first six months of fiscal 2024 and 2023, respectively.

Current wording

Cost of sales also included business realignment and acquisition integration charges of $4 million and $9 million for the current and prior-year quarter, respectively, and $21 million and $18 million for the first nine months of fiscal 2024 and 2023, respectively.

Previous wording

Selling, general and administrative expenses("SG&A") decreased during the current-year quarter primarily due to lower research and development expenses, partially offset by an increase in intangible asset amortization expense and wages, salaries and incentive compensation. SG&A increased during the first six months of fiscal 2024 primarily due to higher intangible asset amortization and stock compensation expense, as well as increased wages, salaries and incentive compensation, partially offset by a decrease in acquisition-related transaction costs of $111 million. In both the current-year quarter and first six months of fiscal 2024, SG&A benefited from savings related to prior-year restructuring and acquisition-integration activities.

Current wording

Selling, general and administrative expenses("SG&A") decreased in the current-year quarter due to lower intangible asset amortization and research and development expenses. SG&A decreased during the first nine months of fiscal 2024 primarily due to a decrease in acquisition related expenses of $112 million, partially offset by higher intangible asset amortization and stock-based compensation expense, as well as an increase in general administrative expenses resulting from the Acquisition. In both the current-year quarter and first nine months of fiscal 2024, SG&A benefited from savings related to prior-year restructuring and acquisition-integration activities.

Previous wording

Interest expense decreased during the current-year quarter and the first six months of fiscal 2024 primarily due to lower average debt outstanding, partially offset by higher average interest rates.

Current wording

Interest expense decreased during the current-year quarter and the first nine months of fiscal 2024 primarily due to lower average debt outstanding and lower average interest rates.

Previous wording

Foreign currency transaction (gain) loss primarily relates to the impact of exchange rates on cash, forward contracts, certain cross-currency swap contracts and intercompany transactions. The first six months of fiscal 2023 also includes foreign currency transaction loss associated with completing the Acquisition.

Current wording

Foreign currency transaction (gain) loss primarily relates to the impact of exchange rates on cash, forward contracts, certain cross-currency swap contracts and intercompany transactions. The first nine months of fiscal 2023 also includes a foreign currency transaction loss associated with completing the Acquisition.

Previous wording

Gain on disposal of assets and divestitures for the first six months of fiscal 2023 includes a gain on the sale of the aircraft wheel and brake business within the Aerospace Systems Segment of $373 million. Refer to Note 4 to the Consolidated Financial Statements for further discussion.

Current wording

Loss (gain) on disposal of assets and divestitures for the first nine months of fiscal 2023 includes a gain on the sale of the aircraft wheel and brake business within the Aerospace Systems Segment of $374 million. Refer to Note 4 to the Consolidated Financial Statements for further discussion.

Previous wording

Effective tax rate for the current-year quarter and first six months of fiscal 2024 was lower than the comparable prior-year periods due to a net decrease in tax costs from permanent taxable adjustments and an increase in discrete tax benefits. The fiscal 2024 effective tax rate is expected to be approximately 22.5 percent.

Current wording

Effective tax rate for the current-year quarter and first nine months of fiscal 2024 was lower than the comparable prior-year periods primarily due to a net increase in discrete tax benefits. The fiscal 2024 effective tax rate is expected to be approximately 22 percent.

Previous wording

Diversified Industrial North America - Sales decreased 1.4 percent and increased 1.6 percent during the current-year quarter and first six months of fiscal 2024, respectively. Changes in currency exchange rates increased sales by approximately $7 million and $18 million in the current-year quarter and first six months of fiscal 2024, respectively. The effects of divestiture activity decreased sales by approximately $4 million and $5 million in the current-year quarter and first six months of fiscal 2024, respectively. The Acquisition increased sales by approximately $77 million during the first six months of fiscal 2024.

Current wording

Diversified Industrial North America - Sales decreased 4.7 percent and 0.7 percent during the current-year quarter and first nine months of fiscal 2024, respectively. The effect of changes in currency exchange rates increased sales by approximately $6 million and $24 million in the current-year quarter and first nine months of fiscal 2024, respectively. The effects of divestiture activity decreased sales by approximately $9 million and $14 million in the current-year quarter and first nine months of fiscal 2024, respectively. The Acquisition increased sales by approximately $77 million during the first nine months of fiscal 2024.

Previous wording

Excluding the effects of the Acquisition, divestitures and changes in the currency exchange rates, sales in the Diversified Industrial North American businesses decreased 1.5 percent and 0.5 percent in the current-year quarter and first six months of fiscal 2024, respectively. In the current-year quarter, the decrease is primarily due to lower demand from distributors and end users across the engine, refrigeration, cars and light truck and turf markets, partially offset by higher end-user demand in the aerospace, oil and gas, farm and agriculture and marine markets. In the first six months of fiscal 2024, sales decreased primarily due to lower end-user demand in the refrigeration, engine, turf, construction equipment and machine tool markets, partially offset by higher end-user demand in the aerospace, oil and gas, farm and agriculture markets as well as higher demand from distributors.

Current wording

Excluding the effects of the Acquisition, divestitures and changes in the currency exchange rates, sales in the Diversified Industrial North American businesses decreased 4.6 percent and 2.0 percent in the current-year quarter and first nine months of fiscal 2024, respectively.

Previous wording

Diversified Industrial International - Sales increased 0.5 percent and 1.5 percent from the prior-year quarter and first six months of fiscal 2023, respectively. The effect of changes in currency exchange rates increased sales by approximately $9 million and $34 million in the current-year quarter and first six months of fiscal 2024, respectively. The effect of the Acquisition increased sales by approximately $38 million during the first six months of fiscal 2024. Excluding the effects of the Acquisition and changes in the currency exchange rates, Diversified Industrial International sales decreased 0.2 percent and 1.2 percent in the current-year quarter and first six months of fiscal 2024, respectively. In the current-year quarter and first six months of fiscal 2024, the decrease in sales was attributed to the Asia Pacific region, partially offset by an increase in sales in Europe and Latin America.

Current wording

Diversified Industrial International - Sales decreased 5.9 percent and 1.2 percent from the prior-year quarter and first nine months of fiscal 2023, respectively. The effect of changes in currency exchange rates decreased sales by approximately $44 million and $10 million in the current-year quarter and first nine months of fiscal 2024, respectively. The effect of the Acquisition increased sales by approximately $38 million during the first nine months of fiscal 2024. Excluding the effects of the Acquisition and changes in the currency exchange rates, Diversified Industrial International sales decreased 3.1 percent and 1.8 percent in the current-year quarter and first nine months of fiscal 2024, respectively. In the current-year quarter and first nine months of fiscal 2024, the decreases in sales were attributed to Europe and the Asia Pacific region, partially offset by an increase in sales in Latin America.

Previous wording

Within the Asia Pacific region, sales in the current-year quarter and first six months of fiscal 2024 decreased primarily due to lower end-user demand in the semiconductor, construction equipment, industrial machinery, refrigeration and metal fabrication markets, partially offset by higher end-user demand in the marine and engine markets. In the current-year quarter, we also experienced higher demand from distributors.

Current wording

Within the Asia Pacific region, sales in the current-year quarter and first nine months of fiscal 2024 decreased primarily due to lower demand from distributors and end-users in the semiconductor, construction equipment, industrial machinery, metal fabrication and marine markets, partially offset by higher end-user demand in the oil and gas and railroad equipment markets.

Previous wording

Within Europe, sales in the current-year quarter increased primarily due to higher demand from end users across the semiconductor, engine and forestry markets, partially offset by lower end-user demand in the construction equipment, industrial machinery and farm and agriculture markets as well as lower demand from distributors. In the first six months of fiscal 2024, sales increased primarily due to higher end-user demand in the engines, semiconductor and heavy-duty truck markets as well as higher demand from distributors, partially offset by lower end-user demand in the industrial machinery, life sciences and construction equipment markets.

Current wording

Within Latin America, sales in the current-year quarter increased primarily due to higher demand from distributors and end users in the cars and light trucks, marine and construction equipment markets, partially offset by lower end-user demand in the rubber and plastics, railroad equipment and industrial machinery markets. In the first nine months of fiscal 2024, sales increased primarily due to higher demand from distributors and end users in the marine, oil and gas, and life sciences markets, partially offset by lower end-user demand in the farm and agriculture, heavy-duty truck, industrial machinery and metal fabrication markets.

Previous wording

Operating margin increased in the North American businesses and remained flat in the International businesses during both the current-year quarter and first six months of fiscal 2024, primarily due to price increases, favorable product mix, cost containment and moderating material costs, partially offset by higher wages, salaries and incentive compensation. International businesses also experienced higher business realignment charges in both the current-year quarter and first six months of fiscal 2024.

Current wording

Operating margin increased in the North American businesses and remained flat in the International businesses during both the current-year quarter and first nine months of fiscal 2024, primarily due to price increases, cost containment initiatives, moderating material costs and operational efficiencies, partially offset by lower volume. Additionally, during the first nine months of fiscal 2024 operating margins in the North American and International businesses benefited from favorable product mix. International businesses also experienced higher business realignment charges during the first nine months of fiscal 2024.

Previous wording

We anticipate that cost savings realized from the workforce reduction measures taken in the first six months of fiscal 2024 will not materially impact operating income in fiscal 2024 and will increase operating income by approximately one percent in fiscal 2025 for both the Diversified Industrial North American and International businesses. We expect to continue to take actions necessary to integrate acquisitions and appropriately structure the operations of the Diversified Industrial Segment. We currently anticipate incurring approximately $59 million of additional business realignment and acquisition integration charges in the remainder of fiscal 2024. However, continually changing business conditions could impact the ultimate costs we incur.

Current wording

We anticipate that cost savings realized from the workforce reduction measures taken in the first nine months of fiscal 2024 will not materially impact operating income in fiscal 2024 and will increase operating income by approximately one percent in fiscal 2025 for both the Diversified Industrial North American and International businesses. We expect to continue to take actions necessary to integrate acquisitions and appropriately structure the operations of the Diversified Industrial Segment. We currently anticipate incurring approximately $27 million of additional business realignment and acquisition integration charges in the remainder of fiscal 2024. However, continually changing business conditions could impact the ultimate costs we incur.

Previous wording

Diversified Industrial Segment backlog, as of December 31, 2023, decreased from the prior-year quarter and June 30, 2023 amount of $4.8 billion due to shipments exceeding orders in both the North American and International businesses. Backlog in the North American and International businesses accounted for approximately 70 percent and 30 percent, respectively, of the decrease from both the prior-year quarter and June 30, 2023.

Current wording

Diversified Industrial Segment backlog, as of March 31, 2024, decreased from the prior-year quarter and June 30, 2023 amount of $4.8 billion due to shipments exceeding orders in both the North American and International businesses. The decrease in backlog was split evenly between the North American and International businesses from both the prior-year quarter and June 30, 2023.

Previous wording

Within the International businesses, the Asia Pacific region accounted for approximately 90 percent of the decrease from the prior-year quarter, while the remaining decrease was evenly split between Latin America and Europe. Europe, the Asia Pacific region and Latin America accounted for approximately 65 percent, 30 percent and five percent, respectively, of the decrease from June 30, 2023.

Current wording

Within the International businesses, Europe and the Asia Pacific region accounted for approximately 60 percent and 40 percent, respectively, of the decrease from the prior-year quarter. Europe, the Asia Pacific region and Latin America accounted for approximately 70 percent, 25 percent and five percent, respectively, of the decrease from June 30, 2023.

Previous wording

Aerospace Systems Segment sales for the current-year quarter and first six months of fiscal 2024 increased compared to the same prior-year periods primarily due to higher volume across all businesses, especially the commercial aftermarket business. Sales also increased by $386 million during the first six months of fiscal 2024 due to the Acquisition.

Current wording

Aerospace Systems Segment sales increased in the current-year quarter and first nine months of fiscal 2024 primarily due to higher volume across all businesses, especially the commercial aftermarket business. Sales also increased by $386 million during the first nine months of fiscal 2024 due to the Acquisition.

Previous wording

Aerospace Systems Segment operating margin increased during the current-year quarter and first six months of fiscal 2024 due to higher volume across all businesses, favorable aftermarket mix and lower acquisition-integration charges, as well as benefits of cost containment initiatives and prior-year business realignment and acquisition integration activities. In addition, operating income in the prior-year quarter and first six months of fiscal 2023 included $112 million and $130 million, respectively, of amortization expense related to the step-up in inventory to fair value resulting from the Acquisition. Favorable contract settlements also contributed to the increase in operating margin during the first six months of fiscal 2024.

Current wording

Aerospace Systems Segment operating margin increased during the current-year quarter and first nine months of fiscal 2024 due to higher sales volume, favorable aftermarket mix and lower acquisition-integration charges, as well as benefits of cost containment initiatives and prior-year business realignment and acquisition integration activities. In addition, operating income in the prior-year quarter and first nine months of fiscal 2023 included $38 million and $168 million, respectively, of amortization expense related to the step-up in inventory to fair value resulting from the Acquisition. Favorable contract settlements also contributed to the increase in operating margin during the first nine months of fiscal 2024.

Previous wording

Within the Aerospace Systems Segment, we incurred acquisition integration and business realignment charges of $9 million and $33 million in the current and prior-year quarter, respectively, and $15 million and $46 million in the first six months of fiscal 2024 and 2023, respectively. We do not expect to incur material business realignment and acquisition integration charges in the remainder of fiscal 2024. However, continually changing business conditions could impact the ultimate costs we incur.

Current wording

Within the Aerospace Systems Segment, we incurred acquisition integration and business realignment charges of $12 million and $26 million in the current and prior-year quarter, respectively, and $27 million and $72 million in the first nine months of fiscal 2024 and 2023, respectively. We do not expect to incur material business realignment and acquisition integration charges in the remainder of fiscal 2024. However, continually changing business conditions could impact the ultimate costs we incur.

Previous wording

Aerospace Systems Segment backlog, as of December 31, 2023, increased from the prior-year quarter primarily due to orders exceeding shipments in the commercial and military aftermarket and commercial original equipment manufacturer ("OEM") businesses, partially offset by shipments exceeding orders in the military OEM business.

Current wording

Aerospace Systems Segment backlog, as of March 31, 2024, increased from the prior-year quarter and the June 30, 2023 amount of $6.2 billion due to orders exceeding shipments in all businesses, especially the commercial and military aftermarket businesses.

Previous wording

Corporate general and administrative expenses remained relatively flat in the current-year quarter and first six months of fiscal 2024 primarily due to an increase in salaries, benefits and incentive compensation expense, as well as information technology expense offset by a decrease in professional service fees and other discretionary spending.

Current wording

Corporate general and administrative expenses increased in the current-year quarter and first nine months of fiscal 2024 primarily due to an increase in net expense associated with the Company's deferred compensation plan and related investments and charitable contributions, partially offset by a decrease in professional service fees. In addition, salaries, benefits, and incentive compensation expense increased during the first nine months of fiscal 2024.

Previous wording

Foreign currency transaction (gain) loss primarily relates to the impact of exchange rates on cash, forward contracts, certain cross-currency swap contracts and intercompany transactions. Foreign currency transaction (gain) loss during the first six months of 2023 also included foreign currency transaction loss associated with completing the Acquisition.

Current wording

Foreign currency transaction (gain) loss primarily relates to the impact of exchange rates on cash, forward contracts, certain cross-currency swap contracts and intercompany transactions. Foreign currency transaction (gain) loss during the first nine months of fiscal 2023 also included foreign currency transaction loss associated with completing the Acquisition.

Previous wording

Gain on disposal of assets and divestitures for the first six months of fiscal 2023 includes a gain on the sale of the aircraft wheel and brake business within the Aerospace Systems Segment of approximately $373 million. Refer to Note 4 to the Consolidated Financial Statements for further discussion.

Current wording

Loss (gain) on disposal of assets and divestitures for the first nine months of fiscal 2023 includes a gain on the sale of the aircraft wheel and brake business within the Aerospace Systems Segment of approximately $374 million. Refer to Note 4 to the Consolidated Financial Statements for further discussion.

Previous wording

Cash flows from operating activities for the first six months of fiscal 2024 were $1,352 million compared to $1,076 million for the first six months of fiscal 2023. This increase of $276 million was primarily related to net changes in cash provided by working capital items. We continue to focus on managing inventory and other working capital requirements. Cash flows from operating activities for the first six months of fiscal 2023 were negatively impacted by acquisition-related transaction expenses.

Current wording

Cash flows from operating activities for the first nine months of fiscal 2024 were $2,147 million compared to $1,795 million for the first nine months of fiscal 2023. This increase of $352 million was primarily related to net changes in cash provided by working capital items. We continue to focus on managing inventory and other working capital requirements. Cash flows from operating activities for the first nine months of fiscal 2023 were negatively impacted by acquisition-related transaction expenses.

Previous wording

•Days sales outstanding relating to trade accounts receivable was 50 days at December 31, 2023, 51 days at June 30, 2023 and 51 days at December 31, 2022.

Current wording

•Days sales outstanding relating to trade accounts receivable was 53 days at March 31, 2024, 51 days at June 30, 2023 and 52 days at March 31, 2023.

Previous wording

•Days supply of inventory on hand was 96 days at December 31, 2023, 85 days at June 30, 2023 and 98 days at December 31, 2022.

Current wording

•Days supply of inventory on hand was 87 days at March 31, 2024, 85 days at June 30, 2023 and 90 days at March 31, 2023.

Previous wording

Cash flows from investing activitiesfor the first six months of fiscal 2024 and 2023 were impacted by the following factors:

Current wording

Cash flows from investing activitiesfor the first nine months of fiscal 2024 and 2023 were impacted by the following factors:

Previous wording

•Net proceeds from the sale of the aircraft wheel and brake business of approximately $441 million in fiscal 2023.

Current wording

•Net proceeds from the sale of the aircraft wheel and brake business of approximately $443 million in fiscal 2023.

Previous wording

•Net purchases of marketable securities of $2.5 million in fiscal 2024 compared to maturities of $5 million in fiscal 2023.

Current wording

•Net purchases of marketable securities of $1.4 million in fiscal 2024 compared to maturities of $3.8 million in fiscal 2023.

Previous wording

Cash flows from financing activities for the first six months of fiscal 2024 and 2023 were impacted by the following factors:

Current wording

Cash flows from financing activities for the first nine months of fiscal 2024 and 2023 were impacted by the following factors:

Previous wording

•Repurchases of 0.2 million common shares for $100 million during fiscal 2024 compared to repurchases of 0.4 million common shares for $100 million during fiscal 2023.

Current wording

•Repurchases of 0.3 million common shares for $149 million during fiscal 2024 compared to repurchases of 0.5 million common shares for $150 million during fiscal 2023.

Previous wording

•Net commercial paper repayments of $584 million in fiscal 2024 compared to net commercial paper borrowings of $235 million in fiscal 2023.

Current wording

•Net commercial paper repayments of $941 million in fiscal 2024 compared to net commercial paper borrowings of $258 million in fiscal 2023.

Previous wording

•Principal payments totaling $200 million related to the Term Loan Facility in fiscal 2024 compared to principal payments totaling $100 million related to the Term Loan Facility in fiscal 2023.

Current wording

•Principal payments totaling $250 million related to the Term Loan Facility in fiscal 2024 compared to principal payments totaling $750 million related to the Term Loan Facility in fiscal 2023.

Previous wording

We declared a quarterly dividend of $1.48 per share on October 25, 2023, which was paid on December 1, 2023. Dividends have been paid for 294 consecutive quarters, including a yearly increase in dividends for the last 67 years. Additionally, we declared a quarterly dividend of $1.48 per share on January 25, 2024, payable on March 1, 2024.

Current wording

We declared a quarterly dividend of $1.48 per share on January 25, 2024, which was paid on March 1, 2024. Dividends have been paid for 295 consecutive quarters. Additionally, we declared a quarterly dividend of $1.63 per share on April 25, 2024, payable on June 7, 2024, increasing our annual dividend per share paid to shareholders for 68 consecutive fiscal years.

Previous wording

Cash, comprised of cash and cash equivalents and marketable securities and other investments, includes $327 million and $422 million held by the Company's foreign subsidiaries at December 31, 2023 and June 30, 2023, respectively. The Company does not permanently reinvest certain foreign earnings. The distribution of these earnings could result in non-federal U.S. or foreign taxes. All other undistributed foreign earnings remain permanently reinvested.

Current wording

Cash, comprised of cash and cash equivalents and marketable securities and other investments, includes $331 million and $422 million held by the Company's foreign subsidiaries at March 31, 2024 and June 30, 2023, respectively. The Company does not permanently reinvest certain foreign earnings. The distribution of these earnings could result in non-federal U.S. or foreign taxes. All other undistributed foreign earnings remain permanently reinvested.

Previous wording

We are currently authorized to sell up to $3.0 billion of short-term commercial paper notes. As of December 31, 2023, $1.2 billion of commercial paper notes were outstanding, and the largest amount of commercial paper notes outstanding during the current-year quarter was $1.7 billion.

Current wording

We are currently authorized to sell up to $3.0 billion of short-term commercial paper notes. As of March 31, 2024, $0.8 billion of commercial paper notes were outstanding, and the largest amount of commercial paper notes outstanding during the current-year quarter was $1.2 billion.