Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 07, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-37483 | ||
Entity Registrant Name | HEWLETT PACKARD ENTERPRISE CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-3298624 | ||
Entity Address, Address Line One | 11445 Compaq Center West Drive, | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77070 | ||
City Area Code | (650) | ||
Local Phone Number | 687-5817 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | HPE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,872,878,346 | ||
Entity Common Stock, Shares Outstanding | 1,293,499,810 | ||
Entity Central Index Key | 0001645590 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference | Portions of the Registrant's proxy statement related to its 2021 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after Registrant's fiscal year end of October 31, 2020 are incorporated by reference into Part III of this Report. |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net revenue: | |||
Financing income | $ 469 | $ 458 | $ 447 |
Total net revenue | 26,982 | 29,135 | 30,852 |
Costs and expenses: | |||
Financing interest | 271 | 297 | 278 |
Research and development | 1,874 | 1,842 | 1,667 |
Selling, general and administrative | 4,624 | 4,907 | 4,921 |
Amortization of intangible assets | 379 | 267 | 294 |
Impairment of goodwill | 865 | 0 | 88 |
Restructuring charges | 0 | 0 | 19 |
Transformation costs | 950 | 453 | 414 |
Disaster charges (recoveries) | 26 | (7) | 0 |
Acquisition, disposition and other related charges | 80 | 757 | 82 |
Separation costs | 0 | 0 | 9 |
Total costs and expenses | 27,311 | 27,861 | 29,115 |
Earnings (loss) from continuing operations | (329) | 1,274 | 1,737 |
Interest and other, net | (215) | (177) | (274) |
Tax indemnification adjustments | (101) | 377 | (1,354) |
Non-service net periodic benefit credit | 136 | 59 | 121 |
Earnings from equity interests | 67 | 20 | 38 |
Earnings (loss) from continuing operations before taxes | (442) | 1,553 | 268 |
(Provision) benefit for taxes | 120 | (504) | 1,744 |
Net earnings (loss) from continuing operations | (322) | 1,049 | 2,012 |
Net loss from discontinued operations | 0 | 0 | (104) |
Net earnings (loss) | $ (322) | $ 1,049 | $ 1,908 |
Basic | |||
Continuing operations (in dollars per share) | $ (0.25) | $ 0.78 | $ 1.32 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.07) |
Total basic net earnings (loss) per share (in dollars per share) | (0.25) | 0.78 | 1.25 |
Diluted | |||
Continuing operations (in dollars per share) | (0.25) | 0.77 | 1.30 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.07) |
Total diluted net earnings (loss) per share (in dollars per share) | $ (0.25) | $ 0.77 | $ 1.23 |
Weighted-average shares used to compute net earnings per share: | |||
Basic (in shares) | 1,294,000 | 1,353,000 | 1,529,000 |
Diluted (in shares) | 1,294,000 | 1,366,000 | 1,553,000 |
Products | |||
Net revenue: | |||
Revenues | $ 16,264 | $ 18,170 | $ 19,504 |
Costs and expenses: | |||
Cost of sales | 11,698 | 12,533 | 14,090 |
Services | |||
Net revenue: | |||
Revenues | 10,249 | 10,507 | 10,901 |
Costs and expenses: | |||
Cost of sales | $ 6,544 | $ 6,812 | $ 7,253 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ (322) | $ 1,049 | $ 1,908 |
Change in net unrealized gains (losses) on available-for-sale securities: | |||
Net unrealized gains (losses) arising during the period | (1) | 9 | (3) |
(Gains) losses reclassified into earnings | (4) | (3) | (9) |
Change in unrealized gains (losses) on available-for-sale securities | (5) | 6 | (12) |
Change in net unrealized gains (losses) on cash flow hedges: | |||
Net unrealized gains (losses) arising during the period | (40) | 308 | 169 |
Net (gains) losses reclassified into earnings | (21) | (371) | 8 |
Change in unrealized (losses) gains on cash flow hedges | (61) | (63) | 177 |
Change in unrealized components of defined benefit plans: | |||
Net unrealized gains (losses) arising during the period | (358) | (701) | (423) |
Amortization of net actuarial loss and prior service benefit | 249 | 216 | 191 |
Curtailments, settlements and other | 10 | 15 | 22 |
Change in unrealized components of defined benefit plans | (99) | (470) | (210) |
Cumulative translation adjustment arising during the period | (12) | (18) | (70) |
Release of cumulative translation adjustment as a result of divestitures and country exits | 0 | 0 | 20 |
Change in cumulative translation adjustment | (12) | (18) | (50) |
Other comprehensive loss before taxes | (177) | (545) | (95) |
(Provision) benefit for taxes | 8 | 36 | (42) |
Other comprehensive loss, net of taxes | (169) | (509) | (137) |
Comprehensive income (loss) | $ (491) | $ 540 | $ 1,771 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 4,233 | $ 3,753 |
Accounts receivable, net of allowance for doubtful accounts | 3,386 | 2,957 |
Financing receivables, net of allowance for doubtful accounts | 3,794 | 3,572 |
Inventory | 2,674 | 2,387 |
Assets held for sale | 77 | 46 |
Other current assets | 2,392 | 2,428 |
Total current assets | 16,556 | 15,143 |
Property, plant and equipment | 5,625 | 6,054 |
Long-term financing receivables and other assets | 10,544 | 8,918 |
Investments in equity interests | 2,170 | 2,254 |
Goodwill | 18,017 | 18,306 |
Intangible assets | 1,103 | 1,128 |
Total assets | 54,015 | 51,803 |
Current liabilities: | ||
Notes payable and short-term borrowings | 3,755 | 4,425 |
Accounts payable | 5,383 | 5,595 |
Employee compensation and benefits | 1,391 | 1,522 |
Taxes on earnings | 148 | 186 |
Deferred revenue | 3,430 | 3,234 |
Accrued restructuring | 366 | 195 |
Other accrued liabilities | 4,265 | 4,002 |
Total current liabilities | 18,738 | 19,159 |
Long-term debt | 12,186 | 9,395 |
Other non-current liabilities | 6,995 | 6,100 |
Commitments and contingencies | ||
HPE stockholders' equity: | ||
Preferred stock, $0.01 par value (300 shares authorized; none issued) | 0 | 0 |
Common stock, $0.01 par value (9,600 shares authorized; 1,287 and 1,294 issued and outstanding at October 31, 2020 and October 31, 2019, respectively) | 13 | 13 |
Additional paid-in capital | 28,350 | 28,444 |
Accumulated deficit | (8,375) | (7,632) |
Accumulated other comprehensive loss | (3,939) | (3,727) |
Total HPE stockholders' equity | 16,049 | 17,098 |
Non-controlling interests | 47 | 51 |
Total stockholders' equity | 16,096 | 17,149 |
Total liabilities and stockholders' equity | $ 54,015 | $ 51,803 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (shares) | 300,000,000 | 300,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 9,600,000,000 | 9,600,000,000 |
Common stock, issued (shares) | 1,287,000,000 | 1,294,000,000 |
Common stock, outstanding (shares) | 1,287,000,000 | 1,294,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ (322) | $ 1,049 | $ 1,908 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 2,625 | 2,535 | 2,576 |
Impairment of goodwill | 865 | 0 | 88 |
Stock-based compensation expense | 274 | 268 | 286 |
Provision for inventory and doubtful accounts | 308 | 240 | 198 |
Restructuring charges | 769 | 221 | 550 |
Deferred taxes on earnings | (294) | 1,079 | 2,229 |
Earnings from equity interests | (67) | (20) | (38) |
Dividends received from equity investee | 165 | 156 | 164 |
Other, net | 163 | 204 | (158) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (461) | 374 | (220) |
Financing receivables | (487) | (410) | (366) |
Inventory | (527) | 46 | (260) |
Accounts payable | (225) | (525) | (27) |
Taxes on earnings | (122) | (1,093) | (4,516) |
Restructuring | (478) | (331) | (647) |
Other assets and liabilities | 54 | 204 | 1,197 |
Net cash provided by operating activities | 2,240 | 3,997 | 2,964 |
Cash flows from investing activities: | |||
Investment in property, plant and equipment | (2,383) | (2,856) | (2,956) |
Proceeds from sale of property, plant and equipment | 703 | 597 | 1,094 |
Purchases of available-for-sale securities and other investments | (101) | (39) | (33) |
Maturities and sales of available-for-sale securities and other investments | 48 | 26 | 98 |
Financial collateral posted | (644) | (403) | (1,625) |
Financial collateral received | 665 | 744 | 1,736 |
Payments made in connection with business acquisitions, net of cash acquired | (866) | (1,526) | (207) |
Proceeds from business divestitures, net | 0 | 0 | 13 |
Net cash used in investing activities | (2,578) | (3,457) | (1,880) |
Cash flows from financing activities: | |||
Short-term borrowings with original maturities less than 90 days, net | (9) | (53) | 5 |
Proceeds from debt, net of issuance costs | 7,007 | 3,517 | 2,457 |
Payment of debt | (5,099) | (2,203) | (4,138) |
Net proceeds (payments) related to stock-based award activities | 48 | 116 | |
Net proceeds (payments) related to stock-based award activities | (36) | ||
Repurchase of common stock | (355) | (2,249) | (3,568) |
Cash dividends paid to non-controlling interests, net of contributions | (7) | 0 | (9) |
Cash dividends paid | (618) | (608) | (570) |
Net cash provided by (used in) financing activities | 883 | (1,548) | (5,592) |
Increase (decrease) in cash, cash equivalents and restricted cash | 545 | (1,008) | (4,508) |
Cash, cash equivalents and restricted cash at beginning of period | 4,076 | 5,084 | 9,592 |
Cash, cash equivalents and restricted cash at end of period | 4,621 | 4,076 | 5,084 |
Supplemental cash flow disclosures: | |||
Income taxes paid, net of refunds | 297 | 518 | 538 |
Interest expense paid | 574 | 593 | 609 |
Everett SpinCo, Inc. | |||
Cash flows from financing activities: | |||
Net transfer of cash and cash equivalents | 0 | 0 | (41) |
Seattle SpinCo, Inc. | |||
Cash flows from financing activities: | |||
Net transfer of cash and cash equivalents | $ 0 | $ 0 | $ 156 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | (Accumulated Deficit) Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Equity Attributable to the Company | Equity Attributable to the CompanyCumulative Effect, Period of Adoption, Adjustment | [1] | Non- controlling Interests |
Balance (in shares) at Oct. 31, 2017 | 1,595,161 | |||||||||||||
Balance at Oct. 31, 2017 | $ 23,505 | $ 16 | $ 33,583 | $ (7,238) | $ (2,895) | $ 23,466 | $ 39 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Activity related to separation and merger transactions | (22) | 164 | (186) | (22) | ||||||||||
Net earnings (loss) | 1,904 | 1,908 | 1,908 | (4) | ||||||||||
Other comprehensive loss | (137) | (137) | (137) | |||||||||||
Comprehensive income (loss) | 1,767 | 1,771 | (4) | |||||||||||
Stock-based compensation expense | 309 | 309 | 309 | |||||||||||
Tax withholding related to vesting of employee stock plans | (175) | (175) | (175) | |||||||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 50,369 | |||||||||||||
Issuance of common stock in connection with employee stock plans and other | 202 | 202 | 202 | |||||||||||
Repurchases of common stock (in shares) | (222,227) | |||||||||||||
Repurchases of common stock | (3,579) | $ (2) | (3,577) | (3,579) | ||||||||||
Cash dividends declared | (733) | (733) | (733) | |||||||||||
Balance (in shares) at Oct. 31, 2018 | 1,423,303 | |||||||||||||
Balance at Oct. 31, 2018 | 21,274 | $ (2,181) | $ 14 | 30,342 | (5,899) | $ (2,181) | (3,218) | 21,239 | $ (2,181) | 35 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net earnings (loss) | 1,065 | 1,049 | 1,049 | 16 | ||||||||||
Other comprehensive loss | (509) | (509) | (509) | |||||||||||
Comprehensive income (loss) | 556 | 540 | 16 | |||||||||||
Stock-based compensation expense | 270 | 270 | 270 | |||||||||||
Tax withholding related to vesting of employee stock plans | (61) | (61) | (61) | |||||||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 19,093 | |||||||||||||
Issuance of common stock in connection with employee stock plans and other | 113 | 113 | 113 | |||||||||||
Repurchases of common stock (in shares) | (148,027) | |||||||||||||
Repurchases of common stock | (2,221) | $ (1) | (2,220) | (2,221) | ||||||||||
Cash dividends declared | $ (601) | (601) | (601) | |||||||||||
Balance (in shares) at Oct. 31, 2019 | 1,294 | 1,294,369 | ||||||||||||
Balance at Oct. 31, 2019 | $ 17,149 | $ 13 | 28,444 | (7,632) | $ 43 | (3,727) | $ (43) | 17,098 | 51 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net earnings (loss) | (311) | (322) | (322) | 11 | ||||||||||
Other comprehensive loss | (169) | (169) | (169) | |||||||||||
Comprehensive income (loss) | (480) | (491) | 11 | |||||||||||
Stock-based compensation expense | 278 | 278 | 278 | |||||||||||
Tax withholding related to vesting of employee stock plans | (89) | (89) | (89) | |||||||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 17,397 | |||||||||||||
Issuance of common stock in connection with employee stock plans and other | 64 | 63 | 63 | 1 | ||||||||||
Repurchases of common stock (in shares) | (24,756) | |||||||||||||
Repurchases of common stock | (346) | (346) | (346) | |||||||||||
Cash dividends declared | $ (480) | (464) | (464) | (16) | ||||||||||
Balance (in shares) at Oct. 31, 2020 | 1,287 | 1,287,010 | ||||||||||||
Balance at Oct. 31, 2020 | $ 16,096 | $ 13 | $ 28,350 | $ (8,375) | $ (3,939) | $ 16,049 | $ 47 | |||||||
[1] | For fiscal 2019, includes $2.3 billion related to an addition to accumulated deficit as a result of the adoption of an accounting standard update for Income Taxes and $124 million related to a reduction to accumulated deficit as a result of the adoption of the new revenue accounting standard.(2) For fiscal 2020, $43 million represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | Feb. 23, 2019 | Feb. 22, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Cash dividends declared per share (in dollars per share) | $ 0.12 | $ 0.1125 | $ 0.36 | $ 0.4575 | $ 0.4875 | ||
Stockholders' equity | $ 16,096 | $ 17,149 | $ 21,274 | $ 23,505 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Stockholders' equity | [1] | $ (2,181) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-12 | |||||||
Stockholders' equity | 2,300 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2014-09 | |||||||
Stockholders' equity | $ 124 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | |||||||
Stockholders' equity | $ 43 | ||||||
[1] | For fiscal 2019, includes $2.3 billion related to an addition to accumulated deficit as a result of the adoption of an accounting standard update for Income Taxes and $124 million related to a reduction to accumulated deficit as a result of the adoption of the new revenue accounting standard.(2) For fiscal 2020, $43 million represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit. |
Commitments
Commitments | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Unconditional Purchase Obligations At October 31, 2020, the Company had unconditional purchase obligations of approximately $544 million. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction, as well as settlements that the Company has reached with third parties, requiring it to pay determined amounts over a specified period of time. These unconditional purchase obligations are related principally to inventory purchase, software maintenance and support services and other items. Unconditional purchase obligations exclude agreements that are cancellable without penalty. As of October 31, 2020, future unconditional purchase obligations were as follows: Fiscal Year In millions 2021 $ 231 2022 195 2023 69 2024 8 2025 9 Thereafter 32 Total $ 544 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Background Hewlett Packard Enterprise Company ("Hewlett Packard Enterprise", "HPE", or the "Company") is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. Hewlett Packard Enterprise enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. Hewlett Packard Enterprise's customers range from small- and medium-sized businesses ("SMBs") to large global enterprises and governmental entities. On November 1, 2015, the Company became an independent publicly-traded company through a pro rata distribution by HP Inc. ("former Parent" or "HPI"), formerly known as Hewlett-Packard Company ("HP Co."), of 100% of the outstanding shares of Hewlett Packard Enterprise Company to HP Inc.'s stockholders (the "Separation"). On April 1, 2017, the Company completed the separation and merger of our Enterprise Services business with DXC Technology Company ("DXC", "the Everett Transaction" or "Everett"). On September 1, 2017, the Company completed the separation and merger of our Software business segment with Micro Focus International plc ("Micro Focus", "the Seattle Transaction" or "Seattle" ). Acquisitions On September 21, 2020, the Company completed the acquisition of Silver Peak Systems Inc. ("Silver Peak"), an SD-WAN (Software-Defined Wide Area Network) leader, for a fair value consideration of $879 million. Silver Peak's results of operations are included within the Intelligent Edge segment. On September 25, 2019, the Company completed the acquisition of Cray Inc. ("Cray"), a global supercomputer leader, for a fair value consideration of $1.5 billion. Cray's results of operations are included within the High Performance Compute & Mission-Critical Systems ("HPC & MCS") segment. For more details on acquisitions, see Note 10, "Acquisitions". Transformation Programs Transformation programs are comprised of the cost optimization and prioritization plan, and the HPE Next initiative. During the third quarter of fiscal 2020, the Company launched the cost optimization and prioritization plan which focuses on realigning the workforce to areas of growth, including a new hybrid workforce model called Edge-to-Office, real estate strategies and simplifying and evolving our product portfolio strategy. The implementation period of the cost optimization and prioritization plan is through fiscal 2023. During this time the Company expects to incur transformation costs predominantly related to labor restructuring, non-labor restructuring, IT investments and design and execution charges. During the third quarter of fiscal 2017, the Company launched an initiative called HPE Next to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program the Company is simplifying the operating model, streamlining our offerings, business processes and business systems to improve our execution. The implementation period of the HPE Next initiative is now extended through fiscal 2023. During the remaining implementation period, the Company expects to incur transformation costs predominantly related to IT infrastructure costs for streamlining, upgrading and simplifying back-end operations, and real estate initiatives. These costs are expected to be partially offset by gains from real estate sales. For more details on cost optimization and prioritization plan and HPE Next, see Note 3, "Transformation Programs". Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles. The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries and affiliates in which the Company has a controlling financial interest or is the primary beneficiary. All intercompany transactions and accounts within the consolidated businesses of the Company have been eliminated. The Company consolidates a Variable Interest Entity ("VIE") where it has been determined that the Company is the primary beneficiary of the entity's operation. The primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of the entity and the risks the entity was designed to create and pass through to its variable interest holders. The Company also evaluates its economic interests in the VIE. The Company accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method of accounting, and the Company records its proportionate share of income or losses in Earnings (loss) from equity interests in the Consolidated Statements of Earnings. Non-controlling interests are presented as a separate component within Total stockholders' equity in the Consolidated Balance Sheets. Net earnings attributable to non-controlling interests are recorded within Interest and other, net in the Consolidated Statements of Earnings and are not presented separately, as they were not material for any periods presented. Segment Realignment Effective at the beginning of the first quarter of fiscal 2020, HPE implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational changes, HPE replaced the Hybrid IT reportable segment (and the Compute, Storage and HPE Pointnext business units within it) with four new financial reporting segments: Compute, High Performance Compute & Mission-Critical Systems ("HPC & MCS"), Storage, and Advisory and Professional Services ("A & PS"). The Compute segment combines the general purpose server and certain workload optimized server portfolios that were previously a part of the Hybrid IT-Compute business unit and the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The HPC & MCS segment consists of high performance compute, mission-critical systems, and edge compute offerings that were previously a part of the Hybrid IT-Compute business unit and the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The Storage segment combines the former Hybrid IT-Storage business unit, the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit and the hyperconverged infrastructure products that were previously a part of the Hybrid IT-Compute business unit. Finally, the A & PS segment consists of the consultative-led services that were previously a part of the Hybrid IT-HPE Pointnext business unit. In addition, the Intelligent Edge segment now includes the Data Center Networking ("DC Networking") operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The DC Networking business, other than operational services, had been transferred to the Intelligent Edge segment in a prior realignment. The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue, operating profit and total assets for each of the businesses as described above. These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, net earnings, net earnings per share ("EPS") or total assets. See Note 2, "Segment Information", for a further discussion of the Company's segment. Use of Estimates The preparation of financial statements requires management to make estimates, judgements and assumptions that affect the amounts reported in the Company's Consolidated Financial Statements and accompanying notes. Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that the novel coronavirus pandemic ("COVID-19") could have on our significant accounting estimates. Significant estimates that are based on a forecast include inventory reserves, provision for taxes, valuation allowance for deferred taxes, and impairment assessments of goodwill, intangible assets and other long lived assets. The Company believes that these estimates, judgements and assumptions are reasonable under the circumstances, and are subject to significant uncertainties, some of which are beyond the Company's control. Should any of these estimates change, it could adversely affect the Company's results of operations. Additionally, as the extent and duration of the impacts from COVID-19 remain unclear, the Company's estimates, judgements and assumptions may evolve as conditions change. Actual results could differ materially from these estimates under different assumptions or conditions. Foreign Currency Translation The Company predominately uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. currencies are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for non-monetary assets and liabilities. Net revenue, costs and expenses denominated in non-U.S. currencies are recorded in U.S. dollars at the average rates of exchange prevailing during the period. The Company includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings and gains and losses from cash flow hedges in Net revenue as the hedged revenue is recognized. Certain non-U.S. subsidiaries designate the local currency as their functional currency, and the Company records the translation of their assets and liabilities into U.S. dollars at the balance sheet date as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented. Revenue Recognition General The Company accounts for a contract with a customer when both parties have provided written approval and are committed to perform, each party's rights including payment terms are identified, the contract has commercial substance, and collection of consideration is probable. The Company enters into contracts with customers that may include combinations of products and services, resulting in arrangements containing multiple performance obligations for hardware and software products and/or various services. The Company determines whether each product or service is distinct in order to identify the performance obligations in the contract and allocate the contract transaction price among the distinct performance obligations. Arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Company classifies its hardware, perpetual software licenses, and software-as-a-service ("SaaS") as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where the Company delivers hardware or software, it is typically the principal and records revenue and costs of goods sold on a gross basis. The majority of the Company's revenue is derived from sales of product and the associated support and maintenance which is recognized when, or as, control of promised products or services is transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled, in exchange for those products or services. Variable consideration offered in contracts with customers, partners and distributors may include rebates, volume-based discounts, cooperative marketing, price protection, and other incentive programs. Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and recognized only to the extent that it is probable that a significant reversal of revenue will not occur. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery and risk of loss has transferred to the customer. Transfer of control can also occur over time for maintenance and services as the customer receives the benefit over the contract term. The Company's hardware and perpetual software licenses are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses include multiple performance obligations where the term licenses are recognized upfront upon transfer of control, with the associated software maintenance revenue recognized ratably over the contract term as services and software updates are provided. SaaS arrangements have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term as the customer consumes the services. On its product sales, the Company records consideration from shipping and handling on a gross basis within net product sales. Revenue is recorded net of any associated sales taxes. Significant Judgments The Company allocates the transaction price for the contract among the performance obligations on a relative standalone selling price basis. The standalone selling price ("SSP") is the price at which an entity would sell a promised product or service separately to a customer. The Company establishes SSP for most of its products and services based on the observable price of the products or services when sold separately in similar circumstances to similar customers. When the SSP is not directly observable, the Company estimates SSP based on management judgment by considering available data such as internal margin objectives, pricing strategies, market/competitive conditions, historical profitability data, as well as other observable inputs. The Company establishes SSP ranges for its products and services and reassesses them periodically. Judgment is applied in determining the transaction price as the Company may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration may include various rebates, volume-based discounts, cooperative marketing, price protection, and other incentive programs that are offered to customers, partners and distributors. When determining the amount of revenue to recognize, the Company estimates the expected usage of these programs, applying the expected value or most likely estimate and updates the estimate at each reporting period as actual utilization becomes available. The Company also considers the customers' right of return in determining the transaction price, where applicable. Contract Balances Accounts receivable and contract assets A receivable is a right to consideration in exchange for products or services the Company has transferred to a customer that is unconditional. A contract asset is a right to consideration in exchange for products or services transferred to a customer that is conditional on something other than the passage of time. A receivable is recorded when the right to consideration becomes unconditional. The Company's contract assets include unbilled receivables which are recorded when the Company recognizes revenue in advance of billings. Unbilled receivables generally relate to services contracts where a service has been performed and control has transferred, but invoicing to the customer is subject to future milestone billings or other contractual payment schedules. The Company classifies unbilled receivables as Accounts receivable. Contract liabilities A contract liability is an obligation to transfer products or services to a customer for which the Company has received consideration, or the amount is due, from the customer. The Company's contract liabilities primarily consist of deferred revenue. Deferred revenue is recorded when amounts invoiced to customers are in excess of revenue that can be recognized because performance obligations have not been satisfied and control of the promised products or services has not transferred to the customer. Deferred revenue largely represents amounts invoiced in advance for product (hardware/software) support contracts, consulting projects and product sales where revenue cannot be recognized yet. Costs to obtain a contract with a customer The Company capitalizes the incremental costs of obtaining a contract with a customer, primarily sales commissions, if the Company expects to recover those costs. The Company has elected, as a practical expedient, to expense the costs of obtaining a contract as incurred for contracts with terms of one year or less. The typical amortization periods used range from three Shipping and Handling The Company includes costs related to shipping and handling in Cost of products. Stock-Based Compensation Stock-based compensation expense is based on the measurement date fair value of the award and is recognized only for those awards expected to meet the service and performance vesting conditions. Stock-based compensation expense for stock options and restricted stock units with only a service condition is recognized on a straight-line basis over the requisite service period of the award. For stock options and restricted stock units with both a service condition and a performance or market condition, the expense is recognized on a graded vesting basis over the requisite service period of the award. Stock-based compensation expense is determined at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. The forfeiture rate is estimated based on historical experience. Retirement and Post-Retirement Plans The Company has various defined benefit, other contributory and noncontributory, retirement and post-retirement plans. The Company generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life or, in the case of closed plans, life expectancy of participants. In limited cases, actuarial gains and losses are amortized using the corridor approach. See Note 4, "Retirement and Post-Retirement Benefit Plans" for a full description of these plans and the accounting and funding policies. Advertising Costs to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. Advertising expense totaled approximately $143 million in fiscal 2020, $188 million in fiscal 2019, and $193 million in fiscal 2018. Restructuring The Company's transformation programs include charges to approved restructuring plans. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations and site closure and consolidation plans. The Company accrues for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements. Taxes on Earnings The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. In determining the need for a valuation allowance, the Company considers future market growth, forecasted earnings, future sources of taxable income, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies. In the event the Company were to determine that it is more likely than not that the Company will be unable to realize all or part of its deferred tax assets in the future, the Company would increase the valuation allowance and recognize a corresponding charge to earnings in the period in which such a determination was made. Likewise, if the Company later determines that the deferred tax assets are more likely than not to be realized, the Company would reverse the applicable portion of the previously recognized valuation allowance. In order for the Company to realize deferred tax assets, the Company must be able to generate sufficient taxable income in the jurisdictions in which the deferred tax assets are located. The Company records accruals for uncertain tax positions when the Company believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, effects of settlement of certain pre-Separation Hewlett-Packard Company income tax liabilities, as well as any related interest and penalties. The Company is subject to the Global Intangible Low Taxed Income ("GILTI") tax in the U.S. The Company elected to treat taxes on future GILTI inclusions in U.S. taxable income as a current period expense when incurred. Allowance for Doubtful Accounts Accounts Receivable The Company establishes an allowance for doubtful accounts for accounts receivable. The Company may record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, the Company further adjusts estimates of the recoverability of receivables. The Company maintains bad debt reserves for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers, the length of time receivables are past due, trends in the weighted-average risk rating for the portfolio, macroeconomic conditions, information derived from competitive benchmarking, significant one-time events, and historical experience. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. Financing Receivable The allowance for doubtful accounts for financing receivables is comprised of a general reserve and a specific reserve. The Company maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. The Company excludes accounts evaluated as part of the specific reserve from the general reserve analysis. The Company establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely the Company will recover its investment. For individually evaluated receivables, the Company determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, the Company records a specific reserve. The Company generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if the Company determines that the receivable is not collectible. Non-Accrual and Past-Due Financing Receivables The Company considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. The Company generally places financing receivables on non-accrual status, which is the suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, the Company may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if the Company deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when the Company deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, the Company may return the related financing receivable to accrual status. Concentrations of Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and restricted cash, investments, receivables from trade customers and contract manufacturers, financing receivables and derivatives. The Company maintains cash, cash equivalents and restricted cash, investments, derivatives, and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and the Company's policy is designed to limit exposure from any particular institution. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. The Company utilizes derivative contracts to protect against the effects of foreign currency and interest rate exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. For more details on the collateral program, see Note 13, "Financial Instruments". Credit risk with respect to accounts receivable from trade customers and financing receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company performs ongoing credit evaluations of the financial condition of its customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. As of October 31, 2020 and 2019 no single customer accounted for more than 10% of the Company's receivable from trade customers and financing receivables. The Company utilizes outsourced manufacturers around the world to manufacture company-designed products. The Company may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 89% and 92% of the Company's manufacturer receivables of $687 million and $635 million at October 31, 2020 and 2019, respectively. The Company includes the manufacturer receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. The Company's credit risk associated with these receivables is mitigated wholly or in part by the amount the Company owes to these outsourced manufacturers, as the Company generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. The Company does not reflect the sale of these components in revenue and does not recognize any profit on these component sales until the manufactured products are sold by the Company, at which time any profit is recognized as a reduction to cost of sales. The Company obtains certain components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of the Company's relationship with a single source supplier, or any unilateral modification to the contractual terms under which the Company is supplied components by a single source supplier could adversely affect the Company's revenue and gross margins. Inventory The Company values inventory at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable value, if required, for estimated excess or obsolescence determined primarily by future demand forecasts and market conditions. The write down for excess or obsolescence is charged to the provision of inventory, which is a component of Cost of Products and Cost of Services in the Consolidated Statement of Earnings. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Property, Plant and Equipment The Company states property, plant and equipment at cost less accumulated depreciation. The Company capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation expense is recognized on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives are five three The Company capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. The Company amortizes capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three Leases Lessee Accounting As a result of adopting the new leasing standard ("ASC 842"), the Company now recognizes a lease liability and a right-of-use ("ROU") asset for the lease term in a lease contract. The Company enters into various leases as a lessee for assets including office buildings, data centers, vehicles, and aviation. The Company determines if an arrangement is a lease at inception. An arrangement contains a lease when the arrangement conveys the right to control the use of an identified asset over the lease term. Upon lease commencement, the Company records a lease liability for the obligation to make lease payments and ROU asset for the right to use the underlying asset for the lease term in the Consolidated Balance Sheet. The lease liability is measured at commencement date based on the present value of lease payments not yet paid over the lease term and the Company's incremental borrowing rate. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate which approximates the rate at which the Company would borrow, on a secured basis, in the country where the lease was executed. The ROU asset is based on the lease liabi |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Hewlett Packard Enterprise's operations are now organized into seven segments for financial reporting purposes: Compute, HPC & MCS, Storage, A & PS, Intelligent Edge, Financial Services ("FS"), and Corporate Investments. Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker ("CODM"), who is the Chief Executive Officer ("CEO"), uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The seven segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. A summary of types of products and services of each segment follows. Compute portfolio offers both general purpose servers for multi-workload computing and workload optimized servers to offer the best performance and value for demanding applications. This portfolio of products includes the HPE Proliant rack and tower servers; HPE BladeSystem, and HPE Synergy. Compute offerings also include operational and support services. High Performance Compute & Mission-Critical Systems portfolio offers specialized compute servers designed to support specific use cases. The HPC portfolio of products includes the HPE Apollo and Cray products that are sold as supercomputing systems, including exascale supercomputers. The MCS portfolio includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines. The HPC & MCS segment also includes the Edge Compute business which consists of the HPE Moonshot and HPE Edgeline products. HPC & MCS offerings also include operational and support services. Storage portfolio offers workload optimized storage product and service offerings which include an intelligent hyperconverged infrastructure ("HCI") with HPE Nimble Storage dHCI and HPE SimpliVity. The portfolio also includes HPE Primera, HPE Nimble Storage and HPE 3PAR Storage for mission-critical and general purpose workloads, HPE Recovery Manager Central, HPE StoreOnce, HPE Cloud Volumes Backup and Big Data solutions with BlueData and MapR technology. Storage also provides solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays ("MSA") and HPE XP. Storage offerings also include services and support services. Advisory and Professional Services provides consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities. A & PS is also a provider of on-premises flexible consumption models that enable IT agility, simplify operations, and align cost to value. Intelligent Edge portfolio offers wired and wireless local area network "(LAN"), campus and data center switching, software-defined wide-area-networking, security, and associated services to enable secure connectivity for businesses of any size. The HPE Aruba product portfolio includes products such as Wi-Fi access points, switches, routers, and sensors. The HPE Aruba software and services portfolio includes software products for cloud-based management, network management, network access control, analytics and assurance, location services software and professional and support services, as well as as-a Service ("aaS") and consumption models for the Intelligent Edge portfolio of products. Financial Services provides flexible investment solutions, such as leasing, financing, IT consumption, and utility programs and asset management services, for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software and services from Hewlett Packard Enterprise and others. Corporate Investments includes Hewlett Packard Labs which is responsible for research and development, and the Communications and Media Solutions ("CMS") business and also hosts certain business incubation projects. Segment Policy Hewlett Packard Enterprise derives the results of its business segments directly from its internal management reporting system. The accounting policies that Hewlett Packard Enterprise uses to derive segment results are substantially the same as those the consolidated company uses. The CODM measures the performance of each segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each of the segments. Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by FS to our customers. Hewlett Packard Enterprise's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements. Financing interest in the Consolidated Statements of Earnings reflects interest expense on borrowing and funding-related activity associated with FS and its subsidiaries, and debt issued by Hewlett Packard Enterprise for which a portion of the proceeds benefited FS. Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate costs and eliminations, stock-based compensation expense related to corporate and certain global functions, amortization of initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges (recovery), acquisition, disposition and other related charges. Segment Operating Results Compute HPC & MCS Storage A & PS Intelligent Edge Financial Services Corporate Investments Total In millions 2020 Net revenue $ 11,821 $ 2,965 $ 4,583 $ 946 $ 2,837 $ 3,340 $ 490 $ 26,982 Intersegment net revenue 394 71 98 5 18 12 — 598 Total segment net revenue $ 12,215 $ 3,036 $ 4,681 $ 951 $ 2,855 $ 3,352 $ 490 $ 27,580 Segment earnings (loss) from operations $ 893 $ 237 $ 719 $ (5) $ 281 $ 278 $ (100) $ 2,303 2019 Net revenue $ 13,250 $ 2,786 $ 5,114 $ 1,004 $ 2,904 $ 3,570 $ 507 $ 29,135 Intersegment net revenue 392 124 71 8 9 11 — 615 Total segment net revenue $ 13,642 $ 2,910 $ 5,185 $ 1,012 $ 2,913 $ 3,581 $ 507 $ 29,750 Segment earnings (loss) from operations $ 1,550 $ 320 $ 924 $ (54) $ 159 $ 305 $ (108) $ 3,096 2018 Net revenue $ 14,616 $ 2,875 $ 5,054 $ 1,111 $ 2,997 $ 3,656 $ 543 $ 30,852 Intersegment net revenue 526 112 104 7 16 15 — 780 Total segment net revenue $ 15,142 $ 2,987 $ 5,158 $ 1,118 $ 3,013 $ 3,671 $ 543 $ 31,632 Segment earnings (loss) from operations $ 1,306 $ 384 $ 830 $ (79) $ 339 $ 286 $ (91) $ 2,975 The reconciliation of segment operating results to Hewlett Packard Enterprise consolidated results was as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions Net revenue: Total segments $ 27,580 $ 29,750 $ 31,632 Elimination of intersegment net revenue (598) (615) (780) Total Hewlett Packard Enterprise consolidated net revenue $ 26,982 $ 29,135 $ 30,852 Earnings before taxes: Total segment earnings from operations $ 2,303 $ 3,096 $ 2,975 Unallocated corporate costs and eliminations (238) (286) (259) Unallocated stock-based compensation expense (57) (59) (73) Amortization of initial direct costs (10) — — Amortization of intangible assets (379) (267) (294) Impairment of goodwill (865) — (88) Restructuring charges — — (19) Transformation costs (950) (453) (414) Disaster (charge) recovery (26) 7 — Acquisition, disposition and other related charges (107) (764) (82) Separation costs — — (9) Interest and other, net (215) (177) (274) Tax indemnification adjustments (101) 377 (1,354) Non-service net periodic benefit credit 136 59 121 Earnings from equity interests 67 20 38 Total Hewlett Packard Enterprise consolidated earnings (loss) from continuing operations before taxes $ (442) $ 1,553 $ 268 Segment Assets Hewlett Packard Enterprise allocates assets to its business segments based on the segments primarily benefiting from the assets. Total assets by segment and the reconciliation of segment assets to Hewlett Packard Enterprise consolidated assets were as follows: As of October 31, 2020 2019 In millions Compute $ 14,858 $ 14,066 HPC & MCS 6,192 6,819 Storage 6,796 7,214 A&PS 477 440 Intelligent Edge 4,343 3,318 Financial Services 14,765 14,700 Corporate Investments 467 461 Corporate and unallocated assets 6,117 4,785 Total Hewlett Packard Enterprise consolidated assets $ 54,015 $ 51,803 Major Customers No single customer represented 10% or more of Hewlett Packard Enterprise's total net revenue in any fiscal year presented. Geographic Information Net revenue by country is based upon the sales location that predominately represents the customer location. For each of the fiscal years of 2020, 2019 and 2018, other than the U.S., no country represented more than 10% of Hewlett Packard Enterprise's net revenue. Net revenue by country in which Hewlett Packard Enterprise operates was as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions Americas U.S. $ 9,162 $ 9,582 $ 10,192 Americas excluding U.S. 1,700 1,922 2,135 Total Americas 10,862 11,504 12,327 Europe, Middle East and Africa 9,745 10,828 11,295 Asia Pacific and Japan 6,375 6,803 7,230 Total Hewlett Packard Enterprise consolidated net revenue $ 26,982 $ 29,135 $ 30,852 Net property, plant and equipment by country in which Hewlett Packard Enterprise operates was as follows: As of October 31, 2020 2019 In millions U.S. $ 2,762 $ 2,894 Other countries 2,863 3,160 Total net property, plant and equipment $ 5,625 $ 6,054 |
Transformation Programs
Transformation Programs | 12 Months Ended |
Oct. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Transformation Programs | Transformation Programs Transformation Costs Cost Optimization and Prioritization Plan During fiscal 2020, the Company incurred $384 million of charges related to the cost optimization and prioritization plan which is recorded within Transformation costs in the Consolidated Statements of Earnings, the components of which were as follows: Fiscal year ended October 31, 2020 In millions Program management $ 55 Restructuring charges 329 Total Transformation Costs $ 384 HPE Next During fiscal 2020, 2019 and 2018 the Company incurred $569 million, $462 million and $445 million, respectively, in net charges associated with HPE Next. For fiscal 2020, 2019 and 2018, $566 million, $453 million and $414 million were recorded within Transformation costs, and $3 million, $9 million and $11 million were recorded within Non-service net periodic benefit credit in the Consolidated Statements of Earnings, respectively. In fiscal 2018 the Company also incurred $20 million of transformation costs related to cumulative translation adjustments as a result of country exits associated with HPE Next which was recorded within Interest and other, net in the Consolidated Statements of Earnings. The components of Transformation costs relating to HPE Next were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Program management $ 35 $ 29 $ 95 IT costs 100 134 148 Restructuring charges 440 219 531 Gains on real estate sales (45) (7) (405) Impairment on real estate assets 10 47 — Other 29 40 76 Total Transformation Costs $ 569 $ 462 $ 445 Restructuring Plan On May 19, 2020, the Company's Board of Directors approved a restructuring plan in connection with the cost optimization and prioritization plan. As of October 31, 2020, the Company estimates that it will incur aggregate charges of approximately $1.3 billion, through fiscal 2023 in connection with the cost optimization and prioritization plan which relates to labor restructuring and non-labor restructuring, primarily relating to real estate site exits. The changes to the workforce will vary by country, based on business needs, local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. On October 16, 2017, the Company's Board of Directors approved a restructuring plan in connection with the HPE Next (the "HPE Next Plan") and on September 20, 2018, the Company's Board of Directors approved a revision to that restructuring plan. As of October 31, 2020, the headcount exits under HPE Next Plan are complete. The Company estimates that it will incur charges through fiscal 2023, relating to non-labor restructuring, primarily from real estate site exits. Restructuring activities related to the Company's employees and infrastructure under the cost optimization and prioritization plan and HPE Next Plan, are presented in the table below: Cost Optimization and Prioritization Plan HPE Next Plan Employee Infrastructure Employee Infrastructure In millions In millions Liability as of October 31, 2017 $ — $ — $ 296 $ — Charges — — 470 61 Cash payments — — (452) (14) Non-cash items — — (23) (14) Liability as of October 31, 2018 $ — $ — $ 291 $ 33 Charges — — 154 65 Cash payments — — (256) (37) Non-cash items — — (11) (19) Liability as of October 31, 2019 $ — $ — $ 178 $ 42 Charges 230 99 341 99 Cash payments (18) (3) (383) (50) Non-cash items (2) (60) 8 (56) Liability as of October 31, 2020 $ 210 $ 36 $ 144 $ 35 Total costs incurred to date as of October 31, 2020 $ 230 $ 99 $ 1,261 $ 225 Total expected costs to be incurred as of October 31, 2020 $ 700 $ 610 $ 1,261 $ 248 The current restructuring liability related to the transformation programs, reported in Accrued restructuring in the Consolidated Balance Sheets at October 31, 2020 and 2019, was $359 million and $164 million, respectively. The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Consolidated Balance Sheets as of October 31, 2020 and 2019 was $66 million and $56 million, respectively. |
Retirement and Post-Retirement
Retirement and Post-Retirement Benefit Plans | 12 Months Ended |
Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement and Post-Retirement Benefit Plans | Retirement and Post-Retirement Benefit Plans Defined Benefit Plans The Company sponsors defined benefit pension plans worldwide, the most significant of which are the United Kingdom ("UK") and Germany. The pension plan in the UK is closed to new entrants, however, members continue to earn benefit accruals. This plan provides benefits based on final pay and years of service and generally requires contributions from members. The German pension program that is open to new hires consists of cash balance plans that provide employer credits as a percentage of pay, certain employee pay deferrals and employer matching contributions. There also are previously closed German pension programs that include cash balance and final average pay plans. These previously closed pension programs comprise the majority of the pension obligations in Germany. Post-Retirement Benefit Plans The Company sponsors retiree health and welfare benefit plans, the most significant of which is in the U.S. Generally, employees hired before August 2008 are eligible for employer credits under the Hewlett Packard Enterprise Retirement Medical Savings Account Plan ("RMSA") upon attaining age 45. Employer credits to the RMSA available after September 2008 are provided in the form of matching credits on employee contributions made to a voluntary employee beneficiary association. Upon retirement, employees may use these employer credits for the reimbursement of certain eligible medical expenses. Defined Contribution Plans The Company offers various defined contribution plans for U.S. and non-U.S. employees. The Company's defined contribution expense was approximately $160 million in fiscal 2020, $181 million in fiscal 2019 and $158 million in fiscal 2018. U.S. employees are automatically enrolled in the Hewlett Packard Enterprise Company 401(k) Plan ("HPE 401(k) Plan"), when they meet eligibility requirements, unless they decline participation. Effective January 1, 2018, the HPE 401(k) Plan's quarterly employer matching contributions are 100% of an employee's contributions, up to a maximum of 4% of eligible compensation. Due to cost containment measures put in place in response to COVID-19, the Company suspended the employer match for U.S. employees from July 1, 2020 through the end of the calendar year with the expectation that the match will resume in 2021. Pension Benefit Expense The Company's net pension and post-retirement benefit costs that were directly attributable to the eligible employees, retirees and other former employees of Hewlett Packard Enterprise and recognized in the Consolidated Statements of Earnings for fiscal 2020, 2019 and 2018 are presented in the table below. As of October 31, 2020 2019 2018 2020 2019 2018 Defined Post-Retirement In millions Service cost $ 94 $ 85 $ 105 $ 1 $ 1 $ 1 Interest cost (1) 143 215 225 5 7 7 Expected return on plan assets (1) (544) (511) (567) (1) (1) (1) Amortization and deferrals (1) : Actuarial loss (gain) 264 235 211 (1) (4) (3) Prior service benefit (14) (15) (17) — — — Net periodic benefit cost (57) 9 (43) 4 3 4 Curtailment gain (1) — — (1) — — — Settlement loss (1) 10 13 20 — — — Special termination benefits (1) 2 2 6 — — — Total net benefit (credit) cost (45) 24 (18) 4 3 4 (1) These non-service components of net periodic benefit cost are included in Non-service net periodic benefit credit in the Consolidated Statements of Earnings. The weighted-average assumptions used to calculate the net benefit (credit) cost in the table above for fiscal 2020, 2019 and 2018 were as follows: As of October 31, 2020 2019 2018 2020 2019 2018 Defined Post-Retirement Discount rate used to determine benefit obligation 1.2 % 2.1 % 2.0 % 3.4 % 4.9 % 4.5 % Discount rate used to determine service cost 1.6 % 2.3 % 2.4 % 3.0 % 4.4 % 3.7 % Discount rate used to determine interest cost 1.0 % 1.8 % 1.7 % 3.2 % 4.7 % 4.2 % Expected increase in compensation levels 2.5 % 2.5 % 2.3 % — — — Expected long-term return on plan assets 4.1 % 4.3 % 4.4 % 2.3 % 2.6 % 2.6 % To estimate the service and interest cost components of net periodic benefit cost for defined benefit plans that use the yield curve approach, which represent substantially all of the Company's defined benefit plans, the Company has elected to use a full yield curve approach in the estimation of these components of benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Funded Status The funded status of the plans was as follows: As of October 31, 2020 2019 2020 2019 Defined Post-Retirement In millions Change in fair value of plan assets: Fair value—beginning of year $ 13,434 $ 12,167 $ 54 $ 52 Transfers — (5) — — Addition/deletion of plans (1) 5 (14) — — Actual return on plan assets 557 1,542 — 1 Employer contributions 167 166 5 5 Participant contributions 24 24 5 4 Benefits paid (410) (387) (7) (8) Settlement (51) (67) — — Currency impact 401 8 — — Fair value—end of year $ 14,127 $ 13,434 $ 57 $ 54 Change in benefit obligation: Projected benefit obligation—beginning of year $ 14,225 $ 12,668 $ 179 $ 160 Transfers — (7) — — Addition/deletion of plans (1) 5 (12) — — Service cost 94 85 1 1 Interest cost 143 215 5 7 Participant contributions 24 24 5 4 Actuarial (gain) loss 368 1,710 (9) 17 Benefits paid (410) (387) (7) (8) Plan amendments (3) 12 — — Settlement (51) (67) — — Special termination benefits 2 2 — — Currency impact 448 (18) (7) (2) Projected benefit obligation—end of year $ 14,845 $ 14,225 $ 167 $ 179 Funded status at end of year $ (718) $ (791) $ (110) $ (125) Accumulated benefit obligation $ 14,619 $ 13,995 $ — $ — (1) Includes the addition/deletion of plans resulting from acquisitions. The weighted-average assumptions used to calculate the projected benefit obligations were as follows: As of October 31, 2020 2019 2020 2019 Defined Benefit Plans Post-Retirement Benefit Plans Discount rate 1.0 % 1.2 % 2.8 % 3.4 % Expected increase in compensation levels 2.5 % 2.5 % — — The net amounts recognized for defined benefit and post-retirement benefit plans in the Company's Consolidated Balance Sheets were as follows: As of October 31, 2020 2019 2020 2019 Defined Benefit Plans Post-Retirement Benefit Plans In millions Non-current assets $ 1,046 $ 864 $ — $ — Current liabilities (49) (45) (6) (6) Non-current liabilities (1,715) (1,610) (104) (119) Funded status at end of year $ (718) $ (791) $ (110) $ (125) The following table summarizes the pre-tax net actuarial loss and prior service benefit recognized in accumulated other comprehensive loss for the defined benefit plans: As of October 31, 2020 Defined Post-Retirement In millions Net actuarial loss $ 3,633 $ 6 Prior service benefit (28) — Total recognized in accumulated other comprehensive loss $ 3,605 $ 6 The following table summarizes the net actuarial loss and prior service benefit for plans that are expected to be amortized from accumulated other comprehensive loss and recognized as components of net periodic benefit cost (credit) during the next fiscal year. As of October 31, 2020 Defined Post-Retirement In millions Net actuarial loss (gain) $ 290 $ (2) Prior service benefit (13) — Total expected to be recognized in net periodic benefit cost (credit) $ 277 $ (2) Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: As of October 31, 2020 2019 In millions Aggregate fair value of plan assets $ 4,160 $ 3,585 Aggregate projected benefit obligation $ 5,924 $ 5,238 Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: As of October 31, 2020 2019 In millions Aggregate fair value of plan assets $ 4,094 $ 3,574 Aggregate accumulated benefit obligation $ 5,723 $ 5,088 Fair Value of Plan Assets The Company pays the U.S. defined benefit plan obligations when they come due since these plans are unfunded. The table below sets forth the fair value of non-U.S. defined benefit plan assets by asset category within the fair value hierarchy as of October 31, 2020 and 2019. Reclassifications of certain prior year investment balances in asset categories have been made to conform to the current-year presentation. As of As of Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset Category: Equity securities U.S. $ 155 $ 117 $ — $ 272 $ 172 $ 8 $ — $ 180 Non-U.S. 955 217 — 1,172 836 222 — 1,058 Debt securities Corporate — 1,778 — 1,778 — 1,502 — 1,502 Government (1) — 6,007 — 6,007 — 5,344 — 5,344 Government at NAV (2) 875 897 Other (3) — 683 555 1,238 — 361 401 762 Alternative investments Private Equity — 4 35 39 — 2 42 44 Hybrids (4) 18 1,486 90 1,594 — 1,343 71 1,414 Hybrids at NAV (5) 504 491 Common Contractual Funds at NAV (6) Equities at NAV 1,393 1,398 Fixed Income at NAV 782 724 Emerging Markets at NAV 362 318 Alternative investments at NAV 350 379 Real Estate Funds 27 229 39 295 8 203 39 250 Insurance Group Annuity Contracts — 56 36 92 — 54 37 91 Cash and Cash Equivalents 241 176 — 417 252 310 — 562 Other (7) 24 95 1 120 30 51 1 82 Obligation to return cash received from repurchase agreements (1) — (3,163) — (3,163) — (2,062) — (2,062) Total $ 1,420 $ 7,685 $ 756 $ 14,127 $ 1,298 $ 7,338 $ 591 $ 13,434 (1) Repurchase agreements, primarily in the UK, represent the plans' short-term borrowing to hedge against interest rate and inflation risks. Investments in approximately $5 billion and $4 billion of government bonds collateralize this short-term borrowing at October 31, 2020 and 2019, respectively. The plans have an obligation to return the cash after the term of the agreements. Due to the short-term nature of the agreements, the outstanding balance of the obligation approximates fair value. (2) Includes a fund that invests in various government bonds issued by worldwide governments, interest rate swaps, and cash, to match or slightly outperform the benchmark of the future liabilities of the fund. While the fund is not publicly traded, the custodian strikes a net asset value daily. There are no redemption restrictions or future commitments on these investments. (3) Includes funds that invest primarily in asset-backed securities, mortgage backed securities, collateralized loan obligations, and/or private debt investments. (4) Includes funds, primarily in the UK, that invest in both private and public equities, as well as emerging markets across all sectors. The funds also hold fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the funds include units in transferable securities, collective investment schemes, money market funds, asset-backed income, cash, and deposits. (5) Includes a pooled fund in the UK, that seeks a rate of return with direct or indirect linkage to UK inflation by investing in vehicles including bonds, long lease property, income strips, asset-backed securities, and index linked assets. Units are available for subscription on the first day of each calendar month at net asset value. There are no redemption restrictions or future commitments on these investments. (6) HPE Invest Common Contractual Funds (CCFs) are investment arrangements in which institutional investors pool their assets. Units may be acquired in four different sub-funds focused on equities, fixed income, alternative investments, and emerging markets. Each sub-fund is invested in accordance with the fund's investment objective and units are issued in relation to each sub-fund. While the sub-funds are not publicly traded, the custodian strikes a net asset value either once or twice a month, depending on the sub-fund. There are no redemption restrictions or future commitments on these investments. (7) Includes international insured contracts, derivative instruments, and unsettled transactions. As of October 31, 2020 post-retirement benefit plan assets of $57 million were invested in publicly traded registered investment entities of which $46 million are classified within Level 1 and $11 million within Level 2 of the fair value hierarchy. As of October 2019, post-retirement benefit plan assets of $54 million were invested in publicly traded registered investment entities, classified within Level 1 of the fair value hierarchy. Changes in fair value measurements of Level 3 investments for the non-U.S. defined benefit plans were as follows: Fiscal year ended October 31, 2020 Alternative Debt-Other Private Hybrids Real Insurance Other Total In millions Balance at beginning of year $ 401 $ 42 $ 71 $ 39 $ 37 $ 1 $ 591 Actual return on plan assets: Relating to assets held at the reporting date (25) (3) (3) — — — (31) Relating to assets sold during the period — 4 — — — — 4 Purchases, sales, and settlements 179 (8) 22 — (1) — 192 Balance at end of year $ 555 $ 35 $ 90 $ 39 $ 36 $ 1 $ 756 Fiscal year ended October 31, 2019 Alternative Debt-Other Private Hybrids Real Insurance Other Total In millions Balance at beginning of year $ 102 $ 40 $ 30 $ 37 $ 38 $ 1 $ 248 Actual return on plan assets: Relating to assets held at the reporting date 69 1 — 2 — — 72 Relating to assets sold during the period — — — — — — — Purchases, sales, and settlements 230 1 41 — (1) — 271 Balance at end of year $ 401 $ 42 $ 71 $ 39 $ 37 $ 1 $ 591 The following is a description of the valuation methodologies used to measure plan assets at fair value. Investments in publicly traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded. For corporate, government backed debt securities, and some other investments, fair value is based on observable inputs of comparable market transactions. The valuation of certain real estate funds, insurance group annuity contracts and alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. The valuation is generally based on fair value as reported by the asset manager and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including, but are not limited to, the timeliness of fair value as reported by the asset manager and changes in general economic and market conditions subsequent to the last fair value reported by the asset manager. Cash and cash equivalents includes money market funds, which are valued based on cost, which approximates fair value. Other than those assets that have quoted prices from an active market, investments are generally classified in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measure in its entirety. Investments measured using net asset value as a practical expedient are not categorized within the fair value hierarchy. Plan Asset Allocations The weighted-average target and actual asset allocations across the benefit plans at the respective measurement dates for the non-U.S. defined benefit plans were as follows: Defined Plan Assets Asset Category 2020 2020 2019 Public equity securities 22.6 % 22.0 % Private/hybrid equity securities 17.6 % 17.3 % Real estate and other 2.9 % 2.5 % Equity-related investments 44.1 % 43.1 % 41.8 % Debt securities 54.4 % 53.9 % 54.0 % Cash and cash equivalents 1.5 % 3.0 % 4.2 % Total 100.0 % 100.0 % 100.0 % For the Company's post-retirement benefit plans, approximately 80% of the plan assets are invested in cash and cash equivalents and approximately 20% in multi-asset credit investments which consists primarily of investment grade credit, emerging market debt and high yield bonds. Investment Policy The Company's investment strategy is to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status of each plan and the timing of expected benefit payments. The majority of the plans' investment managers employ active investment management strategies with the goal of outperforming the broad markets in which they invest. Risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. A number of the plans' investment managers are authorized to utilize derivatives for investment or liability exposures, and the Company may utilize derivatives to effect asset allocation changes or to hedge certain investment or liability exposures. Asset allocation decisions are typically made by an independent board of trustees for the specific plan. Investment objectives are designed to generate returns that will enable the plan to meet its future obligations. In some countries, local regulations may restrict asset allocations, typically leading to a higher percentage of investment in fixed income securities than would otherwise be deployed. The Company reviews the investment strategy and provides a recommended list of investment managers for each country plan, with final decisions on asset allocation and investment managers made by the board of trustees or investment committees for the specific plan. Basis for Expected Long-Term Rate of Return on Plan Assets The expected long-term rate of return on plan assets reflects the expected returns for each major asset class in which the plan invests and the weight of each asset class in the target mix. Expected asset returns reflect the current yield on government bonds, risk premiums for each asset class and expected real returns, which considers each country's specific inflation outlook. Because the Company's investment policy is to employ primarily active investment managers who seek to outperform the broader market, the expected returns are adjusted to reflect the expected additional returns, net of fees. Employer Contributions and Funding Policy During fiscal 2020, the Company contributed approximately $167 million to its non-U.S. pension plans and paid $5 million to cover benefit claims under the Company's post-retirement benefit plans. During fiscal 2021, the Company expects to contribute approximately $192 million to its non-U.S. pension plans and an additional $2 million to cover benefit payments to U.S. non-qualified plan participants. In addition, the Company expects to pay approximately $6 million to cover benefit claims for its post-retirement benefit plans. The Company's policy is to fund its pension plans so that it makes at least the minimum contribution required by various authorities including local government and taxing authorities. Estimated Future Benefits Payments As of October 31, 2020, estimated future benefits payments for the Company's retirement plans were as follows: Fiscal year Defined Post-Retirement In millions 2021 $ 483 $ 10 2022 481 11 2023 496 11 2024 509 11 2025 533 11 Next five fiscal years to October 31, 2030 2,842 55 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The total number of shares of the Company's common stock authorized under the Hewlett Packard Enterprise Company 2015 Stock Incentive Plan (the "Plan") is 277 million. The Plan provides for the grant of various types of awards including restricted stock awards, stock options, and performance-based awards. These awards generally vest over three years from the grant date. The Company's stock-based incentive compensation program also includes various replacement awards through acquisitions under which stock-based awards are outstanding. Stock-Based Compensation Expense Stock-based compensation expense and the resulting tax benefits were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Stock-based compensation expense $ 278 $ 270 $ 309 Income tax benefit (51) (50) (56) Stock-based compensation expense, net of tax $ 227 $ 220 $ 253 Stock-based compensation expense as presented in the table above is recorded within the following cost and expense lines in the Consolidated Statement of Earnings. For the fiscal years ended October 31, 2020 2019 2018 In millions Cost of sales $ 37 $ 37 $ 39 Research and development 81 70 73 Selling, general and administrative 156 161 174 Transformation costs — 2 3 Acquisition, disposition and other related charges 4 — 10 Separation costs — — 10 Stock-based compensation expense $ 278 $ 270 $ 309 Employee Stock Purchase Plan Effective November 1, 2015, the Company adopted the Hewlett Packard Enterprise Company 2015 Employee Stock Purchase Plan ("ESPP"). The total number of shares of Company's common stock authorized under the ESPP was 80 million. The ESPP allows eligible employees to contribute up to 10% of their eligible compensation to purchase Hewlett Packard Enterprise's common stock. The ESPP provides for a discount not to exceed 15% and an offering period up to 24 months. The Company currently offers 6-month offering periods during which employees have the ability to purchase shares at 95% of the closing market price on the purchase date. No stock-based compensation expense was recorded in connection with those purchases, as the criteria of a non-compensatory plan were met. Restricted Stock Units Restricted stock units have forfeitable dividend equivalent rights equal to the dividend paid on common stock. Restricted stock units do not have the voting rights of common stock, and the shares underlying restricted stock units are not considered issued and outstanding upon grant. The fair value of the restricted stock units is the closing price of the Company's common stock on the grant date of the award. The Company expenses the fair value of restricted stock units ratably over the period during which the restrictions lapse. The following table summarizes restricted stock unit activity for the year ended October 31, 2020: Shares Weighted- In thousands Outstanding at beginning of year 39,700 $ 14 Granted and replacement awards for acquisition 25,221 $ 13 Vested (18,469) $ 15 Forfeited/canceled (4,127) $ 15 Outstanding at end of year 42,325 $ 13 The total grant date fair value of restricted stock awards vested for Company employees in fiscal 2020, 2019 and 2018 was $254 million, $182 million and $355 million, respectively. As of October 31, 2020, there was $274 million of unrecognized pre-tax stock-based compensation expense related to unvested restricted stock units, which the Company expects to recognize over the remaining weighted-average vesting period of 1.4 years. Performance Restricted Units The Company issues performance stock units ("PSU") that vest on the satisfaction of service and performance conditions. The fair value of the PSUs is the closing price of the Company's common stock on the grant date of the award. The Company also issues performance-adjusted restricted stock units ("PARSU") that vest only on the satisfaction of service, performance and market conditions. The Company estimates the fair value of PARSUs subject to performance-contingent vesting conditions using the Monte Carlo simulation model. The expenses associated with these performance restricted units were not material for any of the periods presented. Stock Options Stock options granted under the Plan are generally non-qualified stock options, but the Plan permits some options granted to qualify as incentive stock options under the U.S. Internal Revenue Code. The exercise price of a stock option is equal to the closing price of the Company's common stock on the option grant date. The majority of the stock options issued by the Company contain only service vesting conditions. The Company has also issued performance-contingent stock options that vest only on the satisfaction of both service and market conditions. In fiscal 2020, the Company did not issue stock options other than those that were replacement awards through the acquisition of Silver Peak. The Company utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. The Company estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions. The following table summarizes stock option activity for the year ended October 31, 2020: Shares Weighted- Weighted- Aggregate In thousands In years In millions Outstanding at beginning of year 10,162 $ 11 Replacement awards for acquisition (1) 10,340 $ 2 Exercised (1,454) $ 8 Forfeited/canceled/expired (403) $ 9 Outstanding at end of year 18,645 $ 6 5.1 $ 64 Vested and expected to vest at end of year 17,547 $ 7 5.0 $ 58 Exercisable at end of year 8,586 $ 11 2.8 $ 6 (1) Fiscal 2020 represents replacement awards of stock options through acquisition of Silver Peak. The Company utilized a lattice model to estimate the fair value of outstanding replacement awards. As of October 31, 2020, there was $41 million of unrecognized pre-tax stock-based compensation expense related to stock options, which the Company expects to recognize over the remaining weighted-average vesting period of 2.2 years. The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of fiscal 2020. The aggregate intrinsic value is the difference between the Company's closing common stock price on the last trading day of the respective fiscal year and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised in fiscal 2020, 2019 and 2018 was $9 million, $49 million and $200 million, respectively. |
Taxes on Earnings
Taxes on Earnings | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings Provision for Taxes The domestic and foreign components of Net earnings (loss) from continuing operations before taxes were as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions U.S. $ (2,008) $ (1,067) $ (2,805) Non-U.S. 1,566 2,620 3,073 $ (442) $ 1,553 $ 268 The (Provision) benefit for taxes on Net earnings (loss) from continuing operations were as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions U.S. federal taxes: Current $ 55 $ 763 $ 2,177 Deferred 149 (1,046) (150) Non-U.S. taxes: Current (284) (246) (419) Deferred 133 (101) 188 State taxes: Current 55 58 (52) Deferred 12 68 — $ 120 $ (504) $ 1,744 The differences between the U.S. federal statutory income tax rate and the Company's effective tax rate were as follows: For the fiscal years ended October 31, 2020 (1) 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % 23.3 % State income taxes, net of federal tax benefit 0.9 % (0.1) % 4.3 % Lower rates in other jurisdictions, net 13.6 % (7.3) % (121.4) % Valuation allowance 20.8 % 5.8 % (59.8) % U.S. permanent differences (3.4) % 6.0 % 39.3 % U.S. R&D credit 8.4 % (2.3) % (7.0) % Uncertain tax positions 7.6 % (14.3) % (693.4) % Goodwill impairment (41.2) % — % — % Impacts of the Tax Act (0.4) % 24.5 % 158.0 % Other, net (0.2) % (0.8) % 6.0 % 27.1 % 32.5 % (650.7) % (1) Positive numbers represent tax benefits and negative numbers represent tax expense as the Company recorded income tax benefit on a pretax loss. The jurisdictions with favorable tax rates that had the most significant impact on the Company's effective tax rate in the periods presented include Puerto Rico and Singapore. In fiscal 2020, the Company recorded $362 million of net income tax benefits related to items discrete to the year. These amounts primarily included $174 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $66 million of income tax benefits related to the change in pre-Separation tax liabilities, primarily those for which the Company shares joint and several liability with HP Inc. and for which the Company is indemnified by HP Inc., $57 million of income tax benefits related to Indian distribution tax rate changes, and $40 million of income tax benefits related to tax rate changes on deferred taxes. In fiscal 2019, the Company recorded $152 million of net income tax charges related to items discrete to the year. These amounts primarily included $488 million of net income tax charges related to changes in U.S. federal and state valuation allowances primarily as a result of impacts of the Tax Act and $40 million of income tax charges related to future withholding costs on potential intercompany distributions of earnings, the effects of which were partially offset by $274 million of income tax benefits related to the change in pre-Separation tax liabilities for which the Company shared joint and several liability with HP Inc., and $104 million of income tax benefits on transformation costs, and acquisition, disposition and other related charges. In fiscal 2018, the Company recorded $2.0 billion of net income tax benefits related to items discrete to the year. These amounts primarily included $2.0 billion of income tax benefits related to the settlement of certain pre-Separation tax liabilities for which the Company shared joint and several liability with HP Inc. and for which the Company was partially indemnified by HP Inc. under the Tax Matters Agreement, $208 million of income tax benefits related to Everett pre-divestiture tax matters and valuation allowances, $125 million of income tax benefits on restructuring charges, separation costs, transformation costs and acquisition and other related charges and $65 million of net excess tax benefits related to stock-based compensation, the effects of which were partially offset by $422 million of income tax charges related to impacts of the Tax Act. In addition, in fiscal 2018, the Company recorded $5.0 billion of certain foreign loss carryforwards and U.S. domestic capital losses carryforwards against which a full valuation allowance was recorded; the effective tax rate above reflects this activity on a net basis. As a result of certain employment actions and capital investments the Company has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates through 2024. The gross income tax benefits attributable to these actions and investments were $521 million ($0.40 diluted net EPS) in fiscal 2020, $837 million ($0.61 diluted net EPS) in fiscal 2019 and $792 million ($0.51 diluted net EPS) in fiscal 2018. Refer to Note 16, "Net Earnings Per Share" for details on shares used to compute diluted net EPS. Uncertain Tax Positions A reconciliation of unrecognized tax benefits is as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 2,269 $ 8,826 $ 11,262 Increases: For current year's tax positions 27 43 163 For prior years' tax positions 40 37 66 Decreases: For prior years' tax positions (71) (17) (82) Statute of limitations expiration (17) (38) (86) Settlements with taxing authorities (53) (7) (2) Settlements related to joint and several positions of former Parent (36) (6,575) (2,495) Balance at end of year $ 2,159 $ 2,269 $ 8,826 Up to $731 million, $772 million and $1.1 billion of Hewlett Packard Enterprise's unrecognized tax benefits at October 31, 2020, 2019 and 2018, respectively, would affect the Company's effective tax rate if realized. The Company continues to record $62 million of pre-Separation unrecognized state tax positions, inclusive of interest and penalties, for which it is joint and severally liable and continues to be indemnified under the Termination and Mutual Release Agreement. The $69 million of joint and several income tax benefits recognized in the Company's effective tax rate includes interest, penalties, and offsetting benefits not included in the table above. The $6.6 billion decrease in the amount of unrecognized tax benefits for the year ended October 31, 2019, is primarily related to the settlement of certain pre-Separation tax liabilities of HP Inc. for which the Company shared joint and several liability and for which the Company was partially indemnified by HP Inc. Hewlett Packard Enterprise recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in (Provision) benefit for taxes in the Consolidated Statements of Earnings. The Company recognized $10 million, $13 million, and $161 million of interest income in fiscal 2020, 2019, and 2018, respectively. As of October 31, 2020 and 2019, the Company had accrued $119 million and $129 million, respectively, for interest and penalties in the Consolidated Balance Sheets. Hewlett Packard Enterprise is subject to income tax in the U.S. and approximately 95 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. With the resolution of the 2013 through 2015 IRS tax audits of its former parent in fiscal 2019, Hewlett Packard Enterprise is no longer subject to U.S. federal tax audits for years prior to 2016 . With respect to major state and foreign tax jurisdictions, HPE is no longer subject to tax authority examinations for years prior to 2005. Hewlett Packard Enterprise is joint and severally liable for certain pre-Separation state tax liabilities of HP Inc. HP Inc. is subject to numerous ongoing audits by state tax authorities. Hewlett Packard Enterprise engages in continuous discussion and negotiation with taxing authorities regarding tax matters in various jurisdictions. Hewlett Packard Enterprise does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions, joint and several tax liabilities and other matters. Accordingly, Hewlett Packard Enterprise believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $79 million within the next 12 months. Hewlett Packard Enterprise believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. The Company regularly assesses the likely outcomes of these audits in order to determine the appropriateness of the Company's tax provision. The Company adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that the Company will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the (Provision) benefit for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net earnings or cash flows. Hewlett Packard Enterprise has not provided for U.S. federal and state income and foreign withholding taxes on $9.7 billion of undistributed earnings and basis differences from non-U.S. operations as of October 31, 2020 because the Company intends to reinvest such earnings indefinitely outside of the U.S. Determination of the amount of unrecognized deferred tax liability related to these earnings and basis differences is not practicable. The Company will remit non-indefinitely reinvested earnings of its non-U.S. subsidiaries for which deferred U.S. state income and foreign withholding taxes have been provided where excess cash has accumulated and the Company determines that it is advantageous for business operations, tax or cash management reasons. Deferred Income Taxes Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of deferred tax assets and deferred tax liabilities were as follows: As of October 31, 2020 2019 In millions Deferred tax assets: Loss and credit carryforwards $ 7,596 $ 8,110 Inventory valuation 75 59 Intercompany prepayments 295 179 Other intercompany transactions 31 41 Warranty 69 72 Employee and retiree benefits 571 584 Restructuring 118 65 Deferred revenue 565 531 Intangible assets 94 130 Lease liabilities 166 — Other 206 243 Total deferred tax assets 9,786 10,014 Valuation allowance (7,724) (8,225) Total deferred tax assets net of valuation allowance 2,062 1,789 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries (172) (233) ROU assets (165) — Fixed assets (237) (352) Total deferred tax liabilities (574) (585) Net deferred tax assets and liabilities $ 1,488 $ 1,204 Deferred tax assets and liabilities included in the Consolidated Balance Sheets are as follows: As of October 31, 2020 2019 In millions Deferred tax assets $ 1,778 $ 1,515 Deferred tax liabilities (290) (311) Deferred tax assets net of deferred tax liabilities $ 1,488 $ 1,204 As of October 31, 2020, the Company had $636 million, $2.7 billion and $20.4 billion of federal, state and foreign net operating loss carryforwards, respectively. Amounts included in federal, state and foreign net operating loss carryforwards will begin to expire in years 2030, 2021, and 2021, respectively. Hewlett Packard Enterprise has provided a valuation allowance of $138 million and $4.1 billion for deferred tax assets related to state and foreign net operating losses carryforwards, respectively. As of October 31, 2020, the Company also had $6.0 billion, $6.0 billion, and $38 million of federal, state, and foreign capital loss carryforwards, respectively. Amounts included in federal and state capital loss carryforwards will begin to expire in 2023; foreign capital losses can carry forward indefinitely. Hewlett Packard Enterprise has provided a valuation allowance of $1.3 billion, $191 million, and $10 million for deferred tax assets related to federal, state, and foreign capital loss carryforwards, respectively. As of October 31, 2020, Hewlett Packard Enterprise had recorded deferred tax assets for various tax credit carryforwards as follows: Carryforward Valuation Allowance Initial Year of Expiration In millions U.S. foreign tax credits $ 1,129 $ (1,119) 2026 U.S. research and development and other credits 194 (1) 2021 Tax credits in state and foreign jurisdictions 171 (142) 2021 Balance at end of year $ 1,494 $ (1,262) Total valuation allowances decreased by $501 million in fiscal 2020, primarily as a result of the liquidation of certain foreign entities that had deferred tax assets on certain loss carryforwards against which valuation allowances were required. Tax Matters Agreement and Other Income Tax Matters In connection with the Separation, the Company entered into a Tax Matters Agreement with HP Inc., which was terminated with the Termination and Mutual Release Agreement in fiscal 2019. Pursuant to that termination, HP Inc. paid the Company $200 million in fiscal 2019 and $50 million in fiscal 2020 and will pay an additional $50 million on or before October 31, 2021. In connection with the Everett and Seattle Transactions, the Company entered into a DXC Tax Matters Agreement with DXC and a Micro Focus Tax Matters Agreement with Micro Focus, respectively. See Note 18, "Guarantees, Indemnifications and Warranties", for a description of the DXC Tax Matters Agreement and Micro Focus Tax Matters Agreement. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Balance sheet details were as follows: Cash, Cash Equivalents and Restricted Cash As of October 31, 2020 2019 In millions Cash and cash equivalents $ 4,233 $ 3,753 Restricted cash 388 323 Total $ 4,621 $ 4,076 Accounts Receivable, Net As of October 31, 2020 2019 In millions Unbilled receivable $ 205 $ 206 Accounts receivable 3,227 2,782 Allowance for doubtful accounts (46) (31) Total $ 3,386 $ 2,957 The allowance for doubtful accounts related to accounts receivable and changes therein were as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 31 $ 39 $ 42 Provision for doubtful accounts 29 9 20 Deductions, net of recoveries (14) (17) (23) Balance at end of year $ 46 $ 31 $ 39 The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain cases provide for partial recourse, result in the transfer of the Company's trade receivables to a third party. The Company reflects amounts transferred to, but not yet collected from, the third party in Accounts receivable in the Consolidated Balance Sheets. When the Company has received payment from the third party for which revenue recognition has been deferred, the Company records the obligation for the amount received in Notes payable and short-term borrowings in its Consolidated Balance Sheets. For arrangements involving an element of recourse, the fair value of the recourse obligation is measured using market data from similar transactions and reported as a current liability in Other accrued liabilities in the Consolidated Balance Sheets. The activity related to Hewlett Packard Enterprise's revolving short-term financing arrangements was as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of period (1) $ (10) $ 166 $ 121 Trade receivables sold 3,897 4,533 4,844 Cash receipts (3,768) (4,710) (4,794) Foreign currency and other 3 1 (5) Balance at end of period (1) $ 122 $ (10) $ 166 (1) Beginning and ending balances represent amounts for trade receivables sold but not yet collected. The ending credit balance as of October 31, 2019 represents credit memos issued but not applied to trade receivables prior to cash remittance. Inventory As of October 31, 2020 2019 In millions Finished goods $ 1,197 $ 1,198 Purchased parts and fabricated assemblies 1,477 1,189 Total $ 2,674 $ 2,387 Property, Plant and Equipment As of October 31, 2020 2019 In millions Land $ 89 $ 241 Buildings and leasehold improvements 1,886 2,196 Machinery and equipment, including equipment held for lease 9,624 9,464 11,599 11,901 Accumulated depreciation (5,974) (5,847) Total $ 5,625 $ 6,054 Depreciation expense was $2.2 billion, $2.3 billion and $2.3 billion in fiscal 2020, 2019 and 2018, respectively. Long-Term Financing Receivables and Other Assets As of October 31, 2020 2019 In millions Financing receivables, net $ 5,110 $ 4,949 ROU assets 930 — Deferred tax assets 1,778 1,515 Prepaid pension 1,046 864 Other 1,680 1,590 Total $ 10,544 $ 8,918 Other Accrued Liabilities As of October 31, 2020 2019 In millions Value-added and property taxes $ 842 $ 806 Warranty 192 199 Sales and marketing programs 1,022 1,065 Operating lease liabilities 188 — Other 2,021 1,932 Total $ 4,265 $ 4,002 Other Non-Current Liabilities As of October 31, 2020 2019 In millions Pension, post-retirement, and post-employment $ 1,856 $ 1,772 Deferred revenue 2,785 2,751 Taxes on earnings 447 538 Operating lease liabilities 898 — Other 1,009 1,039 Total $ 6,995 $ 6,100 Contract Liabilities and Remaining Performance Obligations Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.2 billion and $6.0 billion as of October 31, 2020 and October 31, 2019, respectively. During the fiscal 2020, approximately $3.2 billion of the d eferred revenue as of October 31, 2019 was recognized as revenue. Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency. Remaining performance obligations consist of deferred revenue. As of October 31, 2020, the aggregate amount of remaining performance obligations was $6.2 billion. The Company expect to recognize approximately 55% of amount as revenue next twelve months with the remainder to be recognized thereafter. |
Accounting for Leases as a Less
Accounting for Leases as a Lessee | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Accounting for Leases as a Lessee | Accounting for Leases as a Lessee Components of lease cost included in the Consolidated Statement of Earnings were as follows: Fiscal year ended October 31, 2020 Operating lease cost $ 236 Finance lease cost 8 Sublease rental income (61) Total lease cost $ 183 During the fiscal year ended October 31, 2020, the Company recorded $41 million of net gain from sale and leaseback transactions. The ROU assets and lease liabilities for operating and finance leases included on the Hewlett Packard Enterprise Consolidated Balance Sheet were as follows: Balance Sheet Classification As of In millions Operating Leases ROU Assets Long-term financing receivables and other assets $ 930 Lease Liabilities: Operating lease liabilities – current Other accrued liabilities $ 188 Operating lease liabilities – non-current Other non-current liabilities 898 Total operating lease liabilities $ 1,086 Finance Leases Finance lease ROU Assets: Property, plant and equipment Gross finance lease ROU assets $ 52 Less: Accumulated depreciation (11) Net finance lease ROU assets $ 41 Lease Liabilities: Finance lease liabilities – current Notes payable and short-term borrowings $ 5 Finance lease liabilities – non-current Long-term debt 53 Total finance lease liabilities $ 58 Total ROU assets $ 971 Total lease liabilities $ 1,144 The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows: As of October 31, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in years) 6.8 9.5 Weighted-average discount rate 2.6 % 3.5 % Supplemental cash flow information related to leases was as follows: Cash Flow Statement Activity Fiscal year ended October 31, 2020 In millions Cash outflows from operating leases Net cash used in operating activities $ 239 ROU assets obtained in exchange for new operating lease liabilities Non-cash activities $ 298 The following tables shows the future payments on the Company's operating and finance leases: As of October 31, 2020 Operating Leases Finance Leases Fiscal year In millions 2021 $ 207 $ 6 2022 188 6 2023 172 7 2024 147 7 2025 128 7 Thereafter 342 35 Total future lease payments $ 1,184 $ 68 Less: imputed interest (98) (10) Total lease liabilities $ 1,086 $ 58 As of October 31, 2020, the Company entered into $225 million of operating leases that have not yet commenced and are not yet recorded on the Consolidated Balance Sheet. These operating leases are scheduled to commence between fiscal 2021 and 2022 and contain lease terms of 1 to 15 years. Prior to the adoption of the new lease standard, the future minimum lease commitments on the Company's operating and finance leases were: As of October 31, 2019 Operating Leases Finance Leases In millions Fiscal year 2020 $ 233 $ 6 2021 187 6 2022 164 7 2023 149 6 2024 127 7 Thereafter 541 41 Total $ 1,401 $ 73 |
Accounting for Leases as a Lessee | Accounting for Leases as a Lessee Components of lease cost included in the Consolidated Statement of Earnings were as follows: Fiscal year ended October 31, 2020 Operating lease cost $ 236 Finance lease cost 8 Sublease rental income (61) Total lease cost $ 183 During the fiscal year ended October 31, 2020, the Company recorded $41 million of net gain from sale and leaseback transactions. The ROU assets and lease liabilities for operating and finance leases included on the Hewlett Packard Enterprise Consolidated Balance Sheet were as follows: Balance Sheet Classification As of In millions Operating Leases ROU Assets Long-term financing receivables and other assets $ 930 Lease Liabilities: Operating lease liabilities – current Other accrued liabilities $ 188 Operating lease liabilities – non-current Other non-current liabilities 898 Total operating lease liabilities $ 1,086 Finance Leases Finance lease ROU Assets: Property, plant and equipment Gross finance lease ROU assets $ 52 Less: Accumulated depreciation (11) Net finance lease ROU assets $ 41 Lease Liabilities: Finance lease liabilities – current Notes payable and short-term borrowings $ 5 Finance lease liabilities – non-current Long-term debt 53 Total finance lease liabilities $ 58 Total ROU assets $ 971 Total lease liabilities $ 1,144 The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows: As of October 31, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in years) 6.8 9.5 Weighted-average discount rate 2.6 % 3.5 % Supplemental cash flow information related to leases was as follows: Cash Flow Statement Activity Fiscal year ended October 31, 2020 In millions Cash outflows from operating leases Net cash used in operating activities $ 239 ROU assets obtained in exchange for new operating lease liabilities Non-cash activities $ 298 The following tables shows the future payments on the Company's operating and finance leases: As of October 31, 2020 Operating Leases Finance Leases Fiscal year In millions 2021 $ 207 $ 6 2022 188 6 2023 172 7 2024 147 7 2025 128 7 Thereafter 342 35 Total future lease payments $ 1,184 $ 68 Less: imputed interest (98) (10) Total lease liabilities $ 1,086 $ 58 As of October 31, 2020, the Company entered into $225 million of operating leases that have not yet commenced and are not yet recorded on the Consolidated Balance Sheet. These operating leases are scheduled to commence between fiscal 2021 and 2022 and contain lease terms of 1 to 15 years. Prior to the adoption of the new lease standard, the future minimum lease commitments on the Company's operating and finance leases were: As of October 31, 2019 Operating Leases Finance Leases In millions Fiscal year 2020 $ 233 $ 6 2021 187 6 2022 164 7 2023 149 6 2024 127 7 Thereafter 541 41 Total $ 1,401 $ 73 |
Accounting for Leases as a Le_2
Accounting for Leases as a Lessor | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Accounting for Leases as a Lessor | 90 days 140 88 Unbilled sales-type and direct-financing lease receivables 8,513 8,186 Total gross financing receivables $ 9,058 $ 8,652 Gross financing receivables on non-accrual status (2) $ 364 $ 276 Gross financing receivables 90 days past due and still accruing interest (2) $ 74 $ 121 (1) Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. (2) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. Operating Leases Operating lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were as follows: As of October 31, 2020 2019 In millions Equipment leased to customers $ 7,184 $ 7,185 Accumulated depreciation (3,157) (3,101) Total $ 4,027 $ 4,084 As of October 31, 2020, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows: As of October 31, 2020 Fiscal year In millions 2021 $ 1,798 2022 1,049 2023 440 2024 78 2025 7 Thereafter 2 Total $ 3,374 If a lease is classified as an operating lease, the Company records lease revenue on a straight line basis over the lease term. At commencement of an operating lease, initial direct costs are deferred and are expensed over the lease term on the same basis as the lease revenue is recorded. The following table presents amounts included in the Consolidated Statement of Earnings related to lessor activity: As of October 31, 2020 2019 2018 In millions Sales-type leases and direct financing leases: Interest income $ 469 $ 458 $ 447 Lease income - operating leases 2,431 2,596 2,690 Total lease income $ 2,900 $ 3,054 $ 3,137 Variable Interest Entities In June 2020, February 2020 and September 2019, the Company issued asset-backed debt securities under a fixed-term securitization program to private investors. The asset-backed debt securities are collateralized by the U.S. fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity ("SPE"). The SPE meets the definition of a VIE and is consolidated, along with the associated debt, into the Consolidated Financial Statements as the Company is the primary beneficiary of the VIE. The SPE is a bankruptcy-remote legal entity with separate assets and liabilities. The purpose of the SPE is to facilitate the funding of customer receivables and leased equipment in the capital markets. The Company's risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company's right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The following table presents the assets and liabilities held by the consolidated VIE as of October 31, 2020, which are included in the Consolidated Balance Sheets. The assets in the table below includes those that can be used to settle the obligations of the VIE. Additionally, general Creditors do not have recourse to the assets of the VIE. As of October 31, 2020 2019 Assets held by VIE In millions Other current assets $ 120 $ 76 Financing receivables Short-term $ 531 $ 194 Long-term $ 584 $ 229 Property, plant and equipment $ 665 $ 303 Liabilities held by VIE Notes payable and short-term borrowings, net of unamortized debt issuance costs $ 886 $ 385 Long-term debt, net of unamortized debt issuance costs $ 834 $ 370 " id="sjs-B4" xml:space="preserve">Accounting for Leases as a Lessor Financing Receivables Financing receivables represent sales-type and direct-financing leases of the Company and third-party products. The net investment in the lease is measured as the sum of the present value of lease receivable, the estimated unguaranteed residual value of the equipment less unearned income and allowance for credit losses. These receivables typically have terms ranging from two As of October 31, 2020 2019 In millions Minimum lease payments receivable $ 9,448 $ 9,070 Unguaranteed residual value 364 336 Unearned income (754) (754) Financing receivables, gross 9,058 8,652 Allowance for doubtful accounts (154) (131) Financing receivables, net 8,904 8,521 Less: current portion (1) (3,794) (3,572) Amounts due after one year, net (1) $ 5,110 $ 4,949 (1) The Company includes the current portion in Financing receivables, net of allowance for doubtful accounts, and amounts due after one year, net, in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. As of October 31, 2020, scheduled maturities of the Company's minimum lease payments receivable were as follows: As of October 31, 2020 Fiscal year In millions 2021 $ 4,182 2022 2,662 2023 1,572 2024 720 2025 252 Thereafter 60 Total undiscounted cash flows $ 9,448 Present value of lease payments (recognized as finance receivables) $ 8,694 Difference between undiscounted cash flows and discounted cash flows $ 754 Prior to the adoption of the new lease standard, scheduled maturities of the Company's minimum lease payments receivable were as follows: As of October 31, 2019 Fiscal year In millions 2020 $ 3,939 2021 2,449 2022 1,555 2023 752 2024 306 Thereafter 69 Total $ 9,070 Sale of Financing Receivables During the fiscal years ended October 31, 2020 and 2019, the Company entered into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions, which are accounted for as sales in accordance with Accounting Standards Codification ("ASC") 860 - Transfers and Servicing. The Company derecognizes the carrying value of the receivable transferred and recognizes a net gain or loss on the sale. During the fiscal years ended October 31, 2020 and 2019, the Company sold $103 million and $185 million, respectively, of financing receivables. The gains recognized on the sales of financing receivables were not material for the periods presented. Credit Quality Indicators Due to the homogeneous nature of its leasing transactions, the Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. The Company assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The credit risk profile of gross financing receivables, based on internal risk ratings, was as follows: As of October 31, 2020 2019 In millions Risk Rating: Low $ 4,590 $ 4,432 Moderate 4,091 3,933 High 377 287 Total $ 9,058 $ 8,652 Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment. Allowance for Doubtful Accounts The allowance for doubtful accounts related to financing receivables and changes therein were as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 131 $ 120 $ 86 Provision for doubtful accounts 43 33 49 Write-offs (20) (22) (15) Balance at end of year $ 154 $ 131 $ 120 The gross financing receivables and related allowance evaluated for loss were as follows: As of October 31, 2020 2019 In millions Gross financing receivables collectively evaluated for loss $ 8,620 $ 8,255 Gross financing receivables individually evaluated for loss (1) 438 397 Total $ 9,058 $ 8,652 Allowance for financing receivables collectively evaluated for loss $ 89 $ 84 Allowance for financing receivables individually evaluated for loss 65 47 Total $ 154 $ 131 (1) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. Non-Accrual and Past-Due Financing Receivables The following table summarizes the aging and non-accrual status of gross financing receivables: As of October 31, 2020 2019 In millions Billed: (1) Current 1-30 days $ 340 $ 301 Past due 31-60 days 43 62 Past due 61-90 days 22 15 Past due >90 days 140 88 Unbilled sales-type and direct-financing lease receivables 8,513 8,186 Total gross financing receivables $ 9,058 $ 8,652 Gross financing receivables on non-accrual status (2) $ 364 $ 276 Gross financing receivables 90 days past due and still accruing interest (2) $ 74 $ 121 (1) Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. (2) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. Operating Leases Operating lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were as follows: As of October 31, 2020 2019 In millions Equipment leased to customers $ 7,184 $ 7,185 Accumulated depreciation (3,157) (3,101) Total $ 4,027 $ 4,084 As of October 31, 2020, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows: As of October 31, 2020 Fiscal year In millions 2021 $ 1,798 2022 1,049 2023 440 2024 78 2025 7 Thereafter 2 Total $ 3,374 If a lease is classified as an operating lease, the Company records lease revenue on a straight line basis over the lease term. At commencement of an operating lease, initial direct costs are deferred and are expensed over the lease term on the same basis as the lease revenue is recorded. The following table presents amounts included in the Consolidated Statement of Earnings related to lessor activity: As of October 31, 2020 2019 2018 In millions Sales-type leases and direct financing leases: Interest income $ 469 $ 458 $ 447 Lease income - operating leases 2,431 2,596 2,690 Total lease income $ 2,900 $ 3,054 $ 3,137 Variable Interest Entities In June 2020, February 2020 and September 2019, the Company issued asset-backed debt securities under a fixed-term securitization program to private investors. The asset-backed debt securities are collateralized by the U.S. fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity ("SPE"). The SPE meets the definition of a VIE and is consolidated, along with the associated debt, into the Consolidated Financial Statements as the Company is the primary beneficiary of the VIE. The SPE is a bankruptcy-remote legal entity with separate assets and liabilities. The purpose of the SPE is to facilitate the funding of customer receivables and leased equipment in the capital markets. The Company's risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company's right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The following table presents the assets and liabilities held by the consolidated VIE as of October 31, 2020, which are included in the Consolidated Balance Sheets. The assets in the table below includes those that can be used to settle the obligations of the VIE. Additionally, general Creditors do not have recourse to the assets of the VIE. As of October 31, 2020 2019 Assets held by VIE In millions Other current assets $ 120 $ 76 Financing receivables Short-term $ 531 $ 194 Long-term $ 584 $ 229 Property, plant and equipment $ 665 $ 303 Liabilities held by VIE Notes payable and short-term borrowings, net of unamortized debt issuance costs $ 886 $ 385 Long-term debt, net of unamortized debt issuance costs $ 834 $ 370 |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisitions in Fiscal 2020 The purchase price allocations for the acquisitions described below reflect various preliminary fair value estimates and analysis, including preliminary work performed by third-party valuation specialists, of certain tangible assets and liabilities acquired, the valuation of intangible assets acquired, certain legal matters, income and non-income based taxes, and residual goodwill, which are subject to change within the measurement period as valuations are finalized. Measurement period adjustments are recorded in the reporting period in which the estimates are finalized and adjustment amounts are determined. Pro forma results of operations for these acquisitions have not been presented because they are not material to the Company's consolidated results of operations, either individually or in the aggregate. Goodwill, which represents the excess of the purchase price over the net tangible and intangible assets acquired, is not deductible for tax purposes. During fiscal 2020, the Company completed two acquisitions. The following table presents the aggregate purchase price allocation for the Company's acquisitions for the fiscal year ended October 31, 2020: In millions Goodwill $ 572 Amortizable intangible assets 354 Net tangible liabilities assumed (40) Total fair value consideration $ 886 On September 21, 2020, the Company completed the acquisition of Silver Peak, a Software-Defined Wide Area Network leader. Silver Peak's results of operations are included within the Intelligent Edge segment. The acquisition date fair value consideration of $879 million consisted of cash paid for outstanding common stock, amount attributable to pre-acquisition service of the replacement awards, and vested in-the-money stock awards. In connection with this acquisition, the Company recorded approximately $572 million of goodwill, and $348 million of intangible assets. The Company is amortizing the intangible assets on a straight-line basis over an estimated weighted-average useful life of five years. Acquisitions in Fiscal 2019 During fiscal 2019, the Company completed three acquisitions. The following table presents the aggregate purchase price allocation for the Company's acquisitions for the fiscal year ended October 31, 2019: In millions Goodwill $ 771 Amortizable intangible assets 465 In-process research and development 141 Net tangible assets assumed 235 Total fair value consideration $ 1,612 On September 25, 2019, the Company completed the acquisition of Cray, a global supercomputer leader. Cray's results of operations are included within the HPC & MCS segment. The acquisition date fair value consideration of $1.5 billion consisted of cash paid for outstanding common stock, vested in-the-money stock awards and amount attributable to pre-acquisition service of the replacement awards. In connection with this acquisition, the Company recorded approximately $702 million of goodwill, $425 million of intangible assets and $141 million of in-process research and development. The Company is amortizing the intangible assets on a straight-line basis over an estimated weighted-average useful life of four years. Acquisitions in Fiscal 2018 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill and related changes in the carrying amount by reportable segment were as follows: Compute HPC & MCS Storage Intelligent Edge Financial Total In millions Balance at October 31, 2018 (1) $ 7,530 $ 3,779 $ 4,090 $ 1,994 144 $ 17,537 Goodwill acquired during the period — 699 68 — — 767 Goodwill adjustments 2 — — — — 2 Balance at October 31, 2019 (1) 7,532 4,478 4,158 1,994 144 18,306 Goodwill acquired during the period — — — 572 — 572 Impairment of goodwill — (865) — — — (865) Goodwill adjustments — 3 1 — — 4 Balance at October 31, 2020 (1) $ 7,532 $ 3,616 $ 4,159 $ 2,566 $ 144 $ 18,017 (1) Goodwill is net of accumulated impairment losses of $953 million. Of this amount, $865 million related to HPC & MCS which was recorded during the second quarter of 2020 and $88 million relates to the Corporate Investments segment which was recorded during the fourth quarter of fiscal 2018. There is no remaining goodwill in the Corporate Investments segment. Goodwill Impairments Goodwill is tested for impairment at the reporting unit level. As of October 31, 2020, our reporting units with goodwill are consistent with the reportable segments identified in Note 2 "Segment Information" to the Consolidated Financial Statements. On March 31, 2020, due to the macroeconomic impacts of COVID-19 on the Company's current and projected future results of operations, the Company determined that an indicator of potential impairment existed to require an interim quantitative goodwill impairment test for the reporting units. Based on the results of this interim quantitative impairment test, the fair value of the HPC & MCS reporting unit was below the carrying value of net assets assigned to HPC & MCS. The decline in the fair value of the HPC & MCS reporting unit resulted from macroeconomic impacts of COVID-19 which lowered the projected revenue growth rates and profitability levels of the reporting unit. The fair value of the HPC & MCS reporting unit was based on a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows which the Company considers to be a level 3 unobservable input in the fair value hierarchy. The Company prepares cash flow projections based on management's estimates of revenue growth rates and operating margins, taking into consideration the historical performance and the current macroeconomic industry and market conditions. The Company bases the discount rate on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, the Company estimates fair value based on market multiple earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. The Company weights the fair value derived from the market approach commensurate with the level of comparability of these publicly traded companies to the reporting unit. Prior to the quantitative goodwill impairment test, the Company tested the recoverability of long-lived assets and other assets of the HPC & MCS reporting unit and concluded that such assets were not impaired. The quantitative goodwill impairment test indicated that the carrying value of the HPC & MCS reporting unit exceeded its fair value by $865 million. As a result, the Company recorded a partial goodwill impairment charge of $865 million in the second quarter of fiscal 2020. Based on the results of the Company's annual impairment test in fiscal 2020, performed at the beginning of the fourth quarter, the Company determined that no further impairment of goodwill existed. While all reporting units were negatively impacted by COVID-19, their fair values continued to exceed the carrying value of their net assets and did not result in impairment. The excess of fair value over carrying amount for our reporting units ranged from approximately 7% to 31% of the respective carrying amounts. In order to evaluate the sensitivity of the estimated fair value of our reporting units in the goodwill impairment test, the Company applied a hypothetical 10% decrease to the fair value of each reporting unit. Based on the results of this hypothetical 10% decrease all of the reporting units had an excess of fair value over carrying amount, with the exception of HPC & MCS reporting unit. As of the annual test date, subsequent to the impairment recognized in March, the HPC & MCS reporting unit has goodwill of $3.6 billion and an excess of fair value over carrying value of net assets of 7%. The fair value of the HPC & MCS reporting unit was based on the above described methodology used for the interim test, which was a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach. The HPC & MCS business is facing challenges as a result of the macroeconomic impacts of COVID-19 on the current and projected future results. If the Company is not successful in addressing these challenges, the projected revenue growth rates or operating margins could decline resulting in a decrease in the fair value of the HPC & MCS reporting unit. The fair value of the HPC & MCS reporting unit could also be negatively impacted by changes in its weighted average cost of capital, changes in management's business strategy or significant and sustained declines in the stock price, which could result in an indicator of impairment. In addition, each of our reporting units has experienced a reduction of the excess of fair value over carrying value for the reporting unit, primarily as a result of COVID-19 impacts on our current and projected future results. Should economic conditions deteriorate further or remain depressed for a prolonged period of time, estimates of future cash flows for each of the Company's reporting units may be insufficient to support the carrying value and the goodwill assigned to them, requiring impairment charges, including additional impairment charges for the HPC & MCS reporting unit. Further impairment charges, if any, may be material to the results of operations and financial position. Based on the results of the Company's interim impairment tests in fiscal 2018 it was concluded that the fair value of CMS was less than its carrying amount. Prior to calculating the goodwill impairment loss, the Company analyzed the recoverability of CMS long-lived assets other than goodwill and concluded that those assets were not impaired. As a result, the Company recorded a goodwill impairment charge of $88 million. There is no remaining goodwill in the CMS reporting unit as of October 31, 2018. Intangible Assets Intangible assets comprise: As of October 31, 2020 As of October 31, 2019 Gross Accumulated Net Gross Accumulated Net In millions Customer contracts, customer lists and distribution agreements $ 429 $ (163) $ 266 $ 312 $ (96) $ 216 Developed and core technology and patents 1,267 (627) 640 1,371 (719) 652 Trade name and trade marks 141 (50) 91 163 (44) 119 In-process research and development 106 — 106 141 — 141 Total intangible assets $ 1,943 $ (840) $ 1,103 $ 1,987 $ (859) $ 1,128 For fiscal 2020, the decrease in gross intangible assets was due primarily to $363 million of intangible assets which became fully amortized and were eliminated from gross intangible assets and accumulated amortization and the write-off of $35 million of abandoned in-process research and development, partially offset by $354 million of purchases related to acquisitions. For fiscal 2019, the increase in gross intangible assets was due primarily t o $606 million of purchases related to acquisitions, partially offset by $117 million of intangible assets which became fully amortized and were eliminated from gross intangible assets and accumulated amortization. For fiscal 2020, no in-process research and development assets were completed. For fiscal 2019, the Company reclassified in-process research and development assets acquired of $18 million to developed and core technology and patents as the projects were completed, and began amortization. As of October 31, 2020, the weighted-average remaining useful lives of the Company's finite-lived intangible assets were as follows: Finite-Lived Intangible Assets Weighted-Average In years Customer contracts, customer lists and distribution agreements 3 Developed and core technology and patents 5 Trade name and trade marks 4 As of October 31, 2020, estimated future amortization expense related to finite-lived intangible assets was as follows: Fiscal year In millions 2021 $ 313 2022 235 2023 200 2024 148 2025 41 Thereafter 60 Total $ 997 |
Fair Value
Fair Value | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3—Unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis: As of October 31, 2020 As of October 31, 2019 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Assets Cash Equivalents and Investments: Time deposits $ — $ 939 $ — $ 939 $ — $ 803 $ — $ 803 Money market funds 1,167 — — 1,167 859 — — 859 Foreign bonds — 125 — 125 7 126 — 133 Other debt securities — — 21 21 — — 32 32 Derivative Instruments: Interest rate contracts — 220 — 220 — 73 — 73 Foreign exchange contracts — 290 — 290 — 392 — 392 Other derivatives — — — — — 3 — 3 Total assets $ 1,167 $ 1,574 $ 21 $ 2,762 $ 866 $ 1,397 $ 32 $ 2,295 Liabilities Derivative Instruments: Interest rate contracts $ — $ 2 $ — $ 2 $ — $ 11 $ — $ 11 Foreign exchange contracts — 189 — 189 — 136 — 136 Other derivatives — 3 — 3 — — — — Total liabilities $ — $ 194 $ — $ 194 $ — $ 147 $ — $ 147 For the fiscal years ended October 31, 2020 and 2019, there were no transfers between levels within the fair value hierarchy. Valuation Techniques Cash Equivalents and Investments: The Company holds time deposits, money market funds, debt securities primarily consisting of corporate and foreign government notes and bonds. The Company values cash equivalents using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data. Derivative Instruments: The Company uses forward contracts, interest rate and total return swaps to hedge certain foreign currency and interest rate exposures. The Company uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, the Company and counterparties' credit risk, foreign currency exchange rates, and forward and spot prices for currencies and interest rates. See Note 13, "Financial Instruments", for a further discussion of the Company's use of derivative instruments. Other Fair Value Disclosures Short- and Long-Term Debt: The Company estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of the Company's debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. At October 31, 2020, the estimated fair value of the Company's short-term and long-term debt was $17.1 billion and the carrying value was $15.9 billion. As of October 31, 2019, the estimated fair value of the Company's short-term and long-term debt was $14.6 billion and the carrying value was $13.8 billion. If measured at fair value in the Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy. Other Financial Instruments: For the balance of the Company's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. Non-Financial Assets and Equity Investments without readily determinable fair value: The Company's non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at cost. Fair value adjustments are made to cost basis in the period an impairment charge is recognized. In the second quarter of fiscal 2020, the Company recorded a goodwill impairment charge of $865 million associated with the HPC & MCS reporting unit. The fair value of the Company's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. For more information on the goodwill impairment, see Note 11 "Goodwill and Intangible Assets". |
Financial Instruments
Financial Instruments | 12 Months Ended |
Oct. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents and Available-for-Sale Investments Cash equivalents and available-for-sale investments were as follows: As of As of Cost Gross Fair Cost Gross Fair In millions Cash Equivalents: Time deposits $ 939 $ — $ 939 $ 803 $ — $ 803 Money market funds 1,167 — 1,167 859 — 859 Total cash equivalents 2,106 — 2,106 1,662 — 1,662 Available-for-Sale Investments: Foreign bonds 108 17 125 110 23 133 Other debt securities 20 1 21 32 — 32 Total available-for-sale investments 128 18 146 142 23 165 Total cash equivalents and available-for-sale investments $ 2,234 $ 18 $ 2,252 $ 1,804 $ 23 $ 1,827 All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of October 31, 2020 and 2019, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Interest income related to cash, cash equivalents and debt securities was approximately $44 million in fiscal 2020, $64 million in fiscal 2019 and $104 million in fiscal 2018. Time deposits were primarily issued by institutions outside the U.S. as of October 31, 2020 and October 31, 2019. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future. Contractual maturities of investments in available-for-sale debt securities were as follows: As of Amortized Cost Fair Value In millions Due in one year $ 1 $ 1 Due in more than five years 127 145 $ 128 $ 146 Equity securities investments in privately held companies are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. The carrying amount of those without readily determinable fair values amounted to $295 million and $190 million at October 31, 2020 and 2019, respectively. Investments in equity securities that are accounted for using the equity method are included in Investments in equity interests in the Consolidated Balance Sheets. These amounted to $2.2 billion and $2.3 billion at October 31, 2020 and 2019, respectively. For additional information, see Note 20, "Equity Method Investments". Derivative Instruments The Company is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, interest rate swaps and total return swaps to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. The Company's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. The Company does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. The Company may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, the Company categorizes those economic hedges as other derivatives. Derivative instruments are recognized at fair value in the Consolidated Balance Sheets. The change in fair value of the derivative instruments is recognized in the Consolidated Statements of Earnings or Consolidated Statements of Comprehensive Income depending upon the type of hedge as further discussed below. The Company classifies cash flows from its derivative programs with the activities that correspond to the underlying hedged items in the Consolidated Statements of Cash Flows. As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, the Company has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and the Company maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. The Company's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically reassessing the creditworthiness of its counterparties. Master netting agreements also mitigate credit exposure to counterparties by permitting the Company to net amounts due from the Company to a counterparty against amounts due to the Company from the same counterparty under certain conditions. To further mitigate credit exposure to counterparties, the Company has collateral security agreements, which allows the Company to hold collateral from, or require the Company to post collateral to counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of the Company and its counterparties. If the Company's credit rating falls below a specified credit rating, the counterparty has the right to request full collateralization of the derivatives' net liability position. Conversely, if the counterparty's credit rating falls below a specified credit rating, the Company has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of the Company's derivatives with credit contingent features in a net liability position was $45 million and $18 million at October 31, 2020 and 2019, respectively, all of which were fully collateralized within two business days. Under the Company's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting the Company that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect the Company's financial position or cash flows as of October 31, 2020 and 2019. Fair Value Hedges The Company issues long-term debt in U.S. dollars based on market conditions at the time of financing. The Company may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, the Company may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. When investing in fixed-rate instruments, the Company may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges. For derivative instruments that are designated and qualify as fair value hedges, the Company recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Cash Flow Hedges The Company uses forward contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. The Company's foreign currency cash flow hedges mature generally within twelve months; however, forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which can extend up to five years. The Company uses interest rate contracts designated as cash flow hedges to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. For derivative instruments that are designated and qualify as cash flow hedges, and as long as they remain highly effective, the Company records the changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of equity in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the same financial statement line item when the hedged transaction is recognized. Net Investment Hedges The Company uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. The Company records the changes in the fair value of the hedged items in cumulative translation adjustment as a separate component of Equity in the Consolidated Balance Sheets. Other Derivatives Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. The Company also uses total return swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability. For derivative instruments not designated as hedging instruments, the Company recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Hedge Effectiveness For interest rate swaps designated as fair value hedges, the Company measures hedge effectiveness by offsetting the change in fair value of the hedged items with the change in fair value of the derivative. For forward contracts designated as cash flow or net investment hedges, the Company measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. Fair Value of Derivative Instruments in the Consolidated Balance Sheets The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets was as follows: As of As of Fair Value Fair Value Outstanding Other Long-Term Other Long-Term Outstanding Other Long-Term Other Long-Term In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 3,850 $ — $ 220 $ — $ — $ 6,850 $ — $ 72 $ 11 $ — Cash flow hedges: Foreign currency contracts 7,652 75 85 95 38 8,578 164 141 45 27 Interest rate contracts 500 — — 2 — 500 — 1 — — Net investment hedges: Foreign currency contracts 1,804 34 44 11 9 1,766 31 36 18 10 Total derivatives designated as hedging instruments 13,806 109 349 108 47 17,694 195 250 74 37 Derivatives not designated as hedging instruments Foreign currency contracts 6,157 43 9 35 1 6,398 17 3 33 3 Other derivatives 105 — — 3 — 97 3 — — — Total derivatives not designated as hedging instruments 6,262 43 9 38 1 6,495 20 3 33 3 Total derivatives $ 20,068 $ 152 $ 358 $ 146 $ 48 $ 24,189 $ 215 $ 253 $ 107 $ 40 Offsetting of Derivative Instruments The Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. As of October 31, 2020 and 2019, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows: As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 510 $ — $ 510 $ 137 $ 321 (1) $ 52 Derivative liabilities $ 194 $ — $ 194 $ 137 $ 55 (2) $ 2 As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 468 $ — $ 468 $ 123 $ 263 (1) $ 82 Derivative liabilities $ 147 $ — $ 147 $ 123 $ 19 (2) $ 5 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. (2) Represents the collateral posted by the Company in cash or through re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of October 31, 2020, $55 million of collateral posted was entirely by way of re-use of counterparty collateral. As of October 31, 2019, $19 million of collateral posted was entirely by way of re-use of counterparty collateral. The amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows: Carrying amount of the hedged assets/ (liabilities) Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities) As of As of Balance Sheet Line Item of Hedged Item October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 In millions In millions Notes payable and short-term borrowings $ — $ (2,987) $ — $ 11 Long-term debt $ (4,059) $ (3,908) $ (220) $ (72) The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows: Gains (Losses) Recognized in OCI on Derivatives 2020 2019 2018 In millions Derivatives in Cash Flow Hedging relationship Foreign exchange contracts $ (34) $ 307 $ 169 Interest rate contracts (6) 1 — Derivatives in Net Investment Hedging relationship Foreign exchange contracts 56 2 81 Total $ 16 $ 310 $ 250 As of October 31, 2020, the Company expects to reclassify an estimated net accumulated other comprehensive loss of approximately $30 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges. Effect of Derivative Instruments on the Consolidated Statements of Earnings The pre-tax effect of derivative instruments on the Consolidated Statements of Earnings were as follows: Gains (Losses) Recognized in Income 2020 2019 2018 Net revenue Interest and other, net Net revenue Interest and other, net Net revenue Interest and other, net In millions Total amounts of income and expense line items presented in the Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded $ 26,982 $ (215) $ 29,135 $ (177) $ 30,852 $ (274) Gains (losses) on derivatives in fair value hedging relationships Interest rate contracts Hedged items $ — $ (159) $ — $ (414) $ — $ 211 Derivatives designated as hedging instruments — 159 — 414 — (211) Gains (losses) on derivatives in cash flow hedging relationships Foreign exchange contracts Amount of gains (losses) reclassified from accumulated other comprehensive income into income 38 (14) 233 138 (24) 16 Interest rate contracts Amount of gains (losses) reclassified from accumulated other comprehensive income into income — (3) — — — — Gains (losses) on derivatives not designated as hedging instruments Foreign exchange contracts — 44 — (134) — 301 Other derivatives — (5) — 8 — (6) Total gains (losses) $ 38 $ 22 $ 233 $ 12 $ (24) $ 311 |
Borrowings
Borrowings | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Notes Payable and Short-Term Borrowings Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows: As of October 31, 2020 2019 Amount Weighted-Average Amount Weighted-Average Dollars in millions Current portion of long-term debt (1) $ 2,768 2.0 % $ 3,441 4.1 % FS Commercial paper 677 — % 698 (0.1) % Notes payable to banks, lines of credit and other (2) 310 1.3 % 286 2.7 % Total notes payable and short-term borrowings $ 3,755 $ 4,425 (1) As of October 31, 2020, Current portion of long-term debt, net of discount and issuance costs, includes $886 million associated with the Company issued asset-backed debt securities. (2) Notes payable to banks, lines of credit and other includes $219 million and $204 million at October 31, 2020 and 2019, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries. Long-Term Debt As of October 31, 2020 2019 In millions Hewlett Packard Enterprise Unsecured Senior Notes $1,000 issued at discount to par at a price of 99.883% in July 2020 at 1.45% due April 1, 2024, interest payable semi-annually on April 1 and October 1 of each year $ 999 $ — $750 issued at discount to par at a price of 99.820% in July 2020 at 1.75% due April 1, 2026, interest payable semi-annually on April 1 and October 1 of each year 749 — $1,250 issued at discount to par at a price of 99.956% in April 2020 at 4.45% due October 2, 2023, interest payable semi-annually on April 2 and October 2 of each year 1,250 — $1,000 issued at discount to par at a price of 99.817% in April 2020 at 4.65% due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year 998 — $3,000 issued at discount to par at a price of 99.972% in October 2015 at 3.6% paid August 17, 2020, interest payable semi-annually on April 15 and October 15 of each year. — 3,000 $500 issued at par in September 2019 at three-month USD LIBOR plus 0.68% due March 12, 2021, interest payable quarterly on March 12, June 12, September 12 and December 12 of each year 500 500 $500 issued at discount to par at a price of 99.861% in September 2018 at 3.5%, due October 5, 2021, interest payable semi-annually on April 5 and October 5 of each year 500 500 $800 issued at par in September 2018 at three-month USD LIBOR plus 0.72% due October 5, 2021, interest payable quarterly on January 5, April 5, July 5 and October 5 of each year 800 800 $1,350 issued at discount to par at a price of 99.802% in October 2015 at 4.4%, due October 15, 2022, interest payable semi-annually on April 15 and October 15 of each year 1,349 1,349 $1,000 issued at discount to par at a price of 99.979% in September 2019 at 2.25%, due April 1, 2023, interest payable semi-annually on April 1 and October 1 of each year 1,000 1,000 $2,500 issued at discount to par at a price of 99.725% in October 2015 at 4.9%, due October 15, 2025, interest payable semi-annually on April 15 and October 15 of each year 2,497 2,495 $750 issued at discount to par at a price of 99.942% in October 2015 at 6.2%, due October 15, 2035, interest payable semi-annually on April 15 and October 15 of each year 750 750 $1,500 issued at discount to par at a price of 99.932% in October 2015 at 6.35%, due October 15, 2045, interest payable semi-annually on April 15 and October 15 of each year 1,499 1,499 Hewlett Packard Enterprise Asset-Backed Debt Securities $1,000 issued in June 2020, in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.19%, payable monthly from August 2020 822 — $755 issued in February 2020 of in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020 519 — $763 issued in September 2019, in six tranches at a discount to par, at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019 385 763 Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030 (1) 171 166 Fair value adjustment related to hedged debt 220 61 Unamortized debt issuance costs (54) (47) Less: current portion (2,768) (3,441) Total long-term debt $ 12,186 $ 9,395 (1) Other, including capital lease obligations includes $98 million and $80 million as of October 31, 2020 and 2019, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings. Interest expense on borrowings recognized in the Consolidated Statements of Earnings was as follows: Fiscal years ended October 31, Expense Location 2020 2019 2018 In millions Financing interest Financing interest $ 271 $ 297 $ 278 Interest expense Interest and other, net 332 311 353 Total interest expense $ 603 $ 608 $ 631 Hewlett Packard Enterprise Unsecured Senior Notes On August 17, 2020, the Company redeemed $3.0 billion of 3.60% Senior Notes with an original maturity date of October 15, 2020. These notes were fully hedged with interest rate swaps. As part of the transaction, the Company terminated and settled the related hedges and incurred make-whole premium provision charges of $7 million. On July 17, 2020, the Company completed its offering of $1.0 billion of 1.45% Senior Notes due April 1, 2024 and $750 million of 1.75% Senior Notes due April 1, 2026. The net proceeds from this offerings, together with the cash on hand, were used to fund the redemption of the $3.0 billion outstanding principal amount of the 3.60% Notes due October 15, 2020. On April 9, 2020, the Company completed its offering of $1.3 billion of 4.45% Senior Notes due October 2, 2023 and $1.0 billion of 4.65% Senior Notes due October 1, 2024. The net proceeds of the offering were used for general corporate purposes, including repayment of existing debt. On September 13, 2019, the Company completed its offering of $1.0 billion of 2.25% Senior Notes due April 1, 2023 and $500 million floating rate Note at three month USD LIBOR plus 0.68% due March 12, 2021. The net proceeds from this offering were used to fund the repayment of the $1.1 billion outstanding principal amount of the 2.10% Senior Notes due in October 2019 and to fund the Company's acquisition of Cray Inc. Asset-Backed Debt Securities On June 30, 2020, the Company completed it offering of $1.0 billion of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.19%, payable monthly from August 2020 with a stated final maturity date of July 2030. On February 20, 2020, the Company completed its offering of $755 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020 with a stated final maturity date of February 2030. On September 20, 2019, the Company completed its offering of $763 million asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019 with a stated final maturity date of September 2029. As disclosed in Note 13, "Financial Instruments", the Company uses interest rate swaps to mitigate the exposure of its fixed rate debt to changes in fair value resulting from changes in interest rates, or hedge the variability of cash flows in the interest payments associated with its variable-rate debt. Interest rates on long-term debt in the table above have not been adjusted to reflect the impact of any interest rate swaps. Commercial Paper Hewlett Packard Enterprise maintains two commercial paper programs, "the Parent Programs," and a wholly-owned subsidiary maintains a third program. Hewlett Packard Enterprise's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $4.75 billion which was increased from $4.0 billion in March 2020. Hewlett Packard Enterprise's euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $4.75 billion as authorized by Hewlett Packard Enterprise's Board of Directors. In addition, the Hewlett Packard Enterprise subsidiary's euro Commercial Paper/Certificate of Deposit Program provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $1.0 billion, which was increased from $500 million, by way of an amendment in April 2019. As of October 31, 2020 and 2019, no borrowings were outstanding under the Parent Programs, and $677 million and $698 million, respectively, were outstanding under the subsidiary's program. Revolving Credit Facility We maintain a $4.75 billion five year senior unsecured committed credit facility that was entered into in August 2019. Loans under the revolving credit facility may be used for general corporate purposes, including support of the commercial paper program. Commitments under the Credit Agreement are available for a period of five years, which period may be extended, subject to satisfaction of certain conditions, by up to two one-year periods. Commitment fees, interest rates and other terms of borrowing under the credit facility vary based on Hewlett Packard Enterprise's external credit rating. As of October 31, 2020 and 2019, no borrowings were outstanding under the Credit Agreement. Future Maturities of Long-term Debt As of October 31, 2020, aggregate future maturities of the Company's long-term debt at face value (excluding a fair value adjustment related to hedged debt of $220 million and a net discount on debt issuance of $9 million), including capital lease obligations were as follows: Fiscal year In millions 2021 $ 2,776 2022 1,962 2023 2,509 2024 2,010 2025 2,507 Thereafter 3,033 Total $ 14,797 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Taxes related to Other Comprehensive Loss Fiscal years ended October 31, 2020 2019 2018 In millions Taxes on change in net unrealized gains (losses) on cash flow hedges: Tax (provision) benefit on net unrealized gains (losses) arising during the period (10) (33) (22) Tax provision (benefit) on net (gains) losses reclassified into earnings 21 43 (1) 11 10 (23) Taxes on change in unrealized components of defined benefit plans: Tax (provision) benefit on net unrealized gains (losses) arising during the period 10 40 2 Tax provision on amortization of net actuarial loss and prior service benefit (17) (13) (14) Tax provision on curtailments, settlements and other (1) (1) (10) (8) 26 (22) Taxes on change in cumulative translation adjustment: Tax (provision) benefit on cumulative translation adjustment arising during the period 5 — 3 5 — 3 Tax (provision) benefit on other comprehensive loss $ 8 $ 36 $ (42) Changes and reclassifications related to Other Comprehensive Loss, net of taxes Fiscal years ended October 31, 2020 2019 2018 In millions Other comprehensive loss, net of taxes: Change in net unrealized gains (losses) on available-for-sale securities: Net unrealized gains (losses) arising during the period $ (1) $ 9 $ (3) (Gains) losses reclassified into earnings (4) (3) (9) (5) 6 (12) Change in net unrealized gains (losses) on cash flow hedges: Net unrealized gains (losses) arising during the period (50) 275 147 Net (gains) losses reclassified into earnings — (328) 7 (50) (53) 154 Change in unrealized components of defined benefit plans: Net unrealized gains (losses) arising during the period (348) (661) (421) Amortization of net actuarial loss and prior service benefit 232 203 177 Curtailments, settlements and other 9 14 12 (107) (444) (232) Change in cumulative translation adjustment: Cumulative translation adjustment arising during the period (7) (18) (67) Release of cumulative translation adjustment as a result of divestitures and country exits — — 20 (7) (18) (47) Other comprehensive loss, net of taxes $ (169) $ (509) $ (137) The components of accumulated other comprehensive loss, net of taxes as of October 31, 2020 and changes during fiscal 2020 were as follows: Net unrealized Net unrealized Unrealized Cumulative Accumulated In millions Balance at beginning of period $ 23 $ 53 $ (3,366) $ (437) $ (3,727) Effect of change in accounting principle (1) — (10) — (33) (43) Other comprehensive income (loss) before reclassifications (1) (50) (348) (7) (406) Reclassifications of (gains) losses into earnings (4) — 241 — 237 Balance at end of period $ 18 $ (7) $ (3,473) $ (477) $ (3,939) (1) Reflects the adoption of the FASB guidance on stranded tax effects. For more information, see Note 1 "Overview and Summary of Significant Accounting Policies". Dividends The stockholders of HPE common stock are entitled to receive dividends when and as declared by HPE's Board of Directors. On February 23, 2019, the Company announced an increase to the regular quarterly dividend from $0.1125 per share to $0.12 per share, which was effective in the fourth quarter of fiscal 2019. Dividends declared were $0.36 per common share in fiscal 2020 and $0.4575 per common share in fiscal 2019. On December 1, 2020, the Company declared a regular cash dividend of $0.12 per share on the Company's common stock, payable on January 6, 2021, to the stockholders of record as of the close of business on December 9, 2020. Share Repurchase Program On October 13, 2015, the Company's Board of Directors approved a share repurchase program with a $3.0 billion authorization, which was refreshed with additional share repurchase authorizations of $3.0 billion, $5.0 billion and $2.5 billion on May 24, 2016, October 16, 2017 and February 21, 2018, respectively. This program, which does not have a specific expiration date, authorizes repurchases in the open market or in private transactions. On April 6, 2020, the Company announced that it suspended purchases under its share repurchase program in response to the global economic uncertainty that resulted from the worldwide spread of COVID-19. For fiscal 2020, the Company repurchased and settled a total of 25.3 million shares under its share repurchase program through open market repurchases, which included 0.5 million shares that were unsettled open market purchase as of October 31, 2019. As of October 31, 2020, the Company had no unsettled open market repurchases of shares. Shares repurchased during the fiscal 2020 were recorded as a $346 million reduction to stockholders' equity. As of October 31, 2020, the Company had a remaining authorization of $2.1 billion for future share repurchases. For fiscal 2019, the Company repurchased and settled a total of 150 million shares under its share repurchase program through open market repurchases, which included 2.4 million shares that were unsettled open market purchase as of October 31, 2018. Additionally, the Company had unsettled open market repurchases of 0.5 million shares as of October 31, 2019. Shares repurchased during fiscal 2019 were recorded as a $2.2 billion reduction to stockholders' equity. As of October 31, 2019, the Company had a remaining authorization of $2.5 billion for future share repurchases. |
Net Earnings (Loss) Per Share
Net Earnings (Loss) Per Share | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Share | Net Earnings (Loss) Per ShareThe Company calculates basic net earnings (loss) per share ("EPS") using net earnings or loss and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes the weighted-average dilutive effect of restricted stock units, stock options, and performance-based awards. The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions, except per share amounts Numerator: Net earnings (loss) from continuing operations $ (322) $ 1,049 $ 2,012 Net loss from discontinued operations — — (104) Net earnings (loss) $ (322) $ 1,049 $ 1,908 Denominator: Weighted-average shares used to compute basic net EPS 1,294 1,353 1,529 Dilutive effect of employee stock plans — 13 24 Weighted-average shares used to compute diluted net EPS 1,294 1,366 1,553 Basic net earnings (loss) per share: Continuing operations $ (0.25) $ 0.78 $ 1.32 Discontinued operations — — (0.07) Basic net earnings (loss) per share $ (0.25) $ 0.78 $ 1.25 Diluted net earnings (loss) per share: Continuing operations $ (0.25) $ 0.77 $ 1.30 Discontinued operations — — (0.07) Diluted net earnings (loss) per share $ (0.25) $ 0.77 $ 1.23 Anti-dilutive weighted-average stock awards (1) 49 4 2 (1) The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings (loss) per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Litigation and Contingencies
Litigation and Contingencies | 12 Months Ended |
Oct. 31, 2020 | |
Loss Contingency [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies Hewlett Packard Enterprise is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement, Hewlett Packard Enterprise and HP Inc. (formerly known as "Hewlett-Packard Company") agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. Hewlett Packard Enterprise records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. Hewlett Packard Enterprise reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events pertaining to a particular matter. Litigation is inherently unpredictable. However, Hewlett Packard Enterprise believes it has valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. Hewlett Packard Enterprise believes it has recorded adequate provisions for any such matters and, as of October 31, 2020, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements. Litigation, Proceedings and Investigations Ross and Rogus v. Hewlett Packard Enterprise Company. On November 8, 2018, a putative class action complaint was filed in the Superior Court of California, County of Santa Clara alleging that HPE pays its California-based female employees "systemically lower compensation" than HPE pays male employees performing substantially similar work. The complaint alleges various California state law claims, including California's Equal Pay Act, Fair Employment and Housing Act, and Unfair Competition Law, and seeks certification of a California-only class of female employees employed in certain "Covered Positions." The complaint seeks damages, statutory and civil penalties, attorneys' fees and costs. On April 2, 2019, HPE filed a demurrer to all causes of action and an alternative motion to strike portions of the complaint. On July 2, 2019, the court denied HPE’s demurrer as to the claims of the putative class and granted HPE's demurrer as to the claims of the individual plaintiffs. India Directorate of Revenue Intelligence Proceedings . On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HP India"), a subsidiary of HP Inc., seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP India deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP India products and spare parts and to not interrupt the transaction of business by HP India. On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HP India and the named individuals of approximately $386 million, of which HP India had already deposited $9 million. On December 11, 2012, HP India voluntarily deposited an additional $10 million in connection with the products-related show cause notice. On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HP India and certain of the named individuals of approximately $17 million, of which HP India had already deposited $7 million. After the order, HP India deposited an additional $3 million in connection with the parts-related show cause notice so as to avoid certain penalties. HP India filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HP India to deposit an additional $24 million against the products order, which HP India deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HP India filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP India and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP India's request to remand the matter to the Commissioner on procedural grounds. The hearings were scheduled to reconvene on April 6, 2015, and again on November 3, 2015 and April 11, 2016, but were canceled at the request of the Customs Tribunal. The hearing was rescheduled for January 15, 2019 but was postponed and has not yet been rescheduled. ECT Proceedings . In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified a former subsidiary of HP Inc. in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five Forsyth, et al. vs. HP Inc. and Hewlett Packard Enterprise. This purported class and collective action was filed on August 18, 2016 and an amended complaint was filed on December 19, 2016 in the United States District Court for the Northern District of California, against HP Inc. and Hewlett Packard Enterprise alleging defendants violated the Federal Age Discrimination in Employment Act ("ADEA"), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code by terminating older workers and replacing them with younger workers. Plaintiffs seek to certify a nationwide collective action under the ADEA comprised of all individuals aged 40 and older who had their employment terminated by an HP entity pursuant to a work force reduction ("WFR") plan on or after December 9, 2014 for individuals terminated in deferral states and on or after April 8, 2015 in non-deferral states. Plaintiffs also seek to certify a Rule 23 class under California law comprised of all persons 40 years or older employed by defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. On September 20, 2017, the court granted the defendants' motion to compel arbitration and administratively closed the case pending resolution of the arbitration proceedings. On November 30, 2017, three named plaintiffs filed a single arbitration demand. Thirteen additional plaintiffs later joined the arbitration. On December 22, 2017, defendants filed a motion to (1) stay the case pending arbitrations and (2) enjoin the demanded arbitration and require each plaintiff to file a separate arbitration demand. On February 6, 2018, the court granted the motion to stay and denied the motion to enjoin. The claims of these sixteen arbitration named plaintiffs have been resolved. Additional opt-in plaintiffs were added to the litigation and these claims also were resolved as part of the arbitration process. The stay of the Forsyth class action has been lifted and a Third Amended Complaint was filed on January 7, 2020. Defendants filed a motion to dismiss the Third Amended Complaint on February 6, 2020. On May 18, 2020, the court issued an order granting in part and denying in part Defendants' motion to dismiss. The court granted Plaintiffs leave to amend their complaint. On July 9, 2020, Plaintiffs filed a Fourth Amended Complaint. On October 15, 2020, Defendants' motion to dismiss the Fourth Amended Complaint was denied. Wall v. Hewlett Packard Enterprise Company and HP Inc. This certified California class action and Private Attorney General Act action was filed against Hewlett-Packard Company on January 17, 2012 and the fifth amended (and operative) complaint was filed against HP Inc. and Hewlett Packard Enterprise on June 28, 2016 in the Superior Court of California, County of Orange. The complaint alleges that the defendants paid earned incentive compensation late and failed to timely pay final wages in violation of the California Labor Code. On August 9, 2016, the court ordered the class certified without prejudice to a future motion to amend or modify the class certification order or to decertify. The scheduled January 22, 2018 trial date was vacated following the parties' notification to the court that they had reached a preliminary agreement to resolve the dispute. The parties subsequently finalized and executed a settlement agreement and, on May 9, 2018, plaintiff filed a motion seeking preliminary approval of the settlement. On July 2, 2018, the court issued an order granting preliminary approval of the settlement. On December 21, 2018, the court issued an order granting final approval. A Qualified Settlement Fund has been fully funded and distributed to class members. On March 5, 2020, the Court signed an Amendment to Final Approval Order and Judgment, directing that the matter be closed. Jackson, et al. v. HP Inc. and Hewlett Packard Enterprise. This putative nationwide class action was filed on July 24, 2017 in the United States District Court for the Northern District of California, San Jose Division. Plaintiffs purport to bring the lawsuit on behalf of themselves and other similarly situated African-Americans and individuals over the age of forty. Plaintiffs allege that defendants engaged in a pattern and practice of racial and age discrimination in lay-offs and promotions. Plaintiffs filed an amended complaint on September 29, 2017. Plaintiffs seek damages, attorneys' fees and costs, and declaratory and injunctive relief. On January 12, 2018, defendants moved to transfer the matter to the federal district court in the Northern District of Georgia. Defendants also moved to dismiss the claims on various grounds and to strike certain aspects of the proposed class definition. On July 11, 2018, the court granted defendants' motion to dismiss this action for improper venue, and also partially dismissed and struck certain claims without prejudice to re-filing in the appropriate venue. On July 23, 2018, plaintiffs re-filed their lawsuit in the United States District Court for the Northern District of Georgia. On August 9, 2018, Plaintiffs filed a notice of appeal of the dismissal of the Northern District of California action with the Ninth Circuit Court of Appeals. On August 15, 2018, Plaintiffs filed a motion to stay their lawsuit in the Northern District of Georgia, which was granted by the court. On February 7, 2020, Defendants resolved the claims of the individual plaintiffs and the matters were dismissed. Hewlett-Packard Company v. Oracle (Itanium). On June 15, 2011, HP Inc. filed suit against Oracle in the Superior Court of California, County of Santa Clara in connection with Oracle's March 2011 announcement that it was discontinuing software support for HP Inc.'s Itanium-based line of mission critical servers. HP Inc. asserted, among other things, that Oracle's actions breached the contract that was signed by the parties as part of the settlement of the litigation relating to Oracle's hiring of Mark Hurd. Trial was bifurcated into two phases. HP Inc. prevailed in the first phase of the trial, in which the court ruled that the contract at issue required Oracle to continue to offer its software products on HP Inc.'s Itanium-based servers for as long as HP Inc. decided to sell such servers. Phase 2 of the trial was then postponed by Oracle's appeal of the trial court's denial of Oracle's "anti-SLAPP" motion, in which Oracle argued that HP Inc.'s damages claim infringed on Oracle's First Amendment rights. On August 27, 2015, the California Court of Appeal rejected Oracle's appeal. The matter was remanded to the trial court for Phase 2 of the trial, which began on May 23, 2016, and was submitted to the jury on June 29, 2016. On June 30, 2016, the jury returned a verdict in favor of HP Inc., awarding HP Inc. approximately $3.0 billion in damages: $1.7 billion for past lost profits and $1.3 billion for future lost profits. On October 20, 2016, the court entered judgment for this amount with interest accruing until the judgment is paid. Oracle's motion for a new trial was denied on December 19, 2016, and Oracle filed its notice of appeal from the trial court's judgment on January 17, 2017. On February 2, 2017, HP Inc. filed a notice of cross-appeal challenging the trial court's denial of prejudgment interest. On May 16, 2019, HP Inc. filed its application to renew the judgment. As of May 16, 2019, the renewed judgment is approximately $3.8 billion. Daily interest on the renewed judgment is now accruing at $1 million and will be recorded upon receipt. The parties have completed appellate briefing in the California Court of Appeal and are awaiting the scheduling of oral argument. Pursuant to the terms of the Separation and Distribution Agreement, HP Inc. and Hewlett Packard Enterprise will share equally in any recovery from Oracle once Hewlett Packard Enterprise has been reimbursed for all costs incurred in the prosecution of the action prior to the HP Inc./Hewlett Packard Enterprise separation on November 1, 2015. Oracle America, Inc., et al. v. Hewlett Packard Enterprise Company (Terix copyright matter) . On March 22, 2016, Oracle filed a complaint against HPE in the United States District Court for the Northern District of California, alleging copyright infringement, interference with contract, intentional interference with prospective economic relations, and unfair competition. Oracle’s claims arise out of HPE's prior use of a third-party maintenance provider named Terix Computer Company, Inc. ("Terix"). Oracle contends that in connection with HPE's use of Terix as a subcontractor for certain customers of HPE's multivendor support business, Oracle's copyrights were infringed, and HPE is liable for vicarious and contributory infringement and related claims. The lawsuit against HPE follows a prior lawsuit brought by Oracle against Terix in 2013 relating to Terix's alleged unauthorized provision of Solaris patches to customers on Oracle hardware. On June 14, 2018, the court heard oral argument on HPE's and Oracle's cross-motions for summary judgment. On January 29, 2019, the court granted HPE's Motion for Summary Judgment as to all of Oracle's claims and vacated the trial date. On February 20, 2019, the court entered judgment in favor of HPE, dismissing Oracle's claims in their entirety. Oracle has appealed the trial court's ruling to the United States Court of Appeals for the Ninth Circuit. On August 20, 2020, the United States Court of Appeals for the Ninth Circuit issued its ruling, affirming in part and reversing in part the trial court's decision granting summary judgment in favor of HPE. On October 6, 2020, the matter was remanded to the United States District Court for the Northern District of California for further proceedings consistent with the ruling from the United States Court of Appeals for the Ninth Circuit. Network-1 Technologies, Inc. v. Alcatel-Lucent USA Inc., et al. This patent infringement action was filed on September 15, 2011 in the United States District Court for the Eastern District of Texas, alleging that various Hewlett Packard Enterprise switches and access points infringe Network-1's patent relating to the 802.3af and 802.3at "Power over Ethernet" standards. Network-1 seeks damages, attorneys' fees and costs, and declaratory and injunctive relief. A jury trial was conducted beginning on November 6, 2017. On November 13, 2017, the jury returned a verdict in favor of HPE, finding that HPE did not infringe Network-1's patent and that the patent was invalid. On August 29, 2018, the court denied Network-1's motion for a new trial on infringement and entered the jury's verdict finding that HPE does not infringe the relevant Network-1 patent. The court also granted Network-1's motion for Judgment as a Matter of Law on validity. Network-1 has appealed the jury verdict of non-infringement to the United States Court of Appeals for the Federal Circuit. HPE has cross-appealed the court's decision to grant Network-1's motion for Judgment as a Matter of Law on validity. Appellate briefing has been completed. The Federal Circuit Court of Appeal held oral argument on November 4, 2019. On September 24, 2020, the Federal Circuit issued its ruling, affirming-in-part and reversing-in-part the jury's verdict, and finding that an erroneous claim construction was presented to the jury that prejudiced Network-1. HPE filed a petition for rehearing with the Federal Circuit that was denied on November 20, 2020. The matter will be remanded back to United States District Court for the Eastern District of Texas for further proceedings consistent with the Federal Circuit's ruling. Shared Litigation with HP Inc., DXC and Micro Focus As part of the Separation and Distribution Agreements between Hewlett Packard Enterprise and HP Inc., Hewlett Packard Enterprise and DXC, and Hewlett Packard Enterprise and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. (in the case of the separation of Hewlett Packard Enterprise from HP Inc.) or of Hewlett Packard Enterprise (in the case of the separation of DXC from Hewlett Packard Enterprise and the separation of Seattle SpinCo from Hewlett Packard Enterprise), in each case arising prior to the applicable separation. Environmental The Company's operations and products are or may in the future become subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites, the substances and materials used in the Company's products, the energy consumption of products, services and operations and the operational or financial responsibility for recycling, treatment and disposal of those products. This includes legislation that makes producers of electrical goods, including servers and networking equipment, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict. In particular, the Company may become a party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or other federal, state or foreign laws and regulations addressing the clean-up of contaminated sites, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc. |
Guarantees, Indemnifications an
Guarantees, Indemnifications and Warranties | 12 Months Ended |
Oct. 31, 2020 | |
Guarantees [Abstract] | |
Guarantees, Indemnifications and Warranties | Guarantees, Indemnifications and Warranties Guarantees In the ordinary course of business, the Company may issue performance guarantees to certain of its clients, customers and other parties pursuant to which the Company has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, the Company would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. The Company believes the likelihood of having to perform under a material guarantee is remote. The Company has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of the Company's non-performance under the contract or failure to comply with the terms of the financing arrangement, the Company could, under certain circumstances, be required to acquire certain assets related to the service contract. The Company believes the likelihood of having to acquire a material amount of assets under these arrangements is remote. Indemnifications In the ordinary course of business, the Company enters into contractual arrangements under which the Company may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of the Company or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. The Company also provides indemnifications to certain vendors and customers against claims of IP infringement made by third parties arising from the use by such vendors and customers of the Company's software products and support services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. General Cross-indemnification In connection with the Separation, Everett and Seattle transactions, the Company entered into a Separation and Distribution Agreement with HP Inc., DXC and Micro Focus respectively, whereby the Company agreed to indemnify HP Inc., DXC and Micro Focus, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to the Company as part of the Separation, Everett and Seattle transactions. Similarly, HP Inc., DXC and Micro Focus agreed to indemnify the Company, each of its subsidiaries and each of their respective directors, officers and employees from and against all claims and liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to HP Inc., DXC and Micro Focus as part of the Separation, Everett and Seattle transactions. Tax Matters Agreement with DXC/Micro Focus and Other Income Tax Matters In connection with the Everett Transaction and the Seattle Transaction, the Company entered into a Tax Matters Agreement with DXC and Micro Focus respectively (the "DXC Tax Matters Agreement" and the "Micro Focus Tax Matters Agreement"). The DXC Tax Matters Agreement and the Micro Focus Tax Matters Agreement govern the rights and obligations of the Company and DXC/Micro Focus for certain pre-divestiture tax liabilities and tax receivables. The DXC Tax Matters Agreement and the Micro Focus Tax Matters Agreement generally provide that the Company will be responsible for pre-divestiture tax liabilities and will be entitled to pre-divestiture tax receivables that arise from adjustments made by tax authorities to the Company's and DXC's, or Micro Focus', as applicable, U.S. and certain non-U.S. tax returns. In certain jurisdictions, the Company and DXC/Micro Focus have joint and several liability for past tax liabilities and accordingly, the Company could be legally liable under applicable tax law for such liabilities and required to make additional tax payments. In addition, if the distribution of Everett's or Seattle's common shares to Hewlett Packard Enterprise's stockholders is determined to be taxable, the Company would generally bear the tax liability, unless the taxability of the distribution is the direct result of actions taken by DXC/Micro Focus, in which case DXC/Micro Focus would be responsible for any taxes imposed on the distribution. As of October 31, 2020 and 2019, the Company's receivable and payable balances related to indemnified litigation matters and other contingencies, and income tax-related indemnification covered by these agreements were as follows: As of October 31, 2020 2019 In millions Litigation matters and other contingencies Receivable $ 70 $ 85 Payable $ 53 $ 55 Income tax-related indemnification (1) Net indemnification receivable - long-term $ 62 $ 202 Net indemnification receivable - short-term $ 65 $ 63 Net indemnification payable - long-term $ 15 $ 9 (1) The actual amount that the Company may receive or pay could vary depending upon the outcome of certain unresolved tax matters, which may not be resolved for several years. Warranties The Company's aggregate product warranty liabilities and changes therein were as follows: Fiscal years ended October 31, 2020 2019 In millions Balance at beginning of year $ 400 $ 430 Accruals for warranties issued 238 239 Adjustments related to pre-existing warranties (3) 6 Settlements made (250) (275) Balance at end of year (1) $ 385 $ 400 (1) The Company includes the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Consolidated Balance Sheets. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Oct. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company includes investments which are accounted for using the equity method, under Investments in equity interests on the Company's Consolidated Balance Sheets. As of October 31, 2020 and October 31, 2019, the Company's Investments in equity interests were $2.2 billion and $2.3 billion, respectively, primarily related to a 49% equity interest in H3C Technologies ("H3C"). Investment in H3C In the periods presented, the Company recorded its interest in the net earnings of H3C along with an adjustment to eliminate unrealized profits on intra-entity sales, and the amortization of basis difference, within Earnings from equity interests in the Consolidated Statements of Earnings. During fiscals 2020 and 2019, the Company received a cash dividend of $165 million and $156 million, respectively, from H3C. This amount was accounted for as a return on investment and reflected as a reduction in the carrying balance of the Company's Investments in equity interests in its Consolidated Balance Sheets. The difference between the sale date carrying value of the Company's investment in H3C and its proportionate share of the net assets fair value of H3C, created a basis difference of $2.5 billion, which was allocated as follows: In millions Equity method goodwill $ 1,674 Intangible assets 749 In-process research and development 188 Deferred tax liabilities (152) Other 75 Basis difference $ 2,534 The Company recorded earnings from equity interests of $67 million, $20 million and $38 million in fiscal 2020, 2019 and 2018, respectively, in the Consolidated Statements of Earnings, the components of which are as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Earnings from equity interests, net of taxes $ 211 $ 167 $ 192 Basis difference amortization (145) (152) (151) Elimination of profit on intra-entity sales adjustment 1 5 (3) Earnings from equity interests $ 67 $ 20 $ 38 The Company amortizes the basis difference over the estimated useful lives of the assets that gave rise to this difference. The weighted-average life of the H3C intangible assets is five years and is being amortized using the straight-line method. As of October 31, 2020 and 2019, the Company determined that no impairment of its equity method investments existed. |
Quarterly Summary
Quarterly Summary | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary | Quarterly Summary (Unaudited) (In millions, except per share amounts) For the three-month periods January 31 April 30 July 31 October 31 Net revenue $ 6,949 $ 6,009 $ 6,816 $ 7,208 Cost of sales $ 4,667 $ 4,095 $ 4,749 $ 5,002 Earnings (loss) from operations $ 348 $ (834) $ 12 $ 145 Net earnings (loss) $ 333 $ (821) $ 9 $ 157 Net earnings (loss) per share - basic $ 0.26 $ (0.64) $ 0.01 $ 0.12 Net earnings (loss) per share - diluted $ 0.25 $ (0.64) $ 0.01 $ 0.12 For the three-month periods January 31 April 30 July 31 October 31 Net revenue $ 7,553 $ 7,150 $ 7,217 $ 7,215 Cost of sales $ 5,207 $ 4,845 $ 4,768 $ 4,822 Earnings (loss) from operations $ 456 $ 434 $ (76) $ 460 Net earnings (loss) $ 177 $ 419 $ (27) $ 480 Net earnings (loss) per share - basic $ 0.13 $ 0.31 $ (0.02) $ 0.37 Net earnings (loss) per share - diluted $ 0.13 $ 0.30 $ (0.02) $ 0.36 |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Former Parent Separation | On November 1, 2015, the Company became an independent publicly-traded company through a pro rata distribution by HP Inc. ("former Parent" or "HPI"), formerly known as Hewlett-Packard Company ("HP Co."), of 100% of the outstanding shares of Hewlett Packard Enterprise Company to HP Inc.'s stockholders (the "Separation"). On April 1, 2017, the Company completed the separation and merger of our Enterprise Services business with DXC Technology Company ("DXC", "the Everett Transaction" or "Everett"). On September 1, 2017, the Company completed the separation and merger of our Software business segment with Micro Focus International plc ("Micro Focus", "the Seattle Transaction" or "Seattle" ). |
Transformation Programs | Transformation Programs Transformation programs are comprised of the cost optimization and prioritization plan, and the HPE Next initiative. During the third quarter of fiscal 2020, the Company launched the cost optimization and prioritization plan which focuses on realigning the workforce to areas of growth, including a new hybrid workforce model called Edge-to-Office, real estate strategies and simplifying and evolving our product portfolio strategy. The implementation period of the cost optimization and prioritization plan is through fiscal 2023. During this time the Company expects to incur transformation costs predominantly related to labor restructuring, non-labor restructuring, IT investments and design and execution charges. During the third quarter of fiscal 2017, the Company launched an initiative called HPE Next to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program the Company is simplifying the operating model, streamlining our offerings, business processes and business systems to improve our execution. The implementation period of the HPE Next initiative is now extended through fiscal 2023. During the remaining implementation period, the Company expects to incur transformation costs predominantly related to IT infrastructure costs for streamlining, upgrading and simplifying back-end operations, and real estate initiatives. These costs are expected to be partially offset by gains from real estate sales. |
Basis of Presentation | Basis of Presentation and Principles of ConsolidationThe Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles. |
Principles of Consolidation | The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries and affiliates in which the Company has a controlling financial interest or is the primary beneficiary. All intercompany transactions and accounts within the consolidated businesses of the Company have been eliminated. The Company consolidates a Variable Interest Entity ("VIE") where it has been determined that the Company is the primary beneficiary of the entity's operation. The primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of the entity and the risks the entity was designed to create and pass through to its variable interest holders. The Company also evaluates its economic interests in the VIE. The Company accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method of accounting, and the Company records its proportionate share of income or losses in Earnings (loss) from equity interests in the Consolidated Statements of Earnings. Non-controlling interests are presented as a separate component within Total stockholders' equity in the Consolidated Balance Sheets. Net earnings attributable to non-controlling interests are recorded within Interest and other, net in the Consolidated Statements of Earnings and are not presented separately, as they were not material for any periods presented. |
Segment Realignment and Reclassifications | Segment Realignment Effective at the beginning of the first quarter of fiscal 2020, HPE implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational changes, HPE replaced the Hybrid IT reportable segment (and the Compute, Storage and HPE Pointnext business units within it) with four new financial reporting segments: Compute, High Performance Compute & Mission-Critical Systems ("HPC & MCS"), Storage, and Advisory and Professional Services ("A & PS"). The Compute segment combines the general purpose server and certain workload optimized server portfolios that were previously a part of the Hybrid IT-Compute business unit and the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The HPC & MCS segment consists of high performance compute, mission-critical systems, and edge compute offerings that were previously a part of the Hybrid IT-Compute business unit and the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The Storage segment combines the former Hybrid IT-Storage business unit, the related operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit and the hyperconverged infrastructure products that were previously a part of the Hybrid IT-Compute business unit. Finally, the A & PS segment consists of the consultative-led services that were previously a part of the Hybrid IT-HPE Pointnext business unit. In addition, the Intelligent Edge segment now includes the Data Center Networking ("DC Networking") operational services business that was previously a part of the Hybrid IT-HPE Pointnext business unit. The DC Networking business, other than operational services, had been transferred to the Intelligent Edge segment in a prior realignment. The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue, operating profit and total assets for each of the businesses as described above. These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, net earnings, net earnings per share ("EPS") or total assets. See Note 2, "Segment Information", for a further discussion of the Company's segment. Segment Policy Hewlett Packard Enterprise derives the results of its business segments directly from its internal management reporting system. The accounting policies that Hewlett Packard Enterprise uses to derive segment results are substantially the same as those the consolidated company uses. The CODM measures the performance of each segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each of the segments. Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by FS to our customers. Hewlett Packard Enterprise's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements. Financing interest in the Consolidated Statements of Earnings reflects interest expense on borrowing and funding-related activity associated with FS and its subsidiaries, and debt issued by Hewlett Packard Enterprise for which a portion of the proceeds benefited FS. Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate costs and eliminations, stock-based compensation expense related to corporate and certain global functions, amortization of initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges (recovery), acquisition, disposition and other related charges. |
Use of Estimates | Use of EstimatesThe preparation of financial statements requires management to make estimates, judgements and assumptions that affect the amounts reported in the Company's Consolidated Financial Statements and accompanying notes. Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that the novel coronavirus pandemic ("COVID-19") could have on our significant accounting estimates. Significant estimates that are based on a forecast include inventory reserves, provision for taxes, valuation allowance for deferred taxes, and impairment assessments of goodwill, intangible assets and other long lived assets. The Company believes that these estimates, judgements and assumptions are reasonable under the circumstances, and are subject to significant uncertainties, some of which are beyond the Company's control. Should any of these estimates change, it could adversely affect the Company's results of operations. Additionally, as the extent and duration of the impacts from COVID-19 remain unclear, the Company's estimates, judgements and assumptions may evolve as conditions change. Actual results could differ materially from these estimates under different assumptions or conditions. |
Foreign Currency Translation | Foreign Currency Translation The Company predominately uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. currencies are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for non-monetary assets and liabilities. Net revenue, costs and expenses denominated in non-U.S. currencies are recorded in U.S. dollars at the average rates of exchange prevailing during the period. The Company includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings and gains and losses from cash flow hedges in Net revenue as the hedged revenue is recognized. Certain non-U.S. subsidiaries designate the local currency as their functional currency, and the Company records the translation of their assets and liabilities into U.S. dollars at the balance sheet date as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented. |
Revenue Recognition | Revenue Recognition General The Company accounts for a contract with a customer when both parties have provided written approval and are committed to perform, each party's rights including payment terms are identified, the contract has commercial substance, and collection of consideration is probable. The Company enters into contracts with customers that may include combinations of products and services, resulting in arrangements containing multiple performance obligations for hardware and software products and/or various services. The Company determines whether each product or service is distinct in order to identify the performance obligations in the contract and allocate the contract transaction price among the distinct performance obligations. Arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Company classifies its hardware, perpetual software licenses, and software-as-a-service ("SaaS") as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where the Company delivers hardware or software, it is typically the principal and records revenue and costs of goods sold on a gross basis. The majority of the Company's revenue is derived from sales of product and the associated support and maintenance which is recognized when, or as, control of promised products or services is transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled, in exchange for those products or services. Variable consideration offered in contracts with customers, partners and distributors may include rebates, volume-based discounts, cooperative marketing, price protection, and other incentive programs. Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and recognized only to the extent that it is probable that a significant reversal of revenue will not occur. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery and risk of loss has transferred to the customer. Transfer of control can also occur over time for maintenance and services as the customer receives the benefit over the contract term. The Company's hardware and perpetual software licenses are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses include multiple performance obligations where the term licenses are recognized upfront upon transfer of control, with the associated software maintenance revenue recognized ratably over the contract term as services and software updates are provided. SaaS arrangements have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term as the customer consumes the services. On its product sales, the Company records consideration from shipping and handling on a gross basis within net product sales. Revenue is recorded net of any associated sales taxes. Significant Judgments The Company allocates the transaction price for the contract among the performance obligations on a relative standalone selling price basis. The standalone selling price ("SSP") is the price at which an entity would sell a promised product or service separately to a customer. The Company establishes SSP for most of its products and services based on the observable price of the products or services when sold separately in similar circumstances to similar customers. When the SSP is not directly observable, the Company estimates SSP based on management judgment by considering available data such as internal margin objectives, pricing strategies, market/competitive conditions, historical profitability data, as well as other observable inputs. The Company establishes SSP ranges for its products and services and reassesses them periodically. Judgment is applied in determining the transaction price as the Company may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration may include various rebates, volume-based discounts, cooperative marketing, price protection, and other incentive programs that are offered to customers, partners and distributors. When determining the amount of revenue to recognize, the Company estimates the expected usage of these programs, applying the expected value or most likely estimate and updates the estimate at each reporting period as actual utilization becomes available. The Company also considers the customers' right of return in determining the transaction price, where applicable. Contract Balances Accounts receivable and contract assets A receivable is a right to consideration in exchange for products or services the Company has transferred to a customer that is unconditional. A contract asset is a right to consideration in exchange for products or services transferred to a customer that is conditional on something other than the passage of time. A receivable is recorded when the right to consideration becomes unconditional. The Company's contract assets include unbilled receivables which are recorded when the Company recognizes revenue in advance of billings. Unbilled receivables generally relate to services contracts where a service has been performed and control has transferred, but invoicing to the customer is subject to future milestone billings or other contractual payment schedules. The Company classifies unbilled receivables as Accounts receivable. Contract liabilities A contract liability is an obligation to transfer products or services to a customer for which the Company has received consideration, or the amount is due, from the customer. The Company's contract liabilities primarily consist of deferred revenue. Deferred revenue is recorded when amounts invoiced to customers are in excess of revenue that can be recognized because performance obligations have not been satisfied and control of the promised products or services has not transferred to the customer. Deferred revenue largely represents amounts invoiced in advance for product (hardware/software) support contracts, consulting projects and product sales where revenue cannot be recognized yet. Costs to obtain a contract with a customer three |
Shipping and Handling | Shipping and Handling The Company includes costs related to shipping and handling in Cost of products. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is based on the measurement date fair value of the award and is recognized only for those awards expected to meet the service and performance vesting conditions. Stock-based compensation expense for stock options and restricted stock units with only a service condition is recognized on a straight-line basis over the requisite service period of the award. For stock options and restricted stock units with both a service condition and a performance or market condition, the expense is recognized on a graded vesting basis over the requisite service period of the award. Stock-based compensation expense is determined at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. The forfeiture rate is estimated based on historical experience. Stock Options Stock options granted under the Plan are generally non-qualified stock options, but the Plan permits some options granted to qualify as incentive stock options under the U.S. Internal Revenue Code. The exercise price of a stock option is equal to the closing price of the Company's common stock on the option grant date. The majority of the stock options issued by the Company contain only service vesting conditions. The Company has also issued performance-contingent stock options that vest only on the satisfaction of both service and market conditions. In fiscal 2020, the Company did not issue stock options other than those that were replacement awards through the acquisition of Silver Peak. |
Retirement and Post-Retirement Plans | Retirement and Post-Retirement Plans The Company has various defined benefit, other contributory and noncontributory, retirement and post-retirement plans. The Company generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life or, in the case of closed plans, life expectancy of participants. In limited cases, actuarial gains and losses are amortized using the corridor approach. See Note 4, "Retirement and Post-Retirement Benefit Plans" for a full description of these plans and the accounting and funding policies. |
Advertising | AdvertisingCosts to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. |
Restructuring | Restructuring The Company's transformation programs include charges to approved restructuring plans. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. The Company records restructuring charges based on estimated employee terminations and site closure and consolidation plans. The Company accrues for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on existing plans, historical experiences and negotiated settlements. |
Taxes on Earnings | Taxes on Earnings The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. In determining the need for a valuation allowance, the Company considers future market growth, forecasted earnings, future sources of taxable income, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies. In the event the Company were to determine that it is more likely than not that the Company will be unable to realize all or part of its deferred tax assets in the future, the Company would increase the valuation allowance and recognize a corresponding charge to earnings in the period in which such a determination was made. Likewise, if the Company later determines that the deferred tax assets are more likely than not to be realized, the Company would reverse the applicable portion of the previously recognized valuation allowance. In order for the Company to realize deferred tax assets, the Company must be able to generate sufficient taxable income in the jurisdictions in which the deferred tax assets are located. The Company records accruals for uncertain tax positions when the Company believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, effects of settlement of certain pre-Separation Hewlett-Packard Company income tax liabilities, as well as any related interest and penalties. The Company is subject to the Global Intangible Low Taxed Income ("GILTI") tax in the U.S. The Company elected to treat taxes on future GILTI inclusions in U.S. taxable income as a current period expense when incurred. Hewlett Packard Enterprise believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from federal, state and foreign tax audits. The Company regularly assesses the likely outcomes of these audits in order to determine the appropriateness of the Company's tax provision. The Company adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that the Company will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the (Provision) benefit for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net earnings or cash flows. Hewlett Packard Enterprise has not provided for U.S. federal and state income and foreign withholding taxes on $9.7 billion of undistributed earnings and basis differences from non-U.S. operations as of October 31, 2020 because the Company intends to reinvest such earnings indefinitely outside of the U.S. Determination of the amount of unrecognized deferred tax liability related to these earnings and basis differences is not practicable. The Company will remit non-indefinitely reinvested earnings of its non-U.S. subsidiaries for which deferred U.S. state income and foreign withholding taxes have been provided where excess cash has accumulated and the Company determines that it is advantageous for business operations, tax or cash management reasons. Deferred Income Taxes Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. |
Accounts Receivable | Accounts Receivable The Company establishes an allowance for doubtful accounts for accounts receivable. The Company may record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, the Company further adjusts estimates of the recoverability of receivables. The Company maintains bad debt reserves for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers, the length of time receivables are past due, trends in the weighted-average risk rating for the portfolio, macroeconomic conditions, information derived from competitive benchmarking, significant one-time events, and historical experience. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. Financing Receivable The allowance for doubtful accounts for financing receivables is comprised of a general reserve and a specific reserve. The Company maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. The Company excludes accounts evaluated as part of the specific reserve from the general reserve analysis. The Company establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely the Company will recover its investment. For individually evaluated receivables, the Company determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, the Company records a specific reserve. The Company generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if the Company determines that the receivable is not collectible. Non-Accrual and Past-Due Financing Receivables The Company considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. The Company generally places financing receivables on non-accrual status, which is the suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, the Company may recognize revenue on non-accrual financing receivables as payments are received, which is on a cash basis, if the Company deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when the Company deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, the Company may return the related financing receivable to accrual status. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and restricted cash, investments, receivables from trade customers and contract manufacturers, financing receivables and derivatives. The Company maintains cash, cash equivalents and restricted cash, investments, derivatives, and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and the Company's policy is designed to limit exposure from any particular institution. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. The Company utilizes derivative contracts to protect against the effects of foreign currency and interest rate exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. For more details on the collateral program, see Note 13, "Financial Instruments". Credit risk with respect to accounts receivable from trade customers and financing receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company performs ongoing credit evaluations of the financial condition of its customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. As of October 31, 2020 and 2019 no single customer accounted for more than 10% of the Company's receivable from trade customers and financing receivables. The Company utilizes outsourced manufacturers around the world to manufacture company-designed products. The Company may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 89% and 92% of the Company's manufacturer receivables of $687 million and $635 million at October 31, 2020 and 2019, respectively. The Company includes the manufacturer receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. The Company's credit risk associated with these receivables is mitigated wholly or in part by the amount the Company owes to these outsourced manufacturers, as the Company generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. The Company does not reflect the sale of these components in revenue and does not recognize any profit on these component sales until the manufactured products are sold by the Company, at which time any profit is recognized as a reduction to cost of sales. The Company obtains certain components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of the Company's relationship with a single source supplier, or any unilateral modification to the contractual terms under which the Company is supplied components by a single source supplier could adversely affect the Company's revenue and gross margins. |
Inventory | Inventory The Company values inventory at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable value, if required, for estimated excess or obsolescence determined primarily by future demand forecasts and market conditions. The write down for excess or obsolescence is charged to the provision of inventory, which is a component of Cost of Products and Cost of Services in the Consolidated Statement of Earnings. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment The Company states property, plant and equipment at cost less accumulated depreciation. The Company capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation expense is recognized on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives are five three The Company capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. The Company amortizes capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three |
Lessee Accounting | Lessee Accounting As a result of adopting the new leasing standard ("ASC 842"), the Company now recognizes a lease liability and a right-of-use ("ROU") asset for the lease term in a lease contract. The Company enters into various leases as a lessee for assets including office buildings, data centers, vehicles, and aviation. The Company determines if an arrangement is a lease at inception. An arrangement contains a lease when the arrangement conveys the right to control the use of an identified asset over the lease term. Upon lease commencement, the Company records a lease liability for the obligation to make lease payments and ROU asset for the right to use the underlying asset for the lease term in the Consolidated Balance Sheet. The lease liability is measured at commencement date based on the present value of lease payments not yet paid over the lease term and the Company's incremental borrowing rate. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate which approximates the rate |
Lessor Accounting | Lessor Accounting The Company's lease offerings are non-cancelable and the payment schedule primarily consists of fixed payments. Variable payments that are based on an index are included in lease receivables. The Company allocates consideration amongst lease components and non-lease components on a relative standalone selling price basis, when lease arrangements include multiple performance obligations. At the end of the lease term, the Company allows the client to either return the equipment, purchase the equipment or renew the lease based on mutually agreed upon terms. |
Business Combinations | Business Combinations The Company includes the results of operations of acquired businesses in the Company's consolidated results prospectively from the date of acquisition. The Company allocates the fair value of purchase consideration to the assets acquired including in-process research and development ("IPR&D"), liabilities assumed, and non-controlling interests in the acquired entity based on their fair values at the acquisition date. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. The excess of the fair value of purchase consideration over the fair value of the assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and post-acquisition restructuring costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill | Goodwill The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company performs a quantitative test for all of its reporting units as part of its annual goodwill impairment test in the fourth quarter of each fiscal year. The Company estimates the fair value of its reporting units using a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows covering discrete forecast periods as well as terminal value determinations. The Company prepares cash flow projections based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The Company bases the discount rate on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, the Company estimates fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. The Company weights the fair value derived from the market approach commensurate with the level of comparability of these publicly traded companies to the reporting unit. When market comparables are not meaningful or not available, the Company estimates the fair value of a reporting unit using only the income approach. If the fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired. The goodwill impairment loss is measured as the excess of the reporting unit's carrying value over its fair value (not to exceed the total goodwill allocated to that reporting unit). |
Intangible Assets and Long-Lived Assets | Intangible Assets and Long-Lived Assets The Company reviews intangible assets with finite lives and long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of assets based on the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the undiscounted future cash flows are less than the carrying amount, the asset is impaired. The Company measures the amount of impairment loss, if any, as the difference between the carrying amount of the asset and its fair value using an income approach or, when available and appropriate, using a market approach. The Company amortizes intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from one |
Assets Held for Sale | Assets Held for SaleThe Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. |
Equity Method Investments | Equity Method Investments Investments and ownership interests are accounted for under equity method accounting if the Company has the ability to exercise significant influence, but does not have a controlling financial interest. The Company records its interest in the net earnings of its equity method investees, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Consolidated Statements of Earnings. Profits or losses related to intra-entity sales with its equity method investees are eliminated until realized by the investor or investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company records its interest in the net earnings of its equity method investments based on the most recently available financial statements of the investees. The carrying amount of the investment in equity interests is adjusted to reflect the Company's interest in net earnings, dividends received and other-than-temporary impairments. The Company reviews for impairment whenever factors indicate that the carrying amount of the investment might not be recoverable. In such a case, the decrease in value is recognized in the period the impairment occurs in the Consolidated Statement of Earnings. |
Equity Securities Investments | Equity Securities Investments Equity securities investments with readily determinable fair values (other than those accounted for under the equity method or those that result in consolidation of the investee) are measured at fair value and any changes in fair value are recognized in Interest and other, net in the Consolidated Statement of Earnings. For equity investments without readily determinable fair values, the Company has elected to apply the measurement alternative, under which investments are measured at cost, less impairment, and adjusted for qualifying observable price changes on a prospective basis. The Company reviews for impairment at each reporting period, assessing factors such as deterioration of earnings, adverse change in market/industry |
Debt Securities Investments | Debt Securities Investments Debt securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Consolidated Statements of Earnings. The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be other-than-temporary, the Company records an impairment charge to Interest and other, net in the amount of the credit loss and the balance, if any, is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. |
Derivatives | Derivatives The Company uses derivative financial instruments, primarily forwards, swaps, and, at times, options, to hedge certain foreign currency and interest rate exposures. The Company does not use derivative financial instruments for speculative purposes. See Note 13, "Financial Instruments", for a full description of the Company's derivative financial instrument activities and related accounting policies. Derivative Instruments The Company is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, interest rate swaps and total return swaps to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. The Company's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. The Company does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. The Company may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, the Company categorizes those economic hedges as other derivatives. Derivative instruments are recognized at fair value in the Consolidated Balance Sheets. The change in fair value of the derivative instruments is recognized in the Consolidated Statements of Earnings or Consolidated Statements of Comprehensive Income depending upon the type of hedge as further discussed below. The Company classifies cash flows from its derivative programs with the activities that correspond to the underlying hedged items in the Consolidated Statements of Cash Flows. As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, the Company has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and the Company maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. The Company's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically reassessing the creditworthiness of its counterparties. Master netting agreements also mitigate credit exposure to counterparties by permitting the Company to net amounts due from the Company to a counterparty against amounts due to the Company from the same counterparty under certain conditions. To further mitigate credit exposure to counterparties, the Company has collateral security agreements, which allows the Company to hold collateral from, or require the Company to post collateral to counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of the Company and its counterparties. If the Company's credit rating falls below a specified credit rating, the counterparty has the right to request full collateralization of the derivatives' net liability position. Conversely, if the counterparty's credit rating falls below a specified credit rating, the Company has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of the Company's derivatives with credit contingent features in a net liability position was $45 million and $18 million at October 31, 2020 and 2019, respectively, all of which were fully collateralized within two business days. Under the Company's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting the Company that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect the Company's financial position or cash flows as of October 31, 2020 and 2019. Fair Value Hedges The Company issues long-term debt in U.S. dollars based on market conditions at the time of financing. The Company may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, the Company may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. When investing in fixed-rate instruments, the Company may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges. For derivative instruments that are designated and qualify as fair value hedges, the Company recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Cash Flow Hedges The Company uses forward contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. The Company's foreign currency cash flow hedges mature generally within twelve months; however, forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which can extend up to five years. The Company uses interest rate contracts designated as cash flow hedges to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. For derivative instruments that are designated and qualify as cash flow hedges, and as long as they remain highly effective, the Company records the changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of equity in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the same financial statement line item when the hedged transaction is recognized. Net Investment Hedges The Company uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. The Company records the changes in the fair value of the hedged items in cumulative translation adjustment as a separate component of Equity in the Consolidated Balance Sheets. Other Derivatives Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. The Company also uses total return swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability. For derivative instruments not designated as hedging instruments, the Company recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Hedge Effectiveness |
Loss Contingencies | Loss Contingencies The Company is involved in various lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business. The Company records a liability for contingencies when it believes it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. See Note 17, "Litigation and Contingencies", for a full description of the Company's loss contingencies. |
Warranties | Warranties The Company accrues the estimated cost of product warranties at the time of recognizing revenue. The Company evaluates its warranty obligations on a product group basis. The Company's standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers. The estimated warranty obligation is based on contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failure outside of the Company's baseline experience. Warranty terms generally range from one |
Recently Adopted Accounting Pronouncements and Recently Enacted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued guidance to provide temporary optional expedients and exceptions through December 31, 2022 to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). This guidance was effective upon issuance. As a result the Company adopted the guidance in the second quarter of fiscal 2020 and there was no financial impact on the Consolidated Financial Statements upon adoption. In February 2018, the FASB issued guidance that allows companies to reclassify stranded tax effects resulting from U.S. tax reform from accumulated other comprehensive income (loss) to retained earnings. The guidance also allows the reclassification of these stranded tax effects to be recorded upon adoption of the guidance rather than at the actual cessation date. The Company adopted the guidance in the first quarter of fiscal 2020 and elected not to reclassify prior periods. As a result, $43 million of tax benefit was reclassified from accumulated other comprehensive loss into accumulated deficit, primarily comprised of amounts related to currency translation adjustments and net unrealized gains (losses) on cash flow hedges. In August 2017, the FASB amended the existing accounting standards for hedge accounting. The amendments expand an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness and requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also simplifies certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. In April 2019, the FASB issued certain clarifications to address partial term fair value hedges, fair value hedge basis adjustments and certain transition requirements. The Company adopted the guidance effective November 1, 2019 and there was no financial impact on the Consolidated Financial Statements upon adoption. In February 2016, with amendments in 2018 and 2019, the FASB issued guidance which changes the accounting standards for leases. The Company adopted the guidance in the first quarter of fiscal 2020, beginning November 1, 2019, using the modified retrospective transition method whereby prior comparative periods will not be restated in the Consolidated Financial Statements. Accordingly, results and related disclosures for the reporting periods beginning after November 1, 2019 are presented under the new lease standard, while comparative prior period results and related disclosures are not adjusted and continue to be reported in accordance with the historic accounting standards. The primary objective of this update is to increase transparency and comparability among organizations by requiring lessees to recognize a lease liability and an ROU asset for the lease term. The Company elected the package of practical expedients which did not require the reassessment of prior conclusions related to contracts containing leases, lease classification and initial direct costs ("IDC"). As a lessee, the adoption of the new lease standard on November 1, 2019 resulted in the recognition of $1.0 billion of right-of-use assets and $1.1 billion of lease liabilities on the Company's Consolidated Balance Sheet. As a lessor, no transition adjustments were recorded from the adoption of ASC 842. The adoption of the accounting standard for leases had no impact on the Company's Consolidated Statements of Earnings and Consolidated Statements of Cash Flows or debt-covenant compliance under its current agreements. Refer to Note 8 "Accounting for Leases as a Lessee" for accounting policy and additional information. Recently Enacted Accounting Pronouncements In January 2020, the FASB issued guidance to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new guidance clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The Company is required to adopt the guidance in the first quarter of fiscal 2022, though early adoption is permitted. The Company does not expect the guidance to have a material impact on its Consolidated Financial Statements. In December 2019, the FASB amended the existing accounting standards for income taxes. The amendments clarify and simplify the accounting for income taxes by eliminating certain exceptions to the general principles. The Company plans to adopt the guidance in the first quarter of fiscal 2021. The Company does not expect the guidance to have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued guidance on a customer's accounting for implementation costs incurred in cloud-computing arrangements that are hosted by a vendor. Certain types of implementation costs should be capitalized and amortized over the term of the hosting arrangement. The Company is required to adopt the guidance in the first quarter of fiscal 2021, though early adoption is permitted. The Company does not expect the guidance to have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued guidance which changes the disclosure requirements for fair value measurements and defined benefit pension plans. The Company is required to adopt the guidance in the first quarter of fiscal 2021. The Company does not expect the guidance to have an impact on its Consolidated Financial Statements, however expects to have additional disclosures relating to retirement and post-retirement benefit plans. In June 2016, the FASB amended the existing accounting standards for the measurement of credit losses. The amendments require an entity to estimate its lifetime expected credit loss for most financial instruments, including trade and financing receivables, and record an allowance for the portion of the amortized cost the entity does not expect to collect. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. In April 2019, the FASB further clarified the scope of the credit losses standard and addressed issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments. In May 2019, the FASB issued further guidance to provide entities with an option to irrevocably elect the fair value option applied on |
Investment Policy | Investment Policy The Company's investment strategy is to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status of each plan and the timing of expected benefit payments. The majority of the plans' investment managers employ active investment management strategies with the goal of outperforming the broad markets in which they invest. Risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. A number of the plans' investment managers are authorized to utilize derivatives for investment or liability exposures, and the Company may utilize derivatives to effect asset allocation changes or to hedge certain investment or liability exposures. Asset allocation decisions are typically made by an independent board of trustees for the specific plan. Investment objectives are designed to generate returns that will enable the plan to meet its future obligations. In some countries, local regulations may restrict asset allocations, typically leading to a higher percentage of investment in fixed income securities than would otherwise be deployed. The Company reviews the investment strategy and provides a recommended list of investment managers for each country plan, with final decisions on asset allocation and investment managers made by the board of trustees or investment committees for the specific plan. |
Pension and Other Postretirement Plans | The following is a description of the valuation methodologies used to measure plan assets at fair value. Investments in publicly traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded. For corporate, government backed debt securities, and some other investments, fair value is based on observable inputs of comparable market transactions. The valuation of certain real estate funds, insurance group annuity contracts and alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. The valuation is generally based on fair value as reported by the asset manager and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, |
Basis for Expected Long-Term Rate of Return on Plan Assets | Basis for Expected Long-Term Rate of Return on Plan Assets The expected long-term rate of return on plan assets reflects the expected returns for each major asset class in which the plan invests and the weight of each asset class in the target mix. Expected asset returns reflect the current yield on government bonds, risk premiums for each asset class and expected real returns, which considers each country's specific inflation outlook. Because the Company's investment policy is to employ primarily active investment managers who seek to outperform the broader market, the expected returns are adjusted to reflect the expected additional returns, net of fees. |
Financing Receivables Allowance for Credit Loss and Reserves | Credit Quality Indicators Due to the homogeneous nature of its leasing transactions, the Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. The Company assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. |
Financing Receivables, Non-Accrual and Past Due Status | Non-Accrual and Past-Due Financing Receivables |
Fair Value | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3—Unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. Valuation Techniques Cash Equivalents and Investments: The Company holds time deposits, money market funds, debt securities primarily consisting of corporate and foreign government notes and bonds. The Company values cash equivalents using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data. Derivative Instruments: The Company uses forward contracts, interest rate and total return swaps to hedge certain foreign currency and interest rate exposures. The Company uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, the Company and counterparties' credit risk, foreign currency exchange rates, and forward and spot prices for currencies and interest rates. See Note 13, "Financial Instruments", for a further discussion of the Company's use of derivative instruments. Other Fair Value Disclosures Short- and Long-Term Debt: The Company estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of the Company's debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. At October 31, 2020, the estimated fair value of the Company's short-term and long-term debt was $17.1 billion and the carrying value was $15.9 billion. As of October 31, 2019, the estimated fair value of the Company's short-term and long-term debt was $14.6 billion and the carrying value was $13.8 billion. If measured at fair value in the Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy. Other Financial Instruments: For the balance of the Company's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. Non-Financial Assets and Equity Investments without readily determinable fair value: The Company's non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at cost. Fair value adjustments are made to cost basis in the period an impairment charge is recognized. In the second quarter of fiscal 2020, the Company recorded a goodwill impairment charge of $865 million associated with the HPC & MCS reporting unit. The fair value of the Company's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. For more information on the goodwill impairment, see Note 11 "Goodwill and Intangible Assets". |
Net Earnings per share | The Company calculates basic net earnings (loss) per share ("EPS") using net earnings or loss and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes the weighted-average dilutive effect of restricted stock units, stock options, and performance-based awards. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Operating Results from Continuing Operations | Segment Operating Results Compute HPC & MCS Storage A & PS Intelligent Edge Financial Services Corporate Investments Total In millions 2020 Net revenue $ 11,821 $ 2,965 $ 4,583 $ 946 $ 2,837 $ 3,340 $ 490 $ 26,982 Intersegment net revenue 394 71 98 5 18 12 — 598 Total segment net revenue $ 12,215 $ 3,036 $ 4,681 $ 951 $ 2,855 $ 3,352 $ 490 $ 27,580 Segment earnings (loss) from operations $ 893 $ 237 $ 719 $ (5) $ 281 $ 278 $ (100) $ 2,303 2019 Net revenue $ 13,250 $ 2,786 $ 5,114 $ 1,004 $ 2,904 $ 3,570 $ 507 $ 29,135 Intersegment net revenue 392 124 71 8 9 11 — 615 Total segment net revenue $ 13,642 $ 2,910 $ 5,185 $ 1,012 $ 2,913 $ 3,581 $ 507 $ 29,750 Segment earnings (loss) from operations $ 1,550 $ 320 $ 924 $ (54) $ 159 $ 305 $ (108) $ 3,096 2018 Net revenue $ 14,616 $ 2,875 $ 5,054 $ 1,111 $ 2,997 $ 3,656 $ 543 $ 30,852 Intersegment net revenue 526 112 104 7 16 15 — 780 Total segment net revenue $ 15,142 $ 2,987 $ 5,158 $ 1,118 $ 3,013 $ 3,671 $ 543 $ 31,632 Segment earnings (loss) from operations $ 1,306 $ 384 $ 830 $ (79) $ 339 $ 286 $ (91) $ 2,975 |
Reconciliation of Segment Operating Results | The reconciliation of segment operating results to Hewlett Packard Enterprise consolidated results was as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions Net revenue: Total segments $ 27,580 $ 29,750 $ 31,632 Elimination of intersegment net revenue (598) (615) (780) Total Hewlett Packard Enterprise consolidated net revenue $ 26,982 $ 29,135 $ 30,852 Earnings before taxes: Total segment earnings from operations $ 2,303 $ 3,096 $ 2,975 Unallocated corporate costs and eliminations (238) (286) (259) Unallocated stock-based compensation expense (57) (59) (73) Amortization of initial direct costs (10) — — Amortization of intangible assets (379) (267) (294) Impairment of goodwill (865) — (88) Restructuring charges — — (19) Transformation costs (950) (453) (414) Disaster (charge) recovery (26) 7 — Acquisition, disposition and other related charges (107) (764) (82) Separation costs — — (9) Interest and other, net (215) (177) (274) Tax indemnification adjustments (101) 377 (1,354) Non-service net periodic benefit credit 136 59 121 Earnings from equity interests 67 20 38 Total Hewlett Packard Enterprise consolidated earnings (loss) from continuing operations before taxes $ (442) $ 1,553 $ 268 |
Reconciliation of Assets from Segments to Consolidated | Total assets by segment and the reconciliation of segment assets to Hewlett Packard Enterprise consolidated assets were as follows: As of October 31, 2020 2019 In millions Compute $ 14,858 $ 14,066 HPC & MCS 6,192 6,819 Storage 6,796 7,214 A&PS 477 440 Intelligent Edge 4,343 3,318 Financial Services 14,765 14,700 Corporate Investments 467 461 Corporate and unallocated assets 6,117 4,785 Total Hewlett Packard Enterprise consolidated assets $ 54,015 $ 51,803 |
Net Revenue by Geographical Areas | Net revenue by country in which Hewlett Packard Enterprise operates was as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions Americas U.S. $ 9,162 $ 9,582 $ 10,192 Americas excluding U.S. 1,700 1,922 2,135 Total Americas 10,862 11,504 12,327 Europe, Middle East and Africa 9,745 10,828 11,295 Asia Pacific and Japan 6,375 6,803 7,230 Total Hewlett Packard Enterprise consolidated net revenue $ 26,982 $ 29,135 $ 30,852 |
Net Property, Plant and Equipment by Geographical Areas | Net property, plant and equipment by country in which Hewlett Packard Enterprise operates was as follows: As of October 31, 2020 2019 In millions U.S. $ 2,762 $ 2,894 Other countries 2,863 3,160 Total net property, plant and equipment $ 5,625 $ 6,054 |
Transformation Programs (Tables
Transformation Programs (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | During fiscal 2020, the Company incurred $384 million of charges related to the cost optimization and prioritization plan which is recorded within Transformation costs in the Consolidated Statements of Earnings, the components of which were as follows: Fiscal year ended October 31, 2020 In millions Program management $ 55 Restructuring charges 329 Total Transformation Costs $ 384 The components of Transformation costs relating to HPE Next were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Program management $ 35 $ 29 $ 95 IT costs 100 134 148 Restructuring charges 440 219 531 Gains on real estate sales (45) (7) (405) Impairment on real estate assets 10 47 — Other 29 40 76 Total Transformation Costs $ 569 $ 462 $ 445 |
Schedule of Restructuring Reserve by Cost | Restructuring activities related to the Company's employees and infrastructure under the cost optimization and prioritization plan and HPE Next Plan, are presented in the table below: Cost Optimization and Prioritization Plan HPE Next Plan Employee Infrastructure Employee Infrastructure In millions In millions Liability as of October 31, 2017 $ — $ — $ 296 $ — Charges — — 470 61 Cash payments — — (452) (14) Non-cash items — — (23) (14) Liability as of October 31, 2018 $ — $ — $ 291 $ 33 Charges — — 154 65 Cash payments — — (256) (37) Non-cash items — — (11) (19) Liability as of October 31, 2019 $ — $ — $ 178 $ 42 Charges 230 99 341 99 Cash payments (18) (3) (383) (50) Non-cash items (2) (60) 8 (56) Liability as of October 31, 2020 $ 210 $ 36 $ 144 $ 35 Total costs incurred to date as of October 31, 2020 $ 230 $ 99 $ 1,261 $ 225 Total expected costs to be incurred as of October 31, 2020 $ 700 $ 610 $ 1,261 $ 248 |
Retirement and Post-Retiremen_2
Retirement and Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |
Summary of Net Benefit Cost | The Company's net pension and post-retirement benefit costs that were directly attributable to the eligible employees, retirees and other former employees of Hewlett Packard Enterprise and recognized in the Consolidated Statements of Earnings for fiscal 2020, 2019 and 2018 are presented in the table below. As of October 31, 2020 2019 2018 2020 2019 2018 Defined Post-Retirement In millions Service cost $ 94 $ 85 $ 105 $ 1 $ 1 $ 1 Interest cost (1) 143 215 225 5 7 7 Expected return on plan assets (1) (544) (511) (567) (1) (1) (1) Amortization and deferrals (1) : Actuarial loss (gain) 264 235 211 (1) (4) (3) Prior service benefit (14) (15) (17) — — — Net periodic benefit cost (57) 9 (43) 4 3 4 Curtailment gain (1) — — (1) — — — Settlement loss (1) 10 13 20 — — — Special termination benefits (1) 2 2 6 — — — Total net benefit (credit) cost (45) 24 (18) 4 3 4 (1) These non-service components of net periodic benefit cost are included in Non-service net periodic benefit credit in the Consolidated Statements of Earnings. |
Schedule of weighted average assumptions used to calculate net benefit (credit) cost | The weighted-average assumptions used to calculate the net benefit (credit) cost in the table above for fiscal 2020, 2019 and 2018 were as follows: As of October 31, 2020 2019 2018 2020 2019 2018 Defined Post-Retirement Discount rate used to determine benefit obligation 1.2 % 2.1 % 2.0 % 3.4 % 4.9 % 4.5 % Discount rate used to determine service cost 1.6 % 2.3 % 2.4 % 3.0 % 4.4 % 3.7 % Discount rate used to determine interest cost 1.0 % 1.8 % 1.7 % 3.2 % 4.7 % 4.2 % Expected increase in compensation levels 2.5 % 2.5 % 2.3 % — — — Expected long-term return on plan assets 4.1 % 4.3 % 4.4 % 2.3 % 2.6 % 2.6 % |
Schedule of funded status of the direct plans | The funded status of the plans was as follows: As of October 31, 2020 2019 2020 2019 Defined Post-Retirement In millions Change in fair value of plan assets: Fair value—beginning of year $ 13,434 $ 12,167 $ 54 $ 52 Transfers — (5) — — Addition/deletion of plans (1) 5 (14) — — Actual return on plan assets 557 1,542 — 1 Employer contributions 167 166 5 5 Participant contributions 24 24 5 4 Benefits paid (410) (387) (7) (8) Settlement (51) (67) — — Currency impact 401 8 — — Fair value—end of year $ 14,127 $ 13,434 $ 57 $ 54 Change in benefit obligation: Projected benefit obligation—beginning of year $ 14,225 $ 12,668 $ 179 $ 160 Transfers — (7) — — Addition/deletion of plans (1) 5 (12) — — Service cost 94 85 1 1 Interest cost 143 215 5 7 Participant contributions 24 24 5 4 Actuarial (gain) loss 368 1,710 (9) 17 Benefits paid (410) (387) (7) (8) Plan amendments (3) 12 — — Settlement (51) (67) — — Special termination benefits 2 2 — — Currency impact 448 (18) (7) (2) Projected benefit obligation—end of year $ 14,845 $ 14,225 $ 167 $ 179 Funded status at end of year $ (718) $ (791) $ (110) $ (125) Accumulated benefit obligation $ 14,619 $ 13,995 $ — $ — |
Schedule of weighted-average assumptions used to calculate the projected benefit obligations | The weighted-average assumptions used to calculate the projected benefit obligations were as follows: As of October 31, 2020 2019 2020 2019 Defined Benefit Plans Post-Retirement Benefit Plans Discount rate 1.0 % 1.2 % 2.8 % 3.4 % Expected increase in compensation levels 2.5 % 2.5 % — — |
Schedule of net amount recognized for the direct plans in the entity's Combined Balance Sheets | The net amounts recognized for defined benefit and post-retirement benefit plans in the Company's Consolidated Balance Sheets were as follows: As of October 31, 2020 2019 2020 2019 Defined Benefit Plans Post-Retirement Benefit Plans In millions Non-current assets $ 1,046 $ 864 $ — $ — Current liabilities (49) (45) (6) (6) Non-current liabilities (1,715) (1,610) (104) (119) Funded status at end of year $ (718) $ (791) $ (110) $ (125) |
Summary of pre-tax net actuarial loss and prior service benefit recognized in accumulated other comprehensive loss for direct defined benefit plans | The following table summarizes the pre-tax net actuarial loss and prior service benefit recognized in accumulated other comprehensive loss for the defined benefit plans: As of October 31, 2020 Defined Post-Retirement In millions Net actuarial loss $ 3,633 $ 6 Prior service benefit (28) — Total recognized in accumulated other comprehensive loss $ 3,605 $ 6 |
Summary of actuarial loss and prior service benefit for direct plans that are expected to be amortized from Accumulated other comprehensive loss and recognized as components of net periodic benefit cost (credit) | The following table summarizes the net actuarial loss and prior service benefit for plans that are expected to be amortized from accumulated other comprehensive loss and recognized as components of net periodic benefit cost (credit) during the next fiscal year. As of October 31, 2020 Defined Post-Retirement In millions Net actuarial loss (gain) $ 290 $ (2) Prior service benefit (13) — Total expected to be recognized in net periodic benefit cost (credit) $ 277 $ (2) |
Schedule of direct defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: As of October 31, 2020 2019 In millions Aggregate fair value of plan assets $ 4,160 $ 3,585 Aggregate projected benefit obligation $ 5,924 $ 5,238 |
Schedule of direct defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: As of October 31, 2020 2019 In millions Aggregate fair value of plan assets $ 4,094 $ 3,574 Aggregate accumulated benefit obligation $ 5,723 $ 5,088 |
Schedule of fair value of direct plan non-U.S. defined benefit plan assets by asset category within the fair value hierarchy | The table below sets forth the fair value of non-U.S. defined benefit plan assets by asset category within the fair value hierarchy as of October 31, 2020 and 2019. Reclassifications of certain prior year investment balances in asset categories have been made to conform to the current-year presentation. As of As of Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset Category: Equity securities U.S. $ 155 $ 117 $ — $ 272 $ 172 $ 8 $ — $ 180 Non-U.S. 955 217 — 1,172 836 222 — 1,058 Debt securities Corporate — 1,778 — 1,778 — 1,502 — 1,502 Government (1) — 6,007 — 6,007 — 5,344 — 5,344 Government at NAV (2) 875 897 Other (3) — 683 555 1,238 — 361 401 762 Alternative investments Private Equity — 4 35 39 — 2 42 44 Hybrids (4) 18 1,486 90 1,594 — 1,343 71 1,414 Hybrids at NAV (5) 504 491 Common Contractual Funds at NAV (6) Equities at NAV 1,393 1,398 Fixed Income at NAV 782 724 Emerging Markets at NAV 362 318 Alternative investments at NAV 350 379 Real Estate Funds 27 229 39 295 8 203 39 250 Insurance Group Annuity Contracts — 56 36 92 — 54 37 91 Cash and Cash Equivalents 241 176 — 417 252 310 — 562 Other (7) 24 95 1 120 30 51 1 82 Obligation to return cash received from repurchase agreements (1) — (3,163) — (3,163) — (2,062) — (2,062) Total $ 1,420 $ 7,685 $ 756 $ 14,127 $ 1,298 $ 7,338 $ 591 $ 13,434 (1) Repurchase agreements, primarily in the UK, represent the plans' short-term borrowing to hedge against interest rate and inflation risks. Investments in approximately $5 billion and $4 billion of government bonds collateralize this short-term borrowing at October 31, 2020 and 2019, respectively. The plans have an obligation to return the cash after the term of the agreements. Due to the short-term nature of the agreements, the outstanding balance of the obligation approximates fair value. (2) Includes a fund that invests in various government bonds issued by worldwide governments, interest rate swaps, and cash, to match or slightly outperform the benchmark of the future liabilities of the fund. While the fund is not publicly traded, the custodian strikes a net asset value daily. There are no redemption restrictions or future commitments on these investments. (3) Includes funds that invest primarily in asset-backed securities, mortgage backed securities, collateralized loan obligations, and/or private debt investments. (4) Includes funds, primarily in the UK, that invest in both private and public equities, as well as emerging markets across all sectors. The funds also hold fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the funds include units in transferable securities, collective investment schemes, money market funds, asset-backed income, cash, and deposits. (5) Includes a pooled fund in the UK, that seeks a rate of return with direct or indirect linkage to UK inflation by investing in vehicles including bonds, long lease property, income strips, asset-backed securities, and index linked assets. Units are available for subscription on the first day of each calendar month at net asset value. There are no redemption restrictions or future commitments on these investments. (6) HPE Invest Common Contractual Funds (CCFs) are investment arrangements in which institutional investors pool their assets. Units may be acquired in four different sub-funds focused on equities, fixed income, alternative investments, and emerging markets. Each sub-fund is invested in accordance with the fund's investment objective and units are issued in relation to each sub-fund. While the sub-funds are not publicly traded, the custodian strikes a net asset value either once or twice a month, depending on the sub-fund. There are no redemption restrictions or future commitments on these investments. (7) Includes international insured contracts, derivative instruments, and unsettled transactions. |
Schedule of changes in fair value measurements of Level 3 investments for Direct non-U.S. defined benefit plans | Changes in fair value measurements of Level 3 investments for the non-U.S. defined benefit plans were as follows: Fiscal year ended October 31, 2020 Alternative Debt-Other Private Hybrids Real Insurance Other Total In millions Balance at beginning of year $ 401 $ 42 $ 71 $ 39 $ 37 $ 1 $ 591 Actual return on plan assets: Relating to assets held at the reporting date (25) (3) (3) — — — (31) Relating to assets sold during the period — 4 — — — — 4 Purchases, sales, and settlements 179 (8) 22 — (1) — 192 Balance at end of year $ 555 $ 35 $ 90 $ 39 $ 36 $ 1 $ 756 Fiscal year ended October 31, 2019 Alternative Debt-Other Private Hybrids Real Insurance Other Total In millions Balance at beginning of year $ 102 $ 40 $ 30 $ 37 $ 38 $ 1 $ 248 Actual return on plan assets: Relating to assets held at the reporting date 69 1 — 2 — — 72 Relating to assets sold during the period — — — — — — — Purchases, sales, and settlements 230 1 41 — (1) — 271 Balance at end of year $ 401 $ 42 $ 71 $ 39 $ 37 $ 1 $ 591 |
Schedule of weighted-average target and actual asset allocations across the benefit plans | The weighted-average target and actual asset allocations across the benefit plans at the respective measurement dates for the non-U.S. defined benefit plans were as follows: Defined Plan Assets Asset Category 2020 2020 2019 Public equity securities 22.6 % 22.0 % Private/hybrid equity securities 17.6 % 17.3 % Real estate and other 2.9 % 2.5 % Equity-related investments 44.1 % 43.1 % 41.8 % Debt securities 54.4 % 53.9 % 54.0 % Cash and cash equivalents 1.5 % 3.0 % 4.2 % Total 100.0 % 100.0 % 100.0 % |
Schedule of estimated future benefits payable for the Company's direct retirement plans | As of October 31, 2020, estimated future benefits payments for the Company's retirement plans were as follows: Fiscal year Defined Post-Retirement In millions 2021 $ 483 $ 10 2022 481 11 2023 496 11 2024 509 11 2025 533 11 Next five fiscal years to October 31, 2030 2,842 55 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock based compensation expense and the resulting tax benefits | Stock-based compensation expense and the resulting tax benefits were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Stock-based compensation expense $ 278 $ 270 $ 309 Income tax benefit (51) (50) (56) Stock-based compensation expense, net of tax $ 227 $ 220 $ 253 |
Stock-based compensation expense | Stock-based compensation expense as presented in the table above is recorded within the following cost and expense lines in the Consolidated Statement of Earnings. For the fiscal years ended October 31, 2020 2019 2018 In millions Cost of sales $ 37 $ 37 $ 39 Research and development 81 70 73 Selling, general and administrative 156 161 174 Transformation costs — 2 3 Acquisition, disposition and other related charges 4 — 10 Separation costs — — 10 Stock-based compensation expense $ 278 $ 270 $ 309 |
Schedule of restricted stock award activity | The following table summarizes restricted stock unit activity for the year ended October 31, 2020: Shares Weighted- In thousands Outstanding at beginning of year 39,700 $ 14 Granted and replacement awards for acquisition 25,221 $ 13 Vested (18,469) $ 15 Forfeited/canceled (4,127) $ 15 Outstanding at end of year 42,325 $ 13 |
Schedule of stock options activity | The following table summarizes stock option activity for the year ended October 31, 2020: Shares Weighted- Weighted- Aggregate In thousands In years In millions Outstanding at beginning of year 10,162 $ 11 Replacement awards for acquisition (1) 10,340 $ 2 Exercised (1,454) $ 8 Forfeited/canceled/expired (403) $ 9 Outstanding at end of year 18,645 $ 6 5.1 $ 64 Vested and expected to vest at end of year 17,547 $ 7 5.0 $ 58 Exercisable at end of year 8,586 $ 11 2.8 $ 6 (1) Fiscal 2020 represents replacement awards of stock options through acquisition of Silver Peak. The Company utilized a lattice model to estimate the fair value of outstanding replacement awards. |
Taxes on Earnings (Tables)
Taxes on Earnings (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of earnings before taxes | The domestic and foreign components of Net earnings (loss) from continuing operations before taxes were as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions U.S. $ (2,008) $ (1,067) $ (2,805) Non-U.S. 1,566 2,620 3,073 $ (442) $ 1,553 $ 268 |
Schedule of provision for (benefit from) taxes on earnings | The (Provision) benefit for taxes on Net earnings (loss) from continuing operations were as follows: For the fiscal years ended October 31, 2020 2019 2018 In millions U.S. federal taxes: Current $ 55 $ 763 $ 2,177 Deferred 149 (1,046) (150) Non-U.S. taxes: Current (284) (246) (419) Deferred 133 (101) 188 State taxes: Current 55 58 (52) Deferred 12 68 — $ 120 $ (504) $ 1,744 |
Schedule of differences between the U.S. federal statutory income tax rate and effective tax rate | The differences between the U.S. federal statutory income tax rate and the Company's effective tax rate were as follows: For the fiscal years ended October 31, 2020 (1) 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % 23.3 % State income taxes, net of federal tax benefit 0.9 % (0.1) % 4.3 % Lower rates in other jurisdictions, net 13.6 % (7.3) % (121.4) % Valuation allowance 20.8 % 5.8 % (59.8) % U.S. permanent differences (3.4) % 6.0 % 39.3 % U.S. R&D credit 8.4 % (2.3) % (7.0) % Uncertain tax positions 7.6 % (14.3) % (693.4) % Goodwill impairment (41.2) % — % — % Impacts of the Tax Act (0.4) % 24.5 % 158.0 % Other, net (0.2) % (0.8) % 6.0 % 27.1 % 32.5 % (650.7) % (1) Positive numbers represent tax benefits and negative numbers represent tax expense as the Company recorded income tax benefit on a pretax loss. |
Schedule of reconciliation of gross unrecognized tax benefits | A reconciliation of unrecognized tax benefits is as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 2,269 $ 8,826 $ 11,262 Increases: For current year's tax positions 27 43 163 For prior years' tax positions 40 37 66 Decreases: For prior years' tax positions (71) (17) (82) Statute of limitations expiration (17) (38) (86) Settlements with taxing authorities (53) (7) (2) Settlements related to joint and several positions of former Parent (36) (6,575) (2,495) Balance at end of year $ 2,159 $ 2,269 $ 8,826 |
Schedule of significant components of deferred tax assets and deferred tax liabilities | The significant components of deferred tax assets and deferred tax liabilities were as follows: As of October 31, 2020 2019 In millions Deferred tax assets: Loss and credit carryforwards $ 7,596 $ 8,110 Inventory valuation 75 59 Intercompany prepayments 295 179 Other intercompany transactions 31 41 Warranty 69 72 Employee and retiree benefits 571 584 Restructuring 118 65 Deferred revenue 565 531 Intangible assets 94 130 Lease liabilities 166 — Other 206 243 Total deferred tax assets 9,786 10,014 Valuation allowance (7,724) (8,225) Total deferred tax assets net of valuation allowance 2,062 1,789 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries (172) (233) ROU assets (165) — Fixed assets (237) (352) Total deferred tax liabilities (574) (585) Net deferred tax assets and liabilities $ 1,488 $ 1,204 |
Schedule of current and long-term deferred tax assets and liabilities | Deferred tax assets and liabilities included in the Consolidated Balance Sheets are as follows: As of October 31, 2020 2019 In millions Deferred tax assets $ 1,778 $ 1,515 Deferred tax liabilities (290) (311) Deferred tax assets net of deferred tax liabilities $ 1,488 $ 1,204 |
Schedule of tax credit carryforwards | As of October 31, 2020, Hewlett Packard Enterprise had recorded deferred tax assets for various tax credit carryforwards as follows: Carryforward Valuation Allowance Initial Year of Expiration In millions U.S. foreign tax credits $ 1,129 $ (1,119) 2026 U.S. research and development and other credits 194 (1) 2021 Tax credits in state and foreign jurisdictions 171 (142) 2021 Balance at end of year $ 1,494 $ (1,262) |
Balance Sheet Details (Table)
Balance Sheet Details (Table) | 12 Months Ended |
Oct. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash As of October 31, 2020 2019 In millions Cash and cash equivalents $ 4,233 $ 3,753 Restricted cash 388 323 Total $ 4,621 $ 4,076 |
Accounts Receivable, Net | Accounts Receivable, Net As of October 31, 2020 2019 In millions Unbilled receivable $ 205 $ 206 Accounts receivable 3,227 2,782 Allowance for doubtful accounts (46) (31) Total $ 3,386 $ 2,957 |
Schedule of revolving short-term financing arrangements | The allowance for doubtful accounts related to accounts receivable and changes therein were as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 31 $ 39 $ 42 Provision for doubtful accounts 29 9 20 Deductions, net of recoveries (14) (17) (23) Balance at end of year $ 46 $ 31 $ 39 |
Schedule of transferred trade receivables not collected from the third parties | The activity related to Hewlett Packard Enterprise's revolving short-term financing arrangements was as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of period (1) $ (10) $ 166 $ 121 Trade receivables sold 3,897 4,533 4,844 Cash receipts (3,768) (4,710) (4,794) Foreign currency and other 3 1 (5) Balance at end of period (1) $ 122 $ (10) $ 166 |
Inventory | Inventory As of October 31, 2020 2019 In millions Finished goods $ 1,197 $ 1,198 Purchased parts and fabricated assemblies 1,477 1,189 Total $ 2,674 $ 2,387 |
Property, Plant and Equipment | Property, Plant and Equipment As of October 31, 2020 2019 In millions Land $ 89 $ 241 Buildings and leasehold improvements 1,886 2,196 Machinery and equipment, including equipment held for lease 9,624 9,464 11,599 11,901 Accumulated depreciation (5,974) (5,847) Total $ 5,625 $ 6,054 |
Long-Term Financing Receivables and Other Assets | Long-Term Financing Receivables and Other Assets As of October 31, 2020 2019 In millions Financing receivables, net $ 5,110 $ 4,949 ROU assets 930 — Deferred tax assets 1,778 1,515 Prepaid pension 1,046 864 Other 1,680 1,590 Total $ 10,544 $ 8,918 |
Other Accrued Liabilities | Other Accrued Liabilities As of October 31, 2020 2019 In millions Value-added and property taxes $ 842 $ 806 Warranty 192 199 Sales and marketing programs 1,022 1,065 Operating lease liabilities 188 — Other 2,021 1,932 Total $ 4,265 $ 4,002 |
Other Liabilities | Other Non-Current Liabilities As of October 31, 2020 2019 In millions Pension, post-retirement, and post-employment $ 1,856 $ 1,772 Deferred revenue 2,785 2,751 Taxes on earnings 447 538 Operating lease liabilities 898 — Other 1,009 1,039 Total $ 6,995 $ 6,100 |
Accounting for Leases as a Le_3
Accounting for Leases as a Lessee (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Operating Lease Cost | Components of lease cost included in the Consolidated Statement of Earnings were as follows: Fiscal year ended October 31, 2020 Operating lease cost $ 236 Finance lease cost 8 Sublease rental income (61) Total lease cost $ 183 The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows: As of October 31, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in years) 6.8 9.5 Weighted-average discount rate 2.6 % 3.5 % Supplemental cash flow information related to leases was as follows: Cash Flow Statement Activity Fiscal year ended October 31, 2020 In millions Cash outflows from operating leases Net cash used in operating activities $ 239 ROU assets obtained in exchange for new operating lease liabilities Non-cash activities $ 298 |
Supplemental Balance Sheet Information | The ROU assets and lease liabilities for operating and finance leases included on the Hewlett Packard Enterprise Consolidated Balance Sheet were as follows: Balance Sheet Classification As of In millions Operating Leases ROU Assets Long-term financing receivables and other assets $ 930 Lease Liabilities: Operating lease liabilities – current Other accrued liabilities $ 188 Operating lease liabilities – non-current Other non-current liabilities 898 Total operating lease liabilities $ 1,086 Finance Leases Finance lease ROU Assets: Property, plant and equipment Gross finance lease ROU assets $ 52 Less: Accumulated depreciation (11) Net finance lease ROU assets $ 41 Lease Liabilities: Finance lease liabilities – current Notes payable and short-term borrowings $ 5 Finance lease liabilities – non-current Long-term debt 53 Total finance lease liabilities $ 58 Total ROU assets $ 971 Total lease liabilities $ 1,144 |
Operating Lease Liability Maturity | The following tables shows the future payments on the Company's operating and finance leases: As of October 31, 2020 Operating Leases Finance Leases Fiscal year In millions 2021 $ 207 $ 6 2022 188 6 2023 172 7 2024 147 7 2025 128 7 Thereafter 342 35 Total future lease payments $ 1,184 $ 68 Less: imputed interest (98) (10) Total lease liabilities $ 1,086 $ 58 |
Finance Lease Liability Maturity | The following tables shows the future payments on the Company's operating and finance leases: As of October 31, 2020 Operating Leases Finance Leases Fiscal year In millions 2021 $ 207 $ 6 2022 188 6 2023 172 7 2024 147 7 2025 128 7 Thereafter 342 35 Total future lease payments $ 1,184 $ 68 Less: imputed interest (98) (10) Total lease liabilities $ 1,086 $ 58 |
Operating Lease Liability Prior to Adoption of New Standard | Prior to the adoption of the new lease standard, the future minimum lease commitments on the Company's operating and finance leases were: As of October 31, 2019 Operating Leases Finance Leases In millions Fiscal year 2020 $ 233 $ 6 2021 187 6 2022 164 7 2023 149 6 2024 127 7 Thereafter 541 41 Total $ 1,401 $ 73 |
Accounting for Leases as a Le_4
Accounting for Leases as a Lessor (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Components of Financing Receivables | The components of financing receivables were as follows: As of October 31, 2020 2019 In millions Minimum lease payments receivable $ 9,448 $ 9,070 Unguaranteed residual value 364 336 Unearned income (754) (754) Financing receivables, gross 9,058 8,652 Allowance for doubtful accounts (154) (131) Financing receivables, net 8,904 8,521 Less: current portion (1) (3,794) (3,572) Amounts due after one year, net (1) $ 5,110 $ 4,949 (1) The Company includes the current portion in Financing receivables, net of allowance for doubtful accounts, and amounts due after one year, net, in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. |
Scheduled Maturities of Minimum Lease Payments Receivable | As of October 31, 2020, scheduled maturities of the Company's minimum lease payments receivable were as follows: As of October 31, 2020 Fiscal year In millions 2021 $ 4,182 2022 2,662 2023 1,572 2024 720 2025 252 Thereafter 60 Total undiscounted cash flows $ 9,448 Present value of lease payments (recognized as finance receivables) $ 8,694 Difference between undiscounted cash flows and discounted cash flows $ 754 |
Capital Leases, Future Minimum Payments Receivable | Prior to the adoption of the new lease standard, scheduled maturities of the Company's minimum lease payments receivable were as follows: As of October 31, 2019 Fiscal year In millions 2020 $ 3,939 2021 2,449 2022 1,555 2023 752 2024 306 Thereafter 69 Total $ 9,070 |
Credit Risk Profile of Gross Financing Receivables | The credit risk profile of gross financing receivables, based on internal risk ratings, was as follows: As of October 31, 2020 2019 In millions Risk Rating: Low $ 4,590 $ 4,432 Moderate 4,091 3,933 High 377 287 Total $ 9,058 $ 8,652 |
Schedule of Allowance for Doubtful Accounts for Financing Receivables | The allowance for doubtful accounts related to financing receivables and changes therein were as follows: As of October 31, 2020 2019 2018 In millions Balance at beginning of year $ 131 $ 120 $ 86 Provision for doubtful accounts 43 33 49 Write-offs (20) (22) (15) Balance at end of year $ 154 $ 131 $ 120 |
Gross Financing Receivables and Related Allowance Collectively and Individually Evaluated for Loss | The gross financing receivables and related allowance evaluated for loss were as follows: As of October 31, 2020 2019 In millions Gross financing receivables collectively evaluated for loss $ 8,620 $ 8,255 Gross financing receivables individually evaluated for loss (1) 438 397 Total $ 9,058 $ 8,652 Allowance for financing receivables collectively evaluated for loss $ 89 $ 84 Allowance for financing receivables individually evaluated for loss 65 47 Total $ 154 $ 131 (1) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. |
Summary of the Aging and Non-accrual Status of Gross Financing Receivables | The following table summarizes the aging and non-accrual status of gross financing receivables: As of October 31, 2020 2019 In millions Billed: (1) Current 1-30 days $ 340 $ 301 Past due 31-60 days 43 62 Past due 61-90 days 22 15 Past due >90 days 140 88 Unbilled sales-type and direct-financing lease receivables 8,513 8,186 Total gross financing receivables $ 9,058 $ 8,652 Gross financing receivables on non-accrual status (2) $ 364 $ 276 Gross financing receivables 90 days past due and still accruing interest (2) $ 74 $ 121 (1) Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. (2) Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. |
Operating Lease Assets Included in Machinery and Equipment | Operating lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were as follows: As of October 31, 2020 2019 In millions Equipment leased to customers $ 7,184 $ 7,185 Accumulated depreciation (3,157) (3,101) Total $ 4,027 $ 4,084 |
Lessor Operating Lease Payments Maturity | As of October 31, 2020, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows: As of October 31, 2020 Fiscal year In millions 2021 $ 1,798 2022 1,049 2023 440 2024 78 2025 7 Thereafter 2 Total $ 3,374 |
Lessor Lease Activity | The following table presents amounts included in the Consolidated Statement of Earnings related to lessor activity: As of October 31, 2020 2019 2018 In millions Sales-type leases and direct financing leases: Interest income $ 469 $ 458 $ 447 Lease income - operating leases 2,431 2,596 2,690 Total lease income $ 2,900 $ 3,054 $ 3,137 |
Schedule of Variable Interest Entities | The assets in the table below includes those that can be used to settle the obligations of the VIE. Additionally, general Creditors do not have recourse to the assets of the VIE. As of October 31, 2020 2019 Assets held by VIE In millions Other current assets $ 120 $ 76 Financing receivables Short-term $ 531 $ 194 Long-term $ 584 $ 229 Property, plant and equipment $ 665 $ 303 Liabilities held by VIE Notes payable and short-term borrowings, net of unamortized debt issuance costs $ 886 $ 385 Long-term debt, net of unamortized debt issuance costs $ 834 $ 370 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Aggregate purchase price allocation, including preliminary allocations | The following table presents the aggregate purchase price allocation for the Company's acquisitions for the fiscal year ended October 31, 2020: In millions Goodwill $ 572 Amortizable intangible assets 354 Net tangible liabilities assumed (40) Total fair value consideration $ 886 In millions Goodwill $ 771 Amortizable intangible assets 465 In-process research and development 141 Net tangible assets assumed 235 Total fair value consideration $ 1,612 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of allocation and changes in the carrying amount of goodwill | Goodwill and related changes in the carrying amount by reportable segment were as follows: Compute HPC & MCS Storage Intelligent Edge Financial Total In millions Balance at October 31, 2018 (1) $ 7,530 $ 3,779 $ 4,090 $ 1,994 144 $ 17,537 Goodwill acquired during the period — 699 68 — — 767 Goodwill adjustments 2 — — — — 2 Balance at October 31, 2019 (1) 7,532 4,478 4,158 1,994 144 18,306 Goodwill acquired during the period — — — 572 — 572 Impairment of goodwill — (865) — — — (865) Goodwill adjustments — 3 1 — — 4 Balance at October 31, 2020 (1) $ 7,532 $ 3,616 $ 4,159 $ 2,566 $ 144 $ 18,017 |
Intangible Assets | Intangible assets comprise: As of October 31, 2020 As of October 31, 2019 Gross Accumulated Net Gross Accumulated Net In millions Customer contracts, customer lists and distribution agreements $ 429 $ (163) $ 266 $ 312 $ (96) $ 216 Developed and core technology and patents 1,267 (627) 640 1,371 (719) 652 Trade name and trade marks 141 (50) 91 163 (44) 119 In-process research and development 106 — 106 141 — 141 Total intangible assets $ 1,943 $ (840) $ 1,103 $ 1,987 $ (859) $ 1,128 |
Schedule of intangible assets | As of October 31, 2020, the weighted-average remaining useful lives of the Company's finite-lived intangible assets were as follows: Finite-Lived Intangible Assets Weighted-Average In years Customer contracts, customer lists and distribution agreements 3 Developed and core technology and patents 5 Trade name and trade marks 4 |
Schedule of estimated future amortization expense related to finite-lived purchased intangible assets | As of October 31, 2020, estimated future amortization expense related to finite-lived intangible assets was as follows: Fiscal year In millions 2021 $ 313 2022 235 2023 200 2024 148 2025 41 Thereafter 60 Total $ 997 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis: As of October 31, 2020 As of October 31, 2019 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Assets Cash Equivalents and Investments: Time deposits $ — $ 939 $ — $ 939 $ — $ 803 $ — $ 803 Money market funds 1,167 — — 1,167 859 — — 859 Foreign bonds — 125 — 125 7 126 — 133 Other debt securities — — 21 21 — — 32 32 Derivative Instruments: Interest rate contracts — 220 — 220 — 73 — 73 Foreign exchange contracts — 290 — 290 — 392 — 392 Other derivatives — — — — — 3 — 3 Total assets $ 1,167 $ 1,574 $ 21 $ 2,762 $ 866 $ 1,397 $ 32 $ 2,295 Liabilities Derivative Instruments: Interest rate contracts $ — $ 2 $ — $ 2 $ — $ 11 $ — $ 11 Foreign exchange contracts — 189 — 189 — 136 — 136 Other derivatives — 3 — 3 — — — — Total liabilities $ — $ 194 $ — $ 194 $ — $ 147 $ — $ 147 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Cash Equivalents and Available-for-Sale Investments | Cash equivalents and available-for-sale investments were as follows: As of As of Cost Gross Fair Cost Gross Fair In millions Cash Equivalents: Time deposits $ 939 $ — $ 939 $ 803 $ — $ 803 Money market funds 1,167 — 1,167 859 — 859 Total cash equivalents 2,106 — 2,106 1,662 — 1,662 Available-for-Sale Investments: Foreign bonds 108 17 125 110 23 133 Other debt securities 20 1 21 32 — 32 Total available-for-sale investments 128 18 146 142 23 165 Total cash equivalents and available-for-sale investments $ 2,234 $ 18 $ 2,252 $ 1,804 $ 23 $ 1,827 |
Contractual Maturities of Investments in Available-for-Sale Debt Securities | Contractual maturities of investments in available-for-sale debt securities were as follows: As of Amortized Cost Fair Value In millions Due in one year $ 1 $ 1 Due in more than five years 127 145 $ 128 $ 146 |
Gross Notional and Fair Value of Derivative Instruments in the Combined and Consolidated Balance Sheets | The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets was as follows: As of As of Fair Value Fair Value Outstanding Other Long-Term Other Long-Term Outstanding Other Long-Term Other Long-Term In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 3,850 $ — $ 220 $ — $ — $ 6,850 $ — $ 72 $ 11 $ — Cash flow hedges: Foreign currency contracts 7,652 75 85 95 38 8,578 164 141 45 27 Interest rate contracts 500 — — 2 — 500 — 1 — — Net investment hedges: Foreign currency contracts 1,804 34 44 11 9 1,766 31 36 18 10 Total derivatives designated as hedging instruments 13,806 109 349 108 47 17,694 195 250 74 37 Derivatives not designated as hedging instruments Foreign currency contracts 6,157 43 9 35 1 6,398 17 3 33 3 Other derivatives 105 — — 3 — 97 3 — — — Total derivatives not designated as hedging instruments 6,262 43 9 38 1 6,495 20 3 33 3 Total derivatives $ 20,068 $ 152 $ 358 $ 146 $ 48 $ 24,189 $ 215 $ 253 $ 107 $ 40 |
Offsetting Assets | As of October 31, 2020 and 2019, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows: As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 510 $ — $ 510 $ 137 $ 321 (1) $ 52 Derivative liabilities $ 194 $ — $ 194 $ 137 $ 55 (2) $ 2 As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 468 $ — $ 468 $ 123 $ 263 (1) $ 82 Derivative liabilities $ 147 $ — $ 147 $ 123 $ 19 (2) $ 5 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. |
Offsetting Liabilities | As of October 31, 2020 and 2019, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows: As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 510 $ — $ 510 $ 137 $ 321 (1) $ 52 Derivative liabilities $ 194 $ — $ 194 $ 137 $ 55 (2) $ 2 As of In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Gross Gross Net Amount Derivatives Financial Net Amount In millions Derivative assets $ 468 $ — $ 468 $ 123 $ 263 (1) $ 82 Derivative liabilities $ 147 $ — $ 147 $ 123 $ 19 (2) $ 5 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. |
Pre-Tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship | The amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows: Carrying amount of the hedged assets/ (liabilities) Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities) As of As of Balance Sheet Line Item of Hedged Item October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 In millions In millions Notes payable and short-term borrowings $ — $ (2,987) $ — $ 11 Long-term debt $ (4,059) $ (3,908) $ (220) $ (72) |
Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships | The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows: Gains (Losses) Recognized in OCI on Derivatives 2020 2019 2018 In millions Derivatives in Cash Flow Hedging relationship Foreign exchange contracts $ (34) $ 307 $ 169 Interest rate contracts (6) 1 — Derivatives in Net Investment Hedging relationship Foreign exchange contracts 56 2 81 Total $ 16 $ 310 $ 250 |
Pre-Tax Effect of Derivative Instruments in Net Investment Hedging Relationships | The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows: Gains (Losses) Recognized in OCI on Derivatives 2020 2019 2018 In millions Derivatives in Cash Flow Hedging relationship Foreign exchange contracts $ (34) $ 307 $ 169 Interest rate contracts (6) 1 — Derivatives in Net Investment Hedging relationship Foreign exchange contracts 56 2 81 Total $ 16 $ 310 $ 250 |
Effect of Derivative Instruments on the Statement of Earnings | The pre-tax effect of derivative instruments on the Consolidated Statements of Earnings were as follows: Gains (Losses) Recognized in Income 2020 2019 2018 Net revenue Interest and other, net Net revenue Interest and other, net Net revenue Interest and other, net In millions Total amounts of income and expense line items presented in the Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded $ 26,982 $ (215) $ 29,135 $ (177) $ 30,852 $ (274) Gains (losses) on derivatives in fair value hedging relationships Interest rate contracts Hedged items $ — $ (159) $ — $ (414) $ — $ 211 Derivatives designated as hedging instruments — 159 — 414 — (211) Gains (losses) on derivatives in cash flow hedging relationships Foreign exchange contracts Amount of gains (losses) reclassified from accumulated other comprehensive income into income 38 (14) 233 138 (24) 16 Interest rate contracts Amount of gains (losses) reclassified from accumulated other comprehensive income into income — (3) — — — — Gains (losses) on derivatives not designated as hedging instruments Foreign exchange contracts — 44 — (134) — 301 Other derivatives — (5) — 8 — (6) Total gains (losses) $ 38 $ 22 $ 233 $ 12 $ (24) $ 311 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable and short-term borrowings, including the current portion of long-term debt | Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows: As of October 31, 2020 2019 Amount Weighted-Average Amount Weighted-Average Dollars in millions Current portion of long-term debt (1) $ 2,768 2.0 % $ 3,441 4.1 % FS Commercial paper 677 — % 698 (0.1) % Notes payable to banks, lines of credit and other (2) 310 1.3 % 286 2.7 % Total notes payable and short-term borrowings $ 3,755 $ 4,425 (1) As of October 31, 2020, Current portion of long-term debt, net of discount and issuance costs, includes $886 million associated with the Company issued asset-backed debt securities. (2) Notes payable to banks, lines of credit and other includes $219 million and $204 million at October 31, 2020 and 2019, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries. |
Schedule of long-term debt | Long-Term Debt As of October 31, 2020 2019 In millions Hewlett Packard Enterprise Unsecured Senior Notes $1,000 issued at discount to par at a price of 99.883% in July 2020 at 1.45% due April 1, 2024, interest payable semi-annually on April 1 and October 1 of each year $ 999 $ — $750 issued at discount to par at a price of 99.820% in July 2020 at 1.75% due April 1, 2026, interest payable semi-annually on April 1 and October 1 of each year 749 — $1,250 issued at discount to par at a price of 99.956% in April 2020 at 4.45% due October 2, 2023, interest payable semi-annually on April 2 and October 2 of each year 1,250 — $1,000 issued at discount to par at a price of 99.817% in April 2020 at 4.65% due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year 998 — $3,000 issued at discount to par at a price of 99.972% in October 2015 at 3.6% paid August 17, 2020, interest payable semi-annually on April 15 and October 15 of each year. — 3,000 $500 issued at par in September 2019 at three-month USD LIBOR plus 0.68% due March 12, 2021, interest payable quarterly on March 12, June 12, September 12 and December 12 of each year 500 500 $500 issued at discount to par at a price of 99.861% in September 2018 at 3.5%, due October 5, 2021, interest payable semi-annually on April 5 and October 5 of each year 500 500 $800 issued at par in September 2018 at three-month USD LIBOR plus 0.72% due October 5, 2021, interest payable quarterly on January 5, April 5, July 5 and October 5 of each year 800 800 $1,350 issued at discount to par at a price of 99.802% in October 2015 at 4.4%, due October 15, 2022, interest payable semi-annually on April 15 and October 15 of each year 1,349 1,349 $1,000 issued at discount to par at a price of 99.979% in September 2019 at 2.25%, due April 1, 2023, interest payable semi-annually on April 1 and October 1 of each year 1,000 1,000 $2,500 issued at discount to par at a price of 99.725% in October 2015 at 4.9%, due October 15, 2025, interest payable semi-annually on April 15 and October 15 of each year 2,497 2,495 $750 issued at discount to par at a price of 99.942% in October 2015 at 6.2%, due October 15, 2035, interest payable semi-annually on April 15 and October 15 of each year 750 750 $1,500 issued at discount to par at a price of 99.932% in October 2015 at 6.35%, due October 15, 2045, interest payable semi-annually on April 15 and October 15 of each year 1,499 1,499 Hewlett Packard Enterprise Asset-Backed Debt Securities $1,000 issued in June 2020, in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.19%, payable monthly from August 2020 822 — $755 issued in February 2020 of in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020 519 — $763 issued in September 2019, in six tranches at a discount to par, at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019 385 763 Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030 (1) 171 166 Fair value adjustment related to hedged debt 220 61 Unamortized debt issuance costs (54) (47) Less: current portion (2,768) (3,441) Total long-term debt $ 12,186 $ 9,395 (1) Other, including capital lease obligations includes $98 million and $80 million as of October 31, 2020 and 2019, respectively, of borrowing- and funding-related activity associated with FS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings. |
Schedule of interest expense on borrowings recognized in the Combined and Consolidated Statements of Earnings | Interest expense on borrowings recognized in the Consolidated Statements of Earnings was as follows: Fiscal years ended October 31, Expense Location 2020 2019 2018 In millions Financing interest Financing interest $ 271 $ 297 $ 278 Interest expense Interest and other, net 332 311 353 Total interest expense $ 603 $ 608 $ 631 |
Schedule of aggregate future maturities of long-term debt at face value | As of October 31, 2020, aggregate future maturities of the Company's long-term debt at face value (excluding a fair value adjustment related to hedged debt of $220 million and a net discount on debt issuance of $9 million), including capital lease obligations were as follows: Fiscal year In millions 2021 $ 2,776 2022 1,962 2023 2,509 2024 2,010 2025 2,507 Thereafter 3,033 Total $ 14,797 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of tax effects related to changes in Other Comprehensive (Loss) Income | Taxes related to Other Comprehensive Loss Fiscal years ended October 31, 2020 2019 2018 In millions Taxes on change in net unrealized gains (losses) on cash flow hedges: Tax (provision) benefit on net unrealized gains (losses) arising during the period (10) (33) (22) Tax provision (benefit) on net (gains) losses reclassified into earnings 21 43 (1) 11 10 (23) Taxes on change in unrealized components of defined benefit plans: Tax (provision) benefit on net unrealized gains (losses) arising during the period 10 40 2 Tax provision on amortization of net actuarial loss and prior service benefit (17) (13) (14) Tax provision on curtailments, settlements and other (1) (1) (10) (8) 26 (22) Taxes on change in cumulative translation adjustment: Tax (provision) benefit on cumulative translation adjustment arising during the period 5 — 3 5 — 3 Tax (provision) benefit on other comprehensive loss $ 8 $ 36 $ (42) |
Schedule of changes and reclassifications related to items of Other Comprehensive (Loss) Income, net of taxes | Changes and reclassifications related to Other Comprehensive Loss, net of taxes Fiscal years ended October 31, 2020 2019 2018 In millions Other comprehensive loss, net of taxes: Change in net unrealized gains (losses) on available-for-sale securities: Net unrealized gains (losses) arising during the period $ (1) $ 9 $ (3) (Gains) losses reclassified into earnings (4) (3) (9) (5) 6 (12) Change in net unrealized gains (losses) on cash flow hedges: Net unrealized gains (losses) arising during the period (50) 275 147 Net (gains) losses reclassified into earnings — (328) 7 (50) (53) 154 Change in unrealized components of defined benefit plans: Net unrealized gains (losses) arising during the period (348) (661) (421) Amortization of net actuarial loss and prior service benefit 232 203 177 Curtailments, settlements and other 9 14 12 (107) (444) (232) Change in cumulative translation adjustment: Cumulative translation adjustment arising during the period (7) (18) (67) Release of cumulative translation adjustment as a result of divestitures and country exits — — 20 (7) (18) (47) Other comprehensive loss, net of taxes $ (169) $ (509) $ (137) |
Schedule of Accumulated Other Comprehensive loss, net of taxes | The components of accumulated other comprehensive loss, net of taxes as of October 31, 2020 and changes during fiscal 2020 were as follows: Net unrealized Net unrealized Unrealized Cumulative Accumulated In millions Balance at beginning of period $ 23 $ 53 $ (3,366) $ (437) $ (3,727) Effect of change in accounting principle (1) — (10) — (33) (43) Other comprehensive income (loss) before reclassifications (1) (50) (348) (7) (406) Reclassifications of (gains) losses into earnings (4) — 241 — 237 Balance at end of period $ 18 $ (7) $ (3,473) $ (477) $ (3,939) (1) Reflects the adoption of the FASB guidance on stranded tax effects. For more information, see Note 1 "Overview and Summary of Significant Accounting Policies". |
Net Earnings (Loss) Per Share (
Net Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and diluted net Earnings Per Share calculations | The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows: Fiscal years ended October 31, 2020 2019 2018 In millions, except per share amounts Numerator: Net earnings (loss) from continuing operations $ (322) $ 1,049 $ 2,012 Net loss from discontinued operations — — (104) Net earnings (loss) $ (322) $ 1,049 $ 1,908 Denominator: Weighted-average shares used to compute basic net EPS 1,294 1,353 1,529 Dilutive effect of employee stock plans — 13 24 Weighted-average shares used to compute diluted net EPS 1,294 1,366 1,553 Basic net earnings (loss) per share: Continuing operations $ (0.25) $ 0.78 $ 1.32 Discontinued operations — — (0.07) Basic net earnings (loss) per share $ (0.25) $ 0.78 $ 1.25 Diluted net earnings (loss) per share: Continuing operations $ (0.25) $ 0.77 $ 1.30 Discontinued operations — — (0.07) Diluted net earnings (loss) per share $ (0.25) $ 0.77 $ 1.23 Anti-dilutive weighted-average stock awards (1) 49 4 2 (1) The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings (loss) per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Guarantees, Indemnifications _2
Guarantees, Indemnifications and Warranties (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Guarantees [Abstract] | |
Schedule of indemnified litigation matters and other contingencies | As of October 31, 2020 and 2019, the Company's receivable and payable balances related to indemnified litigation matters and other contingencies, and income tax-related indemnification covered by these agreements were as follows: As of October 31, 2020 2019 In millions Litigation matters and other contingencies Receivable $ 70 $ 85 Payable $ 53 $ 55 Income tax-related indemnification (1) Net indemnification receivable - long-term $ 62 $ 202 Net indemnification receivable - short-term $ 65 $ 63 Net indemnification payable - long-term $ 15 $ 9 (1) The actual amount that the Company may receive or pay could vary depending upon the outcome of certain unresolved tax matters, which may not be resolved for several years. |
Changes in aggregate product warranty liabilities and changes | The Company's aggregate product warranty liabilities and changes therein were as follows: Fiscal years ended October 31, 2020 2019 In millions Balance at beginning of year $ 400 $ 430 Accruals for warranties issued 238 239 Adjustments related to pre-existing warranties (3) 6 Settlements made (250) (275) Balance at end of year (1) $ 385 $ 400 (1) The Company includes the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Consolidated Balance Sheets. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future unconditional purchase obligations | As of October 31, 2020, future unconditional purchase obligations were as follows: Fiscal Year In millions 2021 $ 231 2022 195 2023 69 2024 8 2025 9 Thereafter 32 Total $ 544 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The difference between the sale date carrying value of the Company's investment in H3C and its proportionate share of the net assets fair value of H3C, created a basis difference of $2.5 billion, which was allocated as follows: In millions Equity method goodwill $ 1,674 Intangible assets 749 In-process research and development 188 Deferred tax liabilities (152) Other 75 Basis difference $ 2,534 The Company recorded earnings from equity interests of $67 million, $20 million and $38 million in fiscal 2020, 2019 and 2018, respectively, in the Consolidated Statements of Earnings, the components of which are as follows: Fiscal years ended October 31, 2020 2019 2018 In millions Earnings from equity interests, net of taxes $ 211 $ 167 $ 192 Basis difference amortization (145) (152) (151) Elimination of profit on intra-entity sales adjustment 1 5 (3) Earnings from equity interests $ 67 $ 20 $ 38 |
Quarterly Summary (Tables)
Quarterly Summary (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | For the three-month periods January 31 April 30 July 31 October 31 Net revenue $ 6,949 $ 6,009 $ 6,816 $ 7,208 Cost of sales $ 4,667 $ 4,095 $ 4,749 $ 5,002 Earnings (loss) from operations $ 348 $ (834) $ 12 $ 145 Net earnings (loss) $ 333 $ (821) $ 9 $ 157 Net earnings (loss) per share - basic $ 0.26 $ (0.64) $ 0.01 $ 0.12 Net earnings (loss) per share - diluted $ 0.25 $ (0.64) $ 0.01 $ 0.12 For the three-month periods January 31 April 30 July 31 October 31 Net revenue $ 7,553 $ 7,150 $ 7,217 $ 7,215 Cost of sales $ 5,207 $ 4,845 $ 4,768 $ 4,822 Earnings (loss) from operations $ 456 $ 434 $ (76) $ 460 Net earnings (loss) $ 177 $ 419 $ (27) $ 480 Net earnings (loss) per share - basic $ 0.13 $ 0.31 $ (0.02) $ 0.37 Net earnings (loss) per share - diluted $ 0.13 $ 0.30 $ (0.02) $ 0.36 |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Sep. 21, 2020USD ($) | Sep. 25, 2019USD ($) | Oct. 31, 2020USD ($)receivable_balancesegment | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jan. 31, 2020USD ($) | Nov. 01, 2019USD ($) | Oct. 31, 2017USD ($) | Nov. 01, 2015 | |
Segment Reporting Information | ||||||||||
Outstanding shares of company distributed to shareholders of former parent | 100.00% | |||||||||
Number of new reportable segments | segment | 4 | |||||||||
Advertising expense | $ 143 | $ 188 | $ 193 | |||||||
Average warranty expense as a percent of annual product revenue | 1.50% | |||||||||
Stockholders' equity | $ 16,096 | 17,149 | 21,274 | $ 23,505 | ||||||
ROU Assets | 930 | |||||||||
Total operating lease liabilities | 1,086 | |||||||||
Silver Peak | ||||||||||
Segment Reporting Information | ||||||||||
Total fair value of consideration | $ 879 | |||||||||
Cray Inc. | ||||||||||
Segment Reporting Information | ||||||||||
Total fair value of consideration | $ 1,500 | |||||||||
Accumulated Other Comprehensive Loss | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | (3,939) | (3,727) | (3,218) | (2,895) | ||||||
(Accumulated Deficit) Retained Earnings | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | (8,375) | (7,632) | (5,899) | $ (7,238) | ||||||
Accounting Standards Update 2016-02 | ||||||||||
Segment Reporting Information | ||||||||||
ROU Assets | $ 1,000 | |||||||||
Total operating lease liabilities | $ 1,100 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | [1] | (2,181) | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | (43) | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | (Accumulated Deficit) Retained Earnings | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | [1] | $ 43 | $ (2,181) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | $ 43 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | $ 43 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | (Accumulated Deficit) Retained Earnings | ||||||||||
Segment Reporting Information | ||||||||||
Stockholders' equity | $ 43 | |||||||||
Accounts Receivable | Major Customers | ||||||||||
Segment Reporting Information | ||||||||||
Concentration of credit risk (as a percent) | 10.00% | |||||||||
Accounts Receivable | Major Customers | Three largest outsourced manufacturer | ||||||||||
Segment Reporting Information | ||||||||||
Concentration of credit risk (as a percent) | 89.00% | 92.00% | ||||||||
Number of largest distributor and reseller receivable balances or largest outsourced manufacturer receivable balances | receivable_balance | 3 | |||||||||
Manufacturer receivables | $ 687 | $ 635 | ||||||||
Selling, general and administrative | ||||||||||
Segment Reporting Information | ||||||||||
Amortization of capitalized costs to obtain a contract | 58 | 48 | ||||||||
Other Current Assets | ||||||||||
Segment Reporting Information | ||||||||||
Current portion of capitalized costs | 54 | 49 | ||||||||
Long-term financing receivables and other assets | ||||||||||
Segment Reporting Information | ||||||||||
Noncurrent portion of capitalized costs | 76 | $ 74 | ||||||||
ROU Assets | $ 930 | |||||||||
Minimum | ||||||||||
Segment Reporting Information | ||||||||||
Amortization period | 3 years | |||||||||
Estimated useful life for finite-lived intangible assets | 1 year | |||||||||
Standard warranty term | 1 year | |||||||||
Minimum | Buildings and improvements | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 5 years | |||||||||
Minimum | Machinery and equipment, including equipment held for lease | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 3 years | |||||||||
Minimum | Capitalized internal use software | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 3 years | |||||||||
Maximum | ||||||||||
Segment Reporting Information | ||||||||||
Amortization period | 6 years | |||||||||
Estimated useful life for finite-lived intangible assets | 10 years | |||||||||
Standard warranty term | 5 years | |||||||||
Maximum | Buildings and improvements | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 40 years | |||||||||
Maximum | Machinery and equipment, including equipment held for lease | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 15 years | |||||||||
Maximum | Capitalized internal use software | ||||||||||
Segment Reporting Information | ||||||||||
Estimated useful life for property, plant and equipment | 5 years | |||||||||
[1] | For fiscal 2019, includes $2.3 billion related to an addition to accumulated deficit as a result of the adoption of an accounting standard update for Income Taxes and $124 million related to a reduction to accumulated deficit as a result of the adoption of the new revenue accounting standard.(2) For fiscal 2020, $43 million represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit. |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 12 Months Ended |
Oct. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 7 |
Segment Information - Segment O
Segment Information - Segment Operating Results from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information | |||||||||||
Net revenue | $ 7,208 | $ 6,816 | $ 6,009 | $ 6,949 | $ 7,215 | $ 7,217 | $ 7,150 | $ 7,553 | $ 26,982 | $ 29,135 | $ 30,852 |
Segment earnings (loss) from operations | $ 145 | $ 12 | $ (834) | $ 348 | $ 460 | $ (76) | $ 434 | $ 456 | (329) | 1,274 | 1,737 |
Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (598) | (615) | (780) | ||||||||
Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 27,580 | 29,750 | 31,632 | ||||||||
Segment earnings (loss) from operations | 2,303 | 3,096 | 2,975 | ||||||||
Compute | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 11,821 | 13,250 | 14,616 | ||||||||
Compute | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (394) | (392) | (526) | ||||||||
Compute | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 12,215 | 13,642 | 15,142 | ||||||||
Segment earnings (loss) from operations | 893 | 1,550 | 1,306 | ||||||||
HPC & MCS | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 2,965 | 2,786 | 2,875 | ||||||||
HPC & MCS | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (71) | (124) | (112) | ||||||||
HPC & MCS | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 3,036 | 2,910 | 2,987 | ||||||||
Segment earnings (loss) from operations | 237 | 320 | 384 | ||||||||
Storage | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 4,583 | 5,114 | 5,054 | ||||||||
Storage | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (98) | (71) | (104) | ||||||||
Storage | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 4,681 | 5,185 | 5,158 | ||||||||
Segment earnings (loss) from operations | 719 | 924 | 830 | ||||||||
A & PS | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 946 | 1,004 | 1,111 | ||||||||
A & PS | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (5) | (8) | (7) | ||||||||
A & PS | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 951 | 1,012 | 1,118 | ||||||||
Segment earnings (loss) from operations | (5) | (54) | (79) | ||||||||
Intelligent Edge | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 2,837 | 2,904 | 2,997 | ||||||||
Intelligent Edge | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (18) | (9) | (16) | ||||||||
Intelligent Edge | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 2,855 | 2,913 | 3,013 | ||||||||
Segment earnings (loss) from operations | 281 | 159 | 339 | ||||||||
Financial Services | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 3,340 | 3,570 | 3,656 | ||||||||
Financial Services | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | (12) | (11) | (15) | ||||||||
Financial Services | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 3,352 | 3,581 | 3,671 | ||||||||
Segment earnings (loss) from operations | 278 | 305 | 286 | ||||||||
Corporate Investments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 490 | 507 | 543 | ||||||||
Corporate Investments | Elimination of intersegment net revenue | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 0 | 0 | 0 | ||||||||
Corporate Investments | Operating segments | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 490 | 507 | 543 | ||||||||
Segment earnings (loss) from operations | $ (100) | $ (108) | $ (91) |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net revenue: | |||||||||||
Net revenue | $ 7,208 | $ 6,816 | $ 6,009 | $ 6,949 | $ 7,215 | $ 7,217 | $ 7,150 | $ 7,553 | $ 26,982 | $ 29,135 | $ 30,852 |
(Loss) earnings before taxes: | |||||||||||
Total segment earnings from operations | $ 145 | $ 12 | $ (834) | $ 348 | $ 460 | $ (76) | $ 434 | $ 456 | (329) | 1,274 | 1,737 |
Unallocated stock-based compensation expense | (278) | (270) | (309) | ||||||||
Amortization of intangible assets | (379) | (267) | (294) | ||||||||
Impairment of goodwill | (865) | 0 | (88) | ||||||||
Restructuring charges | 0 | 0 | (19) | ||||||||
Transformation costs | (950) | (453) | (414) | ||||||||
Disaster (charge) recovery | (26) | 7 | 0 | ||||||||
Acquisition, disposition and other related charges | (80) | (757) | (82) | ||||||||
Separation costs | 0 | 0 | (9) | ||||||||
Interest and other, net | (215) | (177) | (274) | ||||||||
Tax indemnification adjustments | (101) | 377 | (1,354) | ||||||||
Non-service net periodic benefit credit | 136 | 59 | 121 | ||||||||
Earnings from equity interests | 67 | 20 | 38 | ||||||||
Earnings (loss) from continuing operations before taxes | (442) | 1,553 | 268 | ||||||||
Intelligent Edge | |||||||||||
Net revenue: | |||||||||||
Net revenue | 2,837 | 2,904 | 2,997 | ||||||||
Financial Services | |||||||||||
Net revenue: | |||||||||||
Net revenue | 3,340 | 3,570 | 3,656 | ||||||||
Corporate Investments | |||||||||||
Net revenue: | |||||||||||
Net revenue | 490 | 507 | 543 | ||||||||
Operating segments | |||||||||||
Net revenue: | |||||||||||
Net revenue | 27,580 | 29,750 | 31,632 | ||||||||
(Loss) earnings before taxes: | |||||||||||
Total segment earnings from operations | 2,303 | 3,096 | 2,975 | ||||||||
Operating segments | Intelligent Edge | |||||||||||
Net revenue: | |||||||||||
Net revenue | 2,855 | 2,913 | 3,013 | ||||||||
(Loss) earnings before taxes: | |||||||||||
Total segment earnings from operations | 281 | 159 | 339 | ||||||||
Operating segments | Financial Services | |||||||||||
Net revenue: | |||||||||||
Net revenue | 3,352 | 3,581 | 3,671 | ||||||||
(Loss) earnings before taxes: | |||||||||||
Total segment earnings from operations | 278 | 305 | 286 | ||||||||
Operating segments | Corporate Investments | |||||||||||
Net revenue: | |||||||||||
Net revenue | 490 | 507 | 543 | ||||||||
(Loss) earnings before taxes: | |||||||||||
Total segment earnings from operations | (100) | (108) | (91) | ||||||||
Elimination of intersegment net revenue | |||||||||||
Net revenue: | |||||||||||
Net revenue | (598) | (615) | (780) | ||||||||
Elimination of intersegment net revenue | Intelligent Edge | |||||||||||
Net revenue: | |||||||||||
Net revenue | (18) | (9) | (16) | ||||||||
Elimination of intersegment net revenue | Financial Services | |||||||||||
Net revenue: | |||||||||||
Net revenue | (12) | (11) | (15) | ||||||||
Elimination of intersegment net revenue | Corporate Investments | |||||||||||
Net revenue: | |||||||||||
Net revenue | 0 | 0 | 0 | ||||||||
Segment Reconciling Items | |||||||||||
(Loss) earnings before taxes: | |||||||||||
Unallocated corporate costs and eliminations | (238) | (286) | (259) | ||||||||
Unallocated stock-based compensation expense | (57) | (59) | (73) | ||||||||
Amortization of initial direct costs | (10) | 0 | 0 | ||||||||
Amortization of intangible assets | (379) | (267) | (294) | ||||||||
Impairment of goodwill | (865) | 0 | (88) | ||||||||
Restructuring charges | 0 | 0 | (19) | ||||||||
Transformation costs | (950) | (453) | (414) | ||||||||
Disaster (charge) recovery | (26) | 7 | 0 | ||||||||
Acquisition, disposition and other related charges | (107) | (764) | (82) | ||||||||
Separation costs | 0 | 0 | (9) | ||||||||
Interest and other, net | (215) | (177) | (274) | ||||||||
Tax indemnification adjustments | (101) | 377 | (1,354) | ||||||||
Non-service net periodic benefit credit | 136 | 59 | 121 | ||||||||
Earnings from equity interests | $ 67 | $ 20 | $ 38 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Segment Reporting Information | ||
Assets | $ 54,015 | $ 51,803 |
Operating segments | Compute | ||
Segment Reporting Information | ||
Assets | 14,858 | 14,066 |
Operating segments | HPC & MCS | ||
Segment Reporting Information | ||
Assets | 6,192 | 6,819 |
Operating segments | Storage | ||
Segment Reporting Information | ||
Assets | 6,796 | 7,214 |
Operating segments | A & PS | ||
Segment Reporting Information | ||
Assets | 477 | 440 |
Operating segments | Intelligent Edge | ||
Segment Reporting Information | ||
Assets | 4,343 | 3,318 |
Operating segments | Financial Services | ||
Segment Reporting Information | ||
Assets | 14,765 | 14,700 |
Operating segments | Corporate Investments | ||
Segment Reporting Information | ||
Assets | 467 | 461 |
Corporate and unallocated assets | ||
Segment Reporting Information | ||
Assets | $ 6,117 | $ 4,785 |
Segment Information - Revenue b
Segment Information - Revenue by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information | |||||||||||
Net revenue | $ 7,208 | $ 6,816 | $ 6,009 | $ 6,949 | $ 7,215 | $ 7,217 | $ 7,150 | $ 7,553 | $ 26,982 | $ 29,135 | $ 30,852 |
Net property, plant and equipment: | |||||||||||
Property, plant and equipment | 5,625 | 6,054 | 5,625 | 6,054 | |||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 9,162 | 9,582 | 10,192 | ||||||||
Net property, plant and equipment: | |||||||||||
Property, plant and equipment | 2,762 | 2,894 | 2,762 | 2,894 | |||||||
Americas excluding U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 1,700 | 1,922 | 2,135 | ||||||||
Total Americas | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 10,862 | 11,504 | 12,327 | ||||||||
Europe, Middle East and Africa | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 9,745 | 10,828 | 11,295 | ||||||||
Asia Pacific and Japan | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 6,375 | 6,803 | $ 7,230 | ||||||||
Other countries | |||||||||||
Net property, plant and equipment: | |||||||||||
Property, plant and equipment | $ 2,863 | $ 3,160 | $ 2,863 | $ 3,160 |
Transformation Programs - Narra
Transformation Programs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | $ 950 | $ 453 | $ 414 |
Short-term portion of restructuring reserve, recorded in accrued restructuring | 366 | 195 | |
Cost Optimization and Prioritization Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | 384 | ||
HPE Next Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | 569 | 462 | 445 |
Short-term portion of restructuring reserve, recorded in accrued restructuring | 359 | 164 | |
Long-term portion of restructuring reserve, recorded in Other liabilities | 66 | 56 | |
Transformation costs | HPE Next Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | 566 | 453 | 414 |
Non-service net periodic benefit credit | HPE Next Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | $ 3 | $ 9 | 11 |
Interest and other, net | HPE Next Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation costs | $ 20 |
Transformation Programs - Trans
Transformation Programs - Transformation Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0 | $ 19 |
Total Transformation Costs | 950 | 453 | 414 |
Cost Optimization and Prioritization Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Program management | 55 | ||
Restructuring charges | 329 | ||
Total Transformation Costs | 384 | ||
HPE Next Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Program management | 35 | 29 | 95 |
IT costs | 100 | 134 | 148 |
Restructuring charges | 440 | 219 | 531 |
Gains on real estate sales | (45) | (7) | (405) |
Impairment on real estate assets | 10 | 47 | 0 |
Other | 29 | 40 | 76 |
Total Transformation Costs | $ 569 | $ 462 | $ 445 |
Transformation Programs - Sched
Transformation Programs - Schedule of Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Restructuring Reserve | |||
Charges | $ 0 | $ 0 | $ 19 |
Cost Optimization and Prioritization Plan | |||
Restructuring Reserve | |||
Charges | 329 | ||
Total expected costs to be incurred as of October 31, 2020 | 1,300 | ||
Cost Optimization and Prioritization Plan | Employee Severance | |||
Restructuring Reserve | |||
Balance at the beginning of the period | 0 | 0 | 0 |
Charges | 230 | 0 | 0 |
Cash payments | (18) | 0 | 0 |
Non-cash items | (2) | 0 | 0 |
Balance at the end of the period | 210 | 0 | 0 |
Total costs incurred to date as of October 31, 2020 | 230 | ||
Total expected costs to be incurred as of October 31, 2020 | 700 | ||
Cost Optimization and Prioritization Plan | Infrastructure and other | |||
Restructuring Reserve | |||
Balance at the beginning of the period | 0 | 0 | 0 |
Charges | 99 | 0 | 0 |
Cash payments | (3) | 0 | 0 |
Non-cash items | (60) | 0 | 0 |
Balance at the end of the period | 36 | 0 | 0 |
Total costs incurred to date as of October 31, 2020 | 99 | ||
Total expected costs to be incurred as of October 31, 2020 | 610 | ||
HPE Next Plan | |||
Restructuring Reserve | |||
Charges | 440 | 219 | 531 |
HPE Next Plan | Employee Severance | |||
Restructuring Reserve | |||
Balance at the beginning of the period | 178 | 291 | 296 |
Charges | 341 | 154 | 470 |
Cash payments | (383) | (256) | (452) |
Non-cash items | 8 | (11) | (23) |
Balance at the end of the period | 144 | 178 | 291 |
Total costs incurred to date as of October 31, 2020 | 1,261 | ||
Total expected costs to be incurred as of October 31, 2020 | 1,261 | ||
HPE Next Plan | Infrastructure and other | |||
Restructuring Reserve | |||
Balance at the beginning of the period | 42 | 33 | 0 |
Charges | 99 | 65 | 61 |
Cash payments | (50) | (37) | (14) |
Non-cash items | (56) | (19) | (14) |
Balance at the end of the period | 35 | $ 42 | $ 33 |
Total costs incurred to date as of October 31, 2020 | 225 | ||
Total expected costs to be incurred as of October 31, 2020 | $ 248 |
Retirement and Post-Retiremen_3
Retirement and Post-Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution expense | $ 160 | $ 181 | $ 158 | |
U.S. | U.S. non-qualified plan participants | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Expected contribution to defined benefit plans in fiscal 2021 | 2 | |||
Defined Benefit Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 14,127 | 13,434 | 12,167 | |
Employer contributions | 167 | 166 | ||
Defined Benefit Plans | Non-U.S. Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 14,127 | 13,434 | ||
Target Allocation | 100.00% | |||
Expected contribution to defined benefit plans in fiscal 2021 | $ 192 | |||
Defined Benefit Plans | Non-U.S. Plans | Level 1 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,420 | 1,298 | ||
Defined Benefit Plans | Non-U.S. Plans | Level 2 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 7,685 | 7,338 | ||
Defined Benefit Plans | Non-U.S. Plans | Discontinued Operations | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contributions | 167 | |||
Post-Retirement Benefit Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 57 | 54 | $ 52 | |
Employer contributions | 5 | 5 | ||
Expected contribution to defined benefit plans in fiscal 2021 | 6 | |||
Post-Retirement Benefit Plans | Discontinued Operations | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contributions | 5 | |||
Registered Investment Companies | Post-Retirement Benefit Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 57 | |||
Registered Investment Companies | Post-Retirement Benefit Plans | Level 1 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 46 | 54 | ||
Registered Investment Companies | Post-Retirement Benefit Plans | Level 2 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 11 | |||
Cash and cash equivalents | Defined Benefit Plans | Non-U.S. Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 417 | 562 | ||
Target Allocation | 1.50% | |||
Cash and cash equivalents | Defined Benefit Plans | Non-U.S. Plans | Level 1 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 241 | 252 | ||
Cash and cash equivalents | Defined Benefit Plans | Non-U.S. Plans | Level 2 | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 176 | $ 310 | ||
Cash and cash equivalents | Post-Retirement Benefit Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Target Allocation | 80.00% | |||
Multi-Asset Credit Investments | Post-Retirement Benefit Plans | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Target Allocation | 20.00% | |||
HPE 401(k) Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of equal 401(k) match to employees effective during the period | 100.00% | |||
Percentage of maximum matching contribution | 4.00% |
Retirement and Post-Retiremen_4
Retirement and Post-Retirement Benefit Plans - Summary of Net Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Plans | |||
Net benefit (credit) cost | |||
Service cost | $ 94 | $ 85 | $ 105 |
Interest cost | 143 | 215 | 225 |
Expected return on plan assets | (544) | (511) | (567) |
Amortization and deferrals: | |||
Actuarial loss (gain) | 264 | 235 | 211 |
Prior service benefit | (14) | (15) | (17) |
Net periodic benefit cost | (57) | 9 | (43) |
Curtailment gain | 0 | 0 | (1) |
Settlement loss | 10 | 13 | 20 |
Special termination benefits | 2 | 2 | 6 |
Net benefit cost (credit) from continuing operations | (45) | 24 | (18) |
Post-Retirement Benefit Plans | |||
Net benefit (credit) cost | |||
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 7 | 7 |
Expected return on plan assets | (1) | (1) | (1) |
Amortization and deferrals: | |||
Actuarial loss (gain) | (1) | (4) | (3) |
Prior service benefit | 0 | 0 | 0 |
Net periodic benefit cost | 4 | 3 | 4 |
Curtailment gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Net benefit cost (credit) from continuing operations | $ 4 | $ 3 | $ 4 |
Retirement and Post-Retiremen_5
Retirement and Post-Retirement Benefit Plans - Weighted Average Assumptions Used to Calculate the Projected Benefit Obligations (Details) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Plans | |||
Defined benefit plans | |||
Discount rate used to determine benefit obligation | 1.20% | 2.10% | 2.00% |
Discount rate used to determine service cost | 1.60% | 2.30% | 2.40% |
Discount rate used to determine interest cost | 1.00% | 1.80% | 1.70% |
Expected increase in compensation levels | 2.50% | 2.50% | 2.30% |
Expected long-term return on plan assets | 4.10% | 4.30% | 4.40% |
Post-Retirement Benefit Plans | |||
Defined benefit plans | |||
Discount rate used to determine benefit obligation | 3.40% | 4.90% | 4.50% |
Discount rate used to determine service cost | 3.00% | 4.40% | 3.70% |
Discount rate used to determine interest cost | 3.20% | 4.70% | 4.20% |
Expected increase in compensation levels | 0.00% | 0.00% | 0.00% |
Expected long-term return on plan assets | 2.30% | 2.60% | 2.60% |
Retirement and Post-Retiremen_6
Retirement and Post-Retirement Benefit Plans - Funded Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Plans | |||
Change in fair value of plan assets: | |||
Fair value—beginning of year | $ 13,434 | $ 12,167 | |
Transfers | 0 | (5) | |
Addition/deletion of plans | 5 | (14) | |
Actual return on plan assets | 557 | 1,542 | |
Employer contributions | 167 | 166 | |
Participant contributions | 24 | 24 | |
Benefits paid | (410) | (387) | |
Settlement | (51) | (67) | |
Currency impact | 401 | 8 | |
Fair value—end of year | 14,127 | 13,434 | $ 12,167 |
Change in benefit obligation: | |||
Projected benefit obligation—beginning of year | 14,225 | 12,668 | |
Transfers | 0 | (7) | |
Addition/deletion of plans | 5 | (12) | |
Service cost | 94 | 85 | 105 |
Interest cost | 143 | 215 | 225 |
Participant contributions | 24 | 24 | |
Actuarial (gain) loss | 368 | 1,710 | |
Benefits paid | (410) | (387) | |
Plan amendments | (3) | 12 | |
Settlement | (51) | (67) | |
Special termination benefits | 2 | 2 | |
Currency impact | 448 | (18) | |
Projected benefit obligation—end of year | 14,845 | 14,225 | 12,668 |
Funded status at end of year | (718) | (791) | |
Accumulated benefit obligation | 14,619 | 13,995 | |
Post-Retirement Benefit Plans | |||
Change in fair value of plan assets: | |||
Fair value—beginning of year | 54 | 52 | |
Transfers | 0 | 0 | |
Addition/deletion of plans | 0 | 0 | |
Actual return on plan assets | 0 | 1 | |
Employer contributions | 5 | 5 | |
Participant contributions | 5 | 4 | |
Benefits paid | (7) | (8) | |
Settlement | 0 | 0 | |
Currency impact | 0 | 0 | |
Fair value—end of year | 57 | 54 | 52 |
Change in benefit obligation: | |||
Projected benefit obligation—beginning of year | 179 | 160 | |
Transfers | 0 | 0 | |
Addition/deletion of plans | 0 | 0 | |
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 7 | 7 |
Participant contributions | 5 | 4 | |
Actuarial (gain) loss | (9) | 17 | |
Benefits paid | (7) | (8) | |
Plan amendments | 0 | 0 | |
Settlement | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Currency impact | (7) | (2) | |
Projected benefit obligation—end of year | 167 | 179 | $ 160 |
Funded status at end of year | (110) | (125) | |
Accumulated benefit obligation | $ 0 | $ 0 |
Retirement and Post-Retiremen_7
Retirement and Post-Retirement Benefit Plans - Weighted Average Assumptions Used to Calculate the Projected Benefit Obligations for Direct Plans (Details) | Oct. 31, 2020 | Oct. 31, 2019 |
Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.00% | 1.20% |
Expected increase in compensation levels | 2.50% | 2.50% |
Post-Retirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.80% | 3.40% |
Expected increase in compensation levels | 0.00% | 0.00% |
Retirement and Post-Retiremen_8
Retirement and Post-Retirement Benefit Plans - Net Amounts Recognized for the Direct Plans in Combined and Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | $ 1,046 | $ 864 |
Current liabilities | (49) | (45) |
Non-current liabilities | (1,715) | (1,610) |
Funded status at end of year | (718) | (791) |
Post-Retirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 0 | 0 |
Current liabilities | (6) | (6) |
Non-current liabilities | (104) | (119) |
Funded status at end of year | $ (110) | $ (125) |
Retirement and Post-Retiremen_9
Retirement and Post-Retirement Benefit Plans - Pre-Tax Net Actuarial Loss and Prior Service Benefit Recognized in Accumulated Other Comprehensive Loss for the Defined Benefit Plans (Details) $ in Millions | Oct. 31, 2020USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Net actuarial loss | $ 3,633 |
Prior service benefit | (28) |
Total recognized in accumulated other comprehensive loss | 3,605 |
Post-Retirement Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Net actuarial loss | 6 |
Prior service benefit | 0 |
Total recognized in accumulated other comprehensive loss | $ 6 |
Retirement and Post-Retireme_10
Retirement and Post-Retirement Benefit Plans - Expected Amortization from Accumulated Other Comprehensive Loss During the Next Fiscal Year (Details) $ in Millions | Oct. 31, 2020USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Net actuarial loss (gain) | $ 290 |
Prior service benefit | (13) |
Total expected to be recognized in net periodic benefit cost (credit) | 277 |
Post-Retirement Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Net actuarial loss (gain) | (2) |
Prior service benefit | 0 |
Total expected to be recognized in net periodic benefit cost (credit) | $ (2) |
Retirement and Post-Retireme_11
Retirement and Post-Retirement Benefit Plans - Direct Defined Benefit Plans with Projected Benefit Obligations Exceeding the Fair Value of Plan Assets (Details) - Defined Benefit Plans - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Aggregate fair value of plan assets | $ 4,160 | $ 3,585 |
Aggregate projected benefit obligation | $ 5,924 | $ 5,238 |
Retirement and Post-Retireme_12
Retirement and Post-Retirement Benefit Plans - Direct Defined Benefit Plans with Accumulated Benefit Obligations Exceeding the Fair Value of Plan Assets (Details) - Defined Benefit Plans - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Aggregate fair value of plan assets | $ 4,094 | $ 3,574 |
Aggregate accumulated benefit obligation | $ 5,723 | $ 5,088 |
Retirement and Post-Retireme_13
Retirement and Post-Retirement Benefit Plans - Fair Value of Non-U.S. Defined Benefit Plan Assets by Asset Category Within the Fair Value Hierarchy (Details) - Defined Benefit Plans - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Defined benefit plans | |||
Fair value of plan assets | $ 14,127 | $ 13,434 | $ 12,167 |
Non-U.S. Plans | |||
Defined benefit plans | |||
Fair value of plan assets | 14,127 | 13,434 | |
Non-U.S. Plans | U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 272 | 180 | |
Non-U.S. Plans | Non-U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 1,172 | 1,058 | |
Non-U.S. Plans | Corporate | |||
Defined benefit plans | |||
Fair value of plan assets | 1,778 | 1,502 | |
Non-U.S. Plans | Government debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 6,007 | 5,344 | |
Non-U.S. Plans | Government at NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 875 | 897 | |
Non-U.S. Plans | Other debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 1,238 | 762 | |
Non-U.S. Plans | Private Equity | |||
Defined benefit plans | |||
Fair value of plan assets | 39 | 44 | |
Non-U.S. Plans | Hybrids | |||
Defined benefit plans | |||
Fair value of plan assets | 1,594 | 1,414 | |
Non-U.S. Plans | Hybrids At NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 504 | 491 | |
Non-U.S. Plans | Equities at NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 1,393 | 1,398 | |
Non-U.S. Plans | Fixed Income at NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 782 | 724 | |
Non-U.S. Plans | Emerging Markets at NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 362 | 318 | |
Non-U.S. Plans | Alternative investments at NAV | |||
Defined benefit plans | |||
Fair value of plan assets | 350 | 379 | |
Non-U.S. Plans | Real Estate Funds | |||
Defined benefit plans | |||
Fair value of plan assets | 295 | 250 | |
Non-U.S. Plans | Insurance Group Annuity Contracts | |||
Defined benefit plans | |||
Fair value of plan assets | 92 | 91 | |
Non-U.S. Plans | Cash and cash equivalents | |||
Defined benefit plans | |||
Fair value of plan assets | 417 | 562 | |
Non-U.S. Plans | Other | |||
Defined benefit plans | |||
Fair value of plan assets | 120 | 82 | |
Non-U.S. Plans | Obligation to return cash received from repurchase agreements | |||
Defined benefit plans | |||
Fair value of plan assets | (3,163) | (2,062) | |
United Kingdom | |||
Defined benefit plans | |||
Repurchase investments | 5,000 | 4,000 | |
Level 1 | Non-U.S. Plans | |||
Defined benefit plans | |||
Fair value of plan assets | 1,420 | 1,298 | |
Level 1 | Non-U.S. Plans | U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 155 | 172 | |
Level 1 | Non-U.S. Plans | Non-U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 955 | 836 | |
Level 1 | Non-U.S. Plans | Corporate | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Non-U.S. Plans | Government debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Non-U.S. Plans | Other debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Non-U.S. Plans | Private Equity | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Non-U.S. Plans | Hybrids | |||
Defined benefit plans | |||
Fair value of plan assets | 18 | 0 | |
Level 1 | Non-U.S. Plans | Real Estate Funds | |||
Defined benefit plans | |||
Fair value of plan assets | 27 | 8 | |
Level 1 | Non-U.S. Plans | Insurance Group Annuity Contracts | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Non-U.S. Plans | Cash and cash equivalents | |||
Defined benefit plans | |||
Fair value of plan assets | 241 | 252 | |
Level 1 | Non-U.S. Plans | Other | |||
Defined benefit plans | |||
Fair value of plan assets | 24 | 30 | |
Level 1 | Non-U.S. Plans | Obligation to return cash received from repurchase agreements | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Non-U.S. Plans | |||
Defined benefit plans | |||
Fair value of plan assets | 7,685 | 7,338 | |
Level 2 | Non-U.S. Plans | U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 117 | 8 | |
Level 2 | Non-U.S. Plans | Non-U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 217 | 222 | |
Level 2 | Non-U.S. Plans | Corporate | |||
Defined benefit plans | |||
Fair value of plan assets | 1,778 | 1,502 | |
Level 2 | Non-U.S. Plans | Government debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 6,007 | 5,344 | |
Level 2 | Non-U.S. Plans | Other debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 683 | 361 | |
Level 2 | Non-U.S. Plans | Private Equity | |||
Defined benefit plans | |||
Fair value of plan assets | 4 | 2 | |
Level 2 | Non-U.S. Plans | Hybrids | |||
Defined benefit plans | |||
Fair value of plan assets | 1,486 | 1,343 | |
Level 2 | Non-U.S. Plans | Real Estate Funds | |||
Defined benefit plans | |||
Fair value of plan assets | 229 | 203 | |
Level 2 | Non-U.S. Plans | Insurance Group Annuity Contracts | |||
Defined benefit plans | |||
Fair value of plan assets | 56 | 54 | |
Level 2 | Non-U.S. Plans | Cash and cash equivalents | |||
Defined benefit plans | |||
Fair value of plan assets | 176 | 310 | |
Level 2 | Non-U.S. Plans | Other | |||
Defined benefit plans | |||
Fair value of plan assets | 95 | 51 | |
Level 2 | Non-U.S. Plans | Obligation to return cash received from repurchase agreements | |||
Defined benefit plans | |||
Fair value of plan assets | (3,163) | (2,062) | |
Level 3 | Non-U.S. Plans | |||
Defined benefit plans | |||
Fair value of plan assets | 756 | 591 | 248 |
Level 3 | Non-U.S. Plans | U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Non-U.S. Plans | Non-U.S. | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Non-U.S. Plans | Corporate | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Non-U.S. Plans | Government debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Non-U.S. Plans | Other debt securities | |||
Defined benefit plans | |||
Fair value of plan assets | 555 | 401 | 102 |
Level 3 | Non-U.S. Plans | Private Equity | |||
Defined benefit plans | |||
Fair value of plan assets | 35 | 42 | 40 |
Level 3 | Non-U.S. Plans | Hybrids | |||
Defined benefit plans | |||
Fair value of plan assets | 90 | 71 | 30 |
Level 3 | Non-U.S. Plans | Real Estate Funds | |||
Defined benefit plans | |||
Fair value of plan assets | 39 | 39 | 37 |
Level 3 | Non-U.S. Plans | Insurance Group Annuity Contracts | |||
Defined benefit plans | |||
Fair value of plan assets | 36 | 37 | 38 |
Level 3 | Non-U.S. Plans | Cash and cash equivalents | |||
Defined benefit plans | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Non-U.S. Plans | Other | |||
Defined benefit plans | |||
Fair value of plan assets | 1 | 1 | $ 1 |
Level 3 | Non-U.S. Plans | Obligation to return cash received from repurchase agreements | |||
Defined benefit plans | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement and Post-Retireme_14
Retirement and Post-Retirement Benefit Plans - Changes in Fair Value Measurements of Level 3 Investments for the Non-U.S. Defined Benefit Plans (Details) - Defined Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | $ 13,434 | $ 12,167 |
Actual return on plan assets: | ||
Fair value—end of year | 14,127 | 13,434 |
Non-U.S. Plans | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 13,434 | |
Actual return on plan assets: | ||
Fair value—end of year | 14,127 | 13,434 |
Non-U.S. Plans | Debt-Other | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 762 | |
Actual return on plan assets: | ||
Fair value—end of year | 1,238 | 762 |
Non-U.S. Plans | Private Equity | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 44 | |
Actual return on plan assets: | ||
Fair value—end of year | 39 | 44 |
Non-U.S. Plans | Hybrids | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 1,414 | |
Actual return on plan assets: | ||
Fair value—end of year | 1,594 | 1,414 |
Non-U.S. Plans | Real Estate Funds | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 250 | |
Actual return on plan assets: | ||
Fair value—end of year | 295 | 250 |
Non-U.S. Plans | Insurance Group Annuities | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 91 | |
Actual return on plan assets: | ||
Fair value—end of year | 92 | 91 |
Non-U.S. Plans | Other | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 82 | |
Actual return on plan assets: | ||
Fair value—end of year | 120 | 82 |
Non-U.S. Plans | Level 3 | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 591 | 248 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | (31) | 72 |
Relating to assets sold during the period | 4 | 0 |
Purchases, sales, and settlements | 192 | 271 |
Fair value—end of year | 756 | 591 |
Non-U.S. Plans | Level 3 | Debt-Other | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 401 | 102 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | (25) | 69 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales, and settlements | 179 | 230 |
Fair value—end of year | 555 | 401 |
Non-U.S. Plans | Level 3 | Private Equity | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 42 | 40 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | (3) | 1 |
Relating to assets sold during the period | 4 | 0 |
Purchases, sales, and settlements | (8) | 1 |
Fair value—end of year | 35 | 42 |
Non-U.S. Plans | Level 3 | Hybrids | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 71 | 30 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | (3) | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales, and settlements | 22 | 41 |
Fair value—end of year | 90 | 71 |
Non-U.S. Plans | Level 3 | Real Estate Funds | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 39 | 37 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | 0 | 2 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales, and settlements | 0 | 0 |
Fair value—end of year | 39 | 39 |
Non-U.S. Plans | Level 3 | Insurance Group Annuities | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 37 | 38 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales, and settlements | (1) | (1) |
Fair value—end of year | 36 | 37 |
Non-U.S. Plans | Level 3 | Other | ||
Changes in fair value measurements of Level 3 investments | ||
Fair value—beginning of year | 1 | 1 |
Actual return on plan assets: | ||
Relating to assets held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales, and settlements | 0 | 0 |
Fair value—end of year | $ 1 | $ 1 |
Retirement and Post-Retireme_15
Retirement and Post-Retirement Benefit Plans - Weighted Average Target and Actual Asset Allocations Across Non-U.S. Defined Benefit Plans (Details) - Non-U.S. Plans - Defined Benefit Plans | Oct. 31, 2020 | Oct. 31, 2019 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Target Allocation | 100.00% | |
Public equity securities | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 22.60% | 22.00% |
Private/hybrid equity securities | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 17.60% | 17.30% |
Real estate and other | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 2.90% | 2.50% |
Equity-related investments | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 43.10% | 41.80% |
Target Allocation | 44.10% | |
Debt securities | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 53.90% | 54.00% |
Target Allocation | 54.40% | |
Cash and cash equivalents | ||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
Actual Allocation | 3.00% | 4.20% |
Target Allocation | 1.50% |
Retirement and Post-Retireme_16
Retirement and Post-Retirement Benefit Plans - Estimated Future Benefits Payments (Details) $ in Millions | Oct. 31, 2020USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
2021 | $ 483 |
2022 | 481 |
2023 | 496 |
2024 | 509 |
2025 | 533 |
Next five fiscal years to October 31, 2030 | 2,842 |
Post-Retirement Benefit Plans | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
2021 | 10 |
2022 | 11 |
2023 | 11 |
2024 | 11 |
2025 | 11 |
Next five fiscal years to October 31, 2030 | $ 55 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | Jan. 25, 2017 | Oct. 31, 2020 | Nov. 01, 2015 |
Share-based compensation | |||
Unrecognized pre-tax stock-based compensation expense | $ 41 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 2 years 2 months 12 days | ||
The Plan | |||
Share-based compensation | |||
Number of shares authorized and available for issuance (shares) | 277,000,000 | ||
Vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense and Resulting Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 278 | $ 270 | $ 309 |
Income tax benefit | (51) | (50) | (56) |
Stock-based compensation expense, net of tax | $ 227 | $ 220 | $ 253 |
Stock-Based Compensation - Cons
Stock-Based Compensation - Consolidated Statement of Earnings Location of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 278 | $ 270 | $ 309 |
Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 278 | 270 | 309 |
Cost of sales | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 37 | 37 | 39 |
Research and development | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 81 | 70 | 73 |
Selling, general and administrative | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 156 | 161 | 174 |
Transformation costs | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 0 | 2 | 3 |
Acquisition, disposition and other related charges | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 4 | 0 | 10 |
Separation costs | Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 10 |
Stock-Based Compensation- Emplo
Stock-Based Compensation- Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Nov. 01, 2015 | |
Share-based compensation | ||||
Common stock, authorized (shares) | 9,600,000,000 | 9,600,000,000 | ||
Maximum contribution limit as percentage of base compensation (as a percent) | 15.00% | |||
Current offering period | 24 months | |||
Offering period | 6 months | |||
Stock-based compensation expense, net of tax | $ 227,000,000 | $ 220,000,000 | $ 253,000,000 | |
Employee Stock Purchase Plan | ||||
Share-based compensation | ||||
Common stock, authorized (shares) | 80,000,000 | |||
Maximum contribution limit as percentage of base compensation (as a percent) | 10.00% | |||
Stock purchase price as a percentage of the fair market value on the purchase date | 95.00% | |||
Stock-based compensation expense, net of tax | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Weighted- Average Grant Date Fair Value Per Share | |||
Unrecognized pre-tax stock-based compensation expense | $ 41 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 2 years 2 months 12 days | ||
Restricted Stock Awards | |||
Shares | |||
Outstanding at beginning of period (in shares) | 39,700 | ||
Granted and assumed through acquisition (in shares) | 25,221 | ||
Vested (in shares) | (18,469) | ||
Forfeited/canceled (in shares) | (4,127) | ||
Outstanding at end of period (in shares) | 42,325 | 39,700 | |
Weighted- Average Grant Date Fair Value Per Share | |||
Outstanding at beginning of period (in dollars per share) | $ 14 | ||
Granted and assumed through acquisition (in dollars per share) | 13 | ||
Vested (in dollars per share) | 15 | ||
Forfeited/canceled (in dollars per share) | 15 | ||
Outstanding at end of period (in dollars per share) | $ 13 | $ 14 | |
Total grant date fair value of restricted stock vested | $ 254 | $ 182 | $ 355 |
Unrecognized pre-tax stock-based compensation expense | $ 274 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 1 year 4 months 24 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Employee Stock Purchase Plan | |||
Aggregate Intrinsic Value | |||
Cash received from option exercises and purchases | $ 49 | $ 112 | $ 279 |
Benefit realized for the tax deduction from option exercises of share-based payment awards | $ 2 | $ 10 | 61 |
Stock Options | |||
Shares | |||
Outstanding at beginning of period (in shares) | 10,162 | ||
Replacement awards for acquisitions (in shares) | 10,340 | ||
Exercised (in shares) | (1,454) | ||
Forfeited/cancelled/expired (in shares) | (403) | ||
Outstanding at end of period (in shares) | 18,645 | 10,162 | |
Vested and expected to vest at end of period (in shares) | 17,547 | ||
Exercisable at end of period (in shares) | 8,586 | ||
Weighted- Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 11 | ||
Granted and assumed through acquisition (in dollars per share) | 2 | ||
Exercised (in dollars per share) | 8 | ||
Forfeited/cancelled/expired (in dollars per share) | 9 | ||
Outstanding at end of period (in dollars per share) | 6 | $ 11 | |
Vested and expected to vest at end of period (in dollars per share) | 7 | ||
Exercisable at end of period (in dollars per share) | $ 11 | ||
Weighted- Average Remaining Contractual Term | |||
Outstanding at end of year (in years) | 5 years 1 month 6 days | ||
Vested and expected to vest at end of year (in years) | 5 years | ||
Exercisable at end of year (in years) | 2 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of year | $ 64 | ||
Vested and expected to vest at end of year | 58 | ||
Exercisable at end of year | 6 | ||
Intrinsic value of options exercised | $ 9 | $ 49 | $ 200 |
Taxes on Earnings - Provision (
Taxes on Earnings - Provision (Benefit) for Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Domestic and foreign components of earnings (loss) before taxes | |||
U.S. | $ (2,008) | $ (1,067) | $ (2,805) |
Non-U.S. | 1,566 | 2,620 | 3,073 |
Earnings (loss) from continuing operations before taxes | (442) | 1,553 | 268 |
U.S. federal taxes: | |||
Current | 55 | 763 | 2,177 |
Deferred | 149 | (1,046) | (150) |
Non-U.S. taxes: | |||
Current | (284) | (246) | (419) |
Deferred | 133 | (101) | 188 |
State taxes: | |||
Current | 55 | 58 | (52) |
Deferred | 12 | 68 | 0 |
Provision for (benefit from) taxes on earnings | $ 120 | $ (504) | $ 1,744 |
Taxes on Earnings - Summary of
Taxes on Earnings - Summary of Differences Between the U.S. Federal Statutory Income Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Differences between the U.S. federal statutory income tax rate and HP's effective tax rate | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 23.30% |
State income taxes, net of federal tax benefit | 0.90% | (0.10%) | 4.30% |
Lower rates in other jurisdictions, net | 13.60% | (7.30%) | (121.40%) |
Valuation allowance | 20.80% | 5.80% | (59.80%) |
U.S. permanent differences | (3.40%) | 6.00% | 39.30% |
U.S. R&D credit | (8.40%) | (2.30%) | (7.00%) |
Uncertain tax positions | 7.60% | (14.30%) | (693.40%) |
Goodwill impairment | (41.20%) | 0.00% | 0.00% |
Impacts of the Tax Act | (0.40%) | 24.50% | 158.00% |
Other, net | (0.20%) | (0.80%) | 6.00% |
Effective tax rate (as a percent) | 27.10% | 32.50% | (650.70%) |
Taxes on Earnings - Narrative (
Taxes on Earnings - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2021 | |
Income Tax Examination [Line Items] | ||||
Net income tax charges (benefits) | $ (362) | $ 152 | $ (2,000) | |
Income tax (benefit) on restructuring charges, separation costs, transformation costs and acquisition and other related charges | (174) | |||
Pre-Separation tax matters | (66) | (274) | (208) | |
Change in enacted tax rate | (40) | |||
Income tax charges related to future withholding costs on intercompany distributions | 40 | |||
Tax charges related to changes in valuation allowances as a result of the Tax Act | 422 | |||
Income tax benefits from transformation costs, acquisition, disposition and other related charges | 104 | 125 | ||
(Provision) benefit for taxes | 120 | (504) | 1,744 | |
Share-based compensation cost | 65 | |||
Income tax benefits, reduced rates for subsidiaries in certain countries | $ 521 | $ 837 | $ 792 | |
Income tax benefits, reduced rates for subsidiaries in certain countries (in dollars per share) | $ 0.40 | $ 0.61 | $ 0.51 | |
Pre-Separation unrecognized state tax positions inclusive of interest and penalties | $ 69 | |||
Undistributed earnings from non-U.S. operations | 9,700 | |||
Tax Matter Agreement, cash received during period | 50 | $ 200 | ||
Forecast | ||||
Income Tax Examination [Line Items] | ||||
Tax Matter Agreement, amounts receivable | $ 50 | |||
Deferred tax asset valuation allowance | ||||
Income Tax Examination [Line Items] | ||||
Foreign loss carryforwards | $ 5,000 | |||
Spinoff | Everett SpinCo, Inc. and Seattle SpinCo, Inc. | ||||
Income Tax Examination [Line Items] | ||||
(Provision) benefit for taxes | $ 2,000 | |||
Domestic, State and Local Jurisdictions | ||||
Income Tax Examination [Line Items] | ||||
Tax charges related to changes in valuation allowances as a result of the Tax Act | $ 488 | |||
Foreign | INDIA | ||||
Income Tax Examination [Line Items] | ||||
Change in enacted tax rate | (57) | |||
State | ||||
Income Tax Examination [Line Items] | ||||
Pre-Separation unrecognized state tax positions inclusive of interest and penalties | $ 62 |
Taxes on Earnings - Uncertain T
Taxes on Earnings - Uncertain Tax Positions (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020USD ($)country | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Reconciliation of unrecognized tax benefits | |||
Balance at beginning of year | $ 2,269 | $ 8,826 | $ 11,262 |
Increases: | |||
For current year's tax positions | 27 | 43 | 163 |
For prior years' tax positions | 40 | 37 | 66 |
Decreases: | |||
For prior years' tax positions | (71) | (17) | (82) |
Statute of limitations expiration | (17) | (38) | (86) |
Settlements with taxing authorities | (53) | (7) | (2) |
Settlements related to joint and several positions of former Parent | (36) | (6,575) | (2,495) |
Balance at end of year | 2,159 | 2,269 | 8,826 |
Unrecognized tax benefits that would affect effective tax rate if realized | 731 | 772 | 1,100 |
Income tax interest and penalties from uncertain tax positions | 10 | 13 | $ 161 |
Accrued income tax for interest and penalties | $ 119 | $ 129 | |
Likelihood of no resolution period | 12 months | ||
Likelihood of conclusion period for certain federal, foreign and state tax issues | 12 months | ||
Reasonably possible decrease in existing unrecognized tax benefits within the next 12 months | $ 79 | ||
Number of other countries in which HPE is subject to income taxes | country | 95 | ||
Undistributed earnings from non-U.S. operations | $ 9,700 |
Taxes on Earnings - Components
Taxes on Earnings - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred tax assets: | ||
Loss and credit carryforwards | $ 7,596 | $ 8,110 |
Inventory valuation | 75 | 59 |
Intercompany prepayments | 295 | 179 |
Other intercompany transactions | 31 | 41 |
Warranty | 69 | 72 |
Employee and retiree benefits | 571 | 584 |
Restructuring | 118 | 65 |
Deferred revenue | 565 | 531 |
Intangible assets | 94 | 130 |
Lease liabilities | 166 | |
Other | 206 | 243 |
Total deferred tax assets | 9,786 | 10,014 |
Valuation allowance | (7,724) | (8,225) |
Total deferred tax assets net of valuation allowance | 2,062 | 1,789 |
Deferred tax liabilities: | ||
Unremitted earnings of foreign subsidiaries | (172) | (233) |
ROU assets | (165) | |
Fixed assets | (237) | (352) |
Total deferred tax liabilities | (574) | (585) |
Net deferred tax assets and liabilities | $ 1,488 | $ 1,204 |
Taxes on Earnings - Deferred Ta
Taxes on Earnings - Deferred Tax Assets and Liabilities included in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Current and long term deferred tax assets and liabilities | ||
Deferred tax assets | $ 1,778 | $ 1,515 |
Deferred tax liabilities | (290) | (311) |
Net deferred tax assets and liabilities | 1,488 | 1,204 |
Operating loss carryforwards | ||
Adjustment to reduce deferred tax asset | 118 | 65 |
Valuation allowance on deferred tax assets | 7,724 | $ 8,225 |
State | ||
Operating loss carryforwards | ||
Operating loss carryforwards | 2,700 | |
Capital loss carryforwards | 6,000 | |
State | Operating loss carryforwards | ||
Operating loss carryforwards | ||
Valuation allowance on deferred tax assets | 138 | |
State | Capital loss carryforwards | ||
Operating loss carryforwards | ||
Valuation allowance on deferred tax assets | 191 | |
Foreign | ||
Operating loss carryforwards | ||
Operating loss carryforwards | 20,400 | |
Capital loss carryforwards | 38 | |
Foreign | Operating loss carryforwards | ||
Operating loss carryforwards | ||
Valuation allowance on deferred tax assets | 4,100 | |
Foreign | Capital loss carryforwards | ||
Operating loss carryforwards | ||
Valuation allowance on deferred tax assets | 10 | |
Federal | ||
Operating loss carryforwards | ||
Operating loss carryforwards | 636 | |
Capital loss carryforwards | 6,000 | |
Federal | Capital loss carryforwards | ||
Operating loss carryforwards | ||
Valuation allowance on deferred tax assets | $ 1,300 |
Taxes on Earnings - Schedule of
Taxes on Earnings - Schedule of Tax Credit Carryforwards and Allowances (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Carryforward | |
U.S. foreign tax credits | $ 1,129 |
U.S. research and development and other credits | 194 |
Tax credits in state and foreign jurisdictions | 171 |
Balance at end of year | 1,494 |
Valuation Allowance | |
U.S. foreign tax credits | (1,119) |
U.S. research and development and other credits | (1) |
Tax credits in state and foreign jurisdictions | (142) |
Balance at end of year | (1,262) |
Increase (decrease) in valuation allowances | $ 501 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 4,233 | $ 3,753 | ||
Restricted cash | 388 | 323 | ||
Total | $ 4,621 | $ 4,076 | $ 5,084 | $ 9,592 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Unbilled receivable | $ 205 | $ 206 | ||
Accounts receivable | 3,227 | 2,782 | ||
Allowance for doubtful accounts | (46) | (31) | $ (39) | $ (42) |
Total | $ 3,386 | $ 2,957 |
Balance Sheet Details - Allowan
Balance Sheet Details - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss | |||
Balance at beginning of year | $ 31 | $ 39 | $ 42 |
Provision for doubtful accounts | 29 | 9 | 20 |
Deductions, net of recoveries | (14) | (17) | (23) |
Balance at end of year | $ 46 | $ 31 | $ 39 |
Balance Sheet Details - Revolvi
Balance Sheet Details - Revolving Short-Term Financing Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Balance at beginning of period | $ (10) | $ 166 | $ 121 |
Trade receivables sold | 3,897 | 4,533 | 4,844 |
Cash receipts | (3,768) | (4,710) | (4,794) |
Foreign currency and other | 3 | 1 | (5) |
Balance at end of period | $ 122 | $ (10) | $ 166 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 1,197 | $ 1,198 |
Purchased parts and fabricated assemblies | 1,477 | 1,189 |
Total | $ 2,674 | $ 2,387 |
Balance Sheet Details - Propert
Balance Sheet Details - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment, Net | |||
Equipment leased to customers | $ 11,599 | $ 11,901 | |
Accumulated depreciation | (5,974) | (5,847) | |
Property, plant and equipment | 5,625 | 6,054 | |
Depreciation expense | 2,200 | 2,300 | $ 2,300 |
Land | |||
Property, Plant and Equipment, Net | |||
Equipment leased to customers | 89 | 241 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Equipment leased to customers | 1,886 | 2,196 | |
Machinery and equipment, including equipment held for lease | |||
Property, Plant and Equipment, Net | |||
Equipment leased to customers | $ 9,624 | $ 9,464 |
Balance Sheet Details - Long-Te
Balance Sheet Details - Long-Term Financing Receivables and Other Assets (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Financing receivables, net | $ 5,110 | $ 4,949 |
ROU Assets | 930 | |
Deferred tax assets | 1,778 | 1,515 |
Prepaid pension | 1,046 | 864 |
Other | 1,680 | 1,590 |
Total | $ 10,544 | $ 8,918 |
Balance Sheet Details - Other A
Balance Sheet Details - Other Accrued Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Value-added and property taxes | $ 842 | $ 806 |
Warranty | 192 | 199 |
Sales and marketing programs | 1,022 | 1,065 |
Operating lease liabilities | 188 | |
Other | 2,021 | 1,932 |
Total | $ 4,265 | $ 4,002 |
Balance Sheet Details - Other N
Balance Sheet Details - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Pension, post-retirement, and post-employment | $ 1,856 | $ 1,772 |
Deferred revenue | 2,785 | 2,751 |
Taxes on earnings | 447 | 538 |
Operating lease liabilities | 898 | |
Other | 1,009 | 1,039 |
Total | $ 6,995 | $ 6,100 |
Balance Sheet Details - Narrati
Balance Sheet Details - Narrative (Details) - USD ($) $ in Billions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||
Contract liabilities | $ 6.2 | $ 6 |
Unearned revenue recognized | 3.2 | |
Remaining performance obligation | $ 6.2 |
Balance Sheet Details - Remaini
Balance Sheet Details - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01 | Oct. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation expected to be recognized over the year | 55.00% |
Expected timing of satisfaction | 12 months |
Accounting for Leases as a Le_5
Accounting for Leases as a Lessee - Operating Lease Cost (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 236 |
Finance lease cost | 8 |
Sublease rental income | (61) |
Total lease cost | $ 183 |
Accounting for Leases as a Le_6
Accounting for Leases as a Lessee - Narrative (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Net gain from sale and leaseback transaction | $ 41 |
Amount of operating leases that have not yet commenced | $ 225 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of operating leases not yet commenced | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of operating leases not yet commenced | 15 years |
Accounting for Leases as a Le_7
Accounting for Leases as a Lessee - Leases Included in the Consolidated Balance Sheets (Details) $ in Millions | Oct. 31, 2020USD ($) |
Operating Leases | |
ROU Assets | $ 930 |
Operating lease liabilities – current | 188 |
Operating lease liabilities – non-current | 898 |
Total operating lease liabilities | 1,086 |
Finance Leases | |
Total finance lease liabilities | 58 |
Total ROU assets | 971 |
Total lease liabilities | $ 1,144 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DebtCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Long-term financing receivables and other assets | |
Operating Leases | |
ROU Assets | $ 930 |
Other accrued liabilities | |
Operating Leases | |
Operating lease liabilities – current | 188 |
Other non-current liabilities | |
Operating Leases | |
Operating lease liabilities – non-current | 898 |
Property, plant and equipment | |
Finance Leases | |
Gross finance lease ROU assets | 52 |
Less: Accumulated depreciation | (11) |
Net finance lease ROU assets | 41 |
Notes payable and short-term borrowings | |
Finance Leases | |
Finance lease liabilities – current | 5 |
Long-term debt | |
Finance Leases | |
Finance lease liabilities – non-current | $ 53 |
Accounting for Leases as a Le_8
Accounting for Leases as a Lessee - Additional Lease Information (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Operating Leases | |
Weighted-average remaining lease term (in years) | 6 years 9 months 18 days |
Weighted-average discount rate | 2.60% |
Finance Leases | |
Weighted-average remaining lease term (in years) | 9 years 6 months |
Weighted-average discount rate | 3.50% |
Cash Flow Statement Activity | |
Cash outflows from operating leases | $ 239 |
ROU assets obtained in exchange for new operating lease liabilities | $ 298 |
Accounting for Leases as a Le_9
Accounting for Leases as a Lessee - Future Minimum Lease Commitments (Details) $ in Millions | Oct. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 207 |
2022 | 188 |
2023 | 172 |
2024 | 147 |
2025 | 128 |
Thereafter | 342 |
Total future lease payments | 1,184 |
Less: imputed interest | (98) |
Total operating lease liabilities | 1,086 |
Finance Leases | |
2021 | 6 |
2022 | 6 |
2023 | 7 |
2024 | 7 |
2025 | 7 |
Thereafter | 35 |
Total future lease payments | 68 |
Less: imputed interest | (10) |
Total finance lease liabilities | $ 58 |
Accounting for Leases as a L_10
Accounting for Leases as a Lessee - Future Minimum Lease Commitments Prior to Adoption (Details) $ in Millions | Oct. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 233 |
2021 | 187 |
2022 | 164 |
2023 | 149 |
2024 | 127 |
Thereafter | 541 |
Total | 1,401 |
Finance Leases | |
2020 | 6 |
2021 | 6 |
2022 | 7 |
2023 | 6 |
2024 | 7 |
Thereafter | 41 |
Total | $ 73 |
Accounting for Leases as a L_11
Accounting for Leases as a Lessor - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Financing receivable term, low end of range | 2 years | |
Financing receivable term, high end of range | 5 years | |
Sold | $ 103 | $ 185 |
Long-term financing receivables and other assets | ||
Lessor, Lease, Description [Line Items] | ||
Amount transferred via securitization | 1,200 | 465 |
Assets Held under Capital Leases | ||
Lessor, Lease, Description [Line Items] | ||
Amount transferred via securitization | $ 675 | $ 327 |
Accounting for Leases as a L_12
Accounting for Leases as a Lessor - Components of Financing Receivables (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Leases [Abstract] | ||||
Minimum lease payments receivable | $ 9,070 | |||
Minimum lease payments receivable | $ 9,448 | |||
Unguaranteed residual value | 364 | 336 | ||
Unearned income | (754) | (754) | ||
Financing receivables, gross | 9,058 | 8,652 | ||
Allowance for doubtful accounts | (154) | (131) | $ (120) | $ (86) |
Financing receivables, net | 8,904 | 8,521 | ||
Less: current portion | (3,794) | (3,572) | ||
Amounts due after one year, net | $ 5,110 | $ 4,949 |
Accounting for Leases as a L_13
Accounting for Leases as a Lessor - Finance Lease Receivable Maturity (Details) $ in Millions | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 4,182 |
2022 | 2,662 |
2023 | 1,572 |
2024 | 720 |
2025 | 252 |
Thereafter | 60 |
Total undiscounted cash flows | 9,448 |
Present value of lease payments (recognized as finance receivables) | 8,694 |
Difference between undiscounted cash flows and discounted cash flows | $ 754 |
Accounting for Leases as a L_14
Accounting for Leases as a Lessor - Minimum Finance Lease Receivables Prior to Adoption (Details) $ in Millions | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 3,939 |
2021 | 2,449 |
2022 | 1,555 |
2023 | 752 |
2024 | 306 |
Thereafter | 69 |
Total | $ 9,070 |
Accounting for Leases as a L_15
Accounting for Leases as a Lessor - Credit Risk Profile of Gross Financing Receivables (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivables, gross | $ 9,058 | $ 8,652 |
Low | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivables, gross | 4,590 | 4,432 |
Moderate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivables, gross | 4,091 | 3,933 |
High | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivables, gross | $ 377 | $ 287 |
Accounting for Leases as a L_16
Accounting for Leases as a Lessor - Allowance for Doubtful Accounts for Financing Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Leases [Abstract] | |||
Balance at beginning of year | $ 131 | $ 120 | $ 86 |
Provision for doubtful accounts | 43 | 33 | 49 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (20) | (22) | (15) |
Balance at end of year | $ 154 | $ 131 | $ 120 |
Accounting for Leases as a L_17
Accounting for Leases as a Lessor - Gross Financing Receivables and Related Allowance Evaluated for Loss (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Leases [Abstract] | ||||
Gross financing receivables collectively evaluated for loss | $ 8,620 | $ 8,255 | ||
Gross financing receivables individually evaluated for loss | 438 | 397 | ||
Financing receivables, gross | 9,058 | 8,652 | ||
Allowance for financing receivables collectively evaluated for loss | 89 | 84 | ||
Allowance for financing receivables individually evaluated for loss | 65 | 47 | ||
Total | $ 154 | $ 131 | $ 120 | $ 86 |
Accounting for Leases as a L_18
Accounting for Leases as a Lessor - Summary of Aging and Non-accrual Status of Gross Financing Receivables (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Leases [Abstract] | ||
Current 1-30 days | $ 340 | $ 301 |
Past due 31-60 days | 43 | 62 |
Past due 61-90 days | 22 | 15 |
Past due >90 days | 140 | 88 |
Unbilled sales-type and direct-financing lease receivables | 8,513 | 8,186 |
Financing receivables, gross | 9,058 | 8,652 |
Gross financing receivables on non-accrual status | 364 | 276 |
Gross financing receivables 90 days past due and still accruing interest | $ 74 | $ 121 |
Accounting for Leases as a L_19
Accounting for Leases as a Lessor - Operating Lease Assets Included in Machinery and Equipment (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Leases [Abstract] | ||
Equipment leased to customers | $ 7,185 | |
Accumulated depreciation | (3,101) | |
Operating lease assets, net | 4,084 | |
Lessor, Lease, Description [Line Items] | ||
Equipment leased to customers | $ 11,599 | 11,901 |
Accumulated depreciation | (5,974) | (5,847) |
Total | 5,625 | $ 6,054 |
Assets Held under Capital Leases | ||
Lessor, Lease, Description [Line Items] | ||
Equipment leased to customers | 7,184 | |
Accumulated depreciation | (3,157) | |
Total | $ 4,027 |
Accounting for Leases as a L_20
Accounting for Leases as a Lessor - Operating Lease Payments Maturity (Details) $ in Millions | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 1,798 |
2022 | 1,049 |
2023 | 440 |
2024 | 78 |
2025 | 7 |
Thereafter | 2 |
Total | $ 3,374 |
Accounting for Leases as a L_21
Accounting for Leases as a Lessor - Lessor Activity Included in Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Leases [Abstract] | |||
Interest income | $ 469 | $ 458 | $ 447 |
Lease income - operating leases | 2,431 | 2,596 | 2,690 |
Total lease income | $ 2,900 | $ 3,054 | $ 3,137 |
Accounting for Leases as a L_22
Accounting for Leases as a Lessor - Assets and Liabilities of VIE (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Other current assets | $ 120 | $ 76 |
Short-term | 531 | 194 |
Long-term | 584 | 229 |
Property, plant and equipment | 665 | 303 |
Notes payable and short-term borrowings, net of unamortized debt issuance costs | 886 | 385 |
Long-term debt, net of unamortized debt issuance costs | $ 834 | $ 370 |
Acquisitions - Aggregate Purcha
Acquisitions - Aggregate Purchase Price Allocation (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 18,017 | $ 18,306 | $ 17,537 |
2020 Acquisitions | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 572 | ||
Net tangible liabilities assumed | (40) | ||
Total fair value consideration | 886 | ||
2020 Acquisitions | Intangible Assets | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amortizable intangible assets | $ 354 | ||
2019 Acquisitions | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 771 | ||
Net tangible liabilities assumed | (235) | ||
Total fair value consideration | 1,612 | ||
2019 Acquisitions | Intangible Assets | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amortizable intangible assets | 465 | ||
2019 Acquisitions | In-process research and development | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amortizable intangible assets | $ 141 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | Sep. 21, 2020USD ($) | Sep. 25, 2019USD ($) | Oct. 31, 2020USD ($)business_acquired | Oct. 31, 2019USD ($)business_acquired | Oct. 31, 2018USD ($) |
Acquisitions: | |||||
Number of acquisitions | business_acquired | 2 | 3 | |||
Goodwill | $ 18,017 | $ 18,306 | $ 17,537 | ||
Silver Peak | |||||
Acquisitions: | |||||
Total fair value of consideration | $ 879 | ||||
Goodwill | 572 | ||||
Amortizable intangible assets | $ 348 | ||||
Weighted-average useful life | 5 years | ||||
Cray Inc. | |||||
Acquisitions: | |||||
Total fair value of consideration | $ 1,500 | ||||
Goodwill | $ 702 | ||||
Weighted-average useful life | 4 years | ||||
Cray Inc. | Intangible Assets | |||||
Acquisitions: | |||||
Amortizable intangible assets | $ 425 | ||||
Cray Inc. | In-process research and development | |||||
Acquisitions: | |||||
Amortizable intangible assets | $ 141 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Carrying Value of Goodwill by Reportable Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Oct. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Goodwill | |||||
Goodwill acquired during the period | $ 572,000,000 | $ 767,000,000 | |||
Impairment of goodwill | (865,000,000) | ||||
Goodwill adjustments | 4,000,000 | 2,000,000 | |||
Balance at end of period | $ 17,537,000,000 | 18,017,000,000 | 18,306,000,000 | $ 17,537,000,000 | |
Accumulated impairment loss | 953,000,000 | ||||
Compute | |||||
Goodwill | |||||
Goodwill acquired during the period | 0 | 0 | |||
Goodwill adjustments | 0 | 2,000,000 | |||
Balance at end of period | 7,530,000,000 | 7,532,000,000 | 7,532,000,000 | 7,530,000,000 | |
HPC & MCS | |||||
Goodwill | |||||
Goodwill acquired during the period | 0 | 699,000,000 | |||
Impairment of goodwill | $ (865,000,000) | (865,000,000) | |||
Goodwill adjustments | 3,000,000 | 0 | |||
Balance at end of period | 3,779,000,000 | 3,616,000,000 | 4,478,000,000 | 3,779,000,000 | |
Storage | |||||
Goodwill | |||||
Balance at end of period | 4,090,000,000 | 4,159,000,000 | 4,158,000,000 | 4,090,000,000 | |
Intelligent Edge | |||||
Goodwill | |||||
Goodwill acquired during the period | 572,000,000 | ||||
Balance at end of period | 1,994,000,000 | 2,566,000,000 | 1,994,000,000 | 1,994,000,000 | |
Financial Services | |||||
Goodwill | |||||
Goodwill acquired during the period | 68,000,000 | ||||
Goodwill adjustments | 1,000,000 | 0 | |||
Balance at end of period | 144,000,000 | $ 144,000,000 | $ 144,000,000 | 144,000,000 | |
CMS Reporting Unit | |||||
Goodwill | |||||
Impairment of goodwill | (88,000,000) | (88,000,000) | |||
Balance at end of period | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Oct. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Goodwill | |||||
Goodwill impairment loss | $ 865,000,000 | ||||
Goodwill | $ 17,537,000,000 | 18,017,000,000 | $ 18,306,000,000 | $ 17,537,000,000 | |
Decrease in gross intangible assets | 363,000,000 | ||||
Gross intangible assets acquired | 354,000,000 | 606,000,000 | |||
Amount of fully amortized intangible assets | $ 35,000,000 | 117,000,000 | |||
Goodwill impairment measurement input | 10.00% | ||||
Minimum | |||||
Goodwill | |||||
Percentage of fair value in excess of carrying amount | 7.00% | ||||
Maximum | |||||
Goodwill | |||||
Percentage of fair value in excess of carrying amount | 31.00% | ||||
Developed and core technology and patents | In-process research and development | |||||
Goodwill | |||||
Reclassified | 18,000,000 | ||||
HPC & MCS | |||||
Goodwill | |||||
Goodwill impairment loss | $ 865,000,000 | $ 865,000,000 | |||
Goodwill | 3,779,000,000 | $ 3,616,000,000 | $ 4,478,000,000 | 3,779,000,000 | |
Percentage of fair value in excess of carrying amount | 7.00% | ||||
CMS Reporting Unit | |||||
Goodwill | |||||
Goodwill impairment loss | 88,000,000 | 88,000,000 | |||
Goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Intangible assets | ||
Intangible assets, gross (excluding goodwill) | $ 1,943 | $ 1,987 |
Amortizable intangible assets, accumulated amortization | (840) | (859) |
Amortizable intangible assets, net | 997 | |
Intangible assets, net (excluding goodwill) | 1,103 | 1,128 |
In-process research and development | ||
Intangible assets | ||
Indefinite-lived intangible assets (excluding goodwill) | 106 | 141 |
Customer contracts, customer lists and distribution agreements | ||
Intangible assets | ||
Amortizable intangible assets, gross | 429 | 312 |
Amortizable intangible assets, accumulated amortization | (163) | (96) |
Amortizable intangible assets, net | $ 266 | 216 |
Weighted-Average Remaining Useful Lives | 3 years | |
Developed and core technology and patents | ||
Intangible assets | ||
Amortizable intangible assets, gross | $ 1,267 | 1,371 |
Amortizable intangible assets, accumulated amortization | (627) | (719) |
Amortizable intangible assets, net | $ 640 | 652 |
Weighted-Average Remaining Useful Lives | 5 years | |
Trade name and trade marks | ||
Intangible assets | ||
Amortizable intangible assets, gross | $ 141 | 163 |
Amortizable intangible assets, accumulated amortization | (50) | (44) |
Amortizable intangible assets, net | $ 91 | $ 119 |
Weighted-Average Remaining Useful Lives | 4 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Millions | Oct. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 313 |
2022 | 235 |
2023 | 200 |
2024 | 148 |
2025 | 41 |
Thereafter | 60 |
Amortizable intangible assets, net | $ 997 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Assets | ||
Total assets | $ 2,762 | $ 2,295 |
Liabilities | ||
Total liabilities | 194 | 147 |
Time deposits | ||
Assets | ||
Total assets | 939 | 803 |
Money market funds | ||
Assets | ||
Total assets | 1,167 | 859 |
Foreign bonds | ||
Assets | ||
Total assets | 125 | 133 |
Other debt securities | ||
Assets | ||
Total assets | 21 | 32 |
Interest rate contracts | ||
Assets | ||
Total assets | 220 | 73 |
Liabilities | ||
Total liabilities | 2 | 11 |
Foreign exchange contracts | ||
Assets | ||
Total assets | 290 | 392 |
Liabilities | ||
Total liabilities | 189 | 136 |
Other derivatives | ||
Assets | ||
Total assets | 0 | 3 |
Liabilities | ||
Total liabilities | 3 | 0 |
Level 1 | ||
Assets | ||
Total assets | 1,167 | 866 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Time deposits | ||
Assets | ||
Total assets | 0 | 0 |
Level 1 | Money market funds | ||
Assets | ||
Total assets | 1,167 | 859 |
Level 1 | Foreign bonds | ||
Assets | ||
Total assets | 0 | 7 |
Level 1 | Other debt securities | ||
Assets | ||
Total assets | 0 | 0 |
Level 1 | Interest rate contracts | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Foreign exchange contracts | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Other derivatives | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 1,574 | 1,397 |
Liabilities | ||
Total liabilities | 194 | 147 |
Level 2 | Time deposits | ||
Assets | ||
Total assets | 939 | 803 |
Level 2 | Money market funds | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Foreign bonds | ||
Assets | ||
Total assets | 125 | 126 |
Level 2 | Other debt securities | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Interest rate contracts | ||
Assets | ||
Total assets | 220 | 73 |
Liabilities | ||
Total liabilities | 2 | 11 |
Level 2 | Foreign exchange contracts | ||
Assets | ||
Total assets | 290 | 392 |
Liabilities | ||
Total liabilities | 189 | 136 |
Level 2 | Other derivatives | ||
Assets | ||
Total assets | 0 | 3 |
Liabilities | ||
Total liabilities | 3 | 0 |
Level 3 | ||
Assets | ||
Total assets | 21 | 32 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Time deposits | ||
Assets | ||
Total assets | 0 | 0 |
Level 3 | Money market funds | ||
Assets | ||
Total assets | 0 | 0 |
Level 3 | Foreign bonds | ||
Assets | ||
Total assets | 0 | 0 |
Level 3 | Other debt securities | ||
Assets | ||
Total assets | 21 | 32 |
Level 3 | Interest rate contracts | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Foreign exchange contracts | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Other derivatives | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Oct. 31, 2020 | Oct. 31, 2019 | |
Financial assets and liabilities measured at fair value on a recurring basis | |||
Fair value, short- and long-term debt | $ 17,100 | $ 14,600 | |
Carrying value, short- and long-term debt | 15,900 | $ 13,800 | |
Goodwill impairment loss | 865 | ||
Interest and other, net | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Recognized gain from equity investments without readily determinable fair value | 19 | ||
HPC & MCS | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Goodwill impairment loss | $ 865 | $ 865 | |
Level 3 | HPC & MCS | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Goodwill impairment loss | $ 865 |
Financial Instruments - Cash Eq
Financial Instruments - Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Debt securities, amortized cost | $ 128 | $ 142 |
Gross Unrealized Gains | 18 | 23 |
Debt securities, fair value | 146 | 165 |
Total cash equivalents and available-for sale investments, cost basis | 2,234 | 1,804 |
Total cash equivalents and available-for-sale investments | 2,252 | 1,827 |
Foreign bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Debt securities, amortized cost | 108 | 110 |
Gross Unrealized Gains | 17 | 23 |
Debt securities, fair value | 125 | 133 |
Other debt securities | ||
Cash and Cash Equivalents [Line Items] | ||
Debt securities, amortized cost | 20 | 32 |
Gross Unrealized Gains | 1 | 0 |
Debt securities, fair value | 21 | 32 |
Fair Value | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | 2,106 | 1,662 |
Fair Value | Time deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | 939 | 803 |
Fair Value | Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | 1,167 | 859 |
Cost | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | 2,106 | 1,662 |
Cost | Time deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | 939 | 803 |
Cost | Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash equivalents | $ 1,167 | $ 859 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020USD ($)business_day | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Interest income | $ 44 | $ 64 | $ 104 |
Summary of Investment Holdings [Line Items] | |||
Investments in equity interests | $ 2,170 | 2,254 | |
General collateral posting period | business_day | 2 | ||
Collateralized arrangements in net liability position | $ 45 | 18 | |
Expected amount of AOCI to be reclassified in the next 12 months | $ 30 | ||
Cash flow hedges | |||
Summary of Investment Holdings [Line Items] | |||
Maturity period of foreign currency cash flow hedges | 12 months | ||
Cash flow hedges | Maximum | |||
Summary of Investment Holdings [Line Items] | |||
Duration of lease term for which lease-related forward contracts and intercompany lease loan forward contracts can be extended | 5 years | ||
Long-Term Financing Receivables and Other Assets | Equity securities in privately held companies | |||
Summary of Investment Holdings [Line Items] | |||
Investment amount | $ 295 | $ 190 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities of Investments in Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Amortized Cost | ||
Due in one year | $ 1 | |
Due in more than five years | 127 | |
Debt securities, amortized cost | 128 | $ 142 |
Fair Value | ||
Due in one year | 1 | |
Due in more than five years | 145 | |
Fair Value | $ 146 | $ 165 |
Financial Instruments - Gross N
Financial Instruments - Gross Notional and Fair Value of Instruments in the Balance Sheets (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Derivatives, Fair Value | ||
Outstanding Gross Notional | $ 20,068,000,000 | $ 24,189,000,000 |
Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 152,000,000 | 215,000,000 |
Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 358,000,000 | 253,000,000 |
Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 146,000,000 | 107,000,000 |
Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 48,000,000 | 40,000,000 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 13,806,000,000 | 17,694,000,000 |
Derivatives designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 109,000,000 | 195,000,000 |
Derivatives designated as hedging instruments | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 349,000,000 | 250,000,000 |
Derivatives designated as hedging instruments | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 108,000,000 | 74,000,000 |
Derivatives designated as hedging instruments | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 47,000,000 | 37,000,000 |
Derivatives designated as hedging instruments | Fair value hedges | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 3,850,000,000 | 6,850,000,000 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 220,000,000 | 72,000,000 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 0 | 11,000,000 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 500,000,000 | 500,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 1,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 2,000,000 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 7,652,000,000 | 8,578,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 75,000,000 | 164,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 85,000,000 | 141,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 95,000,000 | 45,000,000 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 38,000,000 | 27,000,000 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 1,804,000,000 | 1,766,000,000 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 34,000,000 | 31,000,000 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 44,000,000 | 36,000,000 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 11,000,000 | 18,000,000 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 9,000,000 | 10,000,000 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 6,262,000,000 | 6,495,000,000 |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 43,000,000 | 20,000,000 |
Derivatives not designated as hedging instruments | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 9,000,000 | 3,000,000 |
Derivatives not designated as hedging instruments | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 38,000,000 | 33,000,000 |
Derivatives not designated as hedging instruments | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 1,000,000 | 3,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 6,157,000,000 | 6,398,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 43,000,000 | 17,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 9,000,000 | 3,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 35,000,000 | 33,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 1,000,000 | 3,000,000 |
Derivatives not designated as hedging instruments | Other derivatives | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 105,000,000 | 97,000,000 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 3,000,000 |
Derivatives not designated as hedging instruments | Other derivatives | Long-Term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 3,000,000 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | $ 0 | $ 0 |
Financial Instruments - Offsett
Financial Instruments - Offsetting Assets and Liabilities (Details) $ in Millions | Oct. 31, 2020USD ($)segment | Oct. 31, 2019USD ($) |
Derivative assets | ||
Gross Amount Recognized | $ 510 | $ 468 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 510 | 468 |
Gross Amounts Not Offset | ||
Derivatives | 137 | 123 |
Financial Collateral | 321 | 263 |
Net Amount | 52 | 82 |
Derivative liabilities | ||
Gross Amount Recognized | 194 | 147 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 194 | 147 |
Gross Amounts Not Offset | ||
Derivatives | 137 | 123 |
Financial Collateral | 55 | 19 |
Net Amount | $ 2 | 5 |
Business days prior to respective reporting date | segment | 2 | |
Counterparty collateral | $ 55 | |
Cash collateral posted | $ 19 |
Financial Instruments - Amounts
Financial Instruments - Amounts Recorded in the Balance Sheets (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Notes payable and short-term borrowings | ||
Derivatives, Fair Value | ||
Carrying amount of the hedged assets/ (liabilities) | $ 0 | $ (2,987) |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities) | 0 | 11 |
Long-term debt | ||
Derivatives, Fair Value | ||
Carrying amount of the hedged assets/ (liabilities) | (4,059) | (3,908) |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities) | $ (220) | $ (72) |
Financial Instruments - Pre-tax
Financial Instruments - Pre-tax Effect of Derivative Instruments in Hedging Relationships on OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Derivative Instruments, Gain (Loss) | |||
Total | $ 16 | $ 310 | $ 250 |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) | |||
Gains (Losses) Recognized in OCI on Derivatives in Cash Flow Hedging Relationship | (34) | 307 | 169 |
Gains (Losses) Recognized in OCI on Derivatives in Net Investment Hedging Relationship | 56 | 2 | 81 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) | |||
Gains (Losses) Recognized in OCI on Derivatives in Cash Flow Hedging Relationship | $ (6) | $ 1 | $ 0 |
Financial Instruments - Pre-t_2
Financial Instruments - Pre-tax Effect of Derivative Instruments on Statement of Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Derivative Instruments, Gain (Loss) | |||||||||||
Net revenue | $ 7,208 | $ 6,816 | $ 6,009 | $ 6,949 | $ 7,215 | $ 7,217 | $ 7,150 | $ 7,553 | $ 26,982 | $ 29,135 | $ 30,852 |
Interest and other, net | (215) | (177) | (274) | ||||||||
Net revenue | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Total gains (losses) | 38 | 233 | (24) | ||||||||
Interest and other, net | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Total gains (losses) | 22 | 12 | 311 | ||||||||
Interest rate contracts | Net revenue | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives in fair value hedging relationships | 0 | 0 | 0 | ||||||||
Amount of gains (losses) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 | ||||||||
Interest rate contracts | Net revenue | Derivatives designated as hedging instruments | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives in fair value hedging relationships | 0 | 0 | 0 | ||||||||
Interest rate contracts | Interest and other, net | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives in fair value hedging relationships | (159) | (414) | 211 | ||||||||
Amount of gains (losses) reclassified from accumulated other comprehensive income into income | (3) | 0 | 0 | ||||||||
Interest rate contracts | Interest and other, net | Derivatives designated as hedging instruments | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives in fair value hedging relationships | 159 | 414 | (211) | ||||||||
Foreign exchange contracts | Net revenue | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Amount of gains (losses) reclassified from accumulated other comprehensive income into income | 38 | 233 | (24) | ||||||||
Gains (losses) on derivatives not designated as hedging instruments | 0 | 0 | 0 | ||||||||
Foreign exchange contracts | Interest and other, net | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Amount of gains (losses) reclassified from accumulated other comprehensive income into income | (14) | 138 | 16 | ||||||||
Gains (losses) on derivatives not designated as hedging instruments | 44 | (134) | 301 | ||||||||
Other derivatives | Net revenue | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives not designated as hedging instruments | 0 | 0 | 0 | ||||||||
Other derivatives | Interest and other, net | |||||||||||
Derivative Instruments, Gain (Loss) | |||||||||||
Gains (losses) on derivatives not designated as hedging instruments | $ (5) | $ 8 | $ (6) |
Borrowings - Notes Payable and
Borrowings - Notes Payable and Short-Term Borrowings (Details) - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Notes Payable and Short-Term Borrowings | ||
Current portion of long-term debt | $ 2,768,000,000 | $ 3,441,000,000 |
Short term borrowings | $ 3,755,000,000 | $ 4,425,000,000 |
Current portion of long-term debt, weighted average interest rate (as a percent) | 2.00% | 4.10% |
Hewlett Packard Enterprise Asset-Backed Debt Securities | ||
Notes Payable and Short-Term Borrowings | ||
Current portion of long-term debt | $ 886,000,000 | |
FS Commercial paper | ||
Notes Payable and Short-Term Borrowings | ||
FS Commercial paper | 677,000,000 | $ 698,000,000 |
Short term borrowings | $ 0 | $ 0 |
Weighted-Average Interest Rate | 0.00% | (0.10%) |
Notes payable to banks, lines of credit and other | ||
Notes Payable and Short-Term Borrowings | ||
Notes payable to banks, lines of credit and other | $ 310,000,000 | $ 286,000,000 |
Weighted-Average Interest Rate | 1.30% | 2.70% |
Notes payable to banks, lines of credit and other | Financial Services | ||
Notes Payable and Short-Term Borrowings | ||
Short term borrowings | $ 219,000,000 | $ 204,000,000 |
Borrowings - Long-Term Debt (De
Borrowings - Long-Term Debt (Details) | 12 Months Ended | ||
Oct. 31, 2020USD ($)tranche | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Long-term debt | |||
Total long-term debt | $ 12,186,000,000 | $ 9,395,000,000 | |
Fair value adjustment related to hedged debt | 220,000,000 | 61,000,000 | |
Unamortized debt issuance costs | (54,000,000) | (47,000,000) | |
Less: current portion | (2,768,000,000) | (3,441,000,000) | |
Interest expense on borrowings recognized in Combined Statements of Earnings | |||
Financing interest | 271,000,000 | 297,000,000 | $ 278,000,000 |
Interest expense | 332,000,000 | 311,000,000 | 353,000,000 |
Total interest expense | 603,000,000 | 608,000,000 | $ 631,000,000 |
$1,000 issued at discount to par at a price of 99.883% in July 2020 at 1.45% due April 1, 2024, interest payable semi-annually on April 1 and October 1 of each year | |||
Long-term debt | |||
Total long-term debt | 999,000,000 | 0 | |
Face amount of debt instrument | $ 1,000,000,000 | ||
Discount to par (as a percent) | 99.883% | ||
Interest rate | 1.45% | ||
$750 issued at discount to par at a price of 99.820% in July 2020 at 1.75% due April 1, 2026, interest payable semi-annually on April 1 and October 1 of each year | |||
Long-term debt | |||
Total long-term debt | $ 749,000,000 | 0 | |
Face amount of debt instrument | $ 750,000,000 | ||
Discount to par (as a percent) | 99.82% | ||
Interest rate | 1.75% | ||
$1,250 issued at discount to par at a price of 99.956% in April 2020 at 4.45% due October 2, 2023, interest payable semi-annually on April 2 and October 2 of each year | |||
Long-term debt | |||
Total long-term debt | $ 1,250,000,000 | 0 | |
Face amount of debt instrument | $ 1,250,000,000 | ||
Discount to par (as a percent) | 99.956% | ||
Interest rate | 4.45% | ||
$1,000 issued at discount to par at a price of 99.817% in April 2020 at 4.65% due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year | |||
Long-term debt | |||
Total long-term debt | $ 998,000,000 | 0 | |
Face amount of debt instrument | $ 1,000,000,000 | ||
Discount to par (as a percent) | 99.817% | ||
Interest rate | 4.65% | ||
$3,000 issued at discount to par at a price of 99.972% in October 2015 at 3.6% paid August 17, 2020, interest payable semi-annually on April 15 and October 15 of each year. | |||
Long-term debt | |||
Total long-term debt | $ 0 | 3,000,000,000 | |
Face amount of debt instrument | $ 3,000,000,000 | ||
Discount to par (as a percent) | 99.972% | ||
Interest rate | 3.60% | ||
$500 issued at par in September 2019 at three-month USD LIBOR plus 0.68% due March 12, 2021, interest payable quarterly on March 12, June 12, September 12 and December 12 of each year | |||
Long-term debt | |||
Total long-term debt | $ 500,000,000 | 500,000,000 | |
Face amount of debt instrument | $ 500,000,000 | ||
Spread on reference interest rate (as a percent) | 0.68% | ||
$500 issued at discount to par at a price of 99.861% in September 2018 at 3.5%, due October 5, 2021, interest payable semi-annually on April 5 and October 5 of each year | |||
Long-term debt | |||
Total long-term debt | $ 500,000,000 | 500,000,000 | |
Face amount of debt instrument | $ 500,000,000 | ||
Discount to par (as a percent) | 99.861% | ||
Interest rate | 3.50% | ||
$800 issued at par in September 2018 at three-month USD LIBOR plus 0.72% due October 5, 2021, interest payable quarterly on January 5, April 5, July 5 and October 5 of each year | |||
Long-term debt | |||
Total long-term debt | $ 800,000,000 | 800,000,000 | |
Face amount of debt instrument | $ 800,000,000 | ||
Spread on reference interest rate (as a percent) | 0.72% | ||
$1,350 issued at discount to par at a price of 99.802% in October 2015 at 4.4%, due October 15, 2022, interest payable semi-annually on April 15 and October 15 of each year | |||
Long-term debt | |||
Total long-term debt | $ 1,349,000,000 | 1,349,000,000 | |
Face amount of debt instrument | $ 1,350,000,000 | ||
Discount to par (as a percent) | 99.802% | ||
Interest rate | 4.40% | ||
$1,000 issued at discount to par at a price of 99.979% in September 2019 at 2.25%, due April 1, 2023, interest payable semi-annually on April 1 and October 1 of each year | |||
Long-term debt | |||
Total long-term debt | $ 1,000,000,000 | 1,000,000,000 | |
Face amount of debt instrument | $ 1,000,000,000 | ||
Discount to par (as a percent) | 99.979% | ||
Interest rate | 2.25% | ||
$2,500 issued at discount to par at a price of 99.725% in October 2015 at 4.9%, due October 15, 2025, interest payable semi-annually on April 15 and October 15 of each year | |||
Long-term debt | |||
Total long-term debt | $ 2,497,000,000 | 2,495,000,000 | |
Face amount of debt instrument | $ 2,500,000,000 | ||
Discount to par (as a percent) | 99.725% | ||
Interest rate | 4.90% | ||
$750 issued at discount to par at a price of 99.942% in October 2015 at 6.2%, due October 15, 2035, interest payable semi-annually on April 15 and October 15 of each year | |||
Long-term debt | |||
Total long-term debt | $ 750,000,000 | 750,000,000 | |
Face amount of debt instrument | $ 750,000,000 | ||
Discount to par (as a percent) | 99.942% | ||
Interest rate | 6.20% | ||
$1,500 issued at discount to par at a price of 99.932% in October 2015 at 6.35%, due October 15, 2045, interest payable semi-annually on April 15 and October 15 of each year | |||
Long-term debt | |||
Total long-term debt | $ 1,499,000,000 | 1,499,000,000 | |
Face amount of debt instrument | $ 1,500,000,000 | ||
Discount to par (as a percent) | 99.932% | ||
Interest rate | 6.35% | ||
$1,000 issued in June 2020, in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.19%, payable monthly from August 2020 | |||
Long-term debt | |||
Face amount of debt instrument | $ 1,000,000,000 | ||
Discount to par (as a percent) | 99.99% | ||
Interest rate | 1.19% | ||
Number of tranches | tranche | 6 | ||
$1,000 issued in June 2020, in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.19%, payable monthly from August 2020 | Hewlett Packard Enterprise Asset-Backed Debt Securities | |||
Long-term debt | |||
Secured Debt | $ 822,000,000 | 0 | |
$755 issued in February 2020 of in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020 | |||
Long-term debt | |||
Face amount of debt instrument | $ 755,000,000 | ||
Discount to par (as a percent) | 99.99% | ||
Interest rate | 1.87% | ||
Number of tranches | tranche | 6 | ||
$755 issued in February 2020 of in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020 | Hewlett Packard Enterprise Asset-Backed Debt Securities | |||
Long-term debt | |||
Secured Debt | $ 519,000,000 | 0 | |
$763 issued in September 2019, in six tranches at a discount to par, at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019 | |||
Long-term debt | |||
Face amount of debt instrument | $ 763,000,000 | ||
Discount to par (as a percent) | 99.99% | ||
Interest rate | 2.31% | ||
Number of tranches | tranche | 6 | ||
$763 issued in September 2019, in six tranches at a discount to par, at a weighted average price of 99.99% and a weighted average interest rate of 2.31%, payable monthly from November 2019 | Hewlett Packard Enterprise Asset-Backed Debt Securities | |||
Long-term debt | |||
Secured Debt | $ 385,000,000 | 763,000,000 | |
Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030(1) | |||
Long-term debt | |||
Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030(1) | 171,000,000 | 166,000,000 | |
Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030(1) | Financial Services | |||
Long-term debt | |||
Other, including capital lease obligations | $ 98,000,000 | $ 80,000,000 | |
Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030(1) | Maximum | |||
Long-term debt | |||
Interest rate | 9.00% | ||
Other, including capital lease obligations, at 0.00%-9.00%, due in calendar years 2020-2030(1) | Minimum | |||
Long-term debt | |||
Interest rate | 0.00% |
Borrowings - Future Maturities
Borrowings - Future Maturities of Long Term Debt (Details) $ in Millions | Oct. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 2,776 |
2022 | 1,962 |
2023 | 2,509 |
2024 | 2,010 |
2025 | 2,507 |
Thereafter | 3,033 |
Total | $ 14,797 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Oct. 15, 2020USD ($) | Aug. 17, 2020USD ($) | Feb. 20, 2020USD ($)tranche | Sep. 20, 2019USD ($)tranche | Sep. 13, 2019USD ($) | Aug. 16, 2019USD ($)extension_term | Jun. 30, 2020USD ($)tranche | Oct. 31, 2020USD ($)commercial_paper_program | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 17, 2020USD ($) | Apr. 09, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Debt instruments | ||||||||||||||
Payment of debt | $ 5,099,000,000 | $ 2,203,000,000 | $ 4,138,000,000 | |||||||||||
Current portion of long-term debt, weighted average interest rate (as a percent) | 2.00% | 4.10% | ||||||||||||
Amount outstanding | $ 3,755,000,000 | $ 4,425,000,000 | ||||||||||||
Fair value adjustment related to hedged debt | 220,000,000 | 61,000,000 | ||||||||||||
Discount on debt issuance | 9,000,000 | |||||||||||||
Unsecured revolving credit facility | ||||||||||||||
Debt instruments | ||||||||||||||
Amount available under credit facility | $ 4,750,000,000 | |||||||||||||
Term of credit facility | 5 years | |||||||||||||
Number of extension terms | extension_term | 2 | |||||||||||||
Extension term | 1 year | |||||||||||||
Borrowings outstanding | $ 0 | 0 | ||||||||||||
FS Commercial paper | ||||||||||||||
Debt instruments | ||||||||||||||
Number of commercial paper programs | commercial_paper_program | 2 | |||||||||||||
Maximum borrowing capacity under credit facility | $ 4,750,000,000 | $ 4,000,000,000 | ||||||||||||
Amount outstanding | 0 | 0 | ||||||||||||
FS Commercial paper | U.S. program | ||||||||||||||
Debt instruments | ||||||||||||||
Maximum borrowing capacity under credit facility | 4,750,000,000 | |||||||||||||
FS Commercial paper | Euro program | ||||||||||||||
Debt instruments | ||||||||||||||
Maximum borrowing capacity under credit facility | 3,000,000,000 | |||||||||||||
Hewlett Packard Enterprise | FS Commercial paper | Euro program | ||||||||||||||
Debt instruments | ||||||||||||||
Amount outstanding | 677,000,000 | $ 698,000,000 | ||||||||||||
Hewlett-Packard International Bank PLC | FS Commercial paper | Euro Commercial Paper/Certificate of Deposit Programme | ||||||||||||||
Debt instruments | ||||||||||||||
Maximum borrowing capacity under credit facility | $ 1,000,000,000 | |||||||||||||
2.250% Senior Notes Due April 1, 2023 | Notes Payable to Banks | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 2.25% | |||||||||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||||||||||
1.75% Senior Notes Due April 2026 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 1.75% | |||||||||||||
Face amount of debt instrument | $ 750,000,000 | |||||||||||||
3.6% Senior Notes Due October 2020 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Repayments of debt | $ 3,000,000,000 | $ 3,000,000,000 | ||||||||||||
Interest rate | 3.60% | 3.60% | ||||||||||||
Payment for make whole premium | $ 7,000,000 | |||||||||||||
Floating Rate Notes Due March 2021 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Face amount of debt instrument | $ 500,000,000 | |||||||||||||
$1,250 issued at discount to par at a price of 99.956% in April 2020 at 4.45% due October 2, 2023, interest payable semi-annually on April 2 and October 2 of each year | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 2.10% | |||||||||||||
Payment of debt | $ 1,100,000,000 | |||||||||||||
Euro Commercial Paper/Certificate of Deposit Programme | FS Commercial paper | ||||||||||||||
Debt instruments | ||||||||||||||
Maximum borrowing capacity under credit facility | $ 500,000,000 | |||||||||||||
1.45% Senior Notes Due April 2024 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 1.45% | |||||||||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||||||||||
4.45% Senior Notes Due October 2023 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 4.45% | |||||||||||||
Face amount of debt instrument | $ 1,300,000,000 | |||||||||||||
$1,000 issued at discount to par at a price of 99.817% in April 2020 at 4.65% due October 1, 2024, interest payable semi-annually on April 1 and October 1 of each year | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Interest rate | 4.65% | |||||||||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||||||||||
June 2020 Asset Backed Securities | Hewlett Packard Enterprise Asset-Backed Debt Securities | ||||||||||||||
Debt instruments | ||||||||||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||||||||||
Number of tranches | tranche | 6 | |||||||||||||
Discount to par (as a percent) | 99.99% | |||||||||||||
Current portion of long-term debt, weighted average interest rate (as a percent) | 1.19% | |||||||||||||
February 2020 Asset Backed Securities | Hewlett Packard Enterprise Asset-Backed Debt Securities | ||||||||||||||
Debt instruments | ||||||||||||||
Face amount of debt instrument | $ 755,000,000 | |||||||||||||
Number of tranches | tranche | 6 | |||||||||||||
Discount to par (as a percent) | 99.99% | |||||||||||||
Current portion of long-term debt, weighted average interest rate (as a percent) | 1.87% | |||||||||||||
September 2019 Asset Backed Securities | Hewlett Packard Enterprise Asset-Backed Debt Securities | ||||||||||||||
Debt instruments | ||||||||||||||
Face amount of debt instrument | $ 763,000,000 | |||||||||||||
Number of tranches | tranche | 6 | |||||||||||||
Discount to par (as a percent) | 99.99% | |||||||||||||
Current portion of long-term debt, weighted average interest rate (as a percent) | 2.31% | |||||||||||||
LIBOR | Floating Rate Notes Due March 2021 | Senior Notes | ||||||||||||||
Debt instruments | ||||||||||||||
Spread on reference interest rate (as a percent) | 0.68% |
Stockholders' Equity - Taxes Re
Stockholders' Equity - Taxes Related to OCI (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Accumulated Other Comprehensive Loss | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax (provision) benefit on other comprehensive loss | $ 8 | $ 36 | $ (42) |
Net unrealized (losses) gains on cash flow hedges | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax (provision) benefit on net unrealized gains (losses) arising during the period | (10) | (33) | (22) |
Tax provision (benefit) on net (gains) losses reclassified into earnings | 21 | 43 | (1) |
Tax (provision) benefit on other comprehensive loss | 11 | 10 | (23) |
Change in unrealized components of defined benefit plans | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax (provision) benefit on other comprehensive loss | (8) | 26 | (22) |
Losses arising during the period | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax (provision) benefit on net unrealized gains (losses) arising during the period | 10 | 40 | 2 |
Actuarial loss and net prior service benefit | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax provision (benefit) on net (gains) losses reclassified into earnings | (17) | (13) | (14) |
Curtailments, settlements and other | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax provision (benefit) on net (gains) losses reclassified into earnings | (1) | (1) | (10) |
Cumulative translation adjustment | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Tax (provision) benefit on net unrealized gains (losses) arising during the period | 5 | 0 | 3 |
Tax (provision) benefit on other comprehensive loss | $ 5 | $ 0 | $ 3 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes and Reclassifications of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Other comprehensive (loss) income, net of taxes | $ (169) | $ (509) | $ (137) |
Net unrealized gains (losses) on available-for-sale securities | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Net unrealized gains (losses) arising during the period | (1) | 9 | (3) |
(Gains) losses reclassified into earnings | (4) | (3) | (9) |
Other comprehensive (loss) income, net of taxes | (5) | 6 | (12) |
Net unrealized gains (losses) on cash flow hedges | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Net unrealized gains (losses) arising during the period | (50) | 275 | 147 |
(Gains) losses reclassified into earnings | 0 | (328) | 7 |
Other comprehensive (loss) income, net of taxes | (50) | (53) | 154 |
Change in unrealized components of defined benefit plans | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Net unrealized gains (losses) arising during the period | (348) | ||
(Gains) losses reclassified into earnings | 241 | ||
Other comprehensive (loss) income, net of taxes | (107) | (444) | (232) |
Losses arising during the period | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
(Gains) losses reclassified into earnings | (348) | (661) | (421) |
Actuarial loss and net prior service benefit | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
(Gains) losses reclassified into earnings | 232 | 203 | 177 |
Curtailments, settlements and other | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Other comprehensive (loss) income, net of taxes | 9 | 14 | 12 |
Cumulative translation adjustment | |||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||
Net unrealized gains (losses) arising during the period | (7) | (18) | (67) |
(Gains) losses reclassified into earnings | 0 | ||
Release of cumulative translation adjustment as a result of divestitures and country exits | 0 | 0 | 20 |
Other comprehensive (loss) income, net of taxes | $ (7) | $ (18) | $ (47) |
Stockholders' Equity - Componen
Stockholders' Equity - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | $ 17,149 | $ 21,274 | $ 23,505 | |
Balance | 16,096 | 17,149 | 21,274 | |
Net unrealized gains (losses) on available-for-sale securities | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | 23 | |||
Other comprehensive income (loss) before reclassifications | (1) | 9 | (3) | |
Reclassifications of (gains) losses into earnings | (4) | (3) | (9) | |
Balance | 18 | 23 | ||
Net unrealized gains (losses) on cash flow hedges | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | 53 | |||
Other comprehensive income (loss) before reclassifications | (50) | 275 | 147 | |
Reclassifications of (gains) losses into earnings | 0 | (328) | 7 | |
Balance | (7) | 53 | ||
Unrealized components of defined benefit plans | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | (3,366) | |||
Other comprehensive income (loss) before reclassifications | (348) | |||
Reclassifications of (gains) losses into earnings | 241 | |||
Balance | (3,473) | (3,366) | ||
Cumulative translation adjustment | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | (437) | |||
Other comprehensive income (loss) before reclassifications | (7) | (18) | (67) | |
Reclassifications of (gains) losses into earnings | 0 | |||
Balance | (477) | (437) | ||
Accumulated Other Comprehensive Loss | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | (3,727) | (3,218) | (2,895) | |
Other comprehensive income (loss) before reclassifications | (406) | |||
Reclassifications of (gains) losses into earnings | 237 | |||
Balance | (3,939) | (3,727) | (3,218) | |
Effect of change in accounting principle | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | [1] | (2,181) | ||
Balance | [1] | $ (2,181) | ||
Effect of change in accounting principle | Net unrealized gains (losses) on available-for-sale securities | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | 0 | |||
Balance | 0 | |||
Effect of change in accounting principle | Net unrealized gains (losses) on cash flow hedges | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | (10) | |||
Balance | (10) | |||
Effect of change in accounting principle | Unrealized components of defined benefit plans | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | 0 | |||
Balance | 0 | |||
Effect of change in accounting principle | Cumulative translation adjustment | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | (33) | |||
Balance | (33) | |||
Effect of change in accounting principle | Accumulated Other Comprehensive Loss | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance | $ (43) | |||
Balance | $ (43) | |||
[1] | For fiscal 2019, includes $2.3 billion related to an addition to accumulated deficit as a result of the adoption of an accounting standard update for Income Taxes and $124 million related to a reduction to accumulated deficit as a result of the adoption of the new revenue accounting standard.(2) For fiscal 2020, $43 million represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit. |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | Dec. 01, 2020 | Feb. 23, 2019 | Feb. 22, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Feb. 21, 2018 | Oct. 16, 2017 | May 24, 2016 | Oct. 13, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.12 | $ 0.1125 | $ 0.36 | $ 0.4575 | $ 0.4875 | |||||
Stock repurchase program authorized amount | $ 3,000,000,000 | |||||||||
Remaining authorization | $ 2,100,000,000 | $ 2,500,000,000 | ||||||||
Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.12 | |||||||||
Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program authorized amount | $ 2,500,000,000 | $ 5,000,000,000 | $ 3,000,000,000 | |||||||
Retired (shares) | 25.3 | 150 | ||||||||
Open market repurchases (shares) | 0.5 | 2.4 | ||||||||
Repurchased | $ 346,000,000 | |||||||||
Accelerated Share Repurchase Agreement | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchased | $ 2,200,000,000 |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Numerator: | |||||||||||
Net earnings (loss) from continuing operations | $ 157 | $ 9 | $ (821) | $ 333 | $ 480 | $ (27) | $ 419 | $ 177 | $ (322) | $ 1,049 | $ 2,012 |
Net loss from discontinued operations | 0 | 0 | (104) | ||||||||
Net earnings (loss) | $ (322) | $ 1,049 | $ 1,908 | ||||||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic net EPS (in shares) | 1,294,000 | 1,353,000 | 1,529,000 | ||||||||
Dilutive effect of employee stock plans (in shares) | 0 | 13,000 | 24,000 | ||||||||
Weighted-average shares used to compute diluted net EPS (in shares) | 1,294,000 | 1,366,000 | 1,553,000 | ||||||||
Basic net earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ 0.37 | $ (0.02) | $ 0.31 | $ 0.13 | $ (0.25) | $ 0.78 | $ 1.32 | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.07) | ||||||||
Total basic net earnings (loss) per share (in dollars per share) | $ 0.12 | $ 0.01 | $ (0.64) | $ 0.26 | (0.25) | 0.78 | 1.25 | ||||
Diluted net earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ 0.36 | $ (0.02) | $ 0.30 | $ 0.13 | (0.25) | 0.77 | 1.30 | ||||
Discontinued operations (in dollars per share) | 0 | 0 | (0.07) | ||||||||
Total diluted net earnings (loss) per share (in dollars per share) | $ 0.12 | $ 0.01 | $ (0.64) | $ 0.25 | $ (0.25) | $ 0.77 | $ 1.23 | ||||
Anti-dilutive weighted average stock awards (in shares) | 49,000 | 4,000 | 2,000 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | May 16, 2019USD ($) | Feb. 06, 2018plaintiff | Nov. 30, 2017plaintiff | Dec. 19, 2016 | Jun. 30, 2016USD ($) | Jan. 24, 2013USD ($) | Dec. 11, 2012USD ($) | Apr. 21, 2012USD ($) | May 10, 2010USD ($)employee | Apr. 29, 2010USD ($) | Oct. 31, 2020 | Oct. 31, 2008contract | Apr. 20, 2012USD ($) | Apr. 11, 2012USD ($) |
Litigation and Contingencies | ||||||||||||||
Damages sought | $ 370 | |||||||||||||
India Directorate of Revenue Intelligence Proceedings | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Number of HP India employees alleging underpaid customs | employee | 7 | |||||||||||||
Number of former HP India employees alleging underpaid customs | employee | 1 | |||||||||||||
Loss contingency deposit to prevent interruption of business | $ 16 | |||||||||||||
Bangalore Commissioner of Customs | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Duties and penalties under show cause notices | $ 17 | $ 386 | ||||||||||||
Amount deposited under show cause notice prior to order | $ 7 | $ 9 | ||||||||||||
Additional amount deposited against products-related show cause notice | $ 10 | |||||||||||||
Additional amount deposited against parts-related show cause notice | $ 3 | |||||||||||||
Additional amount deposited against product order | $ 24 | |||||||||||||
ECT Proceedings | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Number of ECT contracts related to alleged improprieties | contract | 3 | |||||||||||||
ECT Proceedings | Minimum | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Length of sanctions | 2 years | |||||||||||||
ECT Proceedings | Maximum | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Length of sanctions | 5 years | |||||||||||||
Forsyth, et al. vs HP Inc. and Hewlett Packard Enterprise | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Number of plaintiffs | plaintiff | 16 | 3 | ||||||||||||
Number of additional plaintiffs | plaintiff | 13 | |||||||||||||
Forsyth, et al. vs HP Inc. and Hewlett Packard Enterprise | Minimum | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Age of terminated employees | 40 years | |||||||||||||
Oracle | Judicial Ruling | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Settlement amount | $ 3,000 | |||||||||||||
Oracle | Renewed Judgement | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Settlement amount | $ 3,800 | |||||||||||||
Daily interest accrual on renewed judgement | $ 1 | |||||||||||||
Oracle - Past Lost Profits | Judicial Ruling | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Settlement amount | 1,700 | |||||||||||||
Oracle - Future Lost Profits | Judicial Ruling | ||||||||||||||
Litigation and Contingencies | ||||||||||||||
Settlement amount | $ 1,300 |
Guarantees, Indemnifications _3
Guarantees, Indemnifications and Warranties - Indemnified Litigation matters and Other Contingencies (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Tax Indemnification | ||
Other Commitments [Line Items] | ||
Net indemnification receivable - long-term | $ 62 | $ 202 |
Net indemnification receivable - short-term | 65 | 63 |
Net indemnification payable - long-term | 15 | 9 |
Litigation matters and other contingencies | ||
Other Commitments [Line Items] | ||
Receivable | 70 | 85 |
Payable | $ 53 | $ 55 |
Guarantees, Indemnifications _4
Guarantees, Indemnifications and Warranties - Changes in Aggregate Product Warranty Liabilities and Changes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Changes in aggregated product warranty liabilities | ||
Balance at beginning of year | $ 400 | $ 430 |
Accruals for warranties issued | 238 | 239 |
Adjustments related to pre-existing warranties | (3) | 6 |
Settlements made | (250) | (275) |
Balance at end of year | $ 385 | $ 400 |
Commitments (Details)
Commitments (Details) $ in Millions | Oct. 31, 2020USD ($) |
Unconditional purchase obligations details | |
2021 | $ 231 |
2022 | 195 |
2023 | 69 |
2024 | 8 |
2025 | 9 |
Thereafter | 32 |
Total | $ 544 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | May 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity interests | $ 2,170 | $ 2,254 | ||
Earnings (loss) from equity interests | 67 | 20 | $ 38 | |
Equity Method Investee | H3C | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales to related party | 737 | 897 | 1,300 | |
Purchases from related party | 215 | 202 | 273 | |
Payable to H3C | 29 | 39 | ||
Receivables due from H3C | 19 | 32 | ||
H3C | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity interests | $ 2,200 | 2,300 | ||
Ownership | 49.00% | |||
Cash dividend | $ 165 | 156 | ||
Basis difference | $ 2,534 | |||
Earnings (loss) from equity interests | $ 67 | 20 | $ 38 | |
Weighted-average useful life | 5 years | |||
Impairment of equity method investments | $ 0 | $ 0 |
Equity Method Investments - All
Equity Method Investments - Allocation of Proportionate Share of Net Assets (Details) - H3C $ in Millions | May 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Equity method goodwill | $ 1,674 |
Intangible assets | 749 |
In-process research and development | 188 |
Deferred tax liabilities | (152) |
Other | 75 |
Basis difference | $ 2,534 |
Equity Method Investments - Ear
Equity Method Investments - Earnings from Equity Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Earnings from equity interests | $ 67 | $ 20 | $ 38 |
H3C | |||
Schedule of Equity Method Investments [Line Items] | |||
Earnings from equity interests, net of taxes | 211 | 167 | 192 |
Basis difference amortization | (145) | (152) | (151) |
Elimination of profit on intra-entity sales adjustment | 1 | 5 | (3) |
Earnings from equity interests | $ 67 | $ 20 | $ 38 |
Quarterly Summary (Details)
Quarterly Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 7,208 | $ 6,816 | $ 6,009 | $ 6,949 | $ 7,215 | $ 7,217 | $ 7,150 | $ 7,553 | $ 26,982 | $ 29,135 | $ 30,852 |
Cost of sales | 5,002 | 4,749 | 4,095 | 4,667 | 4,822 | 4,768 | 4,845 | 5,207 | |||
Segment earnings (loss) from operations | 145 | 12 | (834) | 348 | 460 | (76) | 434 | 456 | (329) | 1,274 | 1,737 |
Net earnings (loss) | $ 157 | $ 9 | $ (821) | $ 333 | $ 480 | $ (27) | $ 419 | $ 177 | $ (322) | $ 1,049 | $ 2,012 |
Total basic net earnings (loss) per share (in dollars per share) | $ 0.12 | $ 0.01 | $ (0.64) | $ 0.26 | $ (0.25) | $ 0.78 | $ 1.25 | ||||
Total diluted net earnings (loss) per share (in dollars per share) | $ 0.12 | $ 0.01 | $ (0.64) | $ 0.25 | (0.25) | 0.77 | 1.23 | ||||
Continuing operations - basic (in dollars per share) | $ 0.37 | $ (0.02) | $ 0.31 | $ 0.13 | (0.25) | 0.78 | 1.32 | ||||
Continuing operations - diluted (in dollars per share) | $ 0.36 | $ (0.02) | $ 0.30 | $ 0.13 | $ (0.25) | $ 0.77 | $ 1.30 |