Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Nov. 30, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2022 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-4423 | ||
Entity Registrant Name | HP Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1081436 | ||
Entity Address, Address Line One | 1501 Page Mill Road | ||
Entity Address, City or Town | Palo Alto | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94304 | ||
City Area Code | 650 | ||
Local Phone Number | 857-1501 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | HPQ | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | No | ||
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 | $ 37,840,980,837 | ||
Entity Common Stock, Shares Outstanding | 982,145,796 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE DOCUMENT DESCRIPTION 10-K PART Portions of the Registrant’s definitive proxy statement related to its 2023 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after Registrant’s fiscal year end of October 31, 2022 are incorporated by reference into Part III of this Report. III | ||
Entity Central Index Key | 0000047217 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | ERNST & YOUNG LLP |
Auditor Location | San Jose, California |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | |||
Net revenue | $ 62,983 | $ 63,487 | $ 56,639 |
Costs and expenses: | |||
Cost of revenue | 50,648 | 50,070 | 46,202 |
Research and development | 1,593 | 1,907 | 1,478 |
Selling, general and administrative | 5,264 | 5,741 | 4,906 |
Restructuring and other charges | 233 | 245 | 462 |
Acquisition and divestiture charges | 318 | 68 | 16 |
Amortization of intangible assets | 228 | 154 | 113 |
Russia exit charges | 23 | 0 | 0 |
Total costs and expenses | 58,307 | 58,185 | 53,177 |
Earnings from operations | 4,676 | 5,302 | 3,462 |
Interest and other, net | (235) | 2,209 | (231) |
Earnings before taxes | 4,441 | 7,511 | 3,231 |
Provision for taxes | (1,238) | (1,008) | (387) |
Net earnings | $ 3,203 | $ 6,503 | $ 2,844 |
Net earnings per share: | |||
Basic (in dollars per share) | $ 3.09 | $ 5.38 | $ 2.01 |
Diluted (in dollars per share) | $ 3.05 | $ 5.33 | $ 2 |
Weighted-average shares used to compute net earnings per share: | |||
Basic (in shares) | 1,038 | 1,208 | 1,413 |
Diluted (in shares) | 1,050 | 1,220 | 1,420 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 3,203 | $ 6,503 | $ 2,844 |
Change in unrealized components of available-for-sale debt securities: | |||
Unrealized (losses) gains arising during the period | (11) | 5 | 2 |
Change in unrealized components of cash flow hedges: | |||
Unrealized gains (losses) arising during the period | 1,541 | (132) | (201) |
(Gains) losses reclassified into earnings | (779) | 243 | (85) |
Change in unrealized components of cash flow hedges | 762 | 111 | (286) |
Change in unrealized components of defined benefit plans: | |||
Gains (losses) arising during the period | 4 | 1,008 | (29) |
Amortization of actuarial loss and prior service benefit | 20 | 80 | 83 |
Curtailments, settlements and other | 0 | (36) | 215 |
Change in unrealized components of defined benefit plans | 24 | 1,052 | 269 |
Change in cumulative translation adjustment | (78) | 28 | (4) |
Other comprehensive income (loss) before taxes | 697 | 1,196 | (19) |
(Provision for) benefit from taxes | (124) | (213) | 1 |
Other comprehensive income (loss), net of taxes | 573 | 983 | (18) |
Comprehensive income | $ 3,776 | $ 7,486 | $ 2,826 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 3,145 | $ 4,299 |
Accounts receivable, net of allowance for credit losses of $107 and $111, respectively | 4,546 | 5,511 |
Inventory | 7,595 | 7,930 |
Other current assets | 4,515 | 4,430 |
Total current assets | 19,801 | 22,170 |
Property, plant and equipment, net | 2,774 | 2,546 |
Goodwill | 8,541 | 6,803 |
Other non-current assets | 7,471 | 7,091 |
Total assets | 38,587 | 38,610 |
Current liabilities: | ||
Notes payable and short-term borrowings | 218 | 1,106 |
Accounts payable | 15,284 | 16,075 |
Other current liabilities | 10,651 | 11,915 |
Total current liabilities | 26,153 | 29,096 |
Long-term debt | 10,796 | 6,386 |
Other non-current liabilities | 4,556 | 4,778 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Preferred stock, $0.01 par value (300 shares authorized; none issued) | 0 | 0 |
Common stock, $0.01 par value (9,600 shares authorized; 980 and 1,092 shares issued and outstanding at October 31, 2022, and 2021 respectively) | 10 | 11 |
Additional paid-in capital | 1,172 | 1,060 |
Accumulated deficit | (4,413) | (2,461) |
Accumulated other comprehensive income (loss) | 313 | (260) |
Total stockholders’ deficit | (2,918) | (1,650) |
Total liabilities and stockholders’ deficit | $ 38,587 | $ 38,610 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 107 | $ 111 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 9,600,000,000 | 9,600,000,000 |
Common stock, shares issued (in shares) | 980,000,000 | 1,092,000,000 |
Common stock, shares outstanding (in shares) | 980,000,000 | 1,092,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 3,203 | $ 6,503 | $ 2,844 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 780 | 785 | 789 |
Stock-based compensation expense | 343 | 330 | 278 |
Restructuring and other charges | 233 | 245 | 462 |
Deferred taxes on earnings | 574 | (605) | 70 |
Defined benefit plan settlement (gains) charges | 0 | (37) | 214 |
Other, net | 475 | 440 | 325 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 1,260 | (80) | 575 |
Inventory | 233 | (2,164) | (386) |
Accounts payable | (928) | 1,257 | (35) |
Net investment in leases | (155) | (111) | (152) |
Taxes on earnings | (83) | 64 | (147) |
Restructuring and other | (245) | (205) | (489) |
Other assets and liabilities | (1,227) | (13) | (32) |
Net cash provided by operating activities | 4,463 | 6,409 | 4,316 |
Cash flows from investing activities: | |||
Investment in property, plant and equipment | (791) | (582) | (580) |
Proceeds from sale of property, plant and equipment | 26 | 0 | 3 |
Purchases of available-for-sale securities and other investments | (52) | (28) | (693) |
Maturities and sales of available-for-sale securities and other investments | 9 | 304 | 417 |
Collateral posted for derivative instruments | 14 | 148 | (163) |
Payments made in connection with business acquisitions, net of cash acquired | (2,755) | (854) | 0 |
Net cash used in investing activities | (3,549) | (1,012) | (1,016) |
Cash flows from financing activities: | |||
(Payments of) Proceeds from short-term borrowings with original maturities less than 90 days, net | (400) | 400 | 0 |
Proceeds from debt, net of issuance costs | 4,175 | 2,121 | 3,108 |
Payment of debt | (693) | (1,245) | (1,849) |
Stock-based award activities and others | (95) | (51) | (128) |
Repurchase of common stock | (4,297) | (6,249) | (3,107) |
Cash dividends paid | (1,037) | (938) | (997) |
Collateral withdrawn for derivative instruments | 200 | 0 | 0 |
Settlement of cash flow hedges | 79 | 0 | 0 |
Net cash used in financing activities | (2,068) | (5,962) | (2,973) |
(Decrease) increase in cash and cash equivalents | (1,154) | (565) | 327 |
Cash and cash equivalents at beginning of period | 4,299 | 4,864 | 4,537 |
Cash and cash equivalents at end of period | 3,145 | 4,299 | 4,864 |
Supplemental cash flow disclosures: | |||
Income taxes paid, net of refunds | 749 | 1,548 | 464 |
Interest expense paid | 305 | 261 | 227 |
Supplemental schedule of non-cash activities: | |||
Purchase of assets under finance leases | $ 0 | $ 0 | $ 19 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Deficit - USD ($) shares in Thousands, $ in Millions | Total | Adjustment for adoption of accounting standards | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Deficit Adjustment for adoption of accounting standards | Accumulated Other Comprehensive Loss |
Balance (in shares) at Oct. 31, 2019 | 1,457,719 | ||||||
Balance at beginning of period at Oct. 31, 2019 | $ (1,193) | $ 27 | $ 15 | $ 835 | $ (818) | $ 27 | $ (1,225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 2,844 | 2,844 | |||||
Other comprehensive income (loss), net of taxes | (18) | (18) | |||||
Comprehensive income | 2,826 | ||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 14,065 | ||||||
Issuance of common stock in connection with employee stock plans and other | $ (37) | (37) | |||||
Repurchases of common stock (in shares) | (168,000) | (167,857) | |||||
Repurchases of common stock (Note 12) | $ (3,132) | $ (2) | (113) | (3,017) | |||
Cash dividends | (997) | (997) | |||||
Stock-based compensation expense | 278 | 278 | |||||
Balance (in shares) at Oct. 31, 2020 | 1,303,927 | ||||||
Balance at end of period at Oct. 31, 2020 | (2,228) | $ 13 | 963 | (1,961) | (1,243) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 6,503 | 6,503 | |||||
Other comprehensive income (loss), net of taxes | 983 | 983 | |||||
Comprehensive income | 7,486 | ||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 11,896 | ||||||
Issuance of common stock in connection with employee stock plans and other | $ (45) | (45) | |||||
Repurchases of common stock (in shares) | (224,000) | (223,618) | |||||
Repurchases of common stock (Note 12) | $ (6,255) | $ (2) | (188) | (6,065) | |||
Cash dividends | (938) | (938) | |||||
Stock-based compensation expense | $ 330 | 330 | |||||
Balance (in shares) at Oct. 31, 2021 | 1,092,000 | 1,092,205 | |||||
Balance at end of period at Oct. 31, 2021 | $ (1,650) | $ 11 | 1,060 | (2,461) | (260) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 3,203 | 3,203 | |||||
Other comprehensive income (loss), net of taxes | 573 | 573 | |||||
Comprehensive income | 3,776 | ||||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 11,951 | ||||||
Issuance of common stock in connection with employee stock plans and other | $ (111) | (111) | |||||
Repurchases of common stock (in shares) | (124,000) | (124,287) | |||||
Repurchases of common stock (Note 12) | $ (4,248) | $ (1) | (129) | (4,118) | |||
Cash dividends | (1,037) | (1,037) | |||||
Stock-based compensation expense | 343 | 343 | |||||
Business acquisitions | $ 9 | 9 | |||||
Balance (in shares) at Oct. 31, 2022 | 980,000 | 979,869 | |||||
Balance at end of period at Oct. 31, 2022 | $ (2,918) | $ 10 | $ 1,172 | $ (4,413) | $ 313 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 1 | $ 0.78 | $ 0.70 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Consolidated Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with U.S. GAAP. Principles of Consolidation The Consolidated Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP’s Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of October 31, 2022, the extent to which the current macroeconomic factors will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic and ongoing macroeconomic factors, our estimates may materially change in future periods. Foreign Currency Translation HP predominantly uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars 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. dollars are recorded in U.S. dollars at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain foreign subsidiaries designate the local currency as their functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as translation adjustments and includes them as a component of Accumulated other comprehensive loss. Oracle litigation proceeds On October 12, 2021, Oracle paid approximately $4.65 billion, to satisfy the judgement with interest, related to the litigation in connection with Oracle’s discontinuation of software support for former Hewlett-Packard Company’s Itanium-based line of mission-critical servers. The net proceeds from the judgement were shared equally between HP and Hewlett Packard Enterprise pursuant to the terms of the separation and distribution agreement between the parties. For the fiscal year 2021, HP recorded a gain of $2.3 billion in Interest and other, net and corresponding tax impact of $0.5 billion in Provision for taxes on the Consolidated Statements of Earnings as Oracle has exhausted legal appeals and has no further legal recourse to reverse the judgment. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance on the recognition and measurement of contract assets and contract liabilities acquired in a business combination. This guidance requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under the new guidance, it is generally expected that an acquirer will recognize and measure contract assets and liabilities in a manner consistent with how they were recognized by the acquiree in its preacquisition financial statements. HP is required to adopt the guidance in the first quarter of fiscal year 2024, with early adoption permitted HP has early adopted the guidance in fiscal year 2022, and the implementation of this guidance did not have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued guidance that enhances the transparency about the use of supplier finance programs. Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services will be required to disclose information about the program to allow users of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. HP is required to adopt the guidance in the first quarter of fiscal year 2024, except for the amendment on roll forward information which is effective one year later. Early adoption is permitted. HP is currently evaluating the impact of this guidance on the Consolidated Financial Statements. Revenue Recognition General HP recognizes revenues at a point in time or over time depicting the transfer of promised goods or services to customers in an amount that reflects the consideration to which HP expects to be entitled in exchange for those goods or services. HP follows the five-step model for revenue recognition as summarized below: 1 . Identify the contract with a customer - A contract with customer exists when (i) it is approved and signed by all parties, (ii) each party’s rights and obligations can be identified, (iii) payment terms are defined, (iv) it has commercial substance and (v) the customer has the ability and intent to pay. HP evaluates customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores. While the majority of our sales contracts contain standard terms and conditions, there are certain contracts with non-standard terms and conditions. 2. Identify the performance obligations in the contract - HP evaluates each performance obligation in an arrangement to determine whether it is distinct, such as hardware and/or service. A performance obligation constitutes distinct goods or services when the customer can benefit from such goods or services either on its own or together with other resources that are readily available to the customer and the performance obligation is distinct within the context of the contract. 3. Determine the transaction price - Transaction price is the amount of consideration to which HP expects to be entitled in exchange for transferring goods or services to the customer. If the transaction price includes a variable amount, HP estimates the amount it expects to be entitled to using either the expected value or the most likely amount method. HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, other volume-based incentives and expected returns. HP uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected consumer behavior and market conditions. HP has elected the practical expedient of not accounting for significant financing components if the period between revenue recognition and when the customer pays for the product or service is one year or less. 4. Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates revenue to each performance obligation in proportion to their selling price. The selling price for each performance obligation is based on its Standalone Selling Price (“SSP”). HP establishes SSP using the price charged for a performance obligation when sold separately (“observable price”) and, in some instances, using the price established by management having the relevant authority. When observable price is not available, HP establishes SSP based on management judgment considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. Consideration is also given to market conditions such as competitor pricing strategies and technology industry life cycles. 5. Recognize revenue when (or as) the performance obligation is satisfied - Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of a promised good or service to a customer. HP generally invoices the customer upon delivery of the goods or services and the payments are due as per contract terms. For fixed price support or maintenance contracts that are in the nature of stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over the duration of the contract. HP reports revenue net of any taxes collected from customers and remitted to government authorities, and the collected taxes are recorded as other current liabilities until remitted to the relevant government authority. HP includes costs related to shipping and handling in Cost of revenue. HP records revenue on a gross basis when HP is a principal in the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks. Hardware HP transfers control of the products to the customer at the time the product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations to the customer remain unfulfilled. HP records revenue from the sale of equipment under sales-type leases as revenue at the commencement of the lease. Services HP recognizes revenue from fixed-price support, maintenance and other service contracts over time depicting the pattern of service delivery and recognizes the costs associated with these contracts as incurred. Contract Assets and Liabilities Contract assets are rights to consideration in exchange for goods or services that HP has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are not material to HP’s Consolidated Financial Statements. Contract liabilities are recorded as deferred revenues when amounts invoiced to customers are more than the revenues recognized or when payments are received in advance for fixed-price support or maintenance contracts. The short-term and long-term deferred revenues are reported within the other current liabilities and other non-current liabilities respectively. Cost to obtain a contract and fulfillment cost Incremental direct costs of obtaining a contract primarily consist of sales commissions. HP has elected the practical expedient to expense as incurred the costs to obtain a contract with a benefit period equal to or less than one year. For contracts with a period of benefit greater than one year, HP capitalizes incremental costs of obtaining a contract with a customer and amortizes these costs over their expected period of benefit provided such costs are recoverable. Fulfillment costs consist of set-up and transition costs related to other service contracts. These costs generate or enhance resources of HP that will be used in satisfying the performance obligation in the future and are capitalized and amortized over the expected period of the benefit, provided such costs are recoverable. See Note 7, “Supplementary Financial Information” for details on net revenue by region, cost to obtain a contract and fulfillment cost, contract liabilities and value of remaining performance obligations. Leases At the inception of a contract, HP assesses whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether HP obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether HP has the right to direct the use of the asset. All significant lease arrangements are recognized at lease commencement. Leases with a lease term of 12 months or less at inception are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in the Consolidated Statement of Earnings. HP determines the lease term by assuming the exercise of renewal options that are reasonably certain. As most of the leases do not provide an implicit interest rate, HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate at the commencement date to determine the present value of future payments that are reasonably certain. Stock-Based Compensation HP determines stock-based compensation expense based on the measurement date fair value of the award. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. Retirement and Post-Retirement Plans HP has various defined benefit, other contributory and non-contributory retirement and post-retirement plans. HP generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life of participants. In limited cases, HP amortizes actuarial gains and losses 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 cost Costs to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. Such costs totaled approximately $696 million, $829 million and $530 million in fiscal years 2022, 2021 and 2020, respectively. Restructuring and Other Charges HP records charges associated with management-approved restructuring plans to reorganize one or more of HP’s business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to reduce a specified number of employees, enhanced early retirement incentives, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. HP records restructuring charges based on estimated employee terminations, committed early retirements and site closure and consolidation plans. HP 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. Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and proxy contest activities, and are distinct from ongoing operational costs. Taxes on Earnings HP 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. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. HP records accruals for uncertain tax positions when HP 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. HP 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, as well as any related interest and penalties. Accounts Receivable HP records allowance for credit losses for the current expected credit losses inherent in the asset over its expected life. The allowance for credit losses is maintained based on the relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. HP records a specific reserve for individual accounts when HP 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, HP further adjusts estimates of the recoverability of receivables. HP assesses collectability by pooling receivables where similar risk characteristics exist. HP maintains an allowance for credit losses 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, financial condition of customers, 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. HP utilizes certain third-party arrangements in the normal course of business as part of HPs cash and liquidity management and also to provide liquidity to certain partners to facilitate their working capital requirements. These financing arrangements, which in certain cases provide for partial recourse, result in the transfer of HP’s trade receivables to a third-party. HP reflects amounts transferred to, but not yet collected from the third-party in Accounts receivable in the 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 the Consolidated Balance Sheets. Concentrations of Risk Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, receivables from trade customers and contract manufacturers and derivatives. HP maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and HP’s policy is designed to limit exposure from any particular institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of these financial institutions. HP has not sustained material credit losses from instruments held at these financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency, interest rate and, on certain investment exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. The likelihood of which HP deems to be remote. HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of these distributors’ and resellers’ aggregated business deteriorates substantially, HP’s operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 52% and 42% of gross accounts receivable as of October 31, 2022 and 2021, respectively. Two customers TD Synnex Corp and Ingram Micro Inc., accounted for 13.8% and 10.4%, respectively, of gross accounts receivable as of October 31, 2022. No single customer accounted for more than 10% of gross accounts receivable as of October 31, 2021. Credit risk with respect to other accounts receivable is generally diversified due to HP’s large customer base and their dispersion across many different industries and geographic markets. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP 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 85% of HP’s supplier receivables of $0.3 billion and $1.4 billion as of October 31, 2022 and 2021, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. HP’s credit risk associated with these receivables is mitigated wholly or in part, by the amount HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in net revenue and does not recognize any profit on these component sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of revenue. HP obtains a significant number of components from single source suppliers like Canon, due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of HP’s relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP’s net revenue, cash flows and gross margins. Inventory HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments, if required, to reduce the cost of inventory to market (net realizable value) are made for estimated excess, obsolete or impaired balances after considering judgments related to future demand and market conditions. Property, Plant and Equipment, Net HP reflects property, plant and equipment at cost less accumulated depreciation. HP 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 Internal Use Software and Cloud Computing Arrangements HP capitalizes external costs and directly attributable internal costs to acquire or create internal use software which are incurred subsequent to the completion of the preliminary project stage. These costs relate to activities such as software design, configuration, coding, testing, and installation. Costs related to post-implementation activities such as training and maintenance are expensed as incurred. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software, generally not to exceed five years. HP also enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. For internal-use software obtained through a hosting arrangement that is in the nature of a service contract, HP incurs certain implementation costs such as integrating, configuring, and software customization, which are consistent with costs incurred during the application development stage for on-premise software. HP applies the same guidance to determine costs that are eligible for capitalization. For these arrangements, HP amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. HP also applies the same impairment model to both internal-use software and capitalized implementation costs in a software hosting arrangement that is in the nature of a service contract. Business Combinations HP includes the results of operations of the acquired business in HP’s consolidated results prospectively from the acquisition date. HP allocates the purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these 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 HP, and the value of the acquired assembled workforce, neither of which qualify for recognition as an intangible asset. Acquisition and divestiture charges are recognized separately from the business combination and are expensed as incurred. These charges primarily include, direct third-party professional and legal fees, integration and divestiture-related costs, as well as non-cash adjustments to the fair value adjustments of certain acquired assets such as inventory and certain compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units of acquired companies . Goodwill HP reviews goodwill for impairment annually during its fourth quarter and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. HP can elect to perform a qualitative assessment to test a reporting unit’s goodwill for impairment or HP can directly perform the quantitative impairment test. Based on the qualitative assessment, if HP determines that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative impairment test will be performed. In the quantitative impairment test, HP compares the fair value of each reporting unit to its carrying amount with the fair values derived most significantly from the income approach, and to a lesser extent, the market approach. Under the income approach, HP estimates the fair value of a reporting unit based on the present value of estimated future cash flows. HP bases cash flow projections on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. HP 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, HP 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. HP weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. In order to assess the reasonableness of the estimated fair value of HP’s reporting units, HP compares the aggregate reporting unit fair value to HP’s market capitalization on an overall basis and calculates an implied control premium (the excess of the sum of the reporting units’ fair value over HP’s market capitalization on an overall basis). HP evaluates the control premium by comparing it to observable control premiums from recent comparable transactions. If the implied control premium is determined to not be reasonable in light of these recent transactions, HP re-evaluates its reporting unit fair values, which may result in an adjustment to the discount rate and/or other assumptions. This re-evaluation could result in a change to the estimated fair value for certain or all reporting units. 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. If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss. Debt and Marketable Equity Securities Investments HP determines the appropriate classification of its investments at the time of purchase and re-evaluates the classifications at each balance sheet date. Debt and marketable equity securities are generally considered available-for-sale. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Marketable debt securities with maturities of twelve months or less are classified as short-term investments and marketable debt securities with maturities greater than twelve months are classified based on their availability for use in current operations. Marketable equity securities, including mutual funds, are classified as either short or long-term based on the nature of each security and its availability for use in current operations. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of applicable taxes, in Accumulated other comprehensive loss. Unrealized gains and losses on equity securities, credit losses and impairments on available-for-sale debt securities are recorded in Consolidated Statements of Earnings. Realized gains and losses on available-for-sale securities are calculated at the individual security level and included in Interest and other, net in the Consolidated Statements of Earnings. HP monitors its investment portfolio for potential impairment and credit losses on a quarterly basis. If HP intends to sell a debt security or it is more likely than not that HP will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Interest and other, net and a new cost basis in the investment is established. In other cases, if the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit related reasons, HP records a credit loss allowance, limited by the amount that fair value is less than the amortized cost basis. HP recognizes the corresponding charge in Interest and other, net and the remaining unrealized loss, if any, in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Factors that HP considers while determining the credit loss allowance includes, but is not limited to, severity and the reason for the decline in value, interest rate changes and counterparty long-term ratings. Derivatives HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and, at times, option contracts to hedge certain foreign currency, interest rate and, return on certain investment exposures. HP also may use other derivative instruments not designated as hedges, such as forwards used to hedge foreign currency balance sheet exposures. HP does not use derivative instruments for speculative purposes. See Note 10, “Financial Instruments” for a full description of HP’s derivative instrument activities and related accounting policies. Loss Contingencies HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP 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 14, “Litigation and Contingencies” for a full description of HP’s loss contingencies and related accounting policies. |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information HP is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. HP sells to individual consumers, small- and medium-sized businesses (“SMBs”) and large enterprises, including customers in the government, health and education sectors. HP goes to market through its extensive channel network and direct sales. HP’s operations are organized into three reportable segments: Personal Systems, Printing, and Corporate Investments. HP’s organizational structure is based on many factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results. The CODM uses several metrics to evaluate the performance of the overall business, including earnings from operations, and uses these results to allocate resources to each of the segments. A summary description of each segment is as follows: Personal Systems offers commercial and consumer desktop and notebook personal computers (“PCs”), workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays and peripherals, software, support and services. HP groups commercial notebooks, commercial desktops, commercial services, commercial mobility devices, commercial detachables and convertibles, workstations, retail POS systems and thin clients into commercial PCs and consumer notebooks, consumer desktops, consumer services and consumer detachables into consumer PCs when describing performance in these markets. Described below are HP’s global business capabilities within Personal Systems: • Commercial PCs are optimized for use by enterprise, public sector (which includes education), and SMBs customers, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in the customer’s environment. Additionally, HP offers a range of services and solutions to enterprise, public sector (which includes education), and SMBs customers to help them manage the lifecycle of their PC and mobility installed base. • Consumer PCs are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, staying connected, sharing information, getting things done for work including creating content and staying informed and secure. Personal Systems groups its global business capabilities into the following business units when reporting business performance: • Notebooks consists of consumer notebooks, commercial notebooks, mobile workstations, peripherals, and commercial mobility devices; • Desktops includes consumer desktops, commercial desktops, thin clients, displays, peripherals, and retail POS systems; • Workstations consists of desktop workstations, displays, and peripherals; and • Other consists of consumer and commercial services, Plantronics, Inc. (“Poly”) products and services as well as other Personal Systems capabilities. Printing provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on imaging solutions in the commercial and industrial markets. Described below are HP’s global business capabilities within Printing. • Office Printing Solutions delivers HP’s office printers, supplies, services and solutions to SMBs and large enterprises. It also includes OEM hardware and solutions, and some Samsung-branded supplies. • Home Printing Solutions delivers innovative printing products, supplies, services and solutions for the home, home business and micro business customers utilizing both HP’s Ink and Laser technologies. It also includes some Samsung-branded supplies. • Graphics Solutions delivers large-format, commercial and industrial solutions and supplies to print service providers and packaging converters through a wide portfolio of printers and presses (HP DesignJet, HP Latex, HP Indigo and HP PageWide Web Presses). • 3D Printing & Digital Manufacturing offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey. HP offers complete solutions in collaboration with an ecosystem of partners. Printing groups its global business capabilities into the following business units when reporting business performance: • Commercial consists of office printing solutions, graphics solutions and 3D printing and digital manufacturing, excluding supplies; • Consumer consists of home printing solutions, excluding supplies; and • Supplies comprises a set of highly innovative consumable products, ranging from ink and laser cartridges to media, graphics supplies and 3D printing and digital manufacturing supplies, for recurring use in consumer and commercial hardware. Corporate Investments includes HP Labs and certain business incubation and investment projects. The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements. HP derives the results of the business segments directly from its internal management reporting system. HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and Russia exit charges. Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Net revenue: Notebooks $ 29,183 $ 30,522 $ 25,766 Desktops 10,736 9,381 9,806 Workstations 2,100 1,669 1,816 Other (1) 2,065 1,787 1,609 Personal Systems 44,084 43,359 38,997 Supplies 11,761 12,632 11,586 Commercial 4,225 4,209 3,539 Consumer 2,916 3,287 2,516 Printing 18,902 20,128 17,641 Corporate Investments 2 3 2 Total segment net revenue 62,988 63,490 56,640 Other (5) (3) (1) Total net revenue $ 62,983 $ 63,487 $ 56,639 Earnings before taxes: Personal Systems $ 2,908 $ 3,101 $ 2,312 Printing 3,651 3,636 2,495 Corporate Investments (230) (96) (69) Total segment earnings from operations $ 6,329 $ 6,641 $ 4,738 Corporate and unallocated costs and other (508) (542) (407) Stock-based compensation expense (343) (330) (278) Restructuring and other charges (233) (245) (462) Acquisition and divestiture charges (318) (68) (16) Amortization of intangible assets (228) (154) (113) Russia exit charges (23) — — Interest and other, net (235) 2,209 (231) Total earnings before taxes $ 4,441 $ 7,511 $ 3,231 (1) Includes net revenue for Poly since acquisition date (August 29, 2022). Segment Assets HP 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 HP consolidated assets were as follows: As of October 31 2022 2021 In millions Personal Systems $ 19,710 $ 18,126 Printing 14,486 14,744 Corporate Investments 191 171 Corporate and unallocated assets 4,200 5,569 Total assets $ 38,587 $ 38,610 Major Customers No single customer represented 10% or more of HP’s 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 2022, 2021 and 2020, other than the United States, no country represented more than 10% of HP net revenue. Net revenue by country was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions United States $ 21,682 $ 22,447 $ 20,227 Other countries 41,301 41,040 36,412 Total net revenue $ 62,983 $ 63,487 $ 56,639 Net property, plant and equipment by country in which HP operates was as follows: As of October 31 2022 2021 In millions United States $ 1,264 $ 1,178 Singapore 329 305 South Korea 320 285 Other countries 861 778 Total property, plant and equipment, net $ 2,774 $ 2,546 No single country other than those represented above exceeds 10% or more of HP’s total net property, plant and equipment in any fiscal year presented. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Oct. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Summary of Restructuring Plans HP’s restructuring activities in fiscal years 2022, 2021 and 2020 summarized by plan were as follows: Fiscal 2020 Plan Other prior year plans (1) Total Severance and EER Non-labor In millions Accrued balance as of October 31, 2019 $ 76 $ — $ 66 $ 142 Charges 346 10 1 357 Cash payments (319) (10) (52) (381) Non-cash and other adjustments (48) (2) — (3) (51) Accrued balance as of October 31, 2020 55 — 12 67 Charges 181 38 4 223 Cash payments (159) (7) (16) (182) Non-cash and other adjustments (2) (31) — (33) Accrued balance as of October 31, 2021 75 — — 75 Charges 131 77 — 208 Cash payments (176) (40) (1) (217) Non-cash and other adjustments 2 (37) 1 (34) Accrued balance as of October 31, 2022 $ 32 $ — $ — $ 32 Total costs incurred to date as of October 31, 2022 $ 740 $ 125 $ 504 $ 1,369 Reflected in Consolidated Balance Sheets: Other current liabilities $ 32 $ — $ — $ 32 (1) Includes prior-year plans which are substantially complete. HP does not expect any further material activity associated with these plans. (2) Includes reclassification of liability related to the Enhanced Early Retirement (“EER”) plan of $44 million for certain healthcare and medical savings account benefits to pension and post retirement plans. See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information . Fiscal 2023 Plan On November 18, 2022, HP’s Board of Directors approved the Fiscal 2023 Plan intended to enable digital transformation, portfolio optimization and operational efficiency that HP expects will be implemented through fiscal 2025. HP expects to reduce global headcount by approximately 4,000 to 6,000 employees. HP estimates that it will incur pre-tax charges of approximately $1.0 billion relating to labor and non-labor actions. HP expects to incur approximately $0.7 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges. Fiscal 2020 Plan On September 30, 2019, HP’s Board of Directors approved the Fiscal 2020 Plan intended to optimize and simplify its operating model and cost structure that has been implemented through fiscal 2022. The Fiscal 2020 Plan is substantially complete. HP does not expect any significant further costs associated with the plan. Approximately 7,700 employees departed as part of the plan through a combination of employee exits and voluntary EER. HP incurred $740 million in severance costs and $281 million in infrastructure costs related to non-labor and other charges. Other charges Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and proxy contest activities, and are distinct from ongoing operational costs. These costs primarily relate to third-party professional services and other non-recurring costs. HP incurred $25 million, $22 million and $105 million of other charges in fiscal year 2022, 2021 and 2020, respectively. |
Retirement and Post-Retirement
Retirement and Post-Retirement Benefit Plans | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement and Post-Retirement Benefit Plans | Retirement and Post-Retirement Benefit Plans Defined Benefit Plans HP sponsors a number of defined benefit pension plans worldwide. The most significant defined benefit plan, the HP Inc. Pension Plan (“Pension Plan”) is a frozen plan in the United States. HP reduces the benefit payable to certain U.S. employees under the Pension Plan for service before 1993, if any, by any amounts due to the employee under HP’s frozen defined contribution Deferred Profit-Sharing Plan (“DPSP”). At October 31, 2022 and 2021, the fair value of plan assets of the DPSP was $366 million and $482 million, respectively. The DPSP obligations are equal to the plan assets and are recognized as an offset to the Pension Plan when HP calculates its defined benefit pension cost and obligations. In August 2021, HP entered into an agreement with The Prudential Insurance Company of America (“Prudential”) to purchase an irrevocable group annuity contract and transfer approximately $5.2 billion of the Pension Plan obligations. Under the agreement, Prudential assumed responsibility for pension benefits and annuity administration for approximately 41,000 retirees and beneficiaries, with no changes to the amount or timing of monthly retirement benefit payments. This transaction closed in the fourth quarter of fiscal year 2021 and was funded by the assets of the Pension Plan. HP recorded a settlement gain of approximately $39 million in Interest and other, net on the Consolidated Statements of Earnings, with no cash flow impact. Post-Retirement Benefit Plans HP sponsors retiree health and welfare benefit plans, of which the most significant are in the United States. Under the HP Inc. Retiree Welfare Benefits Plan, certain pre-2003 retirees and grandfathered participants with continuous service to HP since 2002 are eligible to receive partially subsidized medical coverage based on years of service at retirement. HP’s share of the premium cost is capped for all subsidized medical coverage provided under the HP Inc. Retiree Welfare Benefits Plan. HP currently leverages the employer group waiver plan process to provide HP Inc. Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits. Certain employees not grandfathered for partially subsidized medical coverage under the above programs, and employees hired after 2002 but before August 2008, are eligible for credits under the HP Inc. Retiree Welfare Benefits Plan. Credits offered after September 2008 are provided in the form of matching credits on employee contributions made to a voluntary employee beneficiary association upon attaining age 45 or as part of early retirement programs. On retirement, former employees may use these credits for the reimbursement of certain eligible medical expenses, including premiums required for coverage. Defined Contribution Plans HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined contribution expense was $119 million in fiscal year 2022, $112 million in fiscal year 2021 and $108 million in fiscal year 2020. U.S. employees are automatically enrolled in the HP Inc. 401(k) Plan when they meet eligibility requirements, unless they decline participation. The employer matching contributions in the HP Inc. 401(k) Plan is 100% of the first 4% of eligible compensation contributed by employees, and the employer match is vested after three years of employee service. Generally, an employee must be employed by HP Inc. on the last day of the calendar year to receive a match. Pension and Post-Retirement Benefit Expense The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Statements of Earnings were as follows: For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 U.S. Defined Non-U.S. Defined Post-Retirement In millions Service cost $ — $ — $ — $ 56 $ 67 $ 64 $ 1 $ 1 $ 1 Interest cost 161 281 412 22 18 17 8 9 11 Expected return on plan assets (298) (475) (700) (48) (49) (43) (9) (24) (23) Amortization and deferrals: Actuarial loss (gain) 5 50 64 36 52 43 (15) (16) (10) Prior service cost (credit) — — — 5 5 (2) (11) (11) (12) Net periodic benefit (credit) cost (132) (144) (224) 71 93 79 (26) (41) (33) Settlement (gain) loss — (37) 217 — 1 1 — — — Special termination benefit cost — — — — — — — — 44 Total periodic benefit (credit) cost $ (132) $ (181) $ (7) $ 71 $ 94 $ 80 $ (26) $ (41) $ 11 The components of net periodic benefit (credit) cost other than the service cost component are included in Interest and other, net The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows: For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 U.S. Defined Non-U.S. Defined Post-Retirement Discount rate 2.9 % 2.8 % 3.2 % 1.3 % 1.1 % 1.3 % 2.5 % 2.3 % 2.9 % Expected increase in compensation levels 2.0 % 2.0 % 2.0 % 2.6 % 2.4 % 2.5 % — % — % — % Expected long-term return on plan assets 5.1 % 5.0 % 6.0 % 4.3 % 4.4 % 4.4 % 2.0 % 5.0 % 5.9 % Guaranteed interest crediting rate 5.0 % 5.0 % 5.0 % 2.6 % 2.6 % 2.6 % 2.9 % 2.9 % 3.5 % Funded Status The funded status of the defined benefit and post-retirement benefit plans was as follows: As of October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement In millions Change in fair value of plan assets: Fair value of assets — beginning of year $ 6,060 $ 10,463 $ 1,211 $ 1,064 $ 457 $ 481 Actual return on plan assets (1,674) 1,403 (131) 117 (49) 11 Employer contributions 29 28 34 71 3 2 Participant contributions — — 19 21 39 49 Benefits paid (204) (427) (21) (45) (67) (86) Settlement (4) (5,407) (62) (5) — — Currency impact — — (143) (12) — — Fair value of assets — end of year $ 4,207 $ 6,060 $ 907 $ 1,211 $ 383 $ 457 Change in benefits obligation Projected benefit obligation — beginning of year $ 5,740 $ 11,344 $ 1,747 $ 1,664 $ 354 $ 394 Acquisition of plan (1) — — 11 — — — Service cost — — 56 67 1 1 Interest cost 161 281 22 18 8 9 Participant contributions — — 19 21 39 49 Actuarial (gain) loss (1,724) (51) (441) (23) (61) (13) Benefits paid (204) (427) (21) (45) (67) (86) Plan amendments — — (5) 62 — — Curtailment — — — (3) — — Settlement (4) (5,407) (62) (5) — — Currency impact — — (181) (9) — — Projected benefit obligation — end of year $ 3,969 $ 5,740 $ 1,145 $ 1,747 $ 274 $ 354 Funded status at end of year $ 238 $ 320 $ (238) $ (536) $ 109 $ 103 Accumulated benefit obligation $ 3,969 $ 5,740 $ 1,035 $ 1,602 (1) $11 million of defined benefit plans as a result of the Poly acquisition The cumulative net actuarial losses for our defined pension plans and retiree welfare plans decreased as compared to the prior-year period. The decrease in losses is primarily due to significant increases in discount rates and lump sum interest rates, partially offset by lower than expected return on assets, plan experience, and other assumption changes. The weighted-average assumptions used to calculate the projected benefit obligations for the fiscal years ended October 31, 2022 and 2021 were as follows: For the fiscal years ended October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement Discount rate 5.7 % 2.9 % 3.5 % 1.3 % 5.6 % 2.5 % Expected increase in compensation levels 2.0 % 2.0 % 3.0 % 2.6 % — % — % Guaranteed interest crediting rate 5.0 % 5.0 % 2.6 % 2.6 % 4.2 % 2.9 % The net amounts of non-current assets and current and non-current liabilities for HP’s defined benefit and post-retirement benefit plans recognized on HP’s Consolidated Balance Sheet were as follows: As of October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement In millions Other non-current assets $ 527 $ 732 $ 38 $ 34 $ 114 $ 108 Other current liabilities (32) (36) (9) (8) (4) (4) Other non-current liabilities (257) (376) (267) (562) (1) (1) Funded status at end of year $ 238 $ 320 $ (238) $ (536) $ 109 $ 103 The following table summarizes the pre-tax net actuarial loss (gain) and prior service cost (credit) recognized in Accumulated other comprehensive income (loss) for the defined benefit and post-retirement benefit plans. As of October 31, 2022 U.S. Defined Non-U.S. Defined Post-Retirement In millions Net actuarial loss (gain) $ 370 $ 45 $ (191) Prior service cost (credit) — 42 (68) Total recognized in Accumulated other comprehensive income (loss) $ 370 $ 87 $ (259) Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: As of October 31 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined In millions Aggregate fair value of plan assets $ — $ — $ 728 $ 988 Aggregate projected benefit obligation $ 289 $ 412 $ 996 $ 1,562 Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: As of October 31 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined In millions Aggregate fair value of plan assets $ — $ — $ 538 $ 983 Aggregate accumulated benefit obligation $ 289 $ 412 $ 733 $ 1,437 Fair Value of Plan Assets The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2022. Refer to Note 9, “Fair Value” for details on fair value hierarchy. Certain investments that are measured at fair value using the Net Asset Value (“NAV”) per share as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table provide a reconciliation of the fair value hierarchy to the total value of plan assets. As of October 31, 2022 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset category: Equity securities (1) $ 14 $ 37 $ — $ 51 $ 7 $ 82 $ — $ 89 $ — $ — $ — $ — Debt securities (2) Corporate — 1,949 — 1,949 — 13 — 13 — 214 — 214 Government — 1,418 — 1,418 — 43 — 43 — 108 — 108 Real estate funds — — — — 1 16 — 17 — — — — Insurance contracts — — — — — 72 — 72 — — — — Common collective trusts and 103-12 Investment entities (3) — — — — — 7 — 7 — — — — Investment funds (4) 13 — — 13 — 260 — 260 68 — 68 Cash and cash equivalents (5) 40 54 — 94 37 — — 37 (5) — — (5) Other (6) (264) (230) — (494) 11 75 — 86 (2) — (2) Net plan assets subject to leveling $ (197) $ 3,228 $ — $ 3,031 $ 56 $ 568 $ — $ 624 $ 61 $ 322 $ — $ 383 Investments using NAV as a practical expedient (7) 1,176 283 — Investments at fair value $ 4,207 $ 907 $ 383 The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2021. As of October 31, 2021 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset category: Equity securities (1) $ 11 $ 50 $ — $ 61 $ 8 $ 102 $ — $ 110 $ — $ — $ — $ — Debt securities (2) Corporate — 2,620 — 2,620 — 132 — 132 — 256 — 256 Government — 1,931 — 1,931 — 5 — 5 — 122 — 122 Real estate funds — — — — 1 41 — 42 — — — — Insurance contracts — — — — — 94 — 94 — — — — Common collective trusts and 103-12 Investment entities (3) — — — — — 9 — 9 — — — — Investment funds (4) 53 — — 53 — 388 — 388 64 — — 64 Cash and cash equivalents (5) 34 34 — 68 21 — — 21 9 1 — 10 Other (6) (456) (515) — (971) 1 40 — 41 (2) — — (2) Net plan assets subject to leveling $ (358) $ 4,120 $ — $ 3,762 $ 31 $ 811 $ — $ 842 $ 71 $ 379 $ — $ 450 Investments using NAV as a practical expedient (7) 2,298 369 7 Investments at fair value $ 6,060 $ 1,211 $ 457 (1) 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. (2) The fair value of corporate, government and asset-backed debt securities is based on observable inputs of comparable market transactions. Also included in this category is debt issued by national, state and local governments and agencies. (3) Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. Certain common collective trusts and interests in 103-12 entities are valued using NAV as a practical expedient. (4) Includes publicly traded funds of investment companies that are registered with the SEC, funds that are not publicly traded and a non-U.S. fund-of-fund arrangement. (5) Includes cash and cash equivalents such as short-term marketable securities. Cash and cash equivalents include money market funds, which are valued based on NAV. Other assets were classified in the fair value hierarchy based on the lowest level input (e.g., quoted prices and observable inputs) that is significant to the fair value measure in its entirety. (6) Includes primarily reverse repurchase agreements, unsettled transactions, and derivative instruments. (7) These investments include alternative investments, which primarily consist of private equities and hedge funds. The valuation of alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. For alternative investments, valuation is based on NAV as reported by the asset manager or investment company and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including but not limited to the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. • Private equities include limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. • Hedge funds include limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event-driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. These investments also include Common Collective Trusts and 103-12 Investment Entities as defined in note (3) above and Investment Funds as defined in note (4) above. Plan Asset Allocations Refer to the fair value hierarchy table above for actual assets allocations across the benefit plans. The weighted-average target asset allocations across the benefit plans represented in the fair value tables above were as follows: 2022 Target Allocation Asset Category U.S. Defined Benefit Plans Non-U.S. Defined Post-Retirement Equity-related investments 19.0 % 34.0 % — % Debt securities 81.0 % 32.5 % 98.3 % Real estate — % 14.0 % — % Cash and cash equivalents — % 5.5 % 1.7 % Other — % 14.0 % — % Total 100.0 % 100.0 % 100.0 % Investment Policy HP’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 HP may utilize derivatives to affect asset allocation changes or to hedge certain investment or liability exposures. The target asset allocation selected for each U.S. plan (pension and post-retirement) reflects a risk/return profile HP believes is appropriate relative to each plan’s liability structure and return goals. HP conducts periodic asset-liability studies for U.S. plans to model various potential asset allocations in comparison to each plan’s forecasted liabilities and liquidity needs and to develop a policy glide path which adjusts the asset allocation with funded status. Due to the strong funded status for the U.S. Pension Plan, consistent with our policy, steps have been taken to de-risk the portfolio by reallocation of assets to liability hedging fixed-income investments. HP also invests a portion of the U.S. defined benefit plan assets in private market securities such as private equity funds to provide diversification and a higher expected return on assets. Outside the United States, asset allocation decisions are typically made by an independent board of trustees for the specific plan. As in the United States, 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. HP reviews the investment strategy and where appropriate, can offer some assistance in the selection of investment managers, with final decisions on asset allocation and investment managers made by the board of trustees 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 HP’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. Retirement Incentive Program As part of the Fiscal 2020 Plan, HP announced the voluntary EER program for its U.S. employees in October 2019. Voluntary participation in the EER program was limited to those employees who were at least 50 years old with 20 or more years of service at HP. Employees accepted into the EER program left HP on dates ranging from December 31, 2019 to September 30, 2020. The EER benefit was a cash lump sum payment which was calculated based on years of service at HP at the time of the retirement and ranging from 13 to 52 weeks of pay. All employees participating in the EER program were offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement. In addition, HP provided up to $12,000 in employer credits under the Retirement Medical Savings Account (“RMSA”) program. In relation to the continued health care coverage and employer credits under the RMSA program, HP recognized special termination benefit costs of $44 million as restructuring and other charges for the twelve months ended October 31, 2020. Lump Sum Program HP offered a lump sum program during the third quarter of fiscal year 2020. Certain terminated vested participants in the HP Inc. Pension Plan (“Pension Plan”) could elect to take a one-time voluntary lump sum payment equal to the present value of future benefits. Approximately 12,000 participants elected the lump sum option. Payments of $2.2 billion were made from plan assets to the participants in the fourth quarter of fiscal year 2020. A non-cash settlement expense of $214 million arising from the accelerated recognition of previously deferred actuarial losses was recorded in the fourth quarter of fiscal year 2020. Future Contributions and Funding Policy In fiscal year 2023, HP expects to contribute approximately $36 million to its non-U.S. pension plans, $32 million to cover benefit payments to U.S. non-qualified plan participants and $4 million to cover benefit claims for HP’s post-retirement benefit plans. HP’s policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities. Estimated Future Benefits Payments As of October 31, 2022, HP estimates that the future benefits payments for the retirement and post-retirement plans are as follows: Fiscal year U.S. Defined Non-U.S. Post-Retirement In millions 2023 $ 308 $ 76 $ 32 2024 320 46 27 2025 330 48 26 2026 328 50 26 2027 333 55 26 Next five fiscal years to October 31, 2032 1,575 334 125 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation HP’s stock-based compensation plans include incentive compensation plans and an employee stock purchase plan. Stock-Based Compensation Expense and Related Income Tax Benefits for Operations Stock-based compensation expense and the resulting tax benefits for operations were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Stock-based compensation expense $ 343 $ 330 $ 278 Income tax benefit (59) (52) (48) Stock-based compensation expense, net of tax $ 284 $ 278 $ 230 Cash received from option exercises under the HP Inc 2004 Stock Incentive Plan, as amended and restated, and ESPP purchases under the HP Inc. 2011 Employee Stock Purchase Plan (the “2011 ESPP”) and HP Inc. 2021 Employee Stock Purchase Plan (the “2021 ESPP”) was $53 million in fiscal year 2022, $55 million in fiscal year 2021 and $56 million in fiscal year 2020. The benefit realized for the tax deduction from option exercises in fiscal years 2022, 2021 and 2020 was $4 million, $3 million and $2 million, respectively. Stock-Based Incentive Compensation Plans HP’s stock-based incentive compensation plan includes equity plan adopted in 2004, as amended and restated (“principal equity plan”). Stock-based awards granted under the equity plan includes restricted stock awards, stock options and performance-based awards. Employees meeting certain employment qualifications are eligible to receive stock-based awards. The aggregate number of shares of HP’s stock authorized for issuance under the principal equity plan is 626.0 million. Restricted stock awards are non-vested stock awards that may include grants of restricted stock or restricted stock units. Restricted stock awards and cash-settled awards are generally subject to forfeiture if employment terminates prior to the lapse of the restrictions. Such awards generally vest one Stock options granted under the principal equity plan are generally non-qualified stock options, but the principal equity plan permits some options granted to qualify as incentive stock options under the U.S. Internal Revenue Code. Stock options generally vest over three RSU and stock option grants provide for accelerated vesting in certain circumstances as defined in the plans and related grant agreements, including termination in connection with a change in control. Restricted Stock Units HP uses the closing stock price on the grant date to estimate the fair value of service-based restricted stock units. HP estimates the fair value of restricted stock units subject to performance-adjusted vesting conditions using a combination of the closing stock price on the grant date and a Monte Carlo simulation model. The assumptions used to measure the fair value of restricted stock units subject to performance-adjusted vesting conditions in the Monte Carlo simulation model were as follows: For the fiscal years ended October 31 2022 2021 2020 Expected volatility (1) 41.6 % 41.0 % 27.6 % Risk-free interest rate (2) 1.0 % 0.2 % 1.6 % Expected performance period in years (3) 2.9 2.9 2.9 (1) The expected volatility was estimated using the historical volatility derived from HP’s common stock. (2) The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. (3) The expected performance period was estimated based on the length of the remaining performance period from the grant date. A summary of restricted stock units activity is as follows: As of October 31 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- In thousands In thousands In thousands Outstanding at beginning of year 30,197 $ 23 29,831 $ 21 29,960 $ 21 Granted (1) 15,337 $ 36 15,517 $ 25 18,109 $ 20 Vested (14,168) $ 22 (13,374) $ 21 (14,929) $ 20 Forfeited (2,678) $ 25 (1,777) $ 22 (3,309) $ 21 Outstanding at end of year 28,688 $ 30 30,197 $ 23 29,831 $ 21 The total grant date fair value of restricted stock units vested in fiscal years 2022, 2021 and 2020 was $314 million, $278 million and $297 million, respectively. As of October 31, 2022, total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock units was $394 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.4 years . Stock Options HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows: For the fiscal years ended October 31 2022 2021 2020 Weighted-average fair value (1) $ 11 $ 6 $ 3 Expected volatility (2) 34.7 % 35.9 % 29.8 % Risk-free interest rate (3) 1.5 % 1.0 % 1.6 % Expected dividend yield (4) 2.7 % 3.2 % 4.0 % Expected term in years (5) 6.0 5.5 6.0 (1) The weighted-average fair value was based on stock options granted during the period. (2) Expected volatility was estimated based on a blended volatility (50% historical volatility and 50% implied volatility from traded options on HP’s common stock). (3) The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. (4) The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award. (5) For awards subject to service-based vesting, the expected term was estimated using a simplified method; and for performance-contingent awards, the expected term represents an output from the lattice model. A summary of stock options activity is as follows: As of October 31 2022 2021 2020 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate In In years In In In years In In In years In Outstanding at beginning of year 6,367 $ 21 5,637 $ 17 7,093 $ 16 Granted 1,867 $ 37 2,691 $ 24 996 $ 18 Exercised (1,364) $ 18 (1,843) $ 15 (2,213) $ 14 Forfeited/cancelled/expired (775) $ 26 (118) $ 18 (239) $ 19 Outstanding at end of year 6,095 $ 26 7.2 $ 34 6,367 $ 21 7.4 $ 68 5,637 $ 17 6.4 $ 10 Vested and expected to vest 5,903 $ 25 7.2 $ 34 6,367 $ 21 7.4 $ 68 5,637 $ 17 6.4 $ 10 Exercisable 2,749 $ 18 6.0 $ 26 2,392 $ 16 5.3 $ 34 3,196 $ 15 4.4 $ 9 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 years 2022, 2021 and 2020. The aggregate intrinsic value is the difference between HP’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised in fiscal years 2022, 2021 and 2020 was $25 million, $18 million and $12 million, respectively. The total grant date fair value of options vested in fiscal years 2022, 2021 and 2020 was $9 million, $3 million and $3 million, respectively. As of October 31, 2022, total unrecognized pre-tax stock-based compensation expense related to stock options was $9 million, which is expected to be recognized over a weighted-average vesting period of 1.4 years. Employee Stock Purchase Plan HP sponsors the 2021 ESPP, pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of HP’s common stock. Pursuant to the terms of the 2021 ESPP, employees purchase stock under the 2021 ESPP at a price equal to 95% of HP’s closing stock price on the purchase date. No stock-based compensation expense was recorded in connection with those purchases because the criteria of a non-compensatory plan were met. The aggregate number of shares of HP’s stock authorized for issuance under the 2021 ESPP was 50 million. The 2021 ESPP came into effect on May 1, 2021 upon expiry of the 2011 ESPP. The 2021 ESPP terms are similar to the previous ESPP. Shares Reserved Shares available for future grant and shares reserved for future issuance under the stock-based incentive compensation plans and the 2021 ESPP were as follows: As of October 31 2022 2021 2020 In thousands Shares available for future grant (1) 174,264 170,123 229,334 Shares reserved for future issuance (1) 208,351 205,968 264,110 (1) For year 2020, shares authorized under the 2011 ESPP were included in the shares available for future grant and shares reserved for future issuance . |
Taxes on Earnings
Taxes on Earnings | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings Provision for Taxes The domestic and foreign components of earnings before taxes were as follows: For the fiscal years ended October 31 h 2022 2021 2020 In millions U.S. $ 1,522 $ 4,662 $ 884 Non-U.S. 2,919 2,849 2,347 $ 4,441 $ 7,511 $ 3,231 The provision for (benefit from) taxes on earnings was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions U.S. federal taxes: Current $ 315 $ 1,118 $ (24) Deferred 27 (458) (68) Non-U.S. taxes: Current 341 420 319 Deferred 500 (197) 164 State taxes: Current 12 77 23 Deferred 43 48 (27) $ 1,238 $ 1,008 $ 387 The differences between the U.S. federal statutory income tax rate and HP’s effective tax rate were as follows: For the fiscal years ended October 31 2022 2021 2020 U.S. federal statutory income tax rate from continuing operations 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.3 % 0.9 % 1.4 % Impact of foreign earnings including GILTI and FDII, net (7.6) % (3.6) % (6.1) % Valuation allowances 0.3 % (3.8) % 2.3 % Uncertain tax positions and audit settlements 3.0 % 0.8 % (4.1) % Impact of internal reorganization 9.2 % (1.2) % — % Other, net 0.7 % (0.7) % (2.5) % 27.9 % 13.4 % 12.0 % The jurisdictions with favorable tax rates that have the most significant effective tax rate impact in the periods presented include Singapore, Malaysia, and Puerto Rico. HP has elected to treat GILTI inclusions as period costs. In fiscal year 2022, HP recorded $470 million of net income tax charges related to discrete items in the provision for taxes. This amount included $649 million of tax effects related to internal reorganization, $118 million of uncertain tax position charges, $55 million related to withholding taxes on undistributed foreign earnings, $51 million related to audit settlements in various jurisdictions and $26 million of other net tax charges. These charges were partially offset by income tax benefits of $183 million related to the filing of tax returns in various jurisdictions, $156 million related to changes in valuation allowances, $47 million related to restructuring charges, and $43 million related to Poly acquisition charges. In the fiscal year 2022, HP recorded excess tax benefits of $33 million associated with stock options, restricted stock units and performance-adjusted restricted stock. In fiscal year 2021, HP recorded $9 million of net income tax charges related to discrete items in the provision for taxes. This amount included income tax charges of $533 million related to the Oracle litigation proceeds, $15 million of uncertain tax position charges, and $9 million of other net tax charges. These charges were partially offset by income tax benefits of $393 million related to changes in valuation allowances, $89 million of tax effects related to internal reorganization, $50 million related to restructuring charges, and $16 million related to the filing of tax returns in various jurisdictions. In fiscal year 2021, excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial. In fiscal year 2020, HP recorded $244 million of net income tax benefits related to discrete items in the provision for taxes. This amount included tax benefits related to audit settlements of $124 million in various jurisdictions and $82 million related to restructuring benefits. Additionally, HP recorded benefits of $20 million related to proxy contest costs and $17 million of other net tax benefits. In fiscal year 2020, excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial. As a result of certain employment actions and capital investments HP has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates, and in some cases is wholly exempt from taxes, through 2029. The gross income tax benefits attributable to these actions and investments were estimated to be $313 million ($0.30 diluted net EPS) in fiscal year 2022, $385 million ($0.32 diluted net EPS) in fiscal year 2021 and $344 million ($0.24 diluted net EPS) in fiscal year 2020. Uncertain Tax Positions A reconciliation of unrecognized tax benefits is as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year $ 820 $ 820 $ 929 Increases: For current year’s tax positions 36 63 59 For prior years’ tax positions 299 92 71 Decreases: For prior years’ tax positions (61) (92) (89) Statute of limitations expirations (5) (9) (2) Settlements with taxing authorities (44) (54) (148) Balance at end of year $ 1,045 $ 820 $ 820 As of October 31, 2022, the amount of gross unrecognized tax benefits was $1,045 million, of which up to $807 million would affect HP’s effective tax rate if realized. Total gross unrecognized tax benefits increased by $225 million for the twelve months ended October 31, 2022. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Statements of Earnings. As of October 31, 2022, 2021 and 2020, HP had accrued $64 million, $70 million and $34 million, respectively, for interest and penalties. HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions. HP expects complete resolution of certain tax years with various tax authorities within the next 12 months. HP believes it is reasonably possible that its existing gross unrecognized tax benefits may be reduced by up to $38 million within the next 12 months, affecting HP’s effective tax rate if realized. HP is subject to income tax in the United States and approximately 60 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The IRS is conducting an audit of HP’s 2018 and 2019 income tax returns. With respect to major state and foreign tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 2002. No material tax deficiencies have been assessed in major state or foreign tax jurisdictions related to ongoing audits as of October 31, 2022. HP 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. HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP’s tax provision. HP 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 HP 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 for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows. HP has not provided for U.S. federal income and foreign withholding taxes on $5.1 billion of undistributed earnings from non-U.S. operations as of October 31, 2022 because HP intends to reinvest such earnings indefinitely outside of the United States. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Deferred Income Taxes The significant components of deferred tax assets and deferred tax liabilities were as follows: As of October 31 2022 2021 In millions Deferred tax assets: Loss and credit carryforwards $ 7,601 $ 7,630 Intercompany transactions—excluding inventory 799 791 Fixed assets 118 136 Warranty 170 207 Employee and retiree benefits 124 287 Deferred revenue 221 192 Capitalized research and development 654 454 Intangible assets — 474 Operating lease liabilities 238 227 Investment in partnership 70 95 Cash flow hedges — 8 Other 353 444 Gross deferred tax assets 10,348 10,945 Valuation allowances (7,592) (7,749) Total deferred tax assets 2,756 3,196 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries (75) (42) Right-of-use assets from operating leases (227) (215) Intangible assets (261) — Cash flow hedges (155) — Other — (79) Total deferred tax liabilities (718) (336) Net deferred tax assets $ 2,038 $ 2,860 Deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows: As of October 31 2022 2021 In millions Deferred tax assets $ 2,159 $ 2,917 Deferred tax liabilities (121) (57) Total $ 2,038 $ 2,860 As of October 31, 2022, HP had recorded deferred tax assets for net operating loss (“NOL”) carryforwards as follows: Gross NOLs Deferred Taxes on NOLs Valuation allowance Initial Year of Expiration In millions Federal $ 291 $ 63 $ (11) 2023 State 2,680 178 (71) 2023 Foreign 25,948 7,213 (7,113) 2033 Balance at end of year $ 28,919 $ 7,454 $ (7,195) As of October 31, 2022, HP had recorded deferred tax assets for various tax credit carryforwards as follows: Carryforward Valuation Initial In millions Tax credits in state and foreign jurisdictions $ 312 $ (55) 2023 U.S. R&D and other credits 11 — 2031 Balance at end of year $ 323 $ (55) Deferred Tax Asset Valuation Allowance The deferred tax asset valuation allowance and changes were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year $ 7,749 $ 7,976 $ 7,930 Income tax (benefit) expense (274) (193) 74 Goodwill, other comprehensive loss (income), currency translation and charges to other accounts 117 (34) (28) Balance at end of year $ 7,592 $ 7,749 $ 7,976 |
Supplementary Financial Informa
Supplementary Financial Information | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information Accounts Receivable The allowance for credit losses related to accounts receivable and changes were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of period $ 111 $ 122 $ 111 Current-period allowance for credit losses 7 5 62 Deductions, net of recoveries (11) (16) (51) Balance at end of period $ 107 $ 111 $ 122 HP utilizes certain third-party arrangements in the normal course of business as part of HPs cash and liquidity management and also to provide liquidity to certain partners to facilitate their working capital requirements. These financing arrangements, which in certain circumstances may contain partial recourse, result in a transfer of HP’s receivables and risk to the third-party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognised from the Consolidated Balance Sheets upon transfer, and HP receives a payment for the receivables from the third-party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from the similar transactions and reported as a current liability on the Consolidated Balance Sheets. The recourse obligations as of October 31, 2022 and 2021, and the costs associated with the sales of trade receivables for fiscal year 2022, 2021 and 2020 were not material. The following is a summary of the activity under these arrangements: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year (1) $ 131 $ 188 $ 235 Trade receivables sold 12,028 11,976 10,474 Cash receipts (11,942) (12,035) (10,526) Foreign currency and other (32) 2 5 Balance at end of year (1) $ 185 $ 131 $ 188 (1) Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Balance Sheets. Inventory As of October 31 2022 2021 In millions Finished goods $ 4,885 $ 4,532 Purchased parts and fabricated assemblies 2,710 3,398 $ 7,595 $ 7,930 Other Current Assets As of October 31 2022 2021 In millions Prepaid and other current assets $ 2,170 $ 1,092 Supplier and other receivables 1,377 2,333 Value-added taxes receivable 968 1,005 $ 4,515 $ 4,430 Property, Plant and Equipment, Net As of October 31 2022 2021 In millions Land, buildings and leasehold improvements $ 2,255 $ 2,166 Machinery and equipment, including equipment held for lease 5,337 5,307 7,592 7,473 Accumulated depreciation (4,818) (4,927) $ 2,774 $ 2,546 Depreciation expense was $542 million, $627 million and $673 million in fiscal years 2022, 2021 and 2020, respectively. Other Non-Current Assets As of October 31 2022 2021 In millions Deferred tax assets (1) $ 2,159 $ 2,917 Intangible assets (2) 1,933 784 Right-of-use assets (3) 1,236 1,192 Deposits and prepaid 588 734 Prepaid pension asset (4) 565 766 Other 990 698 $ 7,471 $ 7,091 (1) See Note 6, “Taxes on Earnings” for detailed information. (2) See Note 8, “Goodwill and Intangible Assets” for detailed information. (3) See Note 17, “Leases” for detailed information. (4) See Note 4, “Retirement and Post-Retirement Benefit Plans” for detailed information. Other Current Liabilities As of October 31 2022 2021 In millions Sales and marketing programs $ 2,967 $ 3,179 Deferred revenue 1,393 1,277 Other accrued taxes 1,064 1,227 Employee compensation and benefit 954 1,627 Warranty 619 731 Operating lease liabilities (1) 405 350 Tax liability 286 296 Other 2,963 3,228 $ 10,651 $ 11,915 (1) See Note 17, “Leases” for detailed information. Other Non-Current Liabilities As of October 31 2022 2021 In millions Deferred revenue $ 1,171 $ 1,099 Tax liability 931 830 Operating lease liabilities (1) 875 936 Pension, post-retirement, and post-employment liabilities (2) 600 1,041 Deferred tax liability 121 57 Other 858 815 $ 4,556 $ 4,778 (1) See Note 17, “Leases” for detailed information. (2) See Note 4, “Retirement and Post-Retirement Benefit Plans” for detailed information. Russia exit charges For fiscal 2022, HP recognized charges of $23 million towards severance, cancellation of contracts, inventory write-downs and other one-time exit charges related to our decision to wind down our operations in Russia. Interest and other, net For the fiscal years ended October 31 2022 2021 2020 In millions Oracle litigation proceeds (1) $ — $ 2,304 $ — Non-operating retirement-related credits 144 160 240 Interest expense on borrowings (359) (254) (239) Defined benefit plan settlement gains (charges) — 37 (214) Loss on extinguishment of debt — (16) (40) Tax indemnifications (1) — 1 Other, net (19) (22) 21 $ (235) $ 2,209 $ (231) (1) See Note 1, “Summary of Significant Accounting Policies” for detailed information. Net Revenue by Region For the fiscal years ended October 31 2022 2021 2020 In millions Americas $ 26,600 $ 27,518 $ 24,414 Europe, Middle East and Africa 21,317 22,216 19,624 Asia-Pacific and Japan 15,066 13,753 12,601 Total net revenue $ 62,983 $ 63,487 $ 56,639 Value of Remaining Performance Obligations As of October 31, 2022, the estimated value of transaction price allocated to remaining performance obligations was $3.6 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $1.9 billion thereafter. HP has elected the practical expedients and accordingly does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations if: • the contract has an original expected duration of one year or less; or • the revenue from the performance obligation is recognized over time on an as-invoiced basis when the amount corresponds directly with the value to the customer; or • the portion of the transaction price that is variable in nature is allocated entirely to a wholly unsatisfied performance obligation. The remaining performance obligations are subject to change and may be affected by various factors, such as termination of contracts, contract modifications and adjustment for currency. Costs of Obtaining Contracts and Fulfillment Cost As of October 31, 2022, deferred contract fulfillment and acquisition costs balances were $34 million and $34 million, respectively, included in Other Current Assets and Other Non-Current Assets in the Consolidated Balance Sheets. During the fiscal year ended October 31, 2022, the Company amortized $129 million of these costs. As of October 31, 2021, deferred contract fulfillment and acquisition costs balances were $65 million and $36 million, respectively, included in Other Current Assets and Other Non-Current Assets in the Consolidated Balance Sheets. During the fiscal year ended October 31, 2021, the Company amortized $79 million of these costs. Contract Liabilities As of October 31, 2022 and 2021, HP’s contract liabilities balances were $2.5 billion and $2.3 billion, respectively, included in Other Current Liabilities and Other Non-Current Liabilities in the Consolidated Balance Sheets. The increase in the contract liabilities balance for the fiscal year 2022 was primarily driven by sales of fixed-price support and maintenance services and the Poly acquisition, partially offset by $1.1 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2021. As of October 31, 2021 and 2020, HP’s contract liabilities balances were $2.3 billion and $2.2 billion, respectively, included in Other Current Liabilities and Other Non-Current Liabilities in the Consolidated Balance Sheets. The increase in the contract liabilities balance for the fiscal year 2021 was primarily driven by sales of fixed-price support and maintenance services, partially offset by $1.1 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill allocated to HP’s reportable segments and changes in the carrying amount of goodwill were as follows: Personal Systems Printing Corporate Investments Total In millions Balance at October 31, 2020 (1) $ 2,621 $ 3,759 $ — $ 6,380 Acquisitions/adjustments 284 14 102 400 Foreign currency translation — 23 — 23 Balance at October 31, 2021 (1) 2,905 3,796 102 6,803 Acquisitions/adjustments 1,790 — 16 1,806 Foreign currency translation — (68) — (68) Balance at October 31, 2022 (1) $ 4,695 $ 3,728 $ 118 $ 8,541 (1) Goodwill is net of accumulated impairment losses of $0.8 billion related to Corporate Investments. Goodwill is tested for impairment at the reporting unit level. As of October 31, 2022, our reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”. There were no goodwill impairments in fiscal years 2022, 2021 and 2020. Personal Systems had a negative carrying amount of net assets as of October 31, 2022, 2021 and 2020 primarily as a result of a favorable cash conversion cycle. Intangible Assets HP’s acquired intangible assets were composed of: As of October 31, 2022 As of October 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net In millions Customer contracts, customer lists and distribution agreements $ 815 $ 283 $ 532 $ 526 $ 212 $ 314 Technology and patents 1,763 551 1,212 814 425 389 Trade name and trademarks 214 25 189 95 14 81 Total intangible assets $ 2,792 $ 859 $ 1,933 $ 1,435 $ 651 $ 784 For the fiscal year 2022, the increase in gross intangible assets was primarily due to intangible assets resulting from recent acquisitions. See Note 18, “Acquisitions” for detailed information. The weighted-average useful lives of intangible assets acquired during the period are as follows: Weighted-Average Useful Life (in years) Customer contracts and customer lists 13 Technology and patents 7 Trade name and trademarks 5 As of October 31, 2022, estimated future amortization expense related to intangible assets was as follows: Fiscal year In millions 2023 $ 351 2024 318 2025 248 2026 239 2027 234 Thereafter 543 Total $ 1,933 |
Fair Value
Fair Value | 12 Months Ended |
Oct. 31, 2022 | |
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 HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3—Unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. The following table presents HP’s assets and liabilities that are measured at fair value on a recurring basis: As of October 31, 2022 As of October 31, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Assets: Cash Equivalents Corporate debt $ — $ 904 $ — $ 904 $ — $ 1,112 $ — $ 1,112 Government debt (1) 1,289 — — 1,289 1,931 — — 1,931 Available-for-Sale Investments Financial institution instruments — 5 — 5 — 5 — 5 Marketable equity securities and mutual funds 17 41 — 58 15 56 — 71 Derivative Instruments Foreign currency contracts — 1,088 — 1,088 — 277 — 277 Other derivatives — 2 — 2 — 5 — 5 Total assets $ 1,306 $ 2,040 $ — $ 3,346 $ 1,946 $ 1,455 $ — $ 3,401 Liabilities: Derivative Instruments Interest rate contracts $ — $ 78 $ — $ 78 $ — $ 24 $ — $ 24 Foreign currency contracts — 295 — 295 — 203 — 203 Other derivatives — 1 — 1 — — — — Total liabilities $ — $ 374 $ — $ 374 $ — $ 227 $ — $ 227 (1) Government debt includes instruments such as U.S. treasury notes, U.S. agency securities and non-U.S. government bonds. Money market funds invested in government debt and traded in active markets are included in Level 1. Valuation Techniques Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments is 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: HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 10, “Financial Instruments” for a further discussion of HP’s use of derivative instruments. Other Fair Value Disclosures Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considering its own credit risk. The portion of HP’s debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt’s carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The fair value of HP’s short- and long-term debt was $9.6 billion as compared to its carrying amount of $11.0 billion at October 31, 2022. The fair value of HP’s short- and long-term debt was $8.0 billion as compared to its carrying value of $7.5 billion at October 31, 2021. If measured at fair value in the Consolidated Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy. Other Financial Instruments: For the balance of HP’s financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in Other current liabilities on the Consolidated Balance Sheets, 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 as Level 2 or Level 3 of the fair value hierarchy. Non-Marketable Equity Investments and Non-Financial Assets: HP’s non-marketable equity investments are measured at cost less impairment, adjusted for observable price changes. HP’s non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Consolidated Balance Sheets these would generally be classified within Level 3 of the fair value hierarchy. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Oct. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents and Available-for-Sale Investments As of October 31, 2022 As of October 31, 2021 Cost Gross Gross Fair Cost Gross Gross Fair In millions Cash Equivalents: Corporate debt $ 904 $ — $ — $ 904 $ 1,112 $ — $ — $ 1,112 Government debt 1,289 — — 1,289 1,931 — — 1,931 Total cash equivalents 2,193 — — 2,193 3,043 — — 3,043 Available-for-Sale Investments: Financial institution instruments 5 — — 5 5 — — 5 Marketable equity securities and mutual funds 50 8 — 58 42 29 — 71 Total available-for-sale investments 55 8 — 63 47 29 — 76 Total cash equivalents and available-for-sale investments $ 2,248 $ 8 $ — $ 2,256 $ 3,090 $ 29 $ — $ 3,119 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, 2022 and 2021, 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 $46 million in fiscal year 2022, $31 million in fiscal year 2021, and $40 million in fiscal year 2020. 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 October 31, 2022 Amortized Fair Value In millions Due in one year $ 17 $ 17 Non-marketable equity securities in privately held companies are included in Other non-current assets in the Consolidated Balance Sheets. These amounted to $110 million and $59 million as of October 31, 2022 and 2021, respectively. HP determines credit losses on cash equivalents and available-for-sale debt securities at the individual security level. All instruments are considered investment grade. No credit-related or noncredit-related impairment losses were recorded in the fiscal year 2022. Derivative Instruments HP uses derivatives to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and, at times, option contracts to hedge certain foreign currency, interest rate and, return on certain investment exposures. HP may designate its derivative contracts as fair value hedges or cash flow hedges and classifies the cash flows with the activities that correspond to the underlying hedged items. Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Balance Sheets. As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. Master netting agreements mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions. To further limit credit risk, HP has collateral security agreements that allow HP’s custodian to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP’s or the counterparty’s credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives’ net liability position. The Company includes gross collateral posted and received in other current assets and other current liabilities in the Consolidated Balance Sheets, respectively. The fair value of derivatives with credit contingent features in a net liability position was $82 million and $64 million as of October 31, 2022 and 2021, respectively, all of which were fully collateralized within two Under HP’s derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP’s financial position or cash flows as of October 31, 2022 and 2021. Fair Value Hedges HP enters into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates on HP’s future interest payments. For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Cash Flow Hedges HP uses forward contracts, treasury rate locks, forward starting swaps and, at times, option contracts designated as cash flow hedges to protect against the foreign currency exchange and interest rate risks inherent in its forecasted net revenue, cost of revenue, operating expenses and debt issuance. HP’s foreign currency cash flow hedges mature predominantly within twelve months; however, hedges related to long-term procurement arrangements extend several years. For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of Stockholders’ deficit in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the changes in the fair value of the derivative instrument in the same financial statement line item as changes in the fair value of the hedged item. During the fiscal year 2022, a series of forward starting swaps, which were executed with a total notional amount of $1.75 billion along with already existing forward starting swaps with a total notional amount of $1.5 billion, were settled upon the issuance of the senior unsecured notes, resulting in a gain of $79 million recognized in Accumulated other comprehensive income (loss). The gain will be reclassified to Interest and other, net, in the Consolidated Statements of Earnings over a portion of the life of the related debt. Other Derivatives Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps to hedge its executive deferred compensation plan liability. For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. Hedge Effectiveness For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged item with the change in fair value of the derivative. For foreign currency options, forward contracts and forward starting swaps designated as cash flow hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. During fiscal 2022 and 2021, no portion of the hedging instruments’ gain or loss was excluded from the assessment of effectiveness for fair value and cash flow hedges. Fair Value of Derivative Instruments in the Consolidated Balance Sheets The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets were as follows: As of October 31, 2022 As of October 31, 2021 Outstanding Other Other Other Other Outstanding Other Other Other Other In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 750 $ — $ — $ — $ 78 $ 750 $ — $ — $ — $ 16 Cash flow hedges: Foreign currency contracts 16,014 820 256 206 72 17,137 198 69 148 42 Interest rate contracts — — — — — 1,500 — — — 8 Total derivatives designated as hedging instruments 16,764 820 256 206 150 19,387 198 69 148 66 Derivatives not designated as hedging instruments Foreign currency contracts 4,554 12 — 17 — 6,293 10 — 13 — Other derivatives 122 2 — 1 — 103 5 — — — Total derivatives not designated as hedging instruments 4,676 14 — 18 — 6,396 15 — 13 — Total derivatives $ 21,440 $ 834 $ 256 $ 224 $ 150 $ 25,783 $ 213 $ 69 $ 161 $ 66 Offsetting of Derivative Instruments HP recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of October 31, 2022 and 2021, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amount Gross Amount Net Amount Gross Amounts Derivatives Financial Net Amount In millions As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) As of October 31, 2021 Derivative assets $ 282 $ — $ 282 $ 160 $ 65 (1) $ 57 Derivative liabilities $ 227 $ — $ 227 $ 160 $ 64 (2) $ 3 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two (2) Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two Effect of Derivative Instruments in the Consolidated Statements of Earnings The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship were as follows: Derivative Instrument Hedged Item Location For the fiscal years ended October 31 Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded Gain/(loss) recognized in earnings on derivative instruments Gain/(loss) recognized in earnings on hedged item In millions Interest rate contracts Fixed-rate debt Interest and other, net 2022 $ (235) $ (62) $ 62 2021 $ 2,209 $ (17) $ 17 2020 $ (231) $ 6 $ (6) The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive income (loss) was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Gain/(loss) recognized in Accumulated other comprehensive income (loss) on derivatives: Foreign currency contracts $ 1,456 $ (117) $ (197) Interest rate contracts $ 85 $ (15) $ (4) The pre-tax effect of derivative instruments in cash flow hedging relationships included in earnings were as follows: Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings For the fiscal years ended October 31 For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 In millions In millions Net revenue $ 62,983 $ 63,487 $ 56,639 $ 877 $ (214) $ 108 Cost of revenue (50,648) (50,070) (46,202) (101) (30) (25) Operating expenses (7,659) (8,115) (6,975) (1) 1 2 Interest and other, net (235) 2,209 (231) 4 — — Total $ 779 $ (243) $ 85 As of October 31, 2022, HP expects to reclassify an estimated accumulated other comprehensive gain of approximately $453 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions. The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive income (loss) based on the change of market rate, and therefore could have different impact on earnings. The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Statements of Earnings for fiscal years 2022, 2021 and 2020 was as follows: Gain/(loss) recognized in earnings on derivative instrument Location 2022 2021 2020 In millions Foreign currency contracts Interest and other, net $ 41 $ (65) $ 40 Other derivatives Interest and other, net (4) 8 (9) Total $ 37 $ (57) $ 31 |
Borrowings
Borrowings | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Notes Payable and Short-Term Borrowings As of October 31 2022 2021 Amount Weighted-Average Amount Weighted-Average In millions Commercial paper $ — — % $ 400 0.2 % Current portion of long-term debt 165 5.4 % 672 3.8 % Notes payable to banks, lines of credit and other 53 0.6 % 34 1.2 % $ 218 $ 1,106 Long-Term Debt As of October 31 2022 2021 In millions U.S. Dollar Global Notes (1) $500 issued at discount to par at a price of 99.771% at 4.05%, due September 2022 $ — $ 499 $1,200 issued at discount to par at a price of 99.863% at 6.0%, due September 2041 1,199 1,199 $1,150 issued at discount to par at a price of 99.769% at 2.2%, due June 2025 1,149 1,148 $1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027 997 997 $850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 848 848 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 999 999 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 996 996 $1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 999 — $1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 1,000 — $900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 899 — $1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 1,097 — $500 issued at par at a price of 100% at 4.75%, due March 2029 (3) 500 — 10,683 6,686 Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 436 439 Fair value adjustment related to hedged debt (78) (16) Unamortized debt issuance cost (80) (51) Current portion of long-term debt (165) (672) Total long-term debt $ 10,796 $ 6,386 (1) HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt . (2) HP intends to allocate an amount equal to the net proceeds to finance or refinance, in whole or in part, environmentally and socially responsible eligible projects in the following eight areas: renewable energy; green buildings; energy efficiency; clean transportation; pollution prevention and control; eco-efficient and/or circular economy products, production technologies and processes; environmentally sustainable management of living natural resources and land use; and socioeconomic advancement and empowerment. (3) Includes approximately $9 million of senior notes issued by Poly, not exchanged under Poly Exchange Offer. In June 2022, HP completed its offering of $2.0 billion aggregate principal amount of senior unsecured notes, consisting of $0.9 billion of 4.75% notes due January 2028 and $1.1 billion of 5.50% notes due January 2033. HP incurred issuance costs of $17 million. HP will pay interest semi-annually on each series of the notes on January 15 and July 15, beginning January 15, 2023. In June 2022, HP terminated a series of forward starting swap agreements with notional amounts totaling $1.75 billion that were executed to mitigate the treasury rate volatility associated with this debt issuance. HP used the net proceeds from the offering, together with other available funds, to fund the purchase price of the acquisition of Poly, repay Poly’s existing term loan, and pay any related fees and expenses. In March 2022, HP completed its offering of $2.0 billion aggregate principal amount of senior unsecured notes, consisting of $1.0 billion of 4.00% notes due April 2029 and $1.0 billion of 4.20% notes due April 2032. HP incurred issuance costs of $17 million. HP will pay interest semi-annually on each series of the notes on April 15 and October 15, beginning October 15, 2022. HP terminated a series of forward starting swap agreements with notional amounts totaling $1.5 billion that were executed to mitigate the treasury rate volatility associated with this debt issuance. HP used the net proceeds from the offering of the notes for general corporate purposes, which may include, without limitation, repayment and refinancing of debt, funding of acquisition opportunities, working capital, capital expenditures, and share repurchases. As disclosed in Note 10, “Financial Instruments”, HP uses interest rate swaps to mitigate some of the exposure of its debt portfolio to changes in fair value resulting from changes in benchmark interest rates. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps. As of October 31, 2022, aggregate future maturities of debt at face value (excluding unamortized debt issuance cost of $80 million, discounts on debt issuance of $17 million, and fair value adjustment related to hedged debt of $78 million), including other borrowings were as follows: Fiscal year In millions 2023 $ 218 2024 123 2025 1,239 2026 1,048 2027 1,009 Thereafter 7,553 Total $ 11,190 Poly Exchange Offer On September 1, 2022, we consummated our offer (the “Exchange Offer”) to exchange approximately $0.5 billion of outstanding notes issued by Poly (the “Poly Notes”) for new notes issued by us with the same interest rate, interest payment dates, maturity date and redemption terms as the exchanged Poly Notes. The portion not exchanged, approximately $9 million, remains outstanding. Because the debt instruments are not substantially different, the exchange was treated as a debt modification for accounting purposes resulting in a portion of the unamortized fair value adjustment of HP senior notes. On November 17, 2022, HP consummated its post-acquisition change of control repurchase offer for the new notes issued by HP, and an aggregate amount of $498 million in repurchase price was paid in connection therewith. Commercial Paper As of October 31, 2022, HP maintained two commercial paper programs. HP’s U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $6.0 billion. HP’s euro commercial paper program provides for the issuance of commercial paper outside of the United States denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $6.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $6.0 billion authorized by HP’s Board of Directors. Credit Facility As of October 31, 2022, HP maintained a $5.0 billion sustainability-linked senior unsecured committed revolving credit facility, which HP entered into on May 26, 2021. Commitments under the revolving credit facility will be available until May 26, 2026. Commitment fees, interest rates and other terms of borrowing under the revolving credit facility vary based on HP’s external credit ratings and certain sustainability metrics. Funds borrowed under the revolving credit facility may be used for general corporate purposes. On August 23, 2022, HP entered into an amendment to the credit agreement governing the revolving credit facility, pursuant to which the credit agreement has been amended to provide for interest rates at Term SOFR instead of LIBOR. As of October 31, 2022, HP was in compliance with the covenants in the credit agreement governing the revolving credit facility. Available Borrowing Resources As of October 31, 2022, HP had available borrowing resources of $937 million from uncommitted lines of credit in addition to the revolving credit facility. |
Stockholders_ Deficit
Stockholders’ Deficit | 12 Months Ended |
Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Deficit | Stockholders’ Deficit Share Repurchase Program HP’s share repurchase program authorizes both open market and private repurchase transactions. In fiscal year 2022, HP executed share repurchases of 124 million shares and settled total shares for $4.3 billion. In fiscal year 2021, HP executed share repurchases of 224 million shares and settled total shares for $6.3 billion. In fiscal year 2020, HP executed share repurchases of 168 million shares and settled total shares for $3.1 billion. Share repurchases executed during fiscal years 2021, and 2020 included 1.6 million shares, and 2.3 million shares settled in November 2021, and 2020, respectively. The shares repurchased in fiscal years 2022, 2021 and 2020 were all open market repurchase transactions. On February 22, 2020, HP’s Board of Directors increased HP’s share repurchase authorization to $15.0 billion in total. As of October 31, 2022, HP had approximately $2.1 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors. Taxes related to Other Comprehensive Income (Loss) For the fiscal years ended October 31 2022 2021 2020 In millions Tax effect on change in unrealized components of available-for-sale debt securities: Tax benefit (provision) on unrealized (losses) gains arising during the period $ 2 $ (1) $ — Tax effect on change in unrealized components of cash flow hedges: Tax (provision) benefit on unrealized gains (losses) arising during the period (328) (9) 20 Tax provision (benefit) on (gains) losses reclassified into earnings 195 (17) 28 (133) (26) 48 Tax effect on change in unrealized components of defined benefit plans: Tax (provision) benefit on gains (losses) arising during the period 11 (177) 11 Tax benefit on amortization of actuarial loss and prior service benefit (6) (17) (19) Tax (provision) benefit on curtailments, settlements and other (1) 9 (41) 4 (185) (49) Tax effect on change in cumulative translation adjustment 3 (1) 2 Tax (provision) benefit on other comprehensive income (loss) $ (124) $ (213) $ 1 Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes For the year ended October 31 2022 2021 2020 In millions Other comprehensive income (loss), net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized (losses) gains arising during the period $ (9) $ 4 $ 2 Change in unrealized components of cash flow hedges: Unrealized gains (losses) arising during the period 1,213 (141) (181) (Gains) losses reclassified into earnings (584) 226 (57) 629 85 (238) Change in unrealized components of defined benefit plans: Gains (losses) arising during the period 15 831 (18) Amortization of actuarial loss and prior service benefit (1) 14 63 64 Curtailments, settlements and other (1) (27) 174 28 867 220 Change in cumulative translation adjustment (75) 27 (2) Other comprehensive income (loss), net of taxes $ 573 $ 983 $ (18) (1) These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans” . The components of Accumulated other comprehensive income (loss), net of taxes as of October 31, 2022 and changes during fiscal year 2022 were as follows: Net unrealized gains on available-for-sale securities Net unrealized gains (losses) on cash flow hedges Unrealized components of defined benefit plans Change in cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ 15 $ 19 $ (323) $ 29 $ (260) Other comprehensive (losses) gains before reclassifications (9) 1,213 15 (75) 1,144 Reclassifications of losses into earnings — (584) 14 — (570) Reclassifications of curtailments, settlements and other into earnings — — (1) — (1) Balance at end of period $ 6 $ 648 $ (295) $ (46) $ 313 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan. A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows: For the fiscal years ended October 31 2022 2021 2020 In millions, except per share amounts Numerator: Net earnings $ 3,203 $ 6,503 $ 2,844 Denominator: Weighted-average shares used to compute basic net EPS 1,038 1,208 1,413 Dilutive effect of employee stock plans 12 12 7 Weighted-average shares used to compute diluted net EPS 1,050 1,220 1,420 Net earnings per share: Basic $ 3.09 $ 5.38 $ 2.01 Diluted $ 3.05 $ 5.33 $ 2.00 Anti-dilutive weighted-average stock-based compensation awards (1) 4 2 13 (1) HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost. |
Litigation and Contingencies
Litigation and Contingencies | 12 Months Ended |
Oct. 31, 2022 | |
Loss Contingency [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of October 31, 2022, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP’s financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Pursuant to the separation and distribution agreement entered into with Hewlett Packard Enterprise, HP shares responsibility with Hewlett Packard Enterprise for certain matters, as indicated below, and Hewlett Packard Enterprise has agreed to indemnify HP in whole or in part with respect to certain matters. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP’s potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. Litigation, Proceedings and Investigations Copyright Levies . Proceedings are ongoing or have been concluded involving HP in certain European countries, challenging the imposition or the modification of levies regimes upon IT equipment (such as PCs or printers) or the restrictions to exonerate the application of private copying levies on devices purchased by business users. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some European countries are expected to implement legislation to introduce or extend existing levy schemes to digital devices. HP, other companies and various industry associations have opposed the extension of levies to the digital environment and certain requirements for business sales exemptions, and have advocated alternative models of compensation to rights holders. Based on industry opposition to the extension of levies to digital products, HP’s assessments of the merits of various proceedings and HP’s estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the ongoing disputes. Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise . This is a purported class and collective action filed on August 18, 2016 in the United States District Court, Northern District of California, against HP and Hewlett Packard Enterprise (“HPE”) alleging the defendants violated federal and state law by terminating older workers and replacing them with younger workers. In their most recent complaint, plaintiffs seek to represent (1) a putative nationwide federal Age Discrimination in Employment Act (ADEA) collective comprised of all former HP Inc. employees 40 years of age and older who had their employment terminated under a WFR plan in or after 2014 or 2015, depending on state law; and (2) a putative Rule 23 class under California law comprised of all former HP Inc. employees 40 years of age and older who had their employment terminated in California under a WFR plan in or after 2012. Excluded from the putative collective and class are employees who (a) signed a Waiver and General Release Agreement at termination, or (b) signed an Agreement to Arbitrate Claims. Similar claims are pending against HPE. Because the court granted plaintiffs’ motion for preliminary certification of the putative nationwide ADEA collectives, a third-party administrator notified eligible former employees of their right to opt into the ADEA collective. This opt-in period closed on February 15, 2022. Plaintiffs seek monetary damages, punitive damages, and other relief. India Directorate of Revenue Intelligence Proceedings . On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the “DRI”) issued show cause notices to Hewlett-Packard India Sales Private Limited (“HP India”), a subsidiary of HP, seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties and interest. Prior to the issuance of the 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 or interrupt business by HP India. On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related 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 notice. The differential duty demand is subject to interest. On April 20, 2012, the Commissioner issued an order on the parts-related 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 notice so as to avoid certain penalties. HP India filed appeals of the Commissioner’s orders before the Customs, Excise and Service Tax Appellate Tribunal (the “Customs Tribunal”) along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal o rdered HP India to deposit an additional $24 million against the products order, which HP India deposited in March 2013. On February 7, 2014, the Customs Tribunal granted HP India’s application for extension of the stay of deposit until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner’s orders and rejected HP India’ s request to remand the matter to the Commissioner on procedural grounds. The Customs Tribunal cancelled hearings to reconvene in 2015 , 2016, and January 2019. On January 20, 2021, the Customs Tribunal held a virtual hearing during which the judge allowed HP’s application for a physical hearing on the merits as soon as practicable, which will be scheduled when physical hearings resume at court. Pursuant to the separation and distribution agreement, Hewlett Packard Enterprise has agreed to indemnify HP in part, base d on the extent to which any liability arises from the products and spare parts of Hewlett Packard Enterprise’s businesses. Philips Patent Litigation . In September 2020, Koninklijke Philips N.V. and Philips North America LLC (collectively, “Philips”) filed a complaint against HP for patent infringement in federal court for the District of Delaware and filed a companion complaint with the U.S. International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act against HP and 8 other sets of respondents. Both complaints allege that certain digital video-capable devices and components thereof infringe four of Philips’ patents. In October 2020, the ITC instituted an investigation, and Philips later withdrew two of the four patents. On March 23, 2022, the ITC rendered a final determination that no violation of section 337 has occurred. Philips did not appeal and elected to resume litigation with its case in federal court. Philips seeks unspecified damages and an injunction against HP, and the prior stay has been lifted . Caltech Patent Litigation . On November 11, 2020, the California Institute of Technology (“Caltech”) filed a complaint against HP for patent infringement in the federal court for the Western District of Texas. On March 19, 2021, Caltech filed an amendment to this same complaint. The complaint as amended alleges infringement of five of Caltech’s patents, U.S. Patent Nos. 7,116,710; 7,421,032; 7,716,552; 7,916,781; and 8,284,833. The accused products are HP commercial and consumer PCs as well as wireless printers that comply with the IEEE 802.11n, 802.11ac, and/or 802.11ax standards. Caltech seeks unspecified damages and other relief. The court stayed the case pending the decision by the U.S. Court of Appeals for the Federal Circuit in The California Inst. of Tech. v. Broadcom Ltd et al., Case No. 2020-2222 , which was issued on February 4, 2022. On March 12, 2022, the parties filed a status report regarding whether the court should lift the stay, which remains pending. In re HP Inc. Securities Litigation (Electrical Workers Pension Fund, Local 103, I.B.E.W. v. HP Inc., et al.) . On February 19, 2020, Electrical Workers Pension Fund, Local 103, I.B.E.W. filed a putative class action complaint against HP, Dion Weisler, Catherine Lesjak, and Steven Fieler in U.S. District Court in the Northern District of California. The court appointed the State of Rhode Island, Office of the General Treasurer, on behalf of the Employees’ Retirement System of Rhode Island and Iron Workers Local 580 Joint Funds as Lead Plaintiffs. Lead Plaintiffs filed an amended complaint, which additionally named as defendants Enrique Lores and Christoph Schell. HP and the named officers filed a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. The court granted HP’s motion to dismiss and granted plaintiffs leave to amend the complaint. Plaintiffs’ second amended complaint, which no longer names Christoph Schell as a defendant, alleges, among other things, that from February 23, 2017 to October 3, 2019, HP and the named officers violated Sections 10(b) and 20(a) of the Exchange Act by making false or misleading statements about HP’s printing supplies business. It further alleges that Dion Weisler and Enrique Lores violated Sections 10(b) and 20A of the Exchange Act by allegedly selling shares of HP common stock during this period while in possession of material, non-public adverse information about HP’s printing supplies business. Plaintiffs seek compensatory damages and other relief. HP and the named officers filed a motion to dismiss the second amended complaint for failure to state a claim upon which relief can be granted. On September 15, 2021, the court granted HP’s motion. Plaintiffs appealed the decision. An appellate hearing scheduled for December 5, 2022 was cancelled as the parties have reached a settlement in principle. York County on behalf of the County of York Retirement Fund v. HP Inc., et al., and related proceedings . On November 5, 2020, York County, on behalf of the County of York Retirement Fund, filed a putative class action complaint against HP, Dion Weisler, and Catherine Lesjak in federal court in the Northern District of California. The court appointed Maryland Electrical Industry Pension Fund as Lead Plaintiff. Lead Plaintiff filed a consolidated complaint, which additionally names as defendants Enrique Lores and Richard Bailey. The complaint alleges, among other things, that from November 5, 2015 to June 21, 2016, HP and the named current and former officers violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP’s printing supplies business. Plaintiffs seek compensatory damages and other relief. HP and the named officers filed a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. On March 3, 2022, the court granted the motion to dismiss with prejudice. Plaintiffs are appealing the decision. On May 17, 2021, stockholder Scott Franklin filed a derivative complaint against certain current and former officers and directors in federal court in the District of Delaware. Plaintiff purports to bring the action on behalf of HP, which he has named as a nominal defendant, and he makes substantially the same factual allegations as in the York County securities complaint, bringing claims for breach of fiduciary duty and violations of securities laws. The derivative plaintiff seeks compensatory damages, governance reforms, and other relief. By court order following stipulations by the parties, the case was transferred to the Northern District of California, and the case was stayed pending a ruling on the motion to dismiss in York County . On January 13, 2022, stockholder Gerald Lovoi filed a derivative complaint in federal court in the Northern District of California against the same current and former officers and directors named in the Franklin action. The complaint alleges the same basic claims based on the same alleged conduct as the Franklin action and seeks similar relief. By stipulation of the parties, the Lovoi action was stayed pending a ruling on the motion to dismiss in York County . Both derivative actions will remain stayed until any appeal related to the York decision has been exhausted . Legal Proceedings re Authentication of Supplies . Since 2016, HP has from time to time been named in civil litigation, or been the subject of government investigations, involving supplies authentication protocols used in certain HP printers in multiple geographies, including but not limited to the United States, Italy, Israel, and the Netherlands. The supplies authentication protocols are often referred to as Dynamic Security. The core allegations in these proceedings claim misleading or inadequate consumer notifications and permissions pertaining to the use of Dynamic Security, the installation of firmware updates, or the potential inability of cartridges with clone chips or circuitry to work in HP printers with Dynamic Security. Plaintiffs base or have based their claims on various legal theories, including but not limited to unfair competition, computer trespass, and similar statutory claims. Among other relief, Plaintiffs have sought or seek money damages and in certain cases have or may seek injunctive relief against the use or operation of Dynamic Security or relief requiring interoperability. If HP is not successful in its defense of these cases or investigations, it could be subject to damages, penalties, significant settlement demands, or injunctive relief that may be costly or may disrupt operations. Certain of these proceedings in Italy, the Netherlands and Israel have been resolved, have concluded, or have concluded subject only to HP’s pending appeal. Civil litigation filed by Digital Revolution B.V. (trading as 123Inkt) against HP Nederlands B.V., et al. (Netherlands) in March 2020, including its competition claim, remains pending. Both parties have appealed. In addition, two putative class actions have been filed against HP in federal court in California, in December 2020 and April 2022, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers and HP Inkjet printers, respectively. Plaintiffs in both cases seek compensatory damages, restitution, injunctive relief against alleged unfair business practices, and other relief. The cases are in their early stages. Autonomy-Related Legal Matters Investigations . As a result of the findings of an internal investigation, HP provided information to government authorities, including the U.S. Department of Justice (“DOJ”) related to accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred before and in connection with HP’s 2011 acquisition of Autonomy. In November 2016, a federal grand jury indicted Sushovan Hussain, former CFO of Autonomy on charges of conspiracy to commit wire fraud, securities fraud, and multiple counts of wire fraud. The indictment alleged that Mr. Hussain engaged in a scheme to defraud purchasers and sellers of securities of Autonomy and HP about Autonomy’s true financial performance and condition. On April 30, 2018, a jury found Mr. Hussain guilty of all charges against him, and that judgment was affirmed on appeal in August 2020. In November 2018, a federal grand jury indicted Michael Lynch, former CEO of Autonomy, and Stephen Chamberlain, former VP of Finance of Autonomy. The indictment charged Mr. Lynch and Mr. Chamberlain with conspiracy to commit wire fraud and multiple counts of wire fraud. On January 28, 2022, the U.K. Home Office approved U.S. demands to have Mr. Lynch extradited to face the charges. In February 2022, Mr. Lynch sought permission to appeal, and his request is pending. HP is continuing to cooperate with the ongoing enforcement actions. Autonomy Corporation Limited v. Michael Lynch and Sushovan Hussain . On April 17, 2015, four former HP subsidiaries that became subsidiaries of Hewlett Packard Enterprise at the time of the Separation (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems, Limited, and Autonomy, Inc.) initiated civil proceedings in the U.K. High Court of Justice against two members of Autonomy’s former management, Michael Lynch and Sushovan Hussain. The Particulars of Claim seek damages in excess of $5 billion from Messrs. Lynch and Hussain for breach of their fiduciary duties by causing Autonomy group companies to engage in improper transactions and accounting practices. On October 1, 2015, Messrs. Lynch and Hussain filed their defenses. Mr. Lynch also filed a counterclaim against Autonomy Corporation Limited seeking $160 million in damages, among other things, for alleged misstatements regarding Lynch. Trial was completed in January 2020. On May 17, 2022, the court issued its final judgment, memorializing its findings that HP succeeded in substantially all of its claims and that Messrs. Lynch and Hussein engaged in fraud, and dismissing Mr. Lynch’s counterclaim. The court deferred its assessment of damages to a later, separate judgment to be issued after further submissions, but it has indicated that damages awarded may be substantially less than is claimed. Litigation is unpredictable, and there can be no assurance that HP will recover damages or as to how any award of damages will compare with the amount claimed. The amount ultimately awarded, if any, would be recorded in the period received. No adjustment has been recorded in the financial statements in relation to this potential award. Pursuant to the terms of the separation and distribution agreement, HP and Hewlett Packard Enterprise will share equally in any recovery. Environmental HP is, and may become a party to, proceedings brought by U.S. or state agencies or private third parties under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), known as “Superfund,” or state laws similar to CERCLA. HP is also conducting environmental investigations or remediation at several current or former operating sites and former disposal sites pursuant to administrative orders or consent agreements with environmental agencies. |
Guarantees, Indemnifications an
Guarantees, Indemnifications and Warranties | 12 Months Ended |
Oct. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees, Indemnifications and Warranties | Guarantees, Indemnifications and Warranties Guarantees In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote. Cross-Indemnifications with Hewlett Packard Enterprise On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise, Hewlett-Packard Company’s former enterprise technology infrastructure, software, services and financing businesses. The separation and distribution agreement provides for cross-indemnities between HP and Hewlett Packard Enterprise for liabilities allocated to the respective party pursuant to the terms of such agreement. For information on cross-indemnifications with Hewlett Packard Enterprise for litigation matters, see Note 14, “Litigation and Contingencies”. Indemnifications In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the vendors’ and customers’ use of HP’s software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. HP records tax indemnification receivables from various third parties for certain tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by those same third parties under existing legal agreements. HP records a tax indemnification payable to various third parties under these agreements when management believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. The actual amount that the third parties pay or may be obligated to pay HP could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. Warranties HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation. HP’s aggregate product warranty liabilities and changes were as follows: For the fiscal years ended October 31 2022 2021 In millions Balance at beginning of year $ 959 $ 993 Accruals for warranties issued 948 1,003 Adjustments related to pre-existing warranties (including changes in estimates) (43) 28 Settlements made (in cash or in kind) (988) (1,065) Balance at end of year $ 876 $ 959 |
Commitments
Commitments | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Unconditional Purchase Obligations As of October 31, 2022, HP had unconditional purchase obligations of $3.3 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP 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. These unconditional purchase obligations are primarily related to inventory and service support. Unconditional purchase obligations exclude agreements that are cancellable without penalty. As of October 31, 2022, unconditional purchase obligations were as follows: Fiscal year In millions 2023 $ 1,854 2024 1,254 2025 101 2026 22 2027 20 Thereafter 11 Total $ 3,262 |
Leases
Leases | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases HP determines, at lease inception, whether or not an arrangement contains a lease. A significant portion of the operating lease portfolio includes real estate leases. Additionally, HP has identified embedded operating leases within certain outsourced supply chain contracts. Leasing arrangements typically range in terms from 1 to 11 years with varying renewal and termination options. Substantially all of HP’s leases are considered operating leases. Finance leases, short-term leases and sub-lease income were not material as of October 31, 2022 and 2021 or for the fiscal years ended October 31, 2022 and 2021, respectively. Lease terms include options to extend or terminate the lease when it is reasonably certain that HP will exercise such options. HP generally considers the economic life of the ROU assets to be comparable to the useful life of similar owned assets. HP’s leases generally do not provide a residual guarantee. Operating leases are included in Other non-current assets Other current liabilities Other non-current liabilities As most of the leases do not provide an implicit interest rate, HP uses the incremental borrowing rate based on the information available at the commencement date of a lease in determining the present value of lease payments. The incremental borrowing rate is determined based on the rate of interest that HP would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. HP has elected the practical expedient to combine lease and non-lease components as a single lease element for its real estate leases and certain outsourced supply chain contracts in calculating the ROU assets and lease liabilities. Where HP chooses not to combine the lease and non-lease components, HP allocates contract consideration to the lease and non-lease components based on relative standalone prices. HP reviews the impairment of the ROU assets consistent with the approach applied for other long-lived assets. The components of lease expense are as follows: For the fiscal years ended October 31 2022 2021 In millions Operating lease cost $ 233 $ 235 Variable cost 99 101 Total lease expense $ 332 $ 336 All lease expenses, including variable lease costs, are primarily included in Cost of revenue and Selling, general and administrative expenses in the Consolidated Statements of Earnings based on the use of the facilities. Variable lease expense relates primarily to leased real estate utilized for office space and outsourced warehousing. These costs primarily include adjustments for inflation, payments dependent on a rate or index or usage of asset and common area maintenance charges. These costs are not included in the lease liability and are recognized in the period in which they are incurred. The following table presents supplemental information relating to the cash flows arising from lease transactions. Cash ‘payments made from variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: For the fiscal years ended October 31 2022 2021 In millions Cash paid for amount included in the measurement of lease liabilities $ 233 $ 238 Right-of-use assets obtained in exchange of lease liabilities (1) $ 363 $ 385 (1) Includes the impact of new leases as well as remeasurements and modifications to existing leases. Weighted-average information associated with the measurement of our remaining operating lease liabilities is as follows: As of October 31 2022 2021 Weighted-average remaining lease term in years 5 5 Weighted-average discount rate 5.2 % 3.4 % The following maturity analysis presents expected undiscounted cash outflows for operating leases on an annual basis for the next five years: Fiscal year In millions 2023 $ 443 2024 337 2025 223 2026 123 2027 101 Thereafter 172 Total lease payments 1,399 Less: Imputed interest 119 Total lease liabilities $ 1,280 There were no material operating leases that HP had entered into and that were yet to commence as of October 31, 2022. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisitions in fiscal 2022 In fiscal 2022, HP completed two acquisitions. HP estimated the preliminary fair values of net tangible and intangible assets acquired, and the excess of the consideration transferred over the aggregate of such fair values was recorded as goodwill. The preliminary fair values of net tangible assets and intangible assets acquired were based on preliminary valuations performed by third-party valuation specialists, and our estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, certain legal matters, income and non-income based taxes and residual goodwill. We expect to continue to obtain information to assist us in determining the fair values of the net assets acquired during the measurement period. Pro forma results of operations for these acquisitions have not been presented because they are not material to HP’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. The following table presents the aggregate estimated fair values of the assets acquired and liabilities assumed, including those items that are still preliminary allocations, for the acquisitions in fiscal 2022: In millions Goodwill $ 1,766 Amortizable intangible assets 1,429 Net assets acquired (337) Total fair value of consideration $ 2,858 Acquisition of Poly In fiscal 2022, HP completed the acquisition of Poly, a leading global provider of workplace collaboration solutions at a total enterprise value of $3.3 billion, inclusive of the Exchange Offer. The purchase consideration of $2.8 billion included payment to shareholders in an all-cash transaction for $40 per share, amounting to $1.8 billion and repayment of Poly’s existing term loan of $1.0 billion. Poly's results of operations are included within the Personal Systems segment. The financial results of Poly are included in our Consolidated Financial Statements for the year ended October 31, 2022, from the date of the acquisition. On September 1, 2022, HP consummated its offer to exchange approximately $0.5 billion of outstanding notes issued by Poly for new notes issued by HP with the same interest rate, interest payment dates, maturity date and redemption terms as the exchanged Poly Notes. See Note 11, “Borrowings” for detailed information. Of the total consideration, $109 million related to cash settlement of restricted stock units and performance-based restricted stock units was allocated to the purchase consideration, and $81 million was expensed immediately. In addition, HP assumed unvested restricted stock units and performance-based restricted stock units (“assumed awards”) with a preliminary estimated fair value of $47 million allocated to future services to be expensed over the remaining service periods on a straight-line basis, of which $4 million was attributed to purchase consideration. For the year ended October 31, 2022, HP recorded stock-based compensation expense of $3 million related to these assumed awards. Acquisitions in fiscal 2021 I n fiscal 2021, HP completed four acquisitions. The estimated fair value of the assets acquired and liabilities assumed at the acquisition date for all four acquisitions, as set forth in the table below. Pro forma results of operations for these acquisitions have not been presented because they were not material to HP’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. The following table presents the aggregate estimated fair values of the assets acquired and liabilities assumed for all of HP's acquisitions in fiscal 2021: In millions Goodwill $ 400 Amortizable intangible assets 385 Net assets acquired 120 Total fair value of consideration $ 905 Acquisition of HyperX, the gaming division of Kingston Technology Company HP’s largest acquisition in fiscal 2021 was its acquisition of HyperX, the gaming division of Kingston Technology Company which was completed in June 2021 with a total fair value purchase consideration of $412 million. The acquisition supports HP’s strategy to drive growth in gaming and peripherals within the Personal Systems segment. In connection with this acquisition, HP recorded approximately $112 million of goodwill and $197 million of amortizable purchased intangible assets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP’s Consolidated Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of October 31, 2022, the extent to which the current macroeconomic factors will impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions required increased judgment and may carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic and ongoing macroeconomic factors, our estimates may materially change in future periods. |
Foreign Currency Translation | Foreign Currency Translation HP predominantly uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars 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. dollars are recorded in U.S. dollars at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain foreign subsidiaries designate the local currency as their functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as translation adjustments and includes them as a component of Accumulated other comprehensive loss. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance on the recognition and measurement of contract assets and contract liabilities acquired in a business combination. This guidance requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under the new guidance, it is generally expected that an acquirer will recognize and measure contract assets and liabilities in a manner consistent with how they were recognized by the acquiree in its preacquisition financial statements. HP is required to adopt the guidance in the first quarter of fiscal year 2024, with early adoption permitted HP has early adopted the guidance in fiscal year 2022, and the implementation of this guidance did not have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued guidance that enhances the transparency about the use of supplier finance programs. Under the new guidance, companies that use a supplier finance program in connection with the purchase of goods or services will be required to disclose information about the program to allow users of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. HP is required to adopt the guidance |
Revenue Recognition | Revenue Recognition General HP recognizes revenues at a point in time or over time depicting the transfer of promised goods or services to customers in an amount that reflects the consideration to which HP expects to be entitled in exchange for those goods or services. HP follows the five-step model for revenue recognition as summarized below: 1 . Identify the contract with a customer - A contract with customer exists when (i) it is approved and signed by all parties, (ii) each party’s rights and obligations can be identified, (iii) payment terms are defined, (iv) it has commercial substance and (v) the customer has the ability and intent to pay. HP evaluates customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores. While the majority of our sales contracts contain standard terms and conditions, there are certain contracts with non-standard terms and conditions. 2. Identify the performance obligations in the contract - HP evaluates each performance obligation in an arrangement to determine whether it is distinct, such as hardware and/or service. A performance obligation constitutes distinct goods or services when the customer can benefit from such goods or services either on its own or together with other resources that are readily available to the customer and the performance obligation is distinct within the context of the contract. 3. Determine the transaction price - Transaction price is the amount of consideration to which HP expects to be entitled in exchange for transferring goods or services to the customer. If the transaction price includes a variable amount, HP estimates the amount it expects to be entitled to using either the expected value or the most likely amount method. HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, other volume-based incentives and expected returns. HP uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected consumer behavior and market conditions. HP has elected the practical expedient of not accounting for significant financing components if the period between revenue recognition and when the customer pays for the product or service is one year or less. 4. Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates revenue to each performance obligation in proportion to their selling price. The selling price for each performance obligation is based on its Standalone Selling Price (“SSP”). HP establishes SSP using the price charged for a performance obligation when sold separately (“observable price”) and, in some instances, using the price established by management having the relevant authority. When observable price is not available, HP establishes SSP based on management judgment considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. Consideration is also given to market conditions such as competitor pricing strategies and technology industry life cycles. 5. Recognize revenue when (or as) the performance obligation is satisfied - Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of a promised good or service to a customer. HP generally invoices the customer upon delivery of the goods or services and the payments are due as per contract terms. For fixed price support or maintenance contracts that are in the nature of stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over the duration of the contract. HP reports revenue net of any taxes collected from customers and remitted to government authorities, and the collected taxes are recorded as other current liabilities until remitted to the relevant government authority. HP includes costs related to shipping and handling in Cost of revenue. HP records revenue on a gross basis when HP is a principal in the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks. Hardware HP transfers control of the products to the customer at the time the product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations to the customer remain unfulfilled. HP records revenue from the sale of equipment under sales-type leases as revenue at the commencement of the lease. Services HP recognizes revenue from fixed-price support, maintenance and other service contracts over time depicting the pattern of service delivery and recognizes the costs associated with these contracts as incurred. Contract Assets and Liabilities Contract assets are rights to consideration in exchange for goods or services that HP has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are not material to HP’s Consolidated Financial Statements. Contract liabilities are recorded as deferred revenues when amounts invoiced to customers are more than the revenues recognized or when payments are received in advance for fixed-price support or maintenance contracts. The short-term and long-term deferred revenues are reported within the other current liabilities and other non-current liabilities respectively. Cost to obtain a contract and fulfillment cost Incremental direct costs of obtaining a contract primarily consist of sales commissions. HP has elected the practical expedient to expense as incurred the costs to obtain a contract with a benefit period equal to or less than one year. For contracts with a period of benefit greater than one year, HP capitalizes incremental costs of obtaining a contract with a customer and amortizes these costs over their expected period of benefit provided such costs are recoverable. Fulfillment costs consist of set-up and transition costs related to other service contracts. These costs generate or enhance resources of HP that will be used in satisfying the performance obligation in the future and are capitalized and amortized over the expected period of the benefit, provided such costs are recoverable. See Note 7, “Supplementary Financial Information” for details on net revenue by region, cost to obtain a contract and fulfillment cost, contract liabilities and value of remaining performance obligations. |
Leases | Leases At the inception of a contract, HP assesses whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether HP obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether HP has the right to direct the use of the asset. All significant lease arrangements are recognized at lease commencement. Leases with a lease term of 12 months or less at inception are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in the Consolidated Statement of Earnings. HP determines the lease term by assuming the exercise of renewal options that are reasonably certain. As most of the leases do not provide an implicit interest rate, HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate at the commencement date to determine the present value of future payments that are reasonably certain. |
Stock-Based Compensation | Stock-Based CompensationHP determines stock-based compensation expense based on the measurement date fair value of the award. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. |
Retirement and Post-Retirement Plans | Retirement and Post-Retirement Plans HP has various defined benefit, other contributory and non-contributory retirement and post-retirement plans. HP generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life of participants. In limited cases, HP amortizes actuarial gains and losses 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 cost | Advertising costCosts to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. |
Restructuring and Other Charges | Restructuring and Other Charges HP records charges associated with management-approved restructuring plans to reorganize one or more of HP’s business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to reduce a specified number of employees, enhanced early retirement incentives, infrastructure charges to vacate facilities and consolidate operations, and |
Taxes on Earnings | Taxes on Earnings HP 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. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. HP records accruals for uncertain tax positions when HP 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. HP 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, as well as any related interest and penalties. |
Accounts Receivable | Accounts Receivable HP records allowance for credit losses for the current expected credit losses inherent in the asset over its expected life. The allowance for credit losses is maintained based on the relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. HP records a specific reserve for individual accounts when HP 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, HP further adjusts estimates of the recoverability of receivables. HP assesses collectability by pooling receivables where similar risk characteristics exist. HP maintains an allowance for credit losses 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, financial condition of customers, 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. HP utilizes certain third-party arrangements in the normal course of business as part of HPs cash and liquidity management and also to provide liquidity to certain partners to facilitate their working capital requirements. These financing arrangements, which in certain cases provide for partial recourse, result in the transfer of HP’s trade receivables to a third-party. HP reflects amounts transferred to, but not yet collected from the third-party in Accounts receivable in the 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 the Consolidated Balance Sheets. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, receivables from trade customers and contract manufacturers and derivatives. HP maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographic regions, and HP’s policy is designed to limit exposure from any particular institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of these financial institutions. HP has not sustained material credit losses from instruments held at these financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency, interest rate and, on certain investment exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. The likelihood of which HP deems to be remote. HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of these distributors’ and resellers’ aggregated business deteriorates substantially, HP’s operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 52% and 42% of gross accounts receivable as of October 31, 2022 and 2021, respectively. Two customers TD Synnex Corp and Ingram Micro Inc., accounted for 13.8% and 10.4%, respectively, of gross accounts receivable as of October 31, 2022. No single customer accounted for more than 10% of gross accounts receivable as of October 31, 2021. Credit risk with respect to other accounts receivable is generally diversified due to HP’s large customer base and their dispersion across many different industries and geographic markets. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP 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 85% of HP’s supplier receivables of $0.3 billion and $1.4 billion as of October 31, 2022 and 2021, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. HP’s credit risk associated with these receivables is mitigated wholly or in part, by the amount HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in net revenue and does not recognize any profit on these component sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of revenue. HP obtains a significant number of components from single source suppliers like Canon, due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of HP’s relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP’s net revenue, cash flows and gross margins. |
Inventory | Inventory HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments, if required, to reduce the cost of inventory to market (net realizable value) are made for estimated excess, obsolete or impaired balances after considering judgments related to future demand and market conditions. |
Property, Plant and Equipment, net | Property, Plant and Equipment, Net HP reflects property, plant and equipment at cost less accumulated depreciation. HP 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 |
Internal Use Software and Cloud Computing Arrangements | Internal Use Software and Cloud Computing Arrangements HP capitalizes external costs and directly attributable internal costs to acquire or create internal use software which are incurred subsequent to the completion of the preliminary project stage. These costs relate to activities such as software design, configuration, coding, testing, and installation. Costs related to post-implementation activities such as training and maintenance are expensed as incurred. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software, generally not to exceed five years. HP also enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. For internal-use software obtained through a hosting arrangement that is in the nature of a service contract, HP incurs certain implementation costs such as integrating, configuring, and software customization, which are consistent with costs incurred during the application development stage for on-premise software. HP applies the same guidance to determine costs that are eligible for capitalization. For these arrangements, HP amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. HP also applies the same impairment model to both internal-use software and capitalized implementation costs in a software hosting arrangement that is in the nature of a service contract. |
Business Combinations | Business Combinations HP includes the results of operations of the acquired business in HP’s consolidated results prospectively from the acquisition date. HP allocates the purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these 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 HP, and the value of the acquired assembled workforce, neither of which qualify for recognition as an intangible asset. Acquisition and divestiture charges are recognized separately from the business combination and are expensed as incurred. These charges primarily include, direct third-party professional and legal fees, integration and divestiture-related costs, as well as non-cash adjustments to the fair value adjustments of certain acquired assets such as inventory and certain compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units of acquired companies . |
Goodwill | Goodwill HP reviews goodwill for impairment annually during its fourth quarter and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. HP can elect to perform a qualitative assessment to test a reporting unit’s goodwill for impairment or HP can directly perform the quantitative impairment test. Based on the qualitative assessment, if HP determines that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative impairment test will be performed. In the quantitative impairment test, HP compares the fair value of each reporting unit to its carrying amount with the fair values derived most significantly from the income approach, and to a lesser extent, the market approach. Under the income approach, HP estimates the fair value of a reporting unit based on the present value of estimated future cash flows. HP bases cash flow projections on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. HP 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, HP 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. HP weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. In order to assess the reasonableness of the estimated fair value of HP’s reporting units, HP compares the aggregate reporting unit fair value to HP’s market capitalization on an overall basis and calculates an implied control premium (the excess of the sum of the reporting units’ fair value over HP’s market capitalization on an overall basis). HP evaluates the control premium by comparing it to observable control premiums from recent comparable transactions. If the implied control premium is determined to not be reasonable in light of these recent transactions, HP re-evaluates its reporting unit fair values, which may result in an adjustment to the discount rate and/or other assumptions. This re-evaluation could result in a change to the estimated fair value for certain or all reporting units. 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. If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss. |
Debt and Marketable Equity Securities Investments | Debt and Marketable Equity Securities Investments HP determines the appropriate classification of its investments at the time of purchase and re-evaluates the classifications at each balance sheet date. Debt and marketable equity securities are generally considered available-for-sale. All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. Marketable debt securities with maturities of twelve months or less are classified as short-term investments and marketable debt securities with maturities greater than twelve months are classified based on their availability for use in current operations. Marketable equity securities, including mutual funds, are classified as either short or long-term based on the nature of each security and its availability for use in current operations. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of applicable taxes, in Accumulated other comprehensive loss. Unrealized gains and losses on equity securities, credit losses and impairments on available-for-sale debt securities are recorded in Consolidated Statements of Earnings. Realized gains and losses on available-for-sale securities are calculated at the individual security level and included in Interest and other, net in the Consolidated Statements of Earnings. HP monitors its investment portfolio for potential impairment and credit losses on a quarterly basis. If HP intends to sell a debt security or it is more likely than not that HP will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Interest and other, net and a new cost basis in the investment is established. In other cases, if the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit related reasons, HP records a credit loss allowance, limited by the amount that fair value is less than the amortized cost basis. HP recognizes the corresponding charge in Interest and other, net and the remaining unrealized |
Derivatives | Derivatives HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and, at times, option contracts to hedge certain foreign currency, interest rate and, return on certain investment exposures. HP also may use other derivative instruments not designated as hedges, such as forwards used to hedge foreign currency balance sheet exposures. HP does not use derivative instruments for speculative purposes. See Note 10, “Financial Instruments” for a full description of HP’s derivative instrument activities and related accounting policies. |
Loss Contingencies | Loss Contingencies HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP 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 14, “Litigation and Contingencies” for a full description of HP’s loss contingencies and related accounting policies. |
Segment Information | The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements. HP derives the results of the business segments directly from its internal management reporting system. HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and Russia exit charges. |
Fair Value | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3—Unobservable inputs for the asset or liability. The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. Valuation Techniques Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including net asset value, or models utilizing market observable inputs. The fair value of debt investments is 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: HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 10, “Financial Instruments” for a further discussion of HP’s use of derivative instruments. Other Fair Value Disclosures Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considering its own credit risk. The portion of HP’s debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt’s carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The fair value of HP’s short- and long-term debt was $9.6 billion as compared to its carrying amount of $11.0 billion at October 31, 2022. The fair value of HP’s short- and long-term debt was $8.0 billion as compared to its carrying value of $7.5 billion at October 31, 2021. If measured at fair value in the Consolidated Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy. Other Financial Instruments: For the balance of HP’s financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in Other current liabilities on the Consolidated Balance Sheets, 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 as Level 2 or Level 3 of the fair value hierarchy. Non-Marketable Equity Investments and Non-Financial Assets: HP’s non-marketable equity investments are measured at cost less impairment, adjusted for observable price changes. HP’s non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at fair value in the period an impairment charge is recognized. If measured at fair value in the Consolidated Balance Sheets these would generally be classified within Level 3 of the fair value hierarchy. |
Earnings Per Share | HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan. |
Guarantees, Indemnifications and Warranties | Guarantees In the ordinary course of business, HP may issue performance guarantees to certain of its clients, customers and other parties pursuant to which HP has guaranteed the performance obligations of third parties. Some of those guarantees may be backed by standby letters of credit or surety bonds. In general, HP would be obligated to perform over the term of the guarantee in the event a specified triggering event occurs as defined by the guarantee. HP believes the likelihood of having to perform under a material guarantee is remote. Cross-Indemnifications with Hewlett Packard Enterprise On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise, Hewlett-Packard Company’s former enterprise technology infrastructure, software, services and financing businesses. The separation and distribution agreement provides for cross-indemnities between HP and Hewlett Packard Enterprise for liabilities allocated to the respective party pursuant to the terms of such agreement. For information on cross-indemnifications with Hewlett Packard Enterprise for litigation matters, see Note 14, “Litigation and Contingencies”. Indemnifications In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify a third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of intellectual property infringement made by third parties arising from the vendors’ and customers’ use of HP’s software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. HP records tax indemnification receivables from various third parties for certain tax liabilities that HP is jointly and severally liable for, but for which it is indemnified by those same third parties under existing legal agreements. HP records a tax indemnification payable to various third parties under these agreements when management believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. The actual amount that the third parties pay or may be obligated to pay HP could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. Warranties HP accrues the estimated cost of product warranties at the time it recognizes revenue. HP engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers; however, contractual warranty terms, repair costs, product call rates, average cost per call, current period product shipments and ongoing product failure rates, as well as specific product class failures outside of HP’s baseline experience, affect the estimated warranty obligation. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Segment Operating Results to Consolidated Results | Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Net revenue: Notebooks $ 29,183 $ 30,522 $ 25,766 Desktops 10,736 9,381 9,806 Workstations 2,100 1,669 1,816 Other (1) 2,065 1,787 1,609 Personal Systems 44,084 43,359 38,997 Supplies 11,761 12,632 11,586 Commercial 4,225 4,209 3,539 Consumer 2,916 3,287 2,516 Printing 18,902 20,128 17,641 Corporate Investments 2 3 2 Total segment net revenue 62,988 63,490 56,640 Other (5) (3) (1) Total net revenue $ 62,983 $ 63,487 $ 56,639 Earnings before taxes: Personal Systems $ 2,908 $ 3,101 $ 2,312 Printing 3,651 3,636 2,495 Corporate Investments (230) (96) (69) Total segment earnings from operations $ 6,329 $ 6,641 $ 4,738 Corporate and unallocated costs and other (508) (542) (407) Stock-based compensation expense (343) (330) (278) Restructuring and other charges (233) (245) (462) Acquisition and divestiture charges (318) (68) (16) Amortization of intangible assets (228) (154) (113) Russia exit charges (23) — — Interest and other, net (235) 2,209 (231) Total earnings before taxes $ 4,441 $ 7,511 $ 3,231 (1) Includes net revenue for Poly since acquisition date (August 29, 2022). |
Schedule of Reconciliation of Segment Operating Results to Consolidated Results | Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Net revenue: Notebooks $ 29,183 $ 30,522 $ 25,766 Desktops 10,736 9,381 9,806 Workstations 2,100 1,669 1,816 Other (1) 2,065 1,787 1,609 Personal Systems 44,084 43,359 38,997 Supplies 11,761 12,632 11,586 Commercial 4,225 4,209 3,539 Consumer 2,916 3,287 2,516 Printing 18,902 20,128 17,641 Corporate Investments 2 3 2 Total segment net revenue 62,988 63,490 56,640 Other (5) (3) (1) Total net revenue $ 62,983 $ 63,487 $ 56,639 Earnings before taxes: Personal Systems $ 2,908 $ 3,101 $ 2,312 Printing 3,651 3,636 2,495 Corporate Investments (230) (96) (69) Total segment earnings from operations $ 6,329 $ 6,641 $ 4,738 Corporate and unallocated costs and other (508) (542) (407) Stock-based compensation expense (343) (330) (278) Restructuring and other charges (233) (245) (462) Acquisition and divestiture charges (318) (68) (16) Amortization of intangible assets (228) (154) (113) Russia exit charges (23) — — Interest and other, net (235) 2,209 (231) Total earnings before taxes $ 4,441 $ 7,511 $ 3,231 (1) Includes net revenue for Poly since acquisition date (August 29, 2022). |
Schedule of Reconciliation of Segment Assets to Consolidated Assets from Continuing Operations | HP 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 HP consolidated assets were as follows: As of October 31 2022 2021 In millions Personal Systems $ 19,710 $ 18,126 Printing 14,486 14,744 Corporate Investments 191 171 Corporate and unallocated assets 4,200 5,569 Total assets $ 38,587 $ 38,610 |
Schedule of Net Revenue by Geographical Areas | Net revenue by country was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions United States $ 21,682 $ 22,447 $ 20,227 Other countries 41,301 41,040 36,412 Total net revenue $ 62,983 $ 63,487 $ 56,639 |
Schedule of Net Property, Plant and Equipment by Geographical Areas | Net property, plant and equipment by country in which HP operates was as follows: As of October 31 2022 2021 In millions United States $ 1,264 $ 1,178 Singapore 329 305 South Korea 320 285 Other countries 861 778 Total property, plant and equipment, net $ 2,774 $ 2,546 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Cost Saving Plan Activities | HP’s restructuring activities in fiscal years 2022, 2021 and 2020 summarized by plan were as follows: Fiscal 2020 Plan Other prior year plans (1) Total Severance and EER Non-labor In millions Accrued balance as of October 31, 2019 $ 76 $ — $ 66 $ 142 Charges 346 10 1 357 Cash payments (319) (10) (52) (381) Non-cash and other adjustments (48) (2) — (3) (51) Accrued balance as of October 31, 2020 55 — 12 67 Charges 181 38 4 223 Cash payments (159) (7) (16) (182) Non-cash and other adjustments (2) (31) — (33) Accrued balance as of October 31, 2021 75 — — 75 Charges 131 77 — 208 Cash payments (176) (40) (1) (217) Non-cash and other adjustments 2 (37) 1 (34) Accrued balance as of October 31, 2022 $ 32 $ — $ — $ 32 Total costs incurred to date as of October 31, 2022 $ 740 $ 125 $ 504 $ 1,369 Reflected in Consolidated Balance Sheets: Other current liabilities $ 32 $ — $ — $ 32 (1) Includes prior-year plans which are substantially complete. HP does not expect any further material activity associated with these plans. (2) Includes reclassification of liability related to the Enhanced Early Retirement (“EER”) plan of $44 million for certain healthcare and medical savings account benefits to pension and post retirement plans. See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information . |
Retirement and Post-Retiremen_2
Retirement and Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Pension and Post-Retirement Benefit (Credit) Cost Recognized | The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Statements of Earnings were as follows: For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 U.S. Defined Non-U.S. Defined Post-Retirement In millions Service cost $ — $ — $ — $ 56 $ 67 $ 64 $ 1 $ 1 $ 1 Interest cost 161 281 412 22 18 17 8 9 11 Expected return on plan assets (298) (475) (700) (48) (49) (43) (9) (24) (23) Amortization and deferrals: Actuarial loss (gain) 5 50 64 36 52 43 (15) (16) (10) Prior service cost (credit) — — — 5 5 (2) (11) (11) (12) Net periodic benefit (credit) cost (132) (144) (224) 71 93 79 (26) (41) (33) Settlement (gain) loss — (37) 217 — 1 1 — — — Special termination benefit cost — — — — — — — — 44 Total periodic benefit (credit) cost $ (132) $ (181) $ (7) $ 71 $ 94 $ 80 $ (26) $ (41) $ 11 |
Schedule of Weighted-Average Assumptions Used to Calculate Total Periodic Benefit (Credit) Cost | The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows: For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 U.S. Defined Non-U.S. Defined Post-Retirement Discount rate 2.9 % 2.8 % 3.2 % 1.3 % 1.1 % 1.3 % 2.5 % 2.3 % 2.9 % Expected increase in compensation levels 2.0 % 2.0 % 2.0 % 2.6 % 2.4 % 2.5 % — % — % — % Expected long-term return on plan assets 5.1 % 5.0 % 6.0 % 4.3 % 4.4 % 4.4 % 2.0 % 5.0 % 5.9 % Guaranteed interest crediting rate 5.0 % 5.0 % 5.0 % 2.6 % 2.6 % 2.6 % 2.9 % 2.9 % 3.5 % |
Schedule of Funded Status of Defined Benefit and Post-Retirement Benefit Plans | The funded status of the defined benefit and post-retirement benefit plans was as follows: As of October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement In millions Change in fair value of plan assets: Fair value of assets — beginning of year $ 6,060 $ 10,463 $ 1,211 $ 1,064 $ 457 $ 481 Actual return on plan assets (1,674) 1,403 (131) 117 (49) 11 Employer contributions 29 28 34 71 3 2 Participant contributions — — 19 21 39 49 Benefits paid (204) (427) (21) (45) (67) (86) Settlement (4) (5,407) (62) (5) — — Currency impact — — (143) (12) — — Fair value of assets — end of year $ 4,207 $ 6,060 $ 907 $ 1,211 $ 383 $ 457 Change in benefits obligation Projected benefit obligation — beginning of year $ 5,740 $ 11,344 $ 1,747 $ 1,664 $ 354 $ 394 Acquisition of plan (1) — — 11 — — — Service cost — — 56 67 1 1 Interest cost 161 281 22 18 8 9 Participant contributions — — 19 21 39 49 Actuarial (gain) loss (1,724) (51) (441) (23) (61) (13) Benefits paid (204) (427) (21) (45) (67) (86) Plan amendments — — (5) 62 — — Curtailment — — — (3) — — Settlement (4) (5,407) (62) (5) — — Currency impact — — (181) (9) — — Projected benefit obligation — end of year $ 3,969 $ 5,740 $ 1,145 $ 1,747 $ 274 $ 354 Funded status at end of year $ 238 $ 320 $ (238) $ (536) $ 109 $ 103 Accumulated benefit obligation $ 3,969 $ 5,740 $ 1,035 $ 1,602 (1) $11 million of defined benefit plans as a result of the Poly acquisition |
Schedule of Weighted-Average Assumptions Used to Calculate Projected Benefit Obligations | The weighted-average assumptions used to calculate the projected benefit obligations for the fiscal years ended October 31, 2022 and 2021 were as follows: For the fiscal years ended October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement Discount rate 5.7 % 2.9 % 3.5 % 1.3 % 5.6 % 2.5 % Expected increase in compensation levels 2.0 % 2.0 % 3.0 % 2.6 % — % — % Guaranteed interest crediting rate 5.0 % 5.0 % 2.6 % 2.6 % 4.2 % 2.9 % |
Schedule of Net Amounts of Noncurrent Assets and Current and Noncurrent Liabilities for Defined Benefit and Post-Retirement Benefit Plans | The net amounts of non-current assets and current and non-current liabilities for HP’s defined benefit and post-retirement benefit plans recognized on HP’s Consolidated Balance Sheet were as follows: As of October 31 2022 2021 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined Post-Retirement In millions Other non-current assets $ 527 $ 732 $ 38 $ 34 $ 114 $ 108 Other current liabilities (32) (36) (9) (8) (4) (4) Other non-current liabilities (257) (376) (267) (562) (1) (1) Funded status at end of year $ 238 $ 320 $ (238) $ (536) $ 109 $ 103 |
Schedule of Pre-Tax Net Actuarial Loss (Gain) and Prior Service Benefit Recognized in Accumulated Other Comprehensive Loss for Defined Benefit and Post-Retirement Benefit Plans | The following table summarizes the pre-tax net actuarial loss (gain) and prior service cost (credit) recognized in Accumulated other comprehensive income (loss) for the defined benefit and post-retirement benefit plans. As of October 31, 2022 U.S. Defined Non-U.S. Defined Post-Retirement In millions Net actuarial loss (gain) $ 370 $ 45 $ (191) Prior service cost (credit) — 42 (68) Total recognized in Accumulated other comprehensive income (loss) $ 370 $ 87 $ (259) |
Schedule of Defined Benefit Plans with Projected Benefit Obligations Exceeding 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 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined In millions Aggregate fair value of plan assets $ — $ — $ 728 $ 988 Aggregate projected benefit obligation $ 289 $ 412 $ 996 $ 1,562 |
Schedule of Defined Benefit Plans with Accumulated Benefit Obligations Exceeding 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 2022 2021 2022 2021 U.S. Defined Non-U.S. Defined In millions Aggregate fair value of plan assets $ — $ — $ 538 $ 983 Aggregate accumulated benefit obligation $ 289 $ 412 $ 733 $ 1,437 |
Schedule of Fair Value of Plan Assets by Asset Category | The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2022. Refer to Note 9, “Fair Value” for details on fair value hierarchy. Certain investments that are measured at fair value using the Net Asset Value (“NAV”) per share as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table provide a reconciliation of the fair value hierarchy to the total value of plan assets. As of October 31, 2022 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset category: Equity securities (1) $ 14 $ 37 $ — $ 51 $ 7 $ 82 $ — $ 89 $ — $ — $ — $ — Debt securities (2) Corporate — 1,949 — 1,949 — 13 — 13 — 214 — 214 Government — 1,418 — 1,418 — 43 — 43 — 108 — 108 Real estate funds — — — — 1 16 — 17 — — — — Insurance contracts — — — — — 72 — 72 — — — — Common collective trusts and 103-12 Investment entities (3) — — — — — 7 — 7 — — — — Investment funds (4) 13 — — 13 — 260 — 260 68 — 68 Cash and cash equivalents (5) 40 54 — 94 37 — — 37 (5) — — (5) Other (6) (264) (230) — (494) 11 75 — 86 (2) — (2) Net plan assets subject to leveling $ (197) $ 3,228 $ — $ 3,031 $ 56 $ 568 $ — $ 624 $ 61 $ 322 $ — $ 383 Investments using NAV as a practical expedient (7) 1,176 283 — Investments at fair value $ 4,207 $ 907 $ 383 The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2021. As of October 31, 2021 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Asset category: Equity securities (1) $ 11 $ 50 $ — $ 61 $ 8 $ 102 $ — $ 110 $ — $ — $ — $ — Debt securities (2) Corporate — 2,620 — 2,620 — 132 — 132 — 256 — 256 Government — 1,931 — 1,931 — 5 — 5 — 122 — 122 Real estate funds — — — — 1 41 — 42 — — — — Insurance contracts — — — — — 94 — 94 — — — — Common collective trusts and 103-12 Investment entities (3) — — — — — 9 — 9 — — — — Investment funds (4) 53 — — 53 — 388 — 388 64 — — 64 Cash and cash equivalents (5) 34 34 — 68 21 — — 21 9 1 — 10 Other (6) (456) (515) — (971) 1 40 — 41 (2) — — (2) Net plan assets subject to leveling $ (358) $ 4,120 $ — $ 3,762 $ 31 $ 811 $ — $ 842 $ 71 $ 379 $ — $ 450 Investments using NAV as a practical expedient (7) 2,298 369 7 Investments at fair value $ 6,060 $ 1,211 $ 457 (1) 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. (2) The fair value of corporate, government and asset-backed debt securities is based on observable inputs of comparable market transactions. Also included in this category is debt issued by national, state and local governments and agencies. (3) Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. Certain common collective trusts and interests in 103-12 entities are valued using NAV as a practical expedient. (4) Includes publicly traded funds of investment companies that are registered with the SEC, funds that are not publicly traded and a non-U.S. fund-of-fund arrangement. (5) Includes cash and cash equivalents such as short-term marketable securities. Cash and cash equivalents include money market funds, which are valued based on NAV. Other assets were classified in the fair value hierarchy based on the lowest level input (e.g., quoted prices and observable inputs) that is significant to the fair value measure in its entirety. (6) Includes primarily reverse repurchase agreements, unsettled transactions, and derivative instruments. (7) These investments include alternative investments, which primarily consist of private equities and hedge funds. The valuation of alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. For alternative investments, valuation is based on NAV as reported by the asset manager or investment company and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including but not limited to the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. • Private equities include limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. • Hedge funds include limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event-driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. These investments also include Common Collective Trusts and 103-12 Investment Entities as defined in note (3) above and Investment Funds as defined in note (4) above. |
Schedule of Weighted-Average Target Asset Allocations Across Benefit Plans | The weighted-average target asset allocations across the benefit plans represented in the fair value tables above were as follows: 2022 Target Allocation Asset Category U.S. Defined Benefit Plans Non-U.S. Defined Post-Retirement Equity-related investments 19.0 % 34.0 % — % Debt securities 81.0 % 32.5 % 98.3 % Real estate — % 14.0 % — % Cash and cash equivalents — % 5.5 % 1.7 % Other — % 14.0 % — % Total 100.0 % 100.0 % 100.0 % |
Schedule of Estimated Future Benefits Payments for Retirement and Post-Retirement Plans | As of October 31, 2022, HP estimates that the future benefits payments for the retirement and post-retirement plans are as follows: Fiscal year U.S. Defined Non-U.S. Post-Retirement In millions 2023 $ 308 $ 76 $ 32 2024 320 46 27 2025 330 48 26 2026 328 50 26 2027 333 55 26 Next five fiscal years to October 31, 2032 1,575 334 125 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
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 for operations were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Stock-based compensation expense $ 343 $ 330 $ 278 Income tax benefit (59) (52) (48) Stock-based compensation expense, net of tax $ 284 $ 278 $ 230 |
Schedule of Weighted-Average Fair Value and Assumptions Used to Measure Fair Value of Restricted Stock Units | HP uses the closing stock price on the grant date to estimate the fair value of service-based restricted stock units. HP estimates the fair value of restricted stock units subject to performance-adjusted vesting conditions using a combination of the closing stock price on the grant date and a Monte Carlo simulation model. The assumptions used to measure the fair value of restricted stock units subject to performance-adjusted vesting conditions in the Monte Carlo simulation model were as follows: For the fiscal years ended October 31 2022 2021 2020 Expected volatility (1) 41.6 % 41.0 % 27.6 % Risk-free interest rate (2) 1.0 % 0.2 % 1.6 % Expected performance period in years (3) 2.9 2.9 2.9 (1) The expected volatility was estimated using the historical volatility derived from HP’s common stock. (2) The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. (3) The expected performance period was estimated based on the length of the remaining performance period from the grant date. |
Schedule of Restricted Stock Awards Activity | A summary of restricted stock units activity is as follows: As of October 31 2022 2021 2020 Shares Weighted- Shares Weighted- Shares Weighted- In thousands In thousands In thousands Outstanding at beginning of year 30,197 $ 23 29,831 $ 21 29,960 $ 21 Granted (1) 15,337 $ 36 15,517 $ 25 18,109 $ 20 Vested (14,168) $ 22 (13,374) $ 21 (14,929) $ 20 Forfeited (2,678) $ 25 (1,777) $ 22 (3,309) $ 21 Outstanding at end of year 28,688 $ 30 30,197 $ 23 29,831 $ 21 |
Schedule of Weighted-Average Fair Value and Assumptions Used to Measure Fair Value of Stock Options | HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows: For the fiscal years ended October 31 2022 2021 2020 Weighted-average fair value (1) $ 11 $ 6 $ 3 Expected volatility (2) 34.7 % 35.9 % 29.8 % Risk-free interest rate (3) 1.5 % 1.0 % 1.6 % Expected dividend yield (4) 2.7 % 3.2 % 4.0 % Expected term in years (5) 6.0 5.5 6.0 (1) The weighted-average fair value was based on stock options granted during the period. (2) Expected volatility was estimated based on a blended volatility (50% historical volatility and 50% implied volatility from traded options on HP’s common stock). (3) The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. (4) The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award. |
Schedule of Stock Options Activity | A summary of stock options activity is as follows: As of October 31 2022 2021 2020 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate In In years In In In years In In In years In Outstanding at beginning of year 6,367 $ 21 5,637 $ 17 7,093 $ 16 Granted 1,867 $ 37 2,691 $ 24 996 $ 18 Exercised (1,364) $ 18 (1,843) $ 15 (2,213) $ 14 Forfeited/cancelled/expired (775) $ 26 (118) $ 18 (239) $ 19 Outstanding at end of year 6,095 $ 26 7.2 $ 34 6,367 $ 21 7.4 $ 68 5,637 $ 17 6.4 $ 10 Vested and expected to vest 5,903 $ 25 7.2 $ 34 6,367 $ 21 7.4 $ 68 5,637 $ 17 6.4 $ 10 Exercisable 2,749 $ 18 6.0 $ 26 2,392 $ 16 5.3 $ 34 3,196 $ 15 4.4 $ 9 |
Schedule of Shares Available for Future Grant and Shares Reserved for Future Issuance | Shares available for future grant and shares reserved for future issuance under the stock-based incentive compensation plans and the 2021 ESPP were as follows: As of October 31 2022 2021 2020 In thousands Shares available for future grant (1) 174,264 170,123 229,334 Shares reserved for future issuance (1) 208,351 205,968 264,110 (1) For year 2020, shares authorized under the 2011 ESPP were included in the shares available for future grant and shares reserved for future issuance . |
Taxes on Earnings (Tables)
Taxes on Earnings (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Components of Earnings | The domestic and foreign components of earnings before taxes were as follows: For the fiscal years ended October 31 h 2022 2021 2020 In millions U.S. $ 1,522 $ 4,662 $ 884 Non-U.S. 2,919 2,849 2,347 $ 4,441 $ 7,511 $ 3,231 |
Schedule of (Benefit from) Provision for Taxes on Earnings | The provision for (benefit from) taxes on earnings was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions U.S. federal taxes: Current $ 315 $ 1,118 $ (24) Deferred 27 (458) (68) Non-U.S. taxes: Current 341 420 319 Deferred 500 (197) 164 State taxes: Current 12 77 23 Deferred 43 48 (27) $ 1,238 $ 1,008 $ 387 |
Schedule of Differences Between U.S. Federal Statutory Income Tax Rate and HP's Effective Tax Rate | The differences between the U.S. federal statutory income tax rate and HP’s effective tax rate were as follows: For the fiscal years ended October 31 2022 2021 2020 U.S. federal statutory income tax rate from continuing operations 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.3 % 0.9 % 1.4 % Impact of foreign earnings including GILTI and FDII, net (7.6) % (3.6) % (6.1) % Valuation allowances 0.3 % (3.8) % 2.3 % Uncertain tax positions and audit settlements 3.0 % 0.8 % (4.1) % Impact of internal reorganization 9.2 % (1.2) % — % Other, net 0.7 % (0.7) % (2.5) % 27.9 % 13.4 % 12.0 % |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits is as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year $ 820 $ 820 $ 929 Increases: For current year’s tax positions 36 63 59 For prior years’ tax positions 299 92 71 Decreases: For prior years’ tax positions (61) (92) (89) Statute of limitations expirations (5) (9) (2) Settlements with taxing authorities (44) (54) (148) Balance at end of year $ 1,045 $ 820 $ 820 |
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 2022 2021 In millions Deferred tax assets: Loss and credit carryforwards $ 7,601 $ 7,630 Intercompany transactions—excluding inventory 799 791 Fixed assets 118 136 Warranty 170 207 Employee and retiree benefits 124 287 Deferred revenue 221 192 Capitalized research and development 654 454 Intangible assets — 474 Operating lease liabilities 238 227 Investment in partnership 70 95 Cash flow hedges — 8 Other 353 444 Gross deferred tax assets 10,348 10,945 Valuation allowances (7,592) (7,749) Total deferred tax assets 2,756 3,196 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries (75) (42) Right-of-use assets from operating leases (227) (215) Intangible assets (261) — Cash flow hedges (155) — Other — (79) Total deferred tax liabilities (718) (336) Net deferred tax assets $ 2,038 $ 2,860 Deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows: As of October 31 2022 2021 In millions Deferred tax assets $ 2,159 $ 2,917 Deferred tax liabilities (121) (57) Total $ 2,038 $ 2,860 |
Schedule of Deferred Tax Assets for Net Operating Loss Carryforwards | As of October 31, 2022, HP had recorded deferred tax assets for net operating loss (“NOL”) carryforwards as follows: Gross NOLs Deferred Taxes on NOLs Valuation allowance Initial Year of Expiration In millions Federal $ 291 $ 63 $ (11) 2023 State 2,680 178 (71) 2023 Foreign 25,948 7,213 (7,113) 2033 Balance at end of year $ 28,919 $ 7,454 $ (7,195) |
Schedule of Deferred Tax Assets for Various Tax Credit Carryforwards | As of October 31, 2022, HP had recorded deferred tax assets for various tax credit carryforwards as follows: Carryforward Valuation Initial In millions Tax credits in state and foreign jurisdictions $ 312 $ (55) 2023 U.S. R&D and other credits 11 — 2031 Balance at end of year $ 323 $ (55) |
Schedule of Deferred Tax Asset Valuation Allowance and Changes | The deferred tax asset valuation allowance and changes were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year $ 7,749 $ 7,976 $ 7,930 Income tax (benefit) expense (274) (193) 74 Goodwill, other comprehensive loss (income), currency translation and charges to other accounts 117 (34) (28) Balance at end of year $ 7,592 $ 7,749 $ 7,976 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts Related to Accounts Receivable | The allowance for credit losses related to accounts receivable and changes were as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of period $ 111 $ 122 $ 111 Current-period allowance for credit losses 7 5 62 Deductions, net of recoveries (11) (16) (51) Balance at end of period $ 107 $ 111 $ 122 |
Schedule of Revolving Short-Term Financing Arrangements | The following is a summary of the activity under these arrangements: For the fiscal years ended October 31 2022 2021 2020 In millions Balance at beginning of year (1) $ 131 $ 188 $ 235 Trade receivables sold 12,028 11,976 10,474 Cash receipts (11,942) (12,035) (10,526) Foreign currency and other (32) 2 5 Balance at end of year (1) $ 185 $ 131 $ 188 (1) Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Balance Sheets. |
Schedule of Inventory | Inventory As of October 31 2022 2021 In millions Finished goods $ 4,885 $ 4,532 Purchased parts and fabricated assemblies 2,710 3,398 $ 7,595 $ 7,930 |
Schedule of Other Current Assets | Other Current Assets As of October 31 2022 2021 In millions Prepaid and other current assets $ 2,170 $ 1,092 Supplier and other receivables 1,377 2,333 Value-added taxes receivable 968 1,005 $ 4,515 $ 4,430 |
Schedule of Property, Plant and Equipment, Net | Property, Plant and Equipment, Net As of October 31 2022 2021 In millions Land, buildings and leasehold improvements $ 2,255 $ 2,166 Machinery and equipment, including equipment held for lease 5,337 5,307 7,592 7,473 Accumulated depreciation (4,818) (4,927) $ 2,774 $ 2,546 |
Schedule of Other Non-Current Assets | Other Non-Current Assets As of October 31 2022 2021 In millions Deferred tax assets (1) $ 2,159 $ 2,917 Intangible assets (2) 1,933 784 Right-of-use assets (3) 1,236 1,192 Deposits and prepaid 588 734 Prepaid pension asset (4) 565 766 Other 990 698 $ 7,471 $ 7,091 (1) See Note 6, “Taxes on Earnings” for detailed information. (2) See Note 8, “Goodwill and Intangible Assets” for detailed information. (3) See Note 17, “Leases” for detailed information. (4) See Note 4, “Retirement and Post-Retirement Benefit Plans” for detailed information. |
Schedule of Other Current Liabilities | Other Current Liabilities As of October 31 2022 2021 In millions Sales and marketing programs $ 2,967 $ 3,179 Deferred revenue 1,393 1,277 Other accrued taxes 1,064 1,227 Employee compensation and benefit 954 1,627 Warranty 619 731 Operating lease liabilities (1) 405 350 Tax liability 286 296 Other 2,963 3,228 $ 10,651 $ 11,915 (1) See Note 17, “Leases” for detailed information. |
Schedule of Other Non-Current Liabilities | Other Non-Current Liabilities As of October 31 2022 2021 In millions Deferred revenue $ 1,171 $ 1,099 Tax liability 931 830 Operating lease liabilities (1) 875 936 Pension, post-retirement, and post-employment liabilities (2) 600 1,041 Deferred tax liability 121 57 Other 858 815 $ 4,556 $ 4,778 (1) See Note 17, “Leases” for detailed information. (2) See Note 4, “Retirement and Post-Retirement Benefit Plans” for detailed information. |
Schedule of Interest and Other, Net | Interest and other, net For the fiscal years ended October 31 2022 2021 2020 In millions Oracle litigation proceeds (1) $ — $ 2,304 $ — Non-operating retirement-related credits 144 160 240 Interest expense on borrowings (359) (254) (239) Defined benefit plan settlement gains (charges) — 37 (214) Loss on extinguishment of debt — (16) (40) Tax indemnifications (1) — 1 Other, net (19) (22) 21 $ (235) $ 2,209 $ (231) (1) See Note 1, “Summary of Significant Accounting Policies” for detailed information. |
Schedule of Net Revenue by Region | Net Revenue by Region For the fiscal years ended October 31 2022 2021 2020 In millions Americas $ 26,600 $ 27,518 $ 24,414 Europe, Middle East and Africa 21,317 22,216 19,624 Asia-Pacific and Japan 15,066 13,753 12,601 Total net revenue $ 62,983 $ 63,487 $ 56,639 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Allocation and Changes in the Carrying Amount of Goodwill | Goodwill allocated to HP’s reportable segments and changes in the carrying amount of goodwill were as follows: Personal Systems Printing Corporate Investments Total In millions Balance at October 31, 2020 (1) $ 2,621 $ 3,759 $ — $ 6,380 Acquisitions/adjustments 284 14 102 400 Foreign currency translation — 23 — 23 Balance at October 31, 2021 (1) 2,905 3,796 102 6,803 Acquisitions/adjustments 1,790 — 16 1,806 Foreign currency translation — (68) — (68) Balance at October 31, 2022 (1) $ 4,695 $ 3,728 $ 118 $ 8,541 (1) Goodwill is net of accumulated impairment losses of $0.8 billion related to Corporate Investments. |
Schedule of Acquired Intangible Assets | HP’s acquired intangible assets were composed of: As of October 31, 2022 As of October 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net In millions Customer contracts, customer lists and distribution agreements $ 815 $ 283 $ 532 $ 526 $ 212 $ 314 Technology and patents 1,763 551 1,212 814 425 389 Trade name and trademarks 214 25 189 95 14 81 Total intangible assets $ 2,792 $ 859 $ 1,933 $ 1,435 $ 651 $ 784 |
Schedule of Finite-Lived Intangible Assets | The weighted-average useful lives of intangible assets acquired during the period are as follows: Weighted-Average Useful Life (in years) Customer contracts and customer lists 13 Technology and patents 7 Trade name and trademarks 5 |
Schedule of Estimated Future Amortization Expense | As of October 31, 2022, estimated future amortization expense related to intangible assets was as follows: Fiscal year In millions 2023 $ 351 2024 318 2025 248 2026 239 2027 234 Thereafter 543 Total $ 1,933 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents HP’s assets and liabilities that are measured at fair value on a recurring basis: As of October 31, 2022 As of October 31, 2021 Fair Value Measured Using Fair Value Measured Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total In millions Assets: Cash Equivalents Corporate debt $ — $ 904 $ — $ 904 $ — $ 1,112 $ — $ 1,112 Government debt (1) 1,289 — — 1,289 1,931 — — 1,931 Available-for-Sale Investments Financial institution instruments — 5 — 5 — 5 — 5 Marketable equity securities and mutual funds 17 41 — 58 15 56 — 71 Derivative Instruments Foreign currency contracts — 1,088 — 1,088 — 277 — 277 Other derivatives — 2 — 2 — 5 — 5 Total assets $ 1,306 $ 2,040 $ — $ 3,346 $ 1,946 $ 1,455 $ — $ 3,401 Liabilities: Derivative Instruments Interest rate contracts $ — $ 78 $ — $ 78 $ — $ 24 $ — $ 24 Foreign currency contracts — 295 — 295 — 203 — 203 Other derivatives — 1 — 1 — — — — Total liabilities $ — $ 374 $ — $ 374 $ — $ 227 $ — $ 227 (1) Government debt includes instruments such as U.S. treasury notes, U.S. agency securities and non-U.S. government bonds. Money market funds invested in government debt and traded in active markets are included in Level 1. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Cash Equivalents and Available-for-Sale Investments | Cash Equivalents and Available-for-Sale Investments As of October 31, 2022 As of October 31, 2021 Cost Gross Gross Fair Cost Gross Gross Fair In millions Cash Equivalents: Corporate debt $ 904 $ — $ — $ 904 $ 1,112 $ — $ — $ 1,112 Government debt 1,289 — — 1,289 1,931 — — 1,931 Total cash equivalents 2,193 — — 2,193 3,043 — — 3,043 Available-for-Sale Investments: Financial institution instruments 5 — — 5 5 — — 5 Marketable equity securities and mutual funds 50 8 — 58 42 29 — 71 Total available-for-sale investments 55 8 — 63 47 29 — 76 Total cash equivalents and available-for-sale investments $ 2,248 $ 8 $ — $ 2,256 $ 3,090 $ 29 $ — $ 3,119 |
Schedule of Contractual Maturities | Contractual maturities of investments in available-for-sale debt securities were as follows: As of October 31, 2022 Amortized Fair Value In millions Due in one year $ 17 $ 17 |
Schedule of Fair Value of Derivative Instruments in the Consolidated Balance Sheets | The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets were as follows: As of October 31, 2022 As of October 31, 2021 Outstanding Other Other Other Other Outstanding Other Other Other Other In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 750 $ — $ — $ — $ 78 $ 750 $ — $ — $ — $ 16 Cash flow hedges: Foreign currency contracts 16,014 820 256 206 72 17,137 198 69 148 42 Interest rate contracts — — — — — 1,500 — — — 8 Total derivatives designated as hedging instruments 16,764 820 256 206 150 19,387 198 69 148 66 Derivatives not designated as hedging instruments Foreign currency contracts 4,554 12 — 17 — 6,293 10 — 13 — Other derivatives 122 2 — 1 — 103 5 — — — Total derivatives not designated as hedging instruments 4,676 14 — 18 — 6,396 15 — 13 — Total derivatives $ 21,440 $ 834 $ 256 $ 224 $ 150 $ 25,783 $ 213 $ 69 $ 161 $ 66 |
Schedule of Offsetting Derivative Liabilities | As of October 31, 2022 and 2021, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amount Gross Amount Net Amount Gross Amounts Derivatives Financial Net Amount In millions As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) As of October 31, 2021 Derivative assets $ 282 $ — $ 282 $ 160 $ 65 (1) $ 57 Derivative liabilities $ 227 $ — $ 227 $ 160 $ 64 (2) $ 3 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two (2) Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two |
Schedule of Offsetting Derivative Assets | As of October 31, 2022 and 2021, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amount Gross Amount Net Amount Gross Amounts Derivatives Financial Net Amount In millions As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) As of October 31, 2021 Derivative assets $ 282 $ — $ 282 $ 160 $ 65 (1) $ 57 Derivative liabilities $ 227 $ — $ 227 $ 160 $ 64 (2) $ 3 (1) Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two (2) Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two |
Schedule of Pre-tax Effect of Derivative Instruments and Related Hedged Items | The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship were as follows: Derivative Instrument Hedged Item Location For the fiscal years ended October 31 Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded Gain/(loss) recognized in earnings on derivative instruments Gain/(loss) recognized in earnings on hedged item In millions Interest rate contracts Fixed-rate debt Interest and other, net 2022 $ (235) $ (62) $ 62 2021 $ 2,209 $ (17) $ 17 2020 $ (231) $ 6 $ (6) |
Schedule of Pre-tax Effect of Derivative Instruments in Cash Flow and Net Investment Hedging Relationships | The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive income (loss) was as follows: For the fiscal years ended October 31 2022 2021 2020 In millions Gain/(loss) recognized in Accumulated other comprehensive income (loss) on derivatives: Foreign currency contracts $ 1,456 $ (117) $ (197) Interest rate contracts $ 85 $ (15) $ (4) |
Schedule of Pre-tax Effect of Derivative Instruments in Cash Flow Hedging Relationships | The pre-tax effect of derivative instruments in cash flow hedging relationships included in earnings were as follows: Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings For the fiscal years ended October 31 For the fiscal years ended October 31 2022 2021 2020 2022 2021 2020 In millions In millions Net revenue $ 62,983 $ 63,487 $ 56,639 $ 877 $ (214) $ 108 Cost of revenue (50,648) (50,070) (46,202) (101) (30) (25) Operating expenses (7,659) (8,115) (6,975) (1) 1 2 Interest and other, net (235) 2,209 (231) 4 — — Total $ 779 $ (243) $ 85 |
Schedule of Pre-tax Effect of Derivative Instruments not Designated as Hedging Instruments on the Consolidated Condensed Statements of Earnings | The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Statements of Earnings for fiscal years 2022, 2021 and 2020 was as follows: Gain/(loss) recognized in earnings on derivative instrument Location 2022 2021 2020 In millions Foreign currency contracts Interest and other, net $ 41 $ (65) $ 40 Other derivatives Interest and other, net (4) 8 (9) Total $ 37 $ (57) $ 31 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Short-Term Borrowings | Notes Payable and Short-Term Borrowings As of October 31 2022 2021 Amount Weighted-Average Amount Weighted-Average In millions Commercial paper $ — — % $ 400 0.2 % Current portion of long-term debt 165 5.4 % 672 3.8 % Notes payable to banks, lines of credit and other 53 0.6 % 34 1.2 % $ 218 $ 1,106 |
Schedule of Long-Term Debt | Long-Term Debt As of October 31 2022 2021 In millions U.S. Dollar Global Notes (1) $500 issued at discount to par at a price of 99.771% at 4.05%, due September 2022 $ — $ 499 $1,200 issued at discount to par at a price of 99.863% at 6.0%, due September 2041 1,199 1,199 $1,150 issued at discount to par at a price of 99.769% at 2.2%, due June 2025 1,149 1,148 $1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027 997 997 $850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 848 848 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 999 999 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 996 996 $1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 999 — $1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 1,000 — $900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 899 — $1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 1,097 — $500 issued at par at a price of 100% at 4.75%, due March 2029 (3) 500 — 10,683 6,686 Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 436 439 Fair value adjustment related to hedged debt (78) (16) Unamortized debt issuance cost (80) (51) Current portion of long-term debt (165) (672) Total long-term debt $ 10,796 $ 6,386 (1) HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt . (2) HP intends to allocate an amount equal to the net proceeds to finance or refinance, in whole or in part, environmentally and socially responsible eligible projects in the following eight areas: renewable energy; green buildings; energy efficiency; clean transportation; pollution prevention and control; eco-efficient and/or circular economy products, production technologies and processes; environmentally sustainable management of living natural resources and land use; and socioeconomic advancement and empowerment. (3) Includes approximately $9 million of senior notes issued by Poly, not exchanged under Poly Exchange Offer. |
Schedule of Aggregate Future Maturities of Long-term Debt | As of October 31, 2022, aggregate future maturities of debt at face value (excluding unamortized debt issuance cost of $80 million, discounts on debt issuance of $17 million, and fair value adjustment related to hedged debt of $78 million), including other borrowings were as follows: Fiscal year In millions 2023 $ 218 2024 123 2025 1,239 2026 1,048 2027 1,009 Thereafter 7,553 Total $ 11,190 |
Stockholders_ Deficit (Tables)
Stockholders’ Deficit (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Taxes Related to Other Comprehensive (Loss) Income | Taxes related to Other Comprehensive Income (Loss) For the fiscal years ended October 31 2022 2021 2020 In millions Tax effect on change in unrealized components of available-for-sale debt securities: Tax benefit (provision) on unrealized (losses) gains arising during the period $ 2 $ (1) $ — Tax effect on change in unrealized components of cash flow hedges: Tax (provision) benefit on unrealized gains (losses) arising during the period (328) (9) 20 Tax provision (benefit) on (gains) losses reclassified into earnings 195 (17) 28 (133) (26) 48 Tax effect on change in unrealized components of defined benefit plans: Tax (provision) benefit on gains (losses) arising during the period 11 (177) 11 Tax benefit on amortization of actuarial loss and prior service benefit (6) (17) (19) Tax (provision) benefit on curtailments, settlements and other (1) 9 (41) 4 (185) (49) Tax effect on change in cumulative translation adjustment 3 (1) 2 Tax (provision) benefit on other comprehensive income (loss) $ (124) $ (213) $ 1 |
Schedule of Changes and Reclassifications Related to Other Comprehensive Loss, Net of Taxes | Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes For the year ended October 31 2022 2021 2020 In millions Other comprehensive income (loss), net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized (losses) gains arising during the period $ (9) $ 4 $ 2 Change in unrealized components of cash flow hedges: Unrealized gains (losses) arising during the period 1,213 (141) (181) (Gains) losses reclassified into earnings (584) 226 (57) 629 85 (238) Change in unrealized components of defined benefit plans: Gains (losses) arising during the period 15 831 (18) Amortization of actuarial loss and prior service benefit (1) 14 63 64 Curtailments, settlements and other (1) (27) 174 28 867 220 Change in cumulative translation adjustment (75) 27 (2) Other comprehensive income (loss), net of taxes $ 573 $ 983 $ (18) (1) These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans” . |
Schedule of Components of Accumulated Other Comprehensive Loss, Net of Taxes | The components of Accumulated other comprehensive income (loss), net of taxes as of October 31, 2022 and changes during fiscal year 2022 were as follows: Net unrealized gains on available-for-sale securities Net unrealized gains (losses) on cash flow hedges Unrealized components of defined benefit plans Change in cumulative translation adjustment Accumulated other comprehensive loss In millions Balance at beginning of period $ 15 $ 19 $ (323) $ 29 $ (260) Other comprehensive (losses) gains before reclassifications (9) 1,213 15 (75) 1,144 Reclassifications of losses into earnings — (584) 14 — (570) Reclassifications of curtailments, settlements and other into earnings — — (1) — (1) Balance at end of period $ 6 $ 648 $ (295) $ (46) $ 313 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Earnings Per Share Calculations | A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows: For the fiscal years ended October 31 2022 2021 2020 In millions, except per share amounts Numerator: Net earnings $ 3,203 $ 6,503 $ 2,844 Denominator: Weighted-average shares used to compute basic net EPS 1,038 1,208 1,413 Dilutive effect of employee stock plans 12 12 7 Weighted-average shares used to compute diluted net EPS 1,050 1,220 1,420 Net earnings per share: Basic $ 3.09 $ 5.38 $ 2.01 Diluted $ 3.05 $ 5.33 $ 2.00 Anti-dilutive weighted-average stock-based compensation awards (1) 4 2 13 (1) HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost. |
Guarantees, Indemnifications _2
Guarantees, Indemnifications and Warranties (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Changes in Aggregate Product Warranty Liabilities | HP’s aggregate product warranty liabilities and changes were as follows: For the fiscal years ended October 31 2022 2021 In millions Balance at beginning of year $ 959 $ 993 Accruals for warranties issued 948 1,003 Adjustments related to pre-existing warranties (including changes in estimates) (43) 28 Settlements made (in cash or in kind) (988) (1,065) Balance at end of year $ 876 $ 959 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Unconditional Purchase Obligations | As of October 31, 2022, unconditional purchase obligations were as follows: Fiscal year In millions 2023 $ 1,854 2024 1,254 2025 101 2026 22 2027 20 Thereafter 11 Total $ 3,262 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The components of lease expense are as follows: For the fiscal years ended October 31 2022 2021 In millions Operating lease cost $ 233 $ 235 Variable cost 99 101 Total lease expense $ 332 $ 336 The following table presents supplemental information relating to the cash flows arising from lease transactions. Cash ‘payments made from variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: For the fiscal years ended October 31 2022 2021 In millions Cash paid for amount included in the measurement of lease liabilities $ 233 $ 238 Right-of-use assets obtained in exchange of lease liabilities (1) $ 363 $ 385 (1) Includes the impact of new leases as well as remeasurements and modifications to existing leases. Weighted-average information associated with the measurement of our remaining operating lease liabilities is as follows: As of October 31 2022 2021 Weighted-average remaining lease term in years 5 5 Weighted-average discount rate 5.2 % 3.4 % |
Schedule of Future Operating Lease Payments | The following maturity analysis presents expected undiscounted cash outflows for operating leases on an annual basis for the next five years: Fiscal year In millions 2023 $ 443 2024 337 2025 223 2026 123 2027 101 Thereafter 172 Total lease payments 1,399 Less: Imputed interest 119 Total lease liabilities $ 1,280 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the aggregate estimated fair values of the assets acquired and liabilities assumed, including those items that are still preliminary allocations, for the acquisitions in fiscal 2022: In millions Goodwill $ 1,766 Amortizable intangible assets 1,429 Net assets acquired (337) Total fair value of consideration $ 2,858 The following table presents the aggregate estimated fair values of the assets acquired and liabilities assumed for all of HP's acquisitions in fiscal 2021: In millions Goodwill $ 400 Amortizable intangible assets 385 Net assets acquired 120 Total fair value of consideration $ 905 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Litigation Proceeds (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 12, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Litigation and Contingencies | ||||
Gain on litigation proceeds | $ 0 | $ 2,304 | $ 0 | |
Tax impact | $ 51 | $ 124 | ||
Hewlett-Packard Company v. Oracle Corporation | ||||
Litigation and Contingencies | ||||
Tax impact | 533 | |||
Hewlett-Packard Company v. Oracle Corporation | Resolved | ||||
Litigation and Contingencies | ||||
Damages awarded | $ 4,650 | |||
Gain on litigation proceeds | 2,300 | |||
Tax impact | $ 500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Accounting Policies [Abstract] | |||
Advertising cost | $ 696 | $ 829 | $ 530 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentrations of Risk (Details) - USD ($) $ in Billions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Concentration Risk | ||
Supplier receivables | $ 0.3 | $ 1.4 |
Major Customers | Accounts Receivable | Ten largest distributor | ||
Concentration Risk | ||
Concentration of credit risk (as a percent) | 52% | 42% |
Major Customers | Accounts Receivable | TD Synnex Corp | ||
Concentration Risk | ||
Concentration of credit risk (as a percent) | 13.80% | |
Major Customers | Accounts Receivable | Ingram Micro Inc | ||
Concentration Risk | ||
Concentration of credit risk (as a percent) | 10.40% | |
Major Customers | Accounts Receivable | Three largest outsourced manufacturer | ||
Concentration Risk | ||
Concentration of credit risk (as a percent) | 89% | 85% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment, Net | |
Estimated useful life for property, plant and equipment | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment, Net | |
Estimated useful life for property, plant and equipment | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment, Net | |
Estimated useful life for property, plant and equipment | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment, Net | |
Estimated useful life for property, plant and equipment | 15 years |
Capitalized development costs | Maximum | |
Property, Plant and Equipment, Net | |
Estimated useful life for property, plant and equipment | 5 years |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Oct. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Results to Consolidated Results (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Net revenue: | |||
Net revenue | $ 62,983 | $ 63,487 | $ 56,639 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Total segment earnings from operations | 4,676 | 5,302 | 3,462 |
Stock-based compensation expense | (343) | (330) | (278) |
Restructuring and other charges | (233) | (245) | (462) |
Acquisition and divestiture charges | (318) | (68) | (16) |
Amortization of intangible assets | (228) | (154) | (113) |
Russia exit charges | (23) | 0 | 0 |
Interest and other, net | (235) | 2,209 | (231) |
Earnings before taxes | 4,441 | 7,511 | 3,231 |
Operating segments | |||
Net revenue: | |||
Net revenue | 62,988 | 63,490 | 56,640 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Total segment earnings from operations | 6,329 | 6,641 | 4,738 |
Corporate and unallocated costs and other | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Corporate and unallocated costs and other | (508) | (542) | (407) |
Other | |||
Net revenue: | |||
Net revenue | (5) | (3) | (1) |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Stock-based compensation expense | (343) | (330) | (278) |
Restructuring and other charges | (233) | (245) | (462) |
Acquisition and divestiture charges | (318) | (68) | (16) |
Amortization of intangible assets | (228) | (154) | (113) |
Russia exit charges | (23) | 0 | 0 |
Interest and other, net | (235) | 2,209 | (231) |
Personal Systems | Operating segments | |||
Net revenue: | |||
Net revenue | 44,084 | 43,359 | 38,997 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Total segment earnings from operations | 2,908 | 3,101 | 2,312 |
Personal Systems | Notebooks | Operating segments | |||
Net revenue: | |||
Net revenue | 29,183 | 30,522 | 25,766 |
Personal Systems | Desktops | Operating segments | |||
Net revenue: | |||
Net revenue | 10,736 | 9,381 | 9,806 |
Personal Systems | Workstations | Operating segments | |||
Net revenue: | |||
Net revenue | 2,100 | 1,669 | 1,816 |
Personal Systems | Other | Operating segments | |||
Net revenue: | |||
Net revenue | 2,065 | 1,787 | 1,609 |
Printing | Operating segments | |||
Net revenue: | |||
Net revenue | 18,902 | 20,128 | 17,641 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Total segment earnings from operations | 3,651 | 3,636 | 2,495 |
Printing | Supplies | Operating segments | |||
Net revenue: | |||
Net revenue | 11,761 | 12,632 | 11,586 |
Printing | Commercial | Operating segments | |||
Net revenue: | |||
Net revenue | 4,225 | 4,209 | 3,539 |
Printing | Consumer | Operating segments | |||
Net revenue: | |||
Net revenue | 2,916 | 3,287 | 2,516 |
Corporate Investments | Operating segments | |||
Net revenue: | |||
Net revenue | 2 | 3 | 2 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||
Total segment earnings from operations | $ (230) | $ (96) | $ (69) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Assets to Consolidated Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 38,587 | $ 38,610 |
Total segments | Personal Systems | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 19,710 | 18,126 |
Total segments | Printing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 14,486 | 14,744 |
Total segments | Corporate Investments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 191 | 171 |
Corporate and unallocated assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,200 | $ 5,569 |
Segment Information - Schedule
Segment Information - Schedule of Net Revenue by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 62,983 | $ 63,487 | $ 56,639 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | 21,682 | 22,447 | 20,227 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 41,301 | $ 41,040 | $ 36,412 |
Segment Information - Schedul_2
Segment Information - Schedule of Net Property, Plant and Equipment by Geographical Areas (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | $ 2,774 | $ 2,546 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 1,264 | 1,178 |
Singapore | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 329 | 305 |
South Korea | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | 320 | 285 |
Other countries | ||
Segment Reporting Information [Line Items] | ||
Total property, plant and equipment, net | $ 861 | $ 778 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Summary of Restructuring Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of period | $ 75 | $ 67 | $ 142 |
Charges | 208 | 223 | 357 |
Cash payments | (217) | (182) | (381) |
Non-cash and other adjustments | (34) | (33) | (51) |
Accrued balance, end of period | 32 | 75 | 67 |
Total costs incurred to date | 1,369 | ||
Other current liabilities | 32 | ||
Fiscal 2020 Plan | Severance and EER | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of period | 75 | 55 | 76 |
Charges | 131 | 181 | 346 |
Cash payments | (176) | (159) | (319) |
Non-cash and other adjustments | 2 | (2) | (48) |
Accrued balance, end of period | 32 | 75 | 55 |
Total costs incurred to date | 740 | ||
Other current liabilities | 32 | ||
Fiscal 2020 Plan | Non-labor | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of period | 0 | 0 | 0 |
Charges | 77 | 38 | 10 |
Cash payments | (40) | (7) | (10) |
Non-cash and other adjustments | (37) | (31) | 0 |
Accrued balance, end of period | 0 | 0 | 0 |
Total costs incurred to date | 125 | ||
Other current liabilities | 0 | ||
Fiscal 2020 Plan | EER | |||
Restructuring Reserve [Roll Forward] | |||
Non-cash and other adjustments | (44) | ||
Other prior year plans | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of period | 0 | 12 | 66 |
Charges | 0 | 4 | 1 |
Cash payments | (1) | (16) | (52) |
Non-cash and other adjustments | 1 | 0 | (3) |
Accrued balance, end of period | 0 | $ 0 | $ 12 |
Total costs incurred to date | 504 | ||
Other current liabilities | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Nov. 18, 2022 USD ($) employee | Sep. 30, 2019 USD ($) employee | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | $ 25 | $ 22 | $ 105 | ||
Fiscal 2020 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions to be eliminated | employee | 7,700 | ||||
Fiscal 2023 Plan | Minimum | Subsequent event | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions to be eliminated | employee | 4,000 | ||||
Fiscal 2023 Plan | Maximum | Subsequent event | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of positions to be eliminated | employee | 6,000 | ||||
Labor And Non-Labor Actions | Fiscal 2023 Plan | Subsequent event | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 1,000 | ||||
Labor Costs | Fiscal 2023 Plan | Subsequent event | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 700 | ||||
Severance Cost | Fiscal 2020 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 740 | ||||
Infrastructure Costs | Fiscal 2020 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 281 |
Retirement and Post-Retiremen_3
Retirement and Post-Retirement Benefit Plans - Defined Benefit Plans (Narrative) (Details) employee in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 USD ($) employee | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Settlement gain | $ 0 | $ 37 | $ (214) | ||
Defined Benefit Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Settlement gain | $ 39 | ||||
United States | Defined Benefit Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Decrease in obligations | $ 5,200 | ||||
Number of employees | employee | 41 | ||||
Settlement gain | 0 | 37 | $ (217) | ||
DPSP | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Fair value of plan assets | $ 482 | $ 366 | $ 482 |
Retirement and Post-Retiremen_4
Retirement and Post-Retirement Benefit Plans - Post-Retirement Benefit Plans (Narrative) (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Post-Retirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Eligible age for HP Retirement Medical Savings Account Plan | 45 years |
Retirement and Post-Retiremen_5
Retirement and Post-Retirement Benefit Plans - Defined Contribution Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Total defined contribution expense | $ 119 | $ 112 | $ 108 |
Defined Contribution Plan Disclosure [Line Items] | |||
Employee service period | 3 years | ||
HP 401(k) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contributions, as a percent | 100% | ||
Percentage of maximum matching contribution | 4% |
Retirement and Post-Retiremen_6
Retirement and Post-Retirement Benefit Plans - Pension and Post-Retirement Benefit Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Amortization and deferrals: | ||||
Settlement (gain) loss | $ 0 | $ (37) | $ 214 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and other, net | Interest and other, net | Interest and other, net | |
Defined Benefit Plans | ||||
Amortization and deferrals: | ||||
Settlement (gain) loss | $ (39) | |||
Post-Retirement Benefit Plans | ||||
Net benefit (credit) cost | ||||
Service cost | $ 1 | $ 1 | $ 1 | |
Interest cost | 8 | 9 | 11 | |
Expected return on plan assets | (9) | (24) | (23) | |
Amortization and deferrals: | ||||
Actuarial loss (gain) | (15) | (16) | (10) | |
Prior service cost (credit) | (11) | (11) | (12) | |
Net periodic benefit (credit) cost | (26) | (41) | (33) | |
Settlement (gain) loss | 0 | 0 | 0 | |
Special termination benefit cost | 0 | 0 | 44 | |
Total periodic benefit (credit) cost | (26) | (41) | 11 | |
U.S. | Defined Benefit Plans | ||||
Net benefit (credit) cost | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 161 | 281 | 412 | |
Expected return on plan assets | (298) | (475) | (700) | |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 5 | 50 | 64 | |
Prior service cost (credit) | 0 | 0 | 0 | |
Net periodic benefit (credit) cost | (132) | (144) | (224) | |
Settlement (gain) loss | 0 | (37) | 217 | |
Special termination benefit cost | 0 | 0 | 0 | |
Total periodic benefit (credit) cost | (132) | (181) | (7) | |
Non-U.S. | Defined Benefit Plans | ||||
Net benefit (credit) cost | ||||
Service cost | 56 | 67 | 64 | |
Interest cost | 22 | 18 | 17 | |
Expected return on plan assets | (48) | (49) | (43) | |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 36 | 52 | 43 | |
Prior service cost (credit) | 5 | 5 | (2) | |
Net periodic benefit (credit) cost | 71 | 93 | 79 | |
Settlement (gain) loss | 0 | 1 | 1 | |
Special termination benefit cost | 0 | 0 | 0 | |
Total periodic benefit (credit) cost | $ 71 | $ 94 | $ 80 |
Retirement and Post-Retiremen_7
Retirement and Post-Retirement Benefit Plans - Weighted-Average Assumptions Used to Calculate Total Periodic Benefit (Credit) Cost (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Post-Retirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.50% | 2.30% | 2.90% |
Expected increase in compensation levels | 0% | 0% | 0% |
Expected long-term return on plan assets | 2% | 5% | 5.90% |
Guaranteed interest crediting rate | 2.90% | 2.90% | 3.50% |
U.S. | Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.90% | 2.80% | 3.20% |
Expected increase in compensation levels | 2% | 2% | 2% |
Expected long-term return on plan assets | 5.10% | 5% | 6% |
Guaranteed interest crediting rate | 5% | 5% | 5% |
Non-U.S. | Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.30% | 1.10% | 1.30% |
Expected increase in compensation levels | 2.60% | 2.40% | 2.50% |
Expected long-term return on plan assets | 4.30% | 4.40% | 4.40% |
Guaranteed interest crediting rate | 2.60% | 2.60% | 2.60% |
Retirement and Post-Retiremen_8
Retirement and Post-Retirement Benefit Plans - Schedule of Funded Status of Defined Benefit and Post-Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Defined Benefit Plans | ||||
Change in fair value of plan assets: | ||||
Settlement | $ (2,200) | |||
Change in benefits obligation | ||||
Actuarial (gain) loss | 214 | |||
Post-Retirement Benefit Plans | ||||
Change in fair value of plan assets: | ||||
Fair value of assets — beginning of year | $ 457 | $ 481 | ||
Actual return on plan assets | (49) | 11 | ||
Employer contributions | 3 | 2 | ||
Participant contributions | 39 | 49 | ||
Benefits paid | (67) | (86) | ||
Settlement | 0 | 0 | ||
Currency impact | 0 | 0 | ||
Fair value of assets — end of year | 481 | 383 | 457 | $ 481 |
Change in benefits obligation | ||||
Projected benefit obligation — beginning of year | 354 | 394 | ||
Acquisition of plan | 0 | 0 | ||
Service cost | 1 | 1 | 1 | |
Interest cost | 8 | 9 | 11 | |
Participant contributions | 39 | 49 | ||
Actuarial (gain) loss | (61) | (13) | ||
Benefits paid | (67) | (86) | ||
Plan amendments | 0 | 0 | ||
Curtailment | 0 | 0 | ||
Settlement | 0 | 0 | ||
Currency impact | 0 | 0 | ||
Projected benefit obligation — end of year | 394 | 274 | 354 | 394 |
Funded status at end of year | 109 | 103 | ||
Accumulated benefit obligation | ||||
United States | Defined Benefit Plans | ||||
Change in fair value of plan assets: | ||||
Fair value of assets — beginning of year | 6,060 | 10,463 | ||
Actual return on plan assets | (1,674) | 1,403 | ||
Employer contributions | 29 | 28 | ||
Participant contributions | 0 | 0 | ||
Benefits paid | (204) | (427) | ||
Settlement | (4) | (5,407) | ||
Currency impact | 0 | 0 | ||
Fair value of assets — end of year | 10,463 | 4,207 | 6,060 | 10,463 |
Change in benefits obligation | ||||
Projected benefit obligation — beginning of year | 5,740 | 11,344 | ||
Acquisition of plan | 0 | 0 | ||
Service cost | 0 | 0 | 0 | |
Interest cost | 161 | 281 | 412 | |
Participant contributions | 0 | 0 | ||
Actuarial (gain) loss | (1,724) | (51) | ||
Benefits paid | (204) | (427) | ||
Plan amendments | 0 | 0 | ||
Curtailment | 0 | 0 | ||
Settlement | (4) | (5,407) | ||
Currency impact | 0 | 0 | ||
Projected benefit obligation — end of year | 11,344 | 3,969 | 5,740 | 11,344 |
Funded status at end of year | 238 | 320 | ||
Accumulated benefit obligation | 3,969 | 5,740 | ||
Non-U.S. | Defined Benefit Plans | ||||
Change in fair value of plan assets: | ||||
Fair value of assets — beginning of year | 1,211 | 1,064 | ||
Actual return on plan assets | (131) | 117 | ||
Employer contributions | 34 | 71 | ||
Participant contributions | 19 | 21 | ||
Benefits paid | (21) | (45) | ||
Settlement | (62) | (5) | ||
Currency impact | (143) | (12) | ||
Fair value of assets — end of year | 1,064 | 907 | 1,211 | 1,064 |
Change in benefits obligation | ||||
Projected benefit obligation — beginning of year | 1,747 | 1,664 | ||
Acquisition of plan | 11 | 0 | ||
Service cost | 56 | 67 | 64 | |
Interest cost | 22 | 18 | 17 | |
Participant contributions | 19 | 21 | ||
Actuarial (gain) loss | (441) | (23) | ||
Benefits paid | (21) | (45) | ||
Plan amendments | (5) | 62 | ||
Curtailment | 0 | (3) | ||
Settlement | (62) | (5) | ||
Currency impact | (181) | (9) | ||
Projected benefit obligation — end of year | $ 1,664 | 1,145 | 1,747 | $ 1,664 |
Funded status at end of year | (238) | (536) | ||
Accumulated benefit obligation | 1,035 | $ 1,602 | ||
Non-U.S. | Defined Benefit Plans | Poly | ||||
Change in benefits obligation | ||||
Acquisition of plan | $ 11 |
Retirement and Post-Retiremen_9
Retirement and Post-Retirement Benefit Plans - Weighted-Average Assumptions Used to Calculate Projected Benefit Obligations (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Post-Retirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 5.60% | 2.50% |
Expected increase in compensation levels | 0% | 0% |
Guaranteed interest crediting rate | 4.20% | 2.90% |
United States | Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 5.70% | 2.90% |
Expected increase in compensation levels | 2% | 2% |
Guaranteed interest crediting rate | 5% | 5% |
Non-U.S. | Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.50% | 1.30% |
Expected increase in compensation levels | 3% | 2.60% |
Guaranteed interest crediting rate | 2.60% | 2.60% |
Retirement and Post-Retireme_10
Retirement and Post-Retirement Benefit Plans - Schedule of Net Amounts of Noncurrent Assets and Current and Noncurrent Liabilities for Defined Benefit and Post-Retirement Benefit Plans (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Post-Retirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other non-current assets | $ 114 | $ 108 |
Other current liabilities | (4) | (4) |
Other non-current liabilities | (1) | (1) |
Funded status at end of year | 109 | 103 |
U.S. | Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other non-current assets | 527 | 732 |
Other current liabilities | (32) | (36) |
Other non-current liabilities | (257) | (376) |
Funded status at end of year | 238 | 320 |
Non-U.S. | Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other non-current assets | 38 | 34 |
Other current liabilities | (9) | (8) |
Other non-current liabilities | (267) | (562) |
Funded status at end of year | $ (238) | $ (536) |
Retirement and Post-Retireme_11
Retirement and Post-Retirement Benefit Plans - Summary of Pre-Tax Net Actuarial Loss (Gain) and Prior Service Benefit Recognized in Accumulated Other Comprehensive Loss for Defined Benefit and Post-Retirement Benefit Plans (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Post-Retirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss (gain) | $ (191) |
Prior service cost (credit) | (68) |
Total recognized in Accumulated other comprehensive income (loss) | (259) |
U.S. | Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss (gain) | 370 |
Prior service cost (credit) | 0 |
Total recognized in Accumulated other comprehensive income (loss) | 370 |
Non-U.S. | Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss (gain) | 45 |
Prior service cost (credit) | 42 |
Total recognized in Accumulated other comprehensive income (loss) | $ 87 |
Retirement and Post-Retireme_12
Retirement and Post-Retirement Benefit Plans - Schedule of Defined Benefit Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - Defined Benefit Plans - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Aggregate fair value of plan assets | $ 0 | $ 0 |
Aggregate projected benefit obligation | 289 | 412 |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Aggregate fair value of plan assets | 728 | 988 |
Aggregate projected benefit obligation | $ 996 | $ 1,562 |
Retirement and Post-Retireme_13
Retirement and Post-Retirement Benefit Plans - Schedule of Defined Benefit Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - Defined Benefit Plans - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Aggregate fair value of plan assets | $ 0 | $ 0 |
Aggregate accumulated benefit obligation | 289 | 412 |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Aggregate fair value of plan assets | 538 | 983 |
Aggregate accumulated benefit obligation | $ 733 | $ 1,437 |
Retirement and Post-Retireme_14
Retirement and Post-Retirement Benefit Plans - Schedule of Fair Value of Plan Assets by Asset Category (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Post-Retirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | $ 383 | $ 450 | |
Investments using NAV as a Practical Expedient | 0 | 7 | |
Investments at fair value | 383 | 457 | $ 481 |
Post-Retirement Benefit Plans | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 214 | 256 | |
Post-Retirement Benefit Plans | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 108 | 122 | |
Post-Retirement Benefit Plans | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 68 | 64 | |
Post-Retirement Benefit Plans | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (5) | 10 | |
Post-Retirement Benefit Plans | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (2) | (2) | |
Post-Retirement Benefit Plans | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 61 | 71 | |
Post-Retirement Benefit Plans | Level 1 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 1 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 68 | 64 | |
Post-Retirement Benefit Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (5) | 9 | |
Post-Retirement Benefit Plans | Level 1 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (2) | (2) | |
Post-Retirement Benefit Plans | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 322 | 379 | |
Post-Retirement Benefit Plans | Level 2 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 2 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 214 | 256 | |
Post-Retirement Benefit Plans | Level 2 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 108 | 122 | |
Post-Retirement Benefit Plans | Level 2 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 2 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 2 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 2 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | ||
Post-Retirement Benefit Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 1 | |
Post-Retirement Benefit Plans | Level 2 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | ||
Post-Retirement Benefit Plans | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Post-Retirement Benefit Plans | Level 3 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 3,031 | 3,762 | |
Investments using NAV as a Practical Expedient | 1,176 | 2,298 | |
Investments at fair value | 4,207 | 6,060 | 10,463 |
U.S. | Defined Benefit Plans | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 51 | 61 | |
U.S. | Defined Benefit Plans | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 1,949 | 2,620 | |
U.S. | Defined Benefit Plans | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 1,418 | 1,931 | |
U.S. | Defined Benefit Plans | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 13 | 53 | |
U.S. | Defined Benefit Plans | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 94 | 68 | |
U.S. | Defined Benefit Plans | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (494) | (971) | |
U.S. | Defined Benefit Plans | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (197) | (358) | |
U.S. | Defined Benefit Plans | Level 1 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 14 | 11 | |
U.S. | Defined Benefit Plans | Level 1 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 1 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 1 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 1 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 1 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 1 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 13 | 53 | |
U.S. | Defined Benefit Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 40 | 34 | |
U.S. | Defined Benefit Plans | Level 1 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (264) | (456) | |
U.S. | Defined Benefit Plans | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 3,228 | 4,120 | |
U.S. | Defined Benefit Plans | Level 2 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 37 | 50 | |
U.S. | Defined Benefit Plans | Level 2 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 1,949 | 2,620 | |
U.S. | Defined Benefit Plans | Level 2 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 1,418 | 1,931 | |
U.S. | Defined Benefit Plans | Level 2 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 2 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 2 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 2 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 54 | 34 | |
U.S. | Defined Benefit Plans | Level 2 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | (230) | (515) | |
U.S. | Defined Benefit Plans | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
U.S. | Defined Benefit Plans | Level 3 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 624 | 842 | |
Investments using NAV as a Practical Expedient | 283 | 369 | |
Investments at fair value | 907 | 1,211 | $ 1,064 |
Non-U.S. | Defined Benefit Plans | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 89 | 110 | |
Non-U.S. | Defined Benefit Plans | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 13 | 132 | |
Non-U.S. | Defined Benefit Plans | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 43 | 5 | |
Non-U.S. | Defined Benefit Plans | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 17 | 42 | |
Non-U.S. | Defined Benefit Plans | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 72 | 94 | |
Non-U.S. | Defined Benefit Plans | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 7 | 9 | |
Non-U.S. | Defined Benefit Plans | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 260 | 388 | |
Non-U.S. | Defined Benefit Plans | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 37 | 21 | |
Non-U.S. | Defined Benefit Plans | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 86 | 41 | |
Non-U.S. | Defined Benefit Plans | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 56 | 31 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 7 | 8 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 1 | 1 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 37 | 21 | |
Non-U.S. | Defined Benefit Plans | Level 1 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 11 | 1 | |
Non-U.S. | Defined Benefit Plans | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 568 | 811 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 82 | 102 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 13 | 132 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 43 | 5 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 16 | 41 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 72 | 94 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 7 | 9 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 260 | 388 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 2 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 75 | 40 | |
Non-U.S. | Defined Benefit Plans | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Real estate funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Common collective trusts and 10312 investment entities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | 0 | 0 | |
Non-U.S. | Defined Benefit Plans | Level 3 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets subject to leveling | $ 0 | $ 0 |
Retirement and Post-Retireme_15
Retirement and Post-Retirement Benefit Plans - Schedule of Weighted-Average Target Asset Allocations Across Benefit Plans (Details) | Oct. 31, 2022 |
Post-Retirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 100% |
Post-Retirement Benefit Plans | Equity-related investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
Post-Retirement Benefit Plans | Debt securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 98.30% |
Post-Retirement Benefit Plans | Real estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
Post-Retirement Benefit Plans | Cash and cash equivalents | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 1.70% |
Post-Retirement Benefit Plans | Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
U.S. | Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 100% |
U.S. | Defined Benefit Plans | Equity-related investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 19% |
U.S. | Defined Benefit Plans | Debt securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 81% |
U.S. | Defined Benefit Plans | Real estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
U.S. | Defined Benefit Plans | Cash and cash equivalents | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
U.S. | Defined Benefit Plans | Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 0% |
Non-U.S. | Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 100% |
Non-U.S. | Defined Benefit Plans | Equity-related investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 34% |
Non-U.S. | Defined Benefit Plans | Debt securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 32.50% |
Non-U.S. | Defined Benefit Plans | Real estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 14% |
Non-U.S. | Defined Benefit Plans | Cash and cash equivalents | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 5.50% |
Non-U.S. | Defined Benefit Plans | Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Total | 14% |
Retirement and Post-Retireme_16
Retirement and Post-Retirement Benefit Plans - Retirement Incentive Program (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Retirement Benefits [Abstract] | ||||
Eligible age with 20 years of service | 50 years | |||
EER benefit, minimum | 91 days | |||
EER benefit, maximum | 364 days | |||
Health care coverage extension period | 36 months | |||
Maximum employer credits | $ 12 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Restructuring charges | $ 208,000 | $ 223,000 | $ 357,000 | |
Special Termination Benefits | Fiscal 2020 Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Restructuring charges | $ 44,000 |
Retirement and Post-Retireme_17
Retirement and Post-Retirement Benefit Plans - Lump sum program (Narrative) (Details) - Defined Benefit Plans employee in Thousands, $ in Millions | 3 Months Ended |
Oct. 31, 2020 USD ($) employee | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of employees | employee | 12 |
Settlement payment | $ 2,200 |
Actuarial loss | $ 214 |
Retirement and Post-Retireme_18
Retirement and Post-Retirement Benefit Plans - Future Contributions and Funding Policy (Narrative) (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Post-Retirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | $ 4 |
Non-U.S. | Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | 36 |
U.S. | Defined Benefit Plans | Nonqualified plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | $ 32 |
Retirement and Post-Retireme_19
Retirement and Post-Retirement Benefit Plans - Schedule of Estimated Future Benefits Payments for Retirement and Post-Retirement Plans (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Post-Retirement Benefit Plans | |
Fiscal year | |
2023 | $ 32 |
2024 | 27 |
2025 | 26 |
2026 | 26 |
2027 | 26 |
Next five fiscal years to October 31, 2032 | 125 |
U.S. | Defined Benefit Plans | |
Fiscal year | |
2023 | 308 |
2024 | 320 |
2025 | 330 |
2026 | 328 |
2027 | 333 |
Next five fiscal years to October 31, 2032 | 1,575 |
Non-U.S. | Defined Benefit Plans | |
Fiscal year | |
2023 | 76 |
2024 | 46 |
2025 | 48 |
2026 | 50 |
2027 | 55 |
Next five fiscal years to October 31, 2032 | $ 334 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense and the Resulting Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 343 | $ 330 | $ 278 |
Income tax benefit | (59) | (52) | (48) |
Stock-based compensation expense, net of tax | $ 284 | $ 278 | $ 230 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense and Related Income Tax Benefits for Continuing Operations (Narrative) (Details) - 2011 ESPP - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from option exercises and purchases | $ 53 | $ 55 | $ 56 |
Benefit realized for tax deduction from option exercises | $ 4 | $ 3 | $ 2 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Incentive Compensation Plans (Narrative) (Details) shares in Millions | 12 Months Ended |
Oct. 31, 2022 shares | |
Cash-settled awards and restricted stock awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Cash-settled awards and restricted stock awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock Options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock Options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
2004 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock authorized for issuance (in shares) | 626 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Fair Value and Assumptions Used to Measure Fair Value of Restricted Stock Units (Details) - Restricted Stock Units | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 41.60% | 41% | 27.60% |
Risk-free interest rate (as a percent) | 1% | 0.20% | 1.60% |
Expected performance period in years | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Shares | |||
Outstanding at beginning of year (in shares) | 30,197 | 29,831 | 29,960 |
Granted (in shares) | 15,337 | 15,517 | 18,109 |
Vested (in shares) | (14,168) | (13,374) | (14,929) |
Forfeited (in shares) | (2,678) | (1,777) | (3,309) |
Outstanding at end of year (in shares) | 28,688 | 30,197 | 29,831 |
Weighted- Average Grant Date Fair Value Per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 23 | $ 21 | $ 21 |
Granted (in dollars per share) | 36 | 25 | 20 |
Vested (in dollars per share) | 22 | 21 | 20 |
Forfeited (in dollars per share) | 25 | 22 | 21 |
Outstanding at end of year (in dollars per share) | $ 30 | $ 23 | $ 21 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Narrative) (Details) - Restricted Stock Units - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total grant date fair value of restricted stock awards vested | $ 314 | $ 278 | $ 297 |
Unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards | $ 394 | ||
Remaining weighted-average vesting period | 1 year 4 months 24 days |
Stock-Based Compensation - We_2
Stock-Based Compensation - Weighted-Average Fair Value and Assumptions Used to Measure Fair Value of Stock Options (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value (in dollars per share) | $ 11 | $ 6 | $ 3 |
Expected volatility (as a percent) | 34.70% | 35.90% | 29.80% |
Risk-free interest rate (as a percent) | 1.50% | 1% | 1.60% |
Expected dividend yield (percent) | 2.70% | 3.20% | 4% |
Expected performance period | 6 years | 5 years 6 months | 6 years |
Historical volatility | 50% | ||
Implied volatility | 50% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Shares | |||
Outstanding at beginning of year (in shares) | 6,367 | 5,637 | 7,093 |
Granted (in shares) | 1,867 | 2,691 | 996 |
Exercised (in shares) | (1,364) | (1,843) | (2,213) |
Forfeited/cancelled/expired (in shares) | (775) | (118) | (239) |
Outstanding at end of year (in shares) | 6,095 | 6,367 | 5,637 |
Vested and expected to vest (in shares) | 5,903 | 6,367 | 5,637 |
Exercisable (in shares) | 2,749 | 2,392 | 3,196 |
Weighted- Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 21 | $ 17 | $ 16 |
Granted and assumed through acquisition (in dollars per share) | 37 | 24 | 18 |
Exercised (in dollars per share) | 18 | 15 | 14 |
Forfeited/cancelled/expired (in dollars per share) | 26 | 18 | 19 |
Outstanding at end of period (in dollars per share) | 26 | 21 | 17 |
Vested and expected to vest at end of period (in dollars per share) | 25 | 21 | 17 |
Exercisable at end of period (in dollars per share) | $ 18 | $ 16 | $ 15 |
Weighted- Average Remaining Contractual Term | |||
Outstanding at end of year | 7 years 2 months 12 days | 7 years 4 months 24 days | 6 years 4 months 24 days |
Vested and expected to vest | 7 years 2 months 12 days | 7 years 4 months 24 days | 6 years 4 months 24 days |
Exercisable | 6 years | 5 years 3 months 18 days | 4 years 4 months 24 days |
Aggregate Intrinsic Value | |||
Outstanding at end of year | $ 34 | $ 68 | $ 10 |
Vested and expected to vest | 34 | 68 | 10 |
Exercisable | $ 26 | $ 34 | $ 9 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Options (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized pre-tax stock-based compensation expense | $ 9 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 25 | $ 18 | $ 12 |
Total grant date fair value of options vested | $ 9 | $ 3 | $ 3 |
Remaining weighted-average vesting period | 1 year 4 months 24 days |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, net of tax | $ 284,000,000 | $ 278,000,000 | $ 230,000,000 |
2021 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum employee contribution limit (as a percent) | 10% | ||
Stock purchase price (as a percent) | 95% | ||
Stock-based compensation expense, net of tax | $ 0 | ||
Stock authorized for issuance (in shares) | 50,000,000 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Shares Available for Future Grant and Shares Reserved for Future Issuance (Details) - shares shares in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Share-Based Payment Arrangement [Abstract] | |||
Shares available for future grant (in shares) | 174,264 | 170,123 | 229,334 |
Shares reserved for future issuance (in shares) | 208,351 | 205,968 | 264,110 |
Taxes on Earnings - Schedule of
Taxes on Earnings - Schedule of Domestic and Foreign Components of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Domestic and foreign components of earnings (loss) before taxes | |||
U.S. | $ 1,522 | $ 4,662 | $ 884 |
Non-U.S. | 2,919 | 2,849 | 2,347 |
Earnings before taxes | $ 4,441 | $ 7,511 | $ 3,231 |
Taxes on Earnings - Schedule _2
Taxes on Earnings - Schedule of (Benefit from) Provision for Taxes on Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
U.S. federal taxes: | |||
Current | $ 315 | $ 1,118 | $ (24) |
Deferred | 27 | (458) | (68) |
Non-U.S. taxes: | |||
Current | 341 | 420 | 319 |
Deferred | 500 | (197) | 164 |
State taxes: | |||
Current | 12 | 77 | 23 |
Deferred | 43 | 48 | (27) |
Provision for (benefit from) taxes | $ 1,238 | $ 1,008 | $ 387 |
Taxes on Earnings - Schedule _3
Taxes on Earnings - Schedule of Differences Between U.S. Federal Statutory Income Tax Rate and HP's Effective Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate from continuing operations | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 1.30% | 0.90% | 1.40% |
Impact of foreign earnings including GILTI and FDII, net | (7.60%) | (3.60%) | (6.10%) |
Valuation allowances | 0.30% | (3.80%) | 2.30% |
Uncertain tax positions and audit settlements | 3% | 0.80% | (4.10%) |
Impact of internal reorganization | 9.20% | (1.20%) | 0% |
Other, net | 0.70% | (0.70%) | (2.50%) |
Effective tax rate | 27.90% | 13.40% | 12% |
Taxes on Earnings - Provision f
Taxes on Earnings - Provision for Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Examination [Line Items] | |||
Net income tax benefits | $ 470 | $ 9 | $ (244) |
Internal reorganization | 649 | 89 | |
Uncertain tax position charges | 118 | 15 | |
Withholdings taxes on undistributed foreign earnings | 55 | ||
Tax benefits related to settlements | 51 | 124 | |
Other net tax benefits | 26 | 9 | 17 |
Filing of tax returns in various jurisdictions | 183 | 16 | |
Net valuation allowance release | 156 | 393 | |
Restructuring benefits | 47 | 50 | 82 |
Tax benefit related to acquisition charges | 43 | ||
Excess tax benefits on stock options, restricted stock and performance share units, | 33 | ||
Proxy contest costs | 20 | ||
Income tax benefits, reduced rates for subsidiaries in certain countries | $ 313 | $ 385 | $ 344 |
Income tax benefits, reduced rates for subsidiaries in certain countries (in dollars per share) | $ 0.30 | $ 0.32 | $ 0.24 |
Hewlett-Packard Company v. Oracle Corporation | |||
Income Tax Examination [Line Items] | |||
Tax benefits related to settlements | $ 533 |
Taxes on Earnings - Reconciliat
Taxes on Earnings - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | $ 820 | $ 820 | $ 929 |
Increases: | |||
For current year’s tax positions | 36 | 63 | 59 |
For prior years’ tax positions | 299 | 92 | 71 |
Decreases: | |||
For prior years’ tax positions | (61) | (92) | (89) |
Statute of limitations expirations | (5) | (9) | (2) |
Settlements with taxing authorities | (44) | (54) | (148) |
Balance at end of year | $ 1,045 | $ 820 | $ 820 |
Taxes on Earnings - Uncertain T
Taxes on Earnings - Uncertain Tax Positions (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 USD ($) country | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | Oct. 31, 2019 USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 1,045 | $ 820 | $ 820 | $ 929 |
Unrecognized tax benefits that would affect effective tax rate if realized | 807 | |||
Increase in gross unrecognized tax benefits | 225 | |||
Accrued income tax for interest and penalties | $ 64 | $ 70 | $ 34 | |
Likelihood of no resolution period | 12 months | |||
Reasonably possible decrease in existing unrecognized tax benefits within the next 12 months | $ 38 | |||
Number of other countries in which HP is subject to income taxes | country | 60 | |||
Undistributed earnings from non-U.S. operations | $ 5,100 |
Taxes on Earnings - Schedule _4
Taxes on Earnings - Schedule of Significant Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred tax assets: | ||||
Loss and credit carryforwards | $ 7,601 | $ 7,630 | ||
Intercompany transactions—excluding inventory | 799 | 791 | ||
Fixed assets | 118 | 136 | ||
Warranty | 170 | 207 | ||
Employee and retiree benefits | 124 | 287 | ||
Deferred revenue | 221 | 192 | ||
Capitalized research and development | 654 | 454 | ||
Intangible assets | 0 | 474 | ||
Operating lease liabilities | 238 | 227 | ||
Investment in partnership | 70 | 95 | ||
Cash flow hedges | 0 | 8 | ||
Other | 353 | 444 | ||
Gross deferred tax assets | 10,348 | 10,945 | ||
Valuation allowances | (7,592) | (7,749) | $ (7,976) | $ (7,930) |
Total deferred tax assets | 2,756 | 3,196 | ||
Deferred tax liabilities: | ||||
Unremitted earnings of foreign subsidiaries | (75) | (42) | ||
Right-of-use assets from operating leases | (227) | (215) | ||
Intangible assets | (261) | 0 | ||
Cash flow hedges | (155) | 0 | ||
Other | 0 | (79) | ||
Total deferred tax liabilities | (718) | (336) | ||
Total | $ 2,038 | $ 2,860 |
Taxes on Earnings - Schedule _5
Taxes on Earnings - Schedule of Current and Long-term Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 2,159 | $ 2,917 |
Deferred tax liabilities | (121) | (57) |
Total | $ 2,038 | $ 2,860 |
Taxes on Earnings - Schedule _6
Taxes on Earnings - Schedule of Deferred Tax Assets for Net Operating Loss Carryforwards (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||||
Gross NOLs | $ 28,919 | |||
Valuation allowance | (7,592) | $ (7,749) | $ (7,976) | $ (7,930) |
Operating loss carryforwards | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Taxes on NOLs | 7,454 | |||
Valuation allowance | (7,195) | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Gross NOLs | 291 | |||
Federal | Operating loss carryforwards | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Taxes on NOLs | 63 | |||
Valuation allowance | (11) | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Gross NOLs | 2,680 | |||
State | Operating loss carryforwards | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Taxes on NOLs | 178 | |||
Valuation allowance | (71) | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Gross NOLs | 25,948 | |||
Foreign | Operating loss carryforwards | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Taxes on NOLs | 7,213 | |||
Valuation allowance | $ (7,113) |
Taxes on Earnings - Schedule _7
Taxes on Earnings - Schedule of Deferred Tax Assets for Various Tax Credit Carryforwards (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Carryforward | |
Tax credits in state and foreign jurisdictions | $ 312 |
U.S. R&D and other credits | 11 |
Balance at end of year | 323 |
Valuation Allowance | |
Valuation Allowance | (55) |
Tax credits in state and foreign jurisdictions | |
Valuation Allowance | |
Valuation Allowance | (55) |
U.S. R&D and other credits | |
Valuation Allowance | |
Valuation Allowance | $ 0 |
Taxes on Earnings - Schedule _8
Taxes on Earnings - Schedule of Deferred Tax Asset Valuation Allowance and Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of year | $ 7,749 | $ 7,976 | $ 7,930 |
Income tax (benefit) expense | (274) | (193) | 74 |
Goodwill, other comprehensive loss (income), currency translation and charges to other accounts | 117 | (34) | (28) |
Balance at end of year | $ 7,592 | $ 7,749 | $ 7,976 |
Taxes on Earnings - Deferred Ta
Taxes on Earnings - Deferred Tax Asset Valuation Allowance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Valuation Allowance [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 7,592 | $ 7,749 | $ 7,976 | $ 7,930 |
Increase (decrease) in valuation allowances | (157) | (227) | 46 | |
Deferred tax asset valuation allowance | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 7,600 | $ 7,700 | $ 8,000 |
Supplementary Financial Infor_3
Supplementary Financial Information - Accounts Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Allowance for Doubtful Accounts Receivable | |||
Balance at beginning of period | $ 111 | $ 122 | $ 111 |
Current-period allowance for credit losses | 7 | 5 | 62 |
Deductions, net of recoveries | (11) | (16) | (51) |
Balance at end of period | $ 107 | $ 111 | $ 122 |
Supplementary Financial Infor_4
Supplementary Financial Information - Trade Receivables Sold and Cash Received (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Receivables Sold but Not Collected from Third Party | |||
Balance at beginning of year | $ 131 | $ 188 | $ 235 |
Trade receivables sold | 12,028 | 11,976 | 10,474 |
Cash receipts | (11,942) | (12,035) | (10,526) |
Foreign currency and other | (32) | 2 | 5 |
Balance at end of year | $ 185 | $ 131 | $ 188 |
Supplementary Financial Infor_5
Supplementary Financial Information - Inventory (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 4,885 | $ 4,532 |
Purchased parts and fabricated assemblies | 2,710 | 3,398 |
Inventory | $ 7,595 | $ 7,930 |
Supplementary Financial Infor_6
Supplementary Financial Information - Other Current Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid and other current assets | $ 2,170 | $ 1,092 |
Supplier and other receivables | 1,377 | 2,333 |
Value-added taxes receivable | 968 | 1,005 |
Other current assets, total | $ 4,515 | $ 4,430 |
Supplementary Financial Infor_7
Supplementary Financial Information - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | $ 7,592 | $ 7,473 | |
Accumulated depreciation | (4,818) | (4,927) | |
Property, plant and equipment, net | 2,774 | 2,546 | |
Depreciation expense | 542 | 627 | $ 673 |
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | 2,255 | 2,166 | |
Machinery and equipment, including equipment held for lease | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | $ 5,337 | $ 5,307 |
Supplementary Financial Infor_8
Supplementary Financial Information - Other Non-Current Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred tax assets | $ 2,159 | $ 2,917 |
Intangible assets | 1,933 | 784 |
Right-of-use assets | 1,236 | 1,192 |
Deposits and prepaid | 588 | 734 |
Prepaid pension asset | 565 | 766 |
Other | 990 | 698 |
Other non-current assets, total | $ 7,471 | $ 7,091 |
Supplementary Financial Infor_9
Supplementary Financial Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales and marketing programs | $ 2,967 | $ 3,179 |
Deferred revenue | 1,393 | 1,277 |
Other accrued taxes | 1,064 | 1,227 |
Employee compensation and benefit | 954 | 1,627 |
Warranty | 619 | 731 |
Operating lease liabilities | 405 | 350 |
Tax liability | 286 | 296 |
Other | 2,963 | 3,228 |
Other current liabilities | $ 10,651 | $ 11,915 |
Supplementary Financial Info_10
Supplementary Financial Information - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue | $ 1,171 | $ 1,099 |
Tax liability | 931 | 830 |
Operating lease liabilities | 875 | 936 |
Pension, post-retirement, and post-employment liabilities | 600 | 1,041 |
Deferred tax liability | 121 | 57 |
Other | 858 | 815 |
Other non-current liabilities | $ 4,556 | $ 4,778 |
Supplementary Financial Info_11
Supplementary Financial Information - Russia exit charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Russia exit charges | $ 23 | $ 0 | $ 0 |
Supplementary Financial Info_12
Supplementary Financial Information - Interest and other, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Oracle litigation proceeds | $ 0 | $ 2,304 | $ 0 |
Non-operating retirement-related credits | 144 | 160 | 240 |
Interest expense on borrowings | (359) | (254) | (239) |
Defined benefit plan settlement gains (charges) | 0 | 37 | (214) |
Loss on extinguishment of debt | 0 | (16) | (40) |
Tax indemnifications | (1) | 0 | 1 |
Other, net | (19) | (22) | 21 |
Interest and other, net | $ (235) | $ 2,209 | $ (231) |
Supplementary Financial Info_13
Supplementary Financial Information - Net Revenue by Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 62,983 | $ 63,487 | $ 56,639 |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | 26,600 | 27,518 | 24,414 |
Europe, Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | 21,317 | 22,216 | 19,624 |
Asia-Pacific and Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 15,066 | $ 13,753 | $ 12,601 |
Supplementary Financial Info_14
Supplementary Financial Information - Value of Remaining Performance Obligations (Details) $ in Billions | Oct. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1.7 |
Remaining performance obligations, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1.9 |
Remaining performance obligations, period |
Supplementary Financial Info_15
Supplementary Financial Information - Costs of Obtaining Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Contract cost amortization | $ 129 | $ 79 | |
Contract liability | 2,500 | 2,300 | $ 2,200 |
Revenue recognized | 1,100 | 1,100 | |
Deferred contract fulfillment | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract costs | 34 | 65 | |
Acquisition costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract costs | $ 34 | $ 36 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Allocation and Changes in the Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill | |||
Balance at beginning of period | $ 6,803,000,000 | $ 6,380,000,000 | |
Acquisitions/adjustments | 1,806,000,000 | 400,000,000 | |
Foreign currency translation | (68,000,000) | 23,000,000 | |
Balance at end of period | 8,541,000,000 | 6,803,000,000 | $ 6,380,000,000 |
Impairment loss | 0 | 0 | 0 |
Personal Systems | |||
Goodwill | |||
Balance at beginning of period | 2,905,000,000 | 2,621,000,000 | |
Acquisitions/adjustments | 1,790,000,000 | 284,000,000 | |
Foreign currency translation | 0 | 0 | |
Balance at end of period | 4,695,000,000 | 2,905,000,000 | 2,621,000,000 |
Printing | |||
Goodwill | |||
Balance at beginning of period | 3,796,000,000 | 3,759,000,000 | |
Acquisitions/adjustments | 0 | 14,000,000 | |
Foreign currency translation | (68,000,000) | 23,000,000 | |
Balance at end of period | 3,728,000,000 | 3,796,000,000 | 3,759,000,000 |
Corporate Investments | |||
Goodwill | |||
Balance at beginning of period | 102,000,000 | 0 | |
Acquisitions/adjustments | 16,000,000 | 102,000,000 | |
Foreign currency translation | 0 | 0 | |
Balance at end of period | 118,000,000 | 102,000,000 | 0 |
Accumulated impairment losses | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 2,792 | $ 1,435 |
Accumulated Amortization | 859 | 651 |
Total | 1,933 | 784 |
Customer contracts, customer lists and distribution agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 815 | 526 |
Accumulated Amortization | 283 | 212 |
Total | 532 | 314 |
Technology and patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,763 | 814 |
Accumulated Amortization | 551 | 425 |
Total | 1,212 | 389 |
Trade name and trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 214 | 95 |
Accumulated Amortization | 25 | 14 |
Total | $ 189 | $ 81 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Useful Life (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Customer contracts, customer lists and distribution agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life (in years) | 13 years |
Technology and patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life (in years) | 7 years |
Trade name and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Life (in years) | 5 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 351 | |
2024 | 318 | |
2025 | 248 | |
2026 | 239 | |
2027 | 234 | |
Thereafter | 543 | |
Total | $ 1,933 | $ 784 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Assets: | ||
Fair Value | $ 2,193 | $ 3,043 |
Derivative Instruments | 1,090 | 282 |
Total assets | 3,346 | 3,401 |
Liabilities: | ||
Derivative Instruments | 374 | 227 |
Total liabilities | 374 | 227 |
Fair value, short- and long-term debt | 9,600 | 8,000 |
Carrying value, short- and long-term debt | 11,000 | 7,500 |
Corporate debt | ||
Assets: | ||
Fair Value | 904 | 1,112 |
Government debt | ||
Assets: | ||
Fair Value | 1,289 | 1,931 |
Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments | 5 | 5 |
Marketable equity securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments | 58 | 71 |
Foreign currency contracts | ||
Assets: | ||
Derivative Instruments | 1,088 | 277 |
Liabilities: | ||
Derivative Instruments | 295 | 203 |
Other derivatives | ||
Assets: | ||
Derivative Instruments | 2 | 5 |
Liabilities: | ||
Derivative Instruments | 1 | 0 |
Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments | 78 | 24 |
Level 1 | ||
Assets: | ||
Total assets | 1,306 | 1,946 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Corporate debt | ||
Assets: | ||
Fair Value | 0 | 0 |
Level 1 | Government debt | ||
Assets: | ||
Fair Value | 1,289 | 1,931 |
Level 1 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments | 0 | 0 |
Level 1 | Marketable equity securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments | 17 | 15 |
Level 1 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments | 0 | 0 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Level 1 | Other derivatives | ||
Assets: | ||
Derivative Instruments | 0 | 0 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Level 1 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 2,040 | 1,455 |
Liabilities: | ||
Total liabilities | 374 | 227 |
Level 2 | Corporate debt | ||
Assets: | ||
Fair Value | 904 | 1,112 |
Level 2 | Government debt | ||
Assets: | ||
Fair Value | 0 | 0 |
Level 2 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments | 5 | 5 |
Level 2 | Marketable equity securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments | 41 | 56 |
Level 2 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments | 1,088 | 277 |
Liabilities: | ||
Derivative Instruments | 295 | 203 |
Level 2 | Other derivatives | ||
Assets: | ||
Derivative Instruments | 2 | 5 |
Liabilities: | ||
Derivative Instruments | 1 | 0 |
Level 2 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments | 78 | 24 |
Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 3 | Corporate debt | ||
Assets: | ||
Fair Value | 0 | 0 |
Level 3 | Government debt | ||
Assets: | ||
Fair Value | 0 | 0 |
Level 3 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments | 0 | 0 |
Level 3 | Marketable equity securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments | 0 | 0 |
Level 3 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments | 0 | 0 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Level 3 | Other derivatives | ||
Assets: | ||
Derivative Instruments | 0 | 0 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Level 3 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments | $ 0 | $ 0 |
Financial Instruments - Cash Eq
Financial Instruments - Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Cash Equivalents: | ||
Cost | $ 2,193 | $ 3,043 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 2,193 | 3,043 |
Available-for-Sale Investments: | ||
Total available-for-sale investments, Cost | 55 | 47 |
Total available-for-sale investments, Gross Unrealized Gain | 8 | 29 |
Total available-for-sale investments, Gross Unrealized Loss | 0 | 0 |
Total available-for-sale investments, Fair Value | 63 | 76 |
Cost | 2,248 | 3,090 |
Gross Unrealized Gain | 8 | 29 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 2,256 | 3,119 |
Corporate debt | ||
Cash Equivalents: | ||
Cost | 904 | 1,112 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 904 | 1,112 |
Government debt | ||
Cash Equivalents: | ||
Cost | 1,289 | 1,931 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 1,289 | 1,931 |
Financial Institution Instrument | ||
Available-for-Sale Investments: | ||
Debt securities, Cost | 5 | 5 |
Debt securities, Gross Unrealized Gain | 0 | 0 |
Debt securities, Gross Unrealized Loss | 0 | 0 |
Debt securities, Fair Value | 5 | 5 |
Marketable equity securities and mutual funds | ||
Available-for-Sale Investments: | ||
Equity securities, Cost | 50 | 42 |
Equity securities, Gross Unrealized Gain | 8 | 29 |
Equity securities, Gross Unrealized Loss | 0 | 0 |
Equity securities, Fair Value | $ 58 | $ 71 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Jun. 30, 2022 | Mar. 31, 2022 | |
Investment Holdings [Line Items] | |||||
Interest income | $ 46,000,000 | $ 31,000,000 | $ 40,000,000 | ||
Collateralized arrangements in net liability position | $ 82,000,000 | 64,000,000 | |||
Period to collateralize | 2 days | ||||
Notional amount | $ 21,440,000,000 | 25,783,000,000 | |||
Forward Contracts | |||||
Investment Holdings [Line Items] | |||||
Gain on settlement of derivatives | $ 79,000,000 | ||||
Cash flow hedges | |||||
Investment Holdings [Line Items] | |||||
Foreign currency maturity | 12 months | ||||
Gain expected to be reclassified from Accumulated OCI into earnings in next 12 months | $ 453,000,000 | ||||
Cash flow hedges | Forward Contracts | |||||
Investment Holdings [Line Items] | |||||
Notional amount | 1,750,000,000 | ||||
Settlement, notional amount | 1,500,000,000 | $ 1,750,000,000 | $ 1,500,000,000 | ||
Other Non-Current Assets | Equity securities in privately held companies | |||||
Investment Holdings [Line Items] | |||||
Equity investments | $ 110,000,000 | $ 59,000,000 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities of Investments (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Amortized Cost | |
Due in one year | $ 17 |
Fair Value | |
Due in one year | $ 17 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | $ 21,440 | $ 25,783 |
Derivative Instruments | 374 | 227 |
Derivative Instruments | 1,090 | 282 |
Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | $ 834 | $ 213 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | $ 256 | $ 69 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | $ 224 | $ 161 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | $ 150 | $ 66 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Derivatives designated as hedging instruments | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | $ 16,764 | $ 19,387 |
Derivatives designated as hedging instruments | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 820 | 198 |
Derivatives designated as hedging instruments | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 256 | 69 |
Derivatives designated as hedging instruments | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 206 | 148 |
Derivatives designated as hedging instruments | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 150 | 66 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedges | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 750 | 750 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedges | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedges | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedges | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedges | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 78 | 16 |
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedges | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 0 | 1,500 |
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedges | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedges | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedges | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedges | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 8 |
Derivatives designated as hedging instruments | Foreign currency contracts | Cash flow hedges | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 16,014 | 17,137 |
Derivatives designated as hedging instruments | Foreign currency contracts | Cash flow hedges | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 820 | 198 |
Derivatives designated as hedging instruments | Foreign currency contracts | Cash flow hedges | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 256 | 69 |
Derivatives designated as hedging instruments | Foreign currency contracts | Cash flow hedges | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 206 | 148 |
Derivatives designated as hedging instruments | Foreign currency contracts | Cash flow hedges | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 72 | 42 |
Derivatives not designated as hedging instruments | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 4,676 | 6,396 |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 14 | 15 |
Derivatives not designated as hedging instruments | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 18 | 13 |
Derivatives not designated as hedging instruments | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 4,554 | 6,293 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 12 | 10 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 17 | 13 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | ||
Investment Holdings [Line Items] | ||
Outstanding Gross Notional | 122 | 103 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 2 | 5 |
Derivatives not designated as hedging instruments | Other derivatives | Other Non-Current Assets | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | 1 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | Other non-current liabilities | ||
Investment Holdings [Line Items] | ||
Derivative Instruments | $ 0 | $ 0 |
Financial Instruments - Offsett
Financial Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Derivative assets | ||
Gross Amount Recognized | $ 1,090 | $ 282 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 1,090 | 282 |
Gross Amounts Not Offset | ||
Derivatives | 290 | 160 |
Financial Collateral | 616 | 65 |
Net Amount | 184 | 57 |
Derivative liabilities | ||
Gross Amount Recognized | 374 | 227 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 374 | 227 |
Gross Amounts Not Offset | ||
Derivatives | 290 | 160 |
Financial Collateral | 86 | 64 |
Net Amount | $ (2) | $ 3 |
Period to collateralize | 2 days |
Financial Instruments - Schedul
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship (Details) - Interest and other, net - Interest rate contracts - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded | $ (235) | $ 2,209 | $ (231) |
Gain/(loss) recognized in earnings on derivative instruments | (62) | (17) | 6 |
Gain/(loss) recognized in earnings on hedged item | $ 62 | $ 17 | $ (6) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) recognized in Accumulated other comprehensive income (loss) on derivatives: | $ 1,541 | $ (132) | $ (201) | |
Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | 4,676 | 5,302 | 3,462 | |
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | 779 | (243) | 85 | |
Cash flow hedges | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | $ (243) | 779 | 85 | |
Cash flow hedges | Net revenue | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | 62,983 | 63,487 | 56,639 | |
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | (214) | 877 | 108 | |
Cash flow hedges | Cost of revenue | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | (50,648) | (50,070) | (46,202) | |
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | (30) | (101) | (25) | |
Cash flow hedges | Operating expenses | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | (7,659) | (8,115) | (6,975) | |
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | 1 | (1) | 2 | |
Cash flow hedges | Interest and other, net | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | (235) | 2,209 | (231) | |
Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | $ 0 | 4 | 0 | |
Foreign currency contracts | Cash flow hedges | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) recognized in Accumulated other comprehensive income (loss) on derivatives: | 1,456 | (117) | (197) | |
Interest rate contracts | Cash flow hedges | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) recognized in Accumulated other comprehensive income (loss) on derivatives: | $ 85 | $ (15) | $ (4) |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments not Designated as Hedging Instruments on the Consolidated Condensed Statements of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in earnings on derivative instrument | $ 37 | $ (57) | $ 31 |
Interest and other, net | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in earnings on derivative instrument | 41 | (65) | 40 |
Interest and other, net | Other derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in earnings on derivative instrument | $ (4) | $ 8 | $ (9) |
Borrowings - Schedule of Notes
Borrowings - Schedule of Notes Payable and Short-Term Borrowings (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Amount Outstanding | ||
Current portion of long-term debt | $ 165 | $ 672 |
Notes payable and short-term borrowings | $ 218 | $ 1,106 |
Weighted-Average Interest Rate | ||
Weighted-Average Interest Rate | 5.40% | 3.80% |
Commercial paper | ||
Amount Outstanding | ||
Commercial paper | $ 0 | $ 400 |
Weighted-Average Interest Rate | ||
Weighted-Average Interest Rate | 0% | 0.20% |
Notes payable to banks, lines of credit and other | ||
Amount Outstanding | ||
Notes payable and short-term borrowings | $ 53 | $ 34 |
Weighted-Average Interest Rate | ||
Weighted-Average Interest Rate | 0.60% | 1.20% |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) | Oct. 31, 2022 | Sep. 01, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Oct. 31, 2021 |
Debt Instrument [Line Items] | |||||
Total | $ 11,190,000,000 | ||||
Fair value adjustment related to hedged debt | (78,000,000) | $ (16,000,000) | |||
Unamortized debt issuance cost | (80,000,000) | (51,000,000) | |||
Current portion of long-term debt | (165,000,000) | (672,000,000) | |||
Total long-term debt | 10,796,000,000 | 6,386,000,000 | |||
U.S. Dollar Global Notes | |||||
Debt Instrument [Line Items] | |||||
Total | 10,683,000,000 | 6,686,000,000 | |||
$500 issued at discount to par at a price of 99.771% at 4.05%, due September 2022 | |||||
Debt Instrument [Line Items] | |||||
Total | 0 | 499,000,000 | |||
Face amount of debt instrument | $ 500,000,000 | ||||
Discount to par (percent) | 99.771% | ||||
Interest rate (percent) | 4.05% | ||||
$1,200 issued at discount to par at a price of 99.863% at 6.0%, due September 2041 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 1,199,000,000 | 1,199,000,000 | |||
Face amount of debt instrument | $ 1,200,000,000 | ||||
Discount to par (percent) | 99.863% | ||||
Interest rate (percent) | 6% | ||||
$1,150 issued at discount to par at a price of 99.769% at 2.2%, due June 2025 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 1,149,000,000 | 1,148,000,000 | |||
Face amount of debt instrument | $ 1,150,000,000 | ||||
Discount to par (percent) | 99.769% | ||||
Interest rate (percent) | 2.20% | ||||
$1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 997,000,000 | 997,000,000 | |||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Discount to par (percent) | 99.718% | ||||
Interest rate (percent) | 3% | ||||
$850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 848,000,000 | 848,000,000 | |||
Face amount of debt instrument | $ 850,000,000 | ||||
Discount to par (percent) | 99.79% | ||||
Interest rate (percent) | 3.40% | ||||
$1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 999,000,000 | 999,000,000 | |||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Discount to par (percent) | 99.808% | ||||
Interest rate (percent) | 1.45% | ||||
$1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 996,000,000 | 996,000,000 | |||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Discount to par (percent) | 99.573% | ||||
Interest rate (percent) | 2.65% | ||||
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 999,000,000 | 0 | |||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Discount to par (percent) | 99.767% | ||||
Interest rate (percent) | 4% | ||||
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Interest rate (percent) | 4% | ||||
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 1,000,000,000 | 0 | |||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Discount to par (percent) | 99.966% | ||||
Interest rate (percent) | 4.20% | ||||
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 1,000,000,000 | ||||
Interest rate (percent) | 4.20% | ||||
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 899,000,000 | 0 | |||
Face amount of debt instrument | $ 900,000,000 | ||||
Discount to par (percent) | 99.841% | ||||
Interest rate (percent) | 4.75% | ||||
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 900,000,000 | ||||
Interest rate (percent) | 4.75% | ||||
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 1,097,000,000 | 0 | |||
Face amount of debt instrument | $ 1,100,000,000 | ||||
Discount to par (percent) | 99.725% | ||||
Interest rate (percent) | 5.50% | ||||
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 1,100,000,000 | ||||
Interest rate (percent) | 5.50% | ||||
$500 issued at par at a price of 100% at 4.75%, due March 2029 | |||||
Debt Instrument [Line Items] | |||||
Total | $ 500,000,000 | 0 | |||
Face amount of debt instrument | $ 500,000,000 | ||||
Issuance rate (percent) | 100% | ||||
Interest rate (percent) | 4.75% | ||||
Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 | |||||
Debt Instrument [Line Items] | |||||
Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 | $ 436,000,000 | $ 439,000,000 | |||
Poly Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 9,000,000 | $ 500,000,000 | |||
Minimum | Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (percent) | 0.51% | ||||
Maximum | Other borrowings at 0.51%-9.00%, due in fiscal years 2023-2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (percent) | 9% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Nov. 17, 2022 USD ($) | Oct. 31, 2022 USD ($) commercial_paper_program | Sep. 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) |
Debt Instrument [Line Items] | ||||||
Issuance costs | $ 80,000,000 | $ 51,000,000 | ||||
Discounts on debt issuance | 17,000,000 | |||||
Fair value adjustment related to hedged debt | $ (78,000,000) | $ (16,000,000) | ||||
Number of commercial paper programs | commercial_paper_program | 2 | |||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 6,000,000,000 | |||||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 5,000,000,000 | |||||
Lines of credit | ||||||
Debt Instrument [Line Items] | ||||||
Uncommitted lines of credit | 937,000,000 | |||||
Forward Contracts | Cash flow hedges | ||||||
Debt Instrument [Line Items] | ||||||
Settlement, notional amount | 1,500,000,000 | $ 1,750,000,000 | $ 1,500,000,000 | |||
U.S. Dollar Global Notes, Due In 2028 And 2033 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 2,000,000,000 | |||||
Issuance costs | 17,000,000 | |||||
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 900,000,000 | |||||
Interest rate (percent) | 4.75% | |||||
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 900,000,000 | |||||
Interest rate (percent) | 4.75% | |||||
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,100,000,000 | |||||
Interest rate (percent) | 5.50% | |||||
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,100,000,000 | |||||
Interest rate (percent) | 5.50% | |||||
U.S. Dollar Global Notes, Due In 2029 And 2032 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 2,000,000,000 | |||||
Issuance costs | 17,000,000 | |||||
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||
Interest rate (percent) | 4% | |||||
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||
Interest rate (percent) | 4% | |||||
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||
Interest rate (percent) | 4.20% | |||||
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 1,000,000,000 | |||||
Interest rate (percent) | 4.20% | |||||
Poly Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 9,000,000 | $ 500,000,000 | ||||
Poly Notes | Senior Notes | Subsequent event | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, repurchase amount | $ 498,000,000 |
Borrowings - Schedule of Aggreg
Borrowings - Schedule of Aggregate Future Maturities of Long-term Debt at Face Value (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Fiscal year | |
2023 | $ 218 |
2024 | 123 |
2025 | 1,239 |
2026 | 1,048 |
2027 | 1,009 |
Thereafter | 7,553 |
Total | $ 11,190 |
Stockholders_ Deficit - Narrati
Stockholders’ Deficit - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Feb. 22, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Repurchases of common stock (in shares) | 124 | 224 | 168 | |
Payment in connection with repurchases of shares | $ 4,297 | $ 6,249 | $ 3,107 | |
Share repurchases that will be settled in subsequent period (in shares) | 1.6 | 2.3 | ||
Authorized amount | $ 15,000 | |||
Share repurchase authorization remaining | $ 2,100 |
Stockholders_ Deficit - Taxes R
Stockholders’ Deficit - Taxes Related to Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on other comprehensive income (loss) | $ (124) | $ (213) | $ 1 |
Net unrealized gains on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on unrealized gains (losses) arising during the period | 2 | (1) | 0 |
Tax effect on change in unrealized components of cash flow hedges: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on unrealized gains (losses) arising during the period | (328) | (9) | 20 |
Tax benefit (provision) on reclassifications during the period | 195 | (17) | 28 |
Tax (provision) benefit on other comprehensive income (loss) | (133) | (26) | 48 |
Tax (provision) benefit on gains (losses) arising during the period | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on unrealized gains (losses) arising during the period | 11 | (177) | 11 |
Tax benefit on amortization of actuarial loss and prior service benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax benefit (provision) on reclassifications during the period | (6) | (17) | (19) |
Tax (provision) benefit on curtailments, settlements and other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax benefit (provision) on reclassifications during the period | (1) | 9 | (41) |
Tax effect on change in unrealized components of defined benefit plans: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on other comprehensive income (loss) | 4 | (185) | (49) |
Tax effect on change in cumulative translation adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax (provision) benefit on other comprehensive income (loss) | $ 3 | $ (1) | $ 2 |
Stockholders_ Deficit - Changes
Stockholders’ Deficit - Changes and Reclassifications Related to Other Comprehensive Loss, Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | $ 1,144 | ||
(Gains) losses reclassified into earnings | (570) | ||
Other comprehensive income (loss), net of taxes | 573 | $ 983 | $ (18) |
Net unrealized gains on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | (9) | 4 | 2 |
(Gains) losses reclassified into earnings | 0 | ||
Net unrealized gains (losses) on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | 1,213 | (141) | (181) |
(Gains) losses reclassified into earnings | (584) | 226 | (57) |
Other comprehensive income (loss), net of taxes | 629 | 85 | (238) |
Gains (losses) arising during the period | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | 15 | 831 | (18) |
Amortization of actuarial loss and prior service benefit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Gains) losses reclassified into earnings | 14 | 63 | 64 |
Curtailments, settlements and other | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Gains) losses reclassified into earnings | (1) | (27) | 174 |
Unrealized components of defined benefit plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | 15 | ||
(Gains) losses reclassified into earnings | 14 | ||
Other comprehensive income (loss), net of taxes | 28 | 867 | 220 |
Change in cumulative translation adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (losses) gains arising during the period | (75) | ||
(Gains) losses reclassified into earnings | 0 | ||
Change in cumulative translation adjustment | $ (75) | $ 27 | $ (2) |
Stockholders_ Deficit - Schedul
Stockholders’ Deficit - Schedule of Accumulated Other Comprehensive Loss, Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | $ (1,650) | $ (2,228) | $ (1,193) |
Other comprehensive (losses) gains before reclassifications | 1,144 | ||
Losses reclassified into earnings | (570) | ||
Balance at end of period | (2,918) | (1,650) | (2,228) |
Accumulated other comprehensive loss | |||
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | (260) | (1,243) | (1,225) |
Balance at end of period | 313 | (260) | (1,243) |
Net unrealized gains on available-for-sale securities | |||
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | 15 | ||
Other comprehensive (losses) gains before reclassifications | (9) | 4 | 2 |
Losses reclassified into earnings | 0 | ||
Balance at end of period | 6 | 15 | |
Net unrealized gains (losses) on cash flow hedges | |||
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | 19 | ||
Other comprehensive (losses) gains before reclassifications | 1,213 | (141) | (181) |
Losses reclassified into earnings | (584) | 226 | $ (57) |
Balance at end of period | 648 | 19 | |
Unrealized components of defined benefit plans | |||
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | (323) | ||
Other comprehensive (losses) gains before reclassifications | 15 | ||
Losses reclassified into earnings | 14 | ||
Balance at end of period | (295) | (323) | |
Change in cumulative translation adjustment | |||
Components of accumulated other comprehensive income, net of taxes | |||
Balance at beginning of period | 29 | ||
Other comprehensive (losses) gains before reclassifications | (75) | ||
Losses reclassified into earnings | 0 | ||
Balance at end of period | (46) | $ 29 | |
Reclassifications of curtailments, settlements and other into earnings | |||
Components of accumulated other comprehensive income, net of taxes | |||
Losses reclassified into earnings | $ (1) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Numerator: | |||
Net earnings, basic | $ 3,203 | $ 6,503 | $ 2,844 |
Net earnings, diluted | $ 3,203 | $ 6,503 | $ 2,844 |
Denominator: | |||
Weighted-average shares used to compute basic net EPS (in shares) | 1,038 | 1,208 | 1,413 |
Dilutive effect of employee stock plans (in shares) | 12 | 12 | 7 |
Weighted-average shares used to compute diluted net EPS (in shares) | 1,050 | 1,220 | 1,420 |
Net earnings per share: | |||
Basic (in dollars per share) | $ 3.09 | $ 5.38 | $ 2.01 |
Diluted (in dollars per share) | $ 3.05 | $ 5.33 | $ 2 |
Anti dilutive weighted-average stock-based compensation awards (in shares) | 4 | 2 | 13 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | 1 Months Ended | 17 Months Ended | |||||||||||
Mar. 19, 2021 patent | Aug. 18, 2016 age | Oct. 01, 2015 USD ($) | Apr. 17, 2015 USD ($) employee subsidiary | Jan. 24, 2013 USD ($) | Dec. 11, 2012 USD ($) | Apr. 21, 2012 USD ($) | May 10, 2010 USD ($) employee | Oct. 31, 2020 patent | Sep. 30, 2020 patent | Apr. 30, 2022 claim | Apr. 20, 2012 USD ($) | Apr. 11, 2012 USD ($) | |
Forsyth, et al. vs. HP Inc. and Hewlett Packard Enterprise | |||||||||||||
Litigation and Contingencies | |||||||||||||
Minimum age of plaintiffs | age | 40 | ||||||||||||
India Directorate of Revenue Intelligence Proceedings | |||||||||||||
Litigation and Contingencies | |||||||||||||
Number of current employees | employee | 7 | ||||||||||||
Number of former employees | employee | 1 | ||||||||||||
Aggregate damages sought | $ 370 | ||||||||||||
Loss contingency deposit to prevent interruption of business | $ 16 | ||||||||||||
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 | ||||||||||||
Autonomy-Related Legal Matters | Autonomy | |||||||||||||
Litigation and Contingencies | |||||||||||||
Aggregate damages sought | $ 5,000 | ||||||||||||
Number of subsidiaries | subsidiary | 4 | ||||||||||||
Number of members | employee | 2 | ||||||||||||
Autonomy-Related Legal Matters | Autonomy | Mr. Lynch | |||||||||||||
Litigation and Contingencies | |||||||||||||
Aggregate damages sought | $ 160 | ||||||||||||
Philips Patent Litigation | |||||||||||||
Litigation and Contingencies | |||||||||||||
Patents allegedly infringed | patent | 4 | ||||||||||||
Patents withdrawn | patent | 2 | ||||||||||||
Caltech Patent Litigation | |||||||||||||
Litigation and Contingencies | |||||||||||||
Patents allegedly infringed | patent | 5 | ||||||||||||
Dynamic Security Class Actions | |||||||||||||
Litigation and Contingencies | |||||||||||||
Class actions filed | claim | 2 |
Guarantees, Indemnifications _3
Guarantees, Indemnifications and Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Changes in aggregated product warranty liabilities | ||
Balance at beginning of year | $ 959 | $ 993 |
Accruals for warranties issued | 948 | 1,003 |
Adjustments related to pre-existing warranties (including changes in estimates) | (43) | 28 |
Settlements made (in cash or in kind) | (988) | (1,065) |
Balance at end of year | $ 876 | $ 959 |
Commitments - Unconditional Pur
Commitments - Unconditional Purchase Obligations (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unconditional purchase obligations | $ 3,262 |
Fiscal year | |
2023 | 1,854 |
2024 | 1,254 |
2025 | 101 |
2026 | 22 |
2027 | 20 |
Thereafter | 11 |
Total | $ 3,262 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets, extensible enumeration | Other non-current assets | Other non-current assets |
Current operating lease liabilities, extensible enumeration | Other current liabilities | Other current liabilities |
Non-current operating lease liability, extensible enumeration | Other non-current liabilities | Other non-current liabilities |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 11 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 233 | $ 235 |
Variable cost | 99 | 101 |
Total lease expense | $ 332 | $ 336 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amount included in the measurement of lease liabilities | $ 233 | $ 238 |
Right-of-use assets obtained in exchange of lease liabilities | $ 363 | $ 385 |
Weighted-average remaining lease term in years | 5 years | 5 years |
Weighted-average discount rate | 5.20% | 3.40% |
Leases - Operating Lease Paymen
Leases - Operating Lease Payments (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 443 |
2024 | 337 |
2025 | 223 |
2026 | 123 |
2027 | 101 |
Thereafter | 172 |
Total lease payments | 1,399 |
Less: Imputed interest | 119 |
Total lease liabilities | $ 1,280 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 01, 2022 USD ($) | Oct. 31, 2022 USD ($) acquisition $ / shares | Oct. 31, 2021 USD ($) acquisition | Oct. 31, 2020 USD ($) | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Number of acquisitions | acquisition | 2 | |||
Stock-based compensation expense | $ 343 | $ 330 | $ 278 | |
Goodwill | 8,541 | $ 6,803 | $ 6,380 | |
Poly Notes | Senior Notes | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Long-term debt | $ 500 | 9 | ||
Poly | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Value of acquiree | 3,300 | |||
Purchase consideration | $ 2,800 | |||
Share price (usd per shares) | $ / shares | $ 40 | |||
Cash payment for acquisition | $ 1,800 | |||
Repayments of long-term debt | 1,000 | |||
Settlement of share-based compensation arrangement | 109 | |||
Amount expensed | 81 | |||
Fair value of awards assumed | 47 | |||
Fair value of awards assumed attributed to purchase consideration | $ 4 | |||
Stock-based compensation expense | $ 3 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Number of acquisitions | acquisition | 4 | |||
Goodwill | $ 400 | |||
Amortizable intangible assets | 385 | |||
HyperX | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Purchase consideration | 412 | |||
Goodwill | 112 | |||
Amortizable intangible assets | $ 197 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | $ 8,541 | $ 6,803 | $ 6,380 |
Acquisitions in fiscal 2022 | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | 1,766 | ||
Amortizable intangible assets | 1,429 | ||
Net assets acquired | (337) | ||
Total fair value of consideration | $ 2,858 | ||
Series of Individually Immaterial Business Acquisitions | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | 400 | ||
Amortizable intangible assets | 385 | ||
Net assets acquired | 120 | ||
Total fair value of consideration | $ 905 |