Cover Page
Cover Page | 9 Months Ended |
Jul. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 31, 2023 |
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 $0.01 per share |
Trading Symbol | HPQ |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 988,268,771 |
Entity Central Index Key | 0000047217 |
Amendment Flag | false |
Current Fiscal Year End Date | --10-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 13,196 | $ 14,648 | $ 39,901 | $ 48,136 |
Costs and expenses: | ||||
Cost of revenue | 10,374 | 11,764 | 31,378 | 38,564 |
Research and development | 354 | 368 | 1,167 | 1,271 |
Selling, general and administrative | 1,302 | 1,143 | 4,031 | 4,075 |
Restructuring and other charges | 75 | 13 | 416 | 148 |
Acquisition and divestiture charges | 48 | 31 | 205 | 83 |
Amortization of intangible assets | 91 | 50 | 262 | 154 |
Russia exit charges | 0 | 23 | 0 | 23 |
Total costs and expenses | 12,244 | 13,392 | 37,459 | 44,318 |
Earnings from operations | 952 | 1,256 | 2,442 | 3,818 |
Interest and other, net | (16) | (70) | (357) | (141) |
Earnings before taxes | 936 | 1,186 | 2,085 | 3,677 |
(Provision for) benefit from taxes | (170) | (64) | 204 | (522) |
Net earnings | $ 766 | $ 1,122 | $ 2,289 | $ 3,155 |
Net earnings per share: | ||||
Basic earnings (usd per share) | $ 0.77 | $ 1.10 | $ 2.31 | $ 3 |
Diluted earnings (usd per share) | $ 0.76 | $ 1.08 | $ 2.29 | $ 2.97 |
Weighted-average shares used to compute net earnings per share: | ||||
Basic (in shares) | 993,000 | 1,024,000 | 991,000 | 1,052,000 |
Diluted (in shares) | 1,002,000 | 1,035,000 | 999,000 | 1,064,000 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 766 | $ 1,122 | $ 2,289 | $ 3,155 |
Change in unrealized components of available-for-sale debt securities: | ||||
Unrealized gains (losses) arising during the period | 1 | (1) | 5 | (7) |
Change in unrealized components of cash flow hedges: | ||||
Unrealized (losses) gains arising during the period | (68) | 280 | (757) | 1,182 |
Losses (gains) reclassified into earnings | 68 | (327) | (104) | (491) |
Change in unrealized components of cash flow hedges total | 0 | (47) | (861) | 691 |
Change in unrealized components of defined benefit plans: | ||||
Gains arising during the period | 0 | 10 | 5 | 12 |
Amortization of actuarial loss and prior service benefit | 0 | 5 | 0 | 16 |
Curtailments, settlements and other | 0 | (1) | 0 | (1) |
Change in unrealized components of defined benefit plans total | 0 | 14 | 5 | 27 |
Change in cumulative translation adjustment | 10 | (14) | 48 | (56) |
Other comprehensive income (loss) before taxes | 11 | (48) | (803) | 655 |
Benefit from (provision for) taxes | 3 | (62) | 164 | (172) |
Other comprehensive income (loss), net of taxes | 14 | (110) | (639) | 483 |
Comprehensive income | $ 780 | $ 1,012 | $ 1,650 | $ 3,638 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 1,718 | $ 3,145 |
Accounts receivable, net of allowance for credit losses of $91 and $107, respectively | 4,367 | 4,546 |
Inventory | 7,197 | 7,614 |
Other current assets | 4,181 | 4,431 |
Total current assets | 17,463 | 19,736 |
Property, plant and equipment, net | 2,783 | 2,774 |
Goodwill | 8,614 | 8,541 |
Other non-current assets | 7,772 | 7,443 |
Total assets | 36,632 | 38,494 |
Current liabilities: | ||
Notes payable and short-term borrowings | 443 | 218 |
Accounts payable | 14,123 | 15,303 |
Other current liabilities | 10,624 | 10,668 |
Total current liabilities | 25,190 | 26,189 |
Long-term debt | 9,236 | 10,796 |
Other non-current liabilities | 4,451 | 4,534 |
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; 988 and 980 shares issued and outstanding at July 31, 2023 and October 31, 2022, respectively) | 10 | 10 |
Additional paid-in capital | 1,435 | 1,172 |
Accumulated deficit | (3,336) | (4,492) |
Accumulated other comprehensive (loss) income | (354) | 285 |
Total stockholders’ deficit | (2,245) | (3,025) |
Total liabilities and stockholders’ deficit | $ 36,632 | $ 38,494 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 91 | $ 107 |
Preferred stock, par value (usd 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 (usd 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) | 988,000,000 | 980,000,000 |
Common stock, shares outstanding (in shares) | 988,000,000 | 980,000,000 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 2,289 | $ 3,155 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 638 | 571 |
Stock-based compensation expense | 353 | 273 |
Restructuring and other charges | 416 | 148 |
Deferred taxes on earnings | (774) | 51 |
Other, net | (61) | 361 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 180 | 1,101 |
Inventory | 364 | (570) |
Accounts payable | (1,133) | (491) |
Net investment in leases | (82) | (94) |
Taxes on earnings | 354 | (165) |
Restructuring and other | (244) | (185) |
Other assets and liabilities | (704) | (1,596) |
Net cash provided by operating activities | 1,596 | 2,559 |
Cash flows from investing activities: | ||
Investment in property, plant and equipment | (459) | (647) |
Proceeds from sale of property, plant and equipment | 0 | 26 |
Purchases of available-for-sale securities and other investments | (6) | (50) |
Maturities and sales of available-for-sale securities and other investments | 18 | 8 |
Collateral (posted) returned for derivative instruments | (118) | 14 |
Payment made in connection with business acquisitions, net of cash acquired | (5) | (24) |
Net cash used in investing activities | (570) | (673) |
Cash flows from financing activities: | ||
Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net | 190 | |
Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net | (400) | |
Proceeds from debt, net of issuance costs | 177 | 4,086 |
Payment of debt and associated costs | (1,654) | (141) |
Stock-based award activities and others | (86) | (88) |
Repurchase of common stock | (100) | (3,547) |
Cash dividends paid | (777) | (788) |
Collateral returned for derivative instruments | (200) | 0 |
Settlement of cash flow hedges | (3) | |
Settlement of cash flow hedges | 79 | |
Net cash used in financing activities | (2,453) | (799) |
(Decrease) increase in cash, cash equivalents and restricted cash | (1,427) | 1,087 |
Cash, cash equivalents and restricted cash at beginning of period | 3,145 | 4,299 |
Cash, cash equivalents and restricted cash at end of period | $ 1,718 | $ 5,386 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Stockholders Deficit (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Oct. 31, 2021 | 1,092,205,000 | ||||
Balance at beginning of period at Oct. 31, 2021 | $ (1,644) | $ 11 | $ 1,060 | $ (2,470) | $ (245) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 2,033 | ||||
Other comprehensive (loss) income, net of taxes | 593 | ||||
Comprehensive income | 2,626 | ||||
Balance (in shares) at Apr. 30, 2022 | 1,033,392,000 | ||||
Balance at end of period at Apr. 30, 2022 | (1,960) | $ 10 | 1,081 | (3,399) | 348 |
Balance (in shares) at Oct. 31, 2021 | 1,092,205,000 | ||||
Balance at beginning of period at Oct. 31, 2021 | (1,644) | $ 11 | 1,060 | (2,470) | (245) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 3,155 | 3,155 | |||
Other comprehensive (loss) income, net of taxes | 483 | 483 | |||
Comprehensive income | 3,638 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 11,452,000 | ||||
Issuance of common stock in connection with employee stock plans and other | $ (104) | (104) | |||
Repurchases of common stock (in shares) | (98,000,000) | (97,719,000) | |||
Repurchases of common stock (Note 10) | $ (3,499) | $ (1) | (99) | (3,399) | |
Cash dividends ($0.50 per common share) | (1,040) | (1,040) | |||
Stock-based compensation expense | 273 | 273 | |||
Balance (in shares) at Jul. 31, 2022 | 1,005,938,000 | ||||
Balance at end of period at Jul. 31, 2022 | (2,376) | $ 10 | 1,130 | (3,754) | 238 |
Balance (in shares) at Apr. 30, 2022 | 1,033,392,000 | ||||
Balance at beginning of period at Apr. 30, 2022 | (1,960) | $ 10 | 1,081 | (3,399) | 348 |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 1,122 | 1,122 | |||
Other comprehensive (loss) income, net of taxes | (110) | (110) | |||
Comprehensive income | 1,012 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 1,068,000 | ||||
Issuance of common stock in connection with employee stock plans and other | $ 9 | 9 | |||
Repurchases of common stock (in shares) | (29,000,000) | (28,522,000) | |||
Repurchases of common stock (Note 10) | $ (1,001) | (30) | (971) | ||
Cash dividends ($0.50 per common share) | (506) | (506) | |||
Stock-based compensation expense | 70 | 70 | |||
Balance (in shares) at Jul. 31, 2022 | 1,005,938,000 | ||||
Balance at end of period at Jul. 31, 2022 | $ (2,376) | $ 10 | 1,130 | (3,754) | 238 |
Balance (in shares) at Oct. 31, 2022 | 980,000,000 | 979,869,000 | |||
Balance at beginning of period at Oct. 31, 2022 | $ (3,025) | $ 10 | 1,172 | (4,492) | 285 |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 1,523 | ||||
Other comprehensive (loss) income, net of taxes | (653) | ||||
Comprehensive income | 870 | ||||
Balance (in shares) at Apr. 30, 2023 | 985,876,000 | ||||
Balance at end of period at Apr. 30, 2023 | $ (2,593) | $ 10 | 1,344 | (3,579) | (368) |
Balance (in shares) at Oct. 31, 2022 | 980,000,000 | 979,869,000 | |||
Balance at beginning of period at Oct. 31, 2022 | $ (3,025) | $ 10 | 1,172 | (4,492) | 285 |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 2,289 | 2,289 | |||
Other comprehensive (loss) income, net of taxes | (639) | (639) | |||
Comprehensive income | 1,650 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 11,975,000 | ||||
Issuance of common stock in connection with employee stock plans and other | $ (86) | (86) | |||
Repurchases of common stock (in shares) | (3,600,000) | (3,624,000) | |||
Repurchases of common stock (Note 10) | $ (100) | (4) | (96) | ||
Cash dividends ($0.50 per common share) | (1,037) | (1,037) | |||
Stock-based compensation expense | $ 353 | 353 | |||
Balance (in shares) at Jul. 31, 2023 | 988,000,000 | 988,220,000 | |||
Balance at end of period at Jul. 31, 2023 | $ (2,245) | $ 10 | 1,435 | (3,336) | (354) |
Balance (in shares) at Apr. 30, 2023 | 985,876,000 | ||||
Balance at beginning of period at Apr. 30, 2023 | (2,593) | $ 10 | 1,344 | (3,579) | (368) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 766 | 766 | |||
Other comprehensive (loss) income, net of taxes | 14 | 14 | |||
Comprehensive income | $ 780 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 2,344,000 | ||||
Repurchases of common stock (in shares) | 0 | ||||
Cash dividends ($0.50 per common share) | $ (523) | (523) | |||
Stock-based compensation expense | $ 91 | 91 | |||
Balance (in shares) at Jul. 31, 2023 | 988,000,000 | 988,220,000 | |||
Balance at end of period at Jul. 31, 2023 | $ (2,245) | $ 10 | $ 1,435 | $ (3,336) | $ (354) |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (usd per share) | $ 0.52 | $ 0.50 | $ 1.05 | $ 1 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The accompanying Consolidated Condensed Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The interim financial information is unaudited but reflects all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2022 in HP’s Annual Report on Form 10-K, filed on December 6, 2022. The Consolidated Condensed Balance Sheet for October 31, 2022 was derived from audited financial statements. Principles of Consolidation The Consolidated Condensed 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. Revision of Prior Period Financial Statements In connection with the preparation of HP’s Consolidated Condensed Financial Statements for the three and nine months ended July 31, 2023, the Company identified an accounting error related to a revenue contract in the Personal Systems segment. HP has revised its prior period financial statements to correct this error, as well as other immaterial errors, which impacted the last quarter and annual period of fiscal year 2020 and all the subsequent periods through the second quarter of fiscal year 2023. The Company evaluated the error and determined that the related impacts were not material to its financial statements for the annual periods when they occurred, but that correcting the error would be material to the Company’s results of operations for the three and nine months ended July 31, 2023. The Company has corrected these errors in the Consolidated Condensed Financial Statements for all prior periods presented herein. Revisions to the Company’s previously reported disclosures have been reflected in Note 2, “Segment Information”; Note 3, “Restructuring and Other Charges”; Note 5, “Taxes on Earnings”; Note 6, “Supplementary Financial Information”; Note 10, “Stockholders’ Deficit”; and Note 11, “Net Earnings Per Share”. A summary of the revisions to the Company’s previously reported financial statements is provided in Note 14, “Revision of Prior Period Financial Statements”. 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 Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of July 31, 2023, 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 ongoing macroeconomic factors, our estimates may materially change in future periods. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2021, the FASB issued guidance that enhances the transparency of government assistance by requiring annual disclosure of the types of assistance received, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements. HP is required to adopt the guidance for its annual period ending on October 31, 2023. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. 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 its disclosures. |
Segment Information
Segment Information | 9 Months Ended |
Jul. 31, 2023 | |
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 customers desktops and notebooks, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems (includes video conferencing solutions, cameras, headsets, voice, and related software capabilities including all products and solutions acquired from Poly), 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 (“Commercial PS”), and consumer notebooks, consumer desktops, consumer services and consumer detachables into consumer (“Consumer PS”) when describing performance in these markets. Commercial and Consumer services include support and deployment, configurations and extended warranty services. Personal Systems groups its global business capabilities into the following business units when reporting business performance: • Commercial PS consist of endpoint computing devices and hybrid systems, for use by enterprise, public sector (which includes education), and SMB 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 SMB customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base. • Consumer PS consist of devices, accessories and services which 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. 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. • 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. • 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 Printing consists of office printing solutions, graphics solutions and 3D printing and digital manufacturing, excluding supplies; • Consumer Printing 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 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. Realignment Effective the first quarter of fiscal 2023, HP realigned the Personal Systems business units reporting structure into Commercial PS and Consumer PS to align with its customer market segmentation. Additionally, in connection with certain other organizational realignments, some costs which were earlier reflected under “Corporate and unallocated cost and other” have now been reclassified to the Personal Systems and Printing segments. HP has reflected these changes to its prior reporting periods on an as-if basis. The realignment change had no impact to previously reported segment net revenue, consolidated net revenue, net earnings or net earnings per share (“EPS”). Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Net revenue: Commercial PS $ 6,201 $ 6,956 $ 18,499 $ 22,600 Consumer PS 2,731 3,117 7,787 11,171 Personal Systems 8,932 10,073 26,286 33,771 Supplies 2,768 2,814 8,631 9,013 Commercial Printing 974 1,036 3,119 3,117 Consumer Printing 521 725 1,861 2,239 Printing 4,263 4,575 13,611 14,369 Corporate Investments 1 — 5 1 Total segment net revenue 13,196 14,648 39,902 48,141 Other — — (1) (5) Total net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 Earnings before taxes: Personal Systems $ 592 $ 673 $ 1,498 $ 2,331 Printing 794 904 2,563 2,725 Corporate Investments (32) (58) (103) (184) Total segment earnings from operations 1,354 1,519 3,958 4,872 Corporate and unallocated costs and other (97) (76) (279) (373) Stock-based compensation expense (91) (70) (353) (273) Restructuring and other charges (75) (13) (416) (148) Acquisition and divestiture charges (48) (31) (206) (83) Amortization of intangible assets (91) (50) (262) (154) Russia exit charges — (23) — (23) Interest and other, net (16) (70) (357) (141) Total earnings before taxes $ 936 $ 1,186 $ 2,085 $ 3,677 |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Summary of Restructuring Plans HP’s restructuring activities for the nine months ended July 31, 2023 and 2022 summarized by plan were as follows: Fiscal 2023 Plan Severance and EER Non-labor Other prior-year plans (1) Total In millions Accrued balance as of October 31, 2022 $ — $ — $ 32 $ 32 Charges 318 38 3 359 Cash payments (135) (15) (37) (187) Non-cash and other adjustments (141) (2) (5) 3 (143) Accrued balance as of July 31, 2023 $ 42 $ 18 $ 1 $ 61 Total costs incurred to date as of July 31, 2023 $ 318 $ 38 $ 868 $ 1,224 Reflected in Consolidated Condensed Balance Sheets Other current liabilities $ 42 $ 6 $ 1 $ 49 Other non-current liabilities $ — $ 12 $ — $ 12 Accrued balance as of October 31, 2021 $ — $ — $ 90 $ 90 Charges — — 136 136 Cash payments — — (170) (170) Non-cash and other adjustments — — (36) (36) Accrued balance as of July 31, 2022 $ — $ — $ 20 $ 20 HP’s restructuring charges for the three months ended July 31, 2023 summarized by the plans outlined below were as follows: Fiscal 2023 Plan Severance and EER Non-labor Other prior-year plans (1) Total In millions For the three months ended July 31, 2023 $ 24 $ 25 $ 1 $ 50 (1) Primarily includes the fiscal 2020 plan along with other legacy plans, all of 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”) program of $139 million for pension and post-retirement plan special termination benefits. 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 Future Ready Plan (the “Fiscal 2023 Plan”) intended to enable digital transformation, portfolio optimization and operational efficiency which 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. Other charges Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and transformation program management costs, and are distinct from ongoing operational costs. These costs primarily relate to third-party professional services and other costs. For the three and nine months ended July 31, 2023, HP incurred $25 million and $57 million of other charges, respectively. For the three and nine months ended July 31, 2022, HP incurred $7 million and $12 million of other charges, respectively. |
Retirement and Post-Retirement
Retirement and Post-Retirement Benefit Plans | 9 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement and Post-Retirement Benefit Plans | Retirement and Post-Retirement Benefit Plans The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings were as follows: Three months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans 2023 2022 2023 2022 2023 2022 In millions Service cost $ — $ — $ 10 $ 14 $ 1 $ 1 Interest cost 54 41 10 5 4 2 Expected return on plan assets (65) (72) (13) (12) (4) (2) Amortization and deferrals: Actuarial loss (gain) 4 1 1 9 (4) (4) Prior service cost (credit) — — 1 1 (2) (2) Net periodic benefit (credit) cost (7) (30) 9 17 (5) (5) Settlement gain — — — (1) — — Total periodic benefit (credit) cost $ (7) $ (30) $ 9 $ 16 $ (5) $ (5) Nine months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post- Retirement Benefit Plans 2023 2022 2023 2022 2023 2022 In millions Service cost $ — $ — $ 30 $ 42 $ 1 $ 1 Interest cost 163 121 30 16 11 6 Expected return on plan assets (194) (221) (39) (37) (10) (6) Amortization and deferrals: Actuarial loss (gain) 13 4 3 28 (12) (12) Prior service cost (credit) — — 4 4 (8) (8) Net periodic benefit (credit) cost (18) (96) 28 53 (18) (19) Settlement gain — — — (1) — — Special termination benefit cost 105 — — — 34 — Total periodic benefit (credit) cost $ 87 $ (96) $ 28 $ 52 $ 16 $ (19) Employer Contributions and Funding Policy 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. During fiscal year 2023, HP anticipates making contributions of approximately $36 million to its non-U.S. pension plans, approximately $32 million to its U.S. non-qualified plan participants and approximately $4 million to cover benefit claims under HP’s post-retirement benefit plans. During the nine months ended July 31, 2023, HP contributed $27 million to its non-U.S. pension plans, paid $20 million to cover benefit payments to U.S. non-qualified plan participants and paid $4 million to cover benefit claims under HP’s post-retirement benefit plans. HP’s pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans. Retirement Incentive Program As part of the Fiscal 2023 Plan, HP announced a voluntary EER program for its U.S. employees in January 2023. Voluntary participation in the EER program was limited to employees at least 55 years old with 10 or more years of service at HP. Employees accepted into the EER program are leaving HP on dates ranging from March 15, 2023 to October 31, 2023. The U.S. defined benefit pension plan was amended to provide that the EER benefit will be paid from the plan for eligible electing EER participants. The retirement incentive benefit is calculated as a lump sum based on years of service at HP at the time of retirement, ranging from 20 to 52 weeks of pay. As a result of this retirement incentive, HP recognized a special termination benefit (“STB”) expense of $105 million for the nine months ended July 31, 2023 as a restructuring charge. This expense is the present value of all additional benefits that HP will distribute from the pension plan assets. 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, but not beyond age 65 when Medicare is available. In addition, HP is providing up to $12,000 in employer credits under the Retirement Medical Savings Account program. HP recognized an additional STB expense of $34 million as restructuring and other charges for the nine months ended July 31, 2023 for the health care incentives. |
Taxes on Earnings
Taxes on Earnings | 9 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings Provision for Taxes HP’s effective tax rate was 18.2% and 5.4% for the three months ended July 31, 2023 and 2022, respectively, and (9.8)% and 14.2% for the nine months ended July 31, 2023 and 2022, respectively. The difference between the U.S. federal statutory tax rate of 21% and HP’s effective tax rate for the three months ended July 31, 2023 was primarily due to favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world. For the nine months ended July 31, 2023, the difference was primarily due to tax effects of internal reorganization. The difference between the U.S. federal statutory tax rate of 21% and HP’s effective tax rate for the three and nine months ended July 31, 2022 was primarily due to tax effects of internal reorganization and favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world. During the three and nine months ended July 31, 2023, HP recorded $32 million and $724 million, respectively, of net income tax benefits related to discrete items in the provision for taxes. The nine months ended July 31, 2023 included benefits of $697 million related to tax effects of internal reorganization. The three and nine months ended July 31, 2023 also included benefits of $16 million and $82 million related to restructuring charges, $51 million and $15 million related to the filing of tax returns in various jurisdictions, and $10 million and $37 million related to acquisition and divestiture charges, respectively. These benefits were partially offset by income tax charges of $2 million and $60 million related to audit settlements in various jurisdictions, $17 million and $32 million of uncertain tax position charges, and $27 million and $25 million related to extinguishment of debt for the three and nine months ended July 31, 2023, respectively. During the three and nine months ended July 31, 2023, discrete items in the provision for taxes and excess tax benefits associated with stock options, restricted stock units and performance-adjusted restricted stock units were immaterial. During the three and nine months ended July 31, 2022, HP recorded $150 million and $111 million, respectively, of net income tax benefits related to discrete items in the provision for taxes. These amounts included income tax benefits of $167 million and $150 million related to the filing of tax returns in various jurisdictions for the three and nine months ended July 31, 2022 and $3 million and $31 million related to restructuring charges for the three and nine months ended July 31, 2022, respectively. The three and nine months ended July 31, 2022 also included $87 million of tax benefits related to internal reorganization. These benefits were partially offset by income tax charges of $98 million and $93 million related to uncertain tax positions and $10 million and $19 million related to audit settlements in various jurisdictions for the three and nine months ended July 31, 2022, respectively. The nine months ended July 31, 2022 also included tax charges of $55 million related to withholding taxes on undistributed foreign earnings. In addition to the discrete items mentioned above, HP recorded excess tax benefits of $32 million associated with stock options, restricted stock units and performance-adjusted restricted stock units for the nine months ended July 31, 2022. Uncertain Tax Positions As of July 31, 2023, the amount of gross unrecognized tax benefits was $1.2 billion, of which up to $861 million would affect HP’s effective tax rate if realized. Total gross unrecognized tax benefits increased by $106 million for the nine months ended July 31, 2023. 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 Condensed Statements of Earnings. As of July 31, 2023 and 2022, HP had accrued $98 million and $76 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 $44 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 Internal Revenue Service (“IRS”) is conducting an audit of HP’s 2018 and 2019 income tax returns. |
Supplementary Financial Informa
Supplementary Financial Information | 9 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information Cash, cash equivalents and restricted cash As of July 31, 2023 October 31, 2022 In millions Cash and cash equivalents $ 1,673 $ 3,145 Restricted cash (1) 45 — $ 1,718 $ 3,145 (1) Restricted Cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold. Accounts Receivable The allowance for credit losses related to accounts receivable and changes were as follows: Nine months ended July 31, 2023 In millions Balance at beginning of period $ 107 Benefit of allowance for credit losses (7) Deductions, net of recoveries (9) Balance at end of period $ 91 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-recognized from the Consolidated Condensed 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 similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of July 31, 2023 and October 31, 2022 were not material. The following is a summary of the activity under these arrangements: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Balance at beginning of period (1) $ 174 $ 173 $ 185 $ 131 Trade receivables sold 3,383 2,918 10,241 8,887 Cash receipts (3,398) (2,897) (10,286) (8,811) Foreign currency and other — (5) 19 (18) Balance at end of period (1) $ 159 $ 189 $ 159 $ 189 (1) Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets. Inventory As of July 31, 2023 October 31, 2022 In millions Finished goods $ 4,171 $ 4,885 Purchased parts and fabricated assemblies 3,026 2,729 $ 7,197 $ 7,614 Other Current Assets As of July 31, 2023 October 31, 2022 In millions Supplier and other receivables 1,868 1,377 Prepaid and other current assets 1,451 2,086 Value-added taxes receivable 862 968 $ 4,181 $ 4,431 Property, Plant and Equipment, net As of July 31, 2023 October 31, 2022 In millions Land, buildings and leasehold improvements $ 2,305 $ 2,255 Machinery and equipment, including equipment held for lease 5,385 5,337 7,690 7,592 Accumulated depreciation (4,907) (4,818) $ 2,783 $ 2,774 Other Non-Current Assets As of July 31, 2023 October 31, 2022 In millions Deferred tax assets $ 3,054 $ 2,167 Intangible assets 1,690 1,933 Right-of-use assets 1,171 1,236 Prepaid pension and post-retirement benefit assets 559 642 Deposits and prepaids 470 474 Other 828 991 $ 7,772 $ 7,443 Other Current Liabilities As of July 31, 2023 October 31, 2022 In millions Sales and marketing programs $ 3,031 $ 2,984 Deferred revenue 1,379 1,393 Other accrued taxes 1,014 1,064 Employee compensation and benefit 905 954 Warranty 584 619 Operating lease liabilities 439 405 Tax liability 366 286 Other 2,906 2,963 $ 10,624 $ 10,668 Other Non-Current Liabilities As of July 31, 2023 October 31, 2022 In millions Deferred revenue $ 1,271 $ 1,171 Tax liability 957 911 Operating lease liability 829 875 Pension, post-retirement, and post-employment liabilities 595 600 Deferred tax liability 25 121 Other 774 856 $ 4,451 $ 4,534 Interest and other, net Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Interest expense on borrowings $ (134) $ (96) $ (429) $ (229) Net gain on debt extinguishment 115 — 107 — Non-operating retirement-related credits 14 38 40 110 Factoring costs (1) (37) — (99) — Other, net 26 (12) 24 (22) $ (16) $ (70) $ (357) $ (141) (1) For the three and nine months ended July 31, 2022, Factoring costs were included in Selling, general and administrative and were not material. Net revenue by region Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Americas $ 5,880 $ 6,379 $ 17,052 $ 20,111 Europe, Middle East and Africa 4,285 4,712 13,330 16,670 Asia-Pacific and Japan 3,031 3,557 9,519 11,355 Total net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 Value of Remaining Performance Obligations As of July 31, 2023, the estimated value of transaction price allocated to remaining performance obligations was $3.7 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $2.0 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. Contract Liabilities As of July 31, 2023 and October 31, 2022, HP’s contract liabilities balances were $2.6 billion and $2.5 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Consolidated Condensed Balance Sheets. The increase in the contract liabilities balance for the nine months ended July 31, 2023, was primarily driven by sales of fixed-price support and maintenance services, partially offset by $1.0 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022. |
Fair Value
Fair Value | 9 Months Ended |
Jul. 31, 2023 | |
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 July 31, 2023 As of October 31, 2022 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 $ — $ 460 $ — $ 460 $ — $ 904 $ — $ 904 Government debt (1) 362 — — 362 1,289 — — 1,289 Available-for-Sale Investments: Financial institution instruments — 3 — 3 — 5 — 5 Marketable securities and mutual funds 28 48 — 76 17 41 — 58 Derivative Instruments: Foreign currency contracts — 248 — 248 — 1,088 — 1,088 Other derivatives — 6 — 6 — 2 — 2 Total assets $ 390 $ 765 $ — $ 1,155 $ 1,306 $ 2,040 $ — $ 3,346 Liabilities: Derivative Instruments: Interest rate contracts $ — $ 63 $ — $ 63 $ — $ 78 $ — $ 78 Foreign currency contracts — 341 — 341 — 295 — 295 Other derivatives — — — — — 1 — 1 Total liabilities $ — $ 404 $ — $ 404 $ — $ 374 $ — $ 374 (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 8, “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 Condensed 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 $9.1 billion as compared to its carrying amount of $9.7 billion at July 31, 2023. The fair value of HP’s short- and long-term debt was $9.6 billion as compared to its carrying value of $11.0 billion at October 31, 2022. If measured at fair value in the Consolidated Condensed 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 Condensed Balance Sheets, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed 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 Condensed Balance Sheets these would generally be classified within Level 3 of the fair value hierarchy. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jul. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents and Available-for-Sale Investments As of July 31, 2023 As of October 31, 2022 Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value In millions Cash Equivalents: Corporate debt $ 460 $ — $ — $ 460 $ 904 $ — $ — $ 904 Government debt 362 — — 362 1,289 — — 1,289 Total cash equivalents 822 — — 822 2,193 — — 2,193 Available-for-Sale Investments: Financial institution instruments 3 — — 3 5 — — 5 Marketable securities and mutual funds 41 35 — 76 50 8 — 58 Total available-for-sale investments 44 35 — 79 55 8 — 63 Total cash equivalents and available-for-sale investments $ 866 $ 35 $ — $ 901 $ 2,248 $ 8 $ — $ 2,256 All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of July 31, 2023 and October 31, 2022, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. 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 July 31, 2023 Amortized Cost Fair Value In millions Due in one year $ 3 $ 3 Non-marketable equity securities in privately held companies are included in Other non-current assets in the Consolidated Condensed Balance Sheets. These amounted to $112 million and $110 million as of July 31, 2023 and October 31, 2022, 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 for the three and nine months ended July 31, 2023. Derivative Instruments HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and option contracts to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. 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 Condensed 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 Condensed Balance Sheets, respectively. The fair value of derivatives with credit contingent features in a net liability position was $174 million and $82 million as of July 31, 2023 and October 31, 2022, 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 July 31, 2023 and October 31, 2022. 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 Condensed Statements of Earnings in the period of change. Cash Flow Hedges HP uses forward contracts, option contracts, treasury rate locks and forward starting swaps 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 Condensed 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. 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 Condensed 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 the three and nine months ended July 31, 2023 and 2022, 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 Condensed Balance Sheets The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows: As of July 31, 2023 As of October 31, 2022 Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 750 $ — $ — $ — $ 63 $ 750 $ — $ — $ — $ 78 Cash flow hedges: Foreign currency contracts 15,492 208 31 251 75 16,014 820 256 206 72 Total derivatives designated as hedging instruments 16,242 208 31 251 138 16,764 820 256 206 150 Derivatives not designated as hedging instruments Foreign currency contracts 4,309 9 — 15 — 4,554 12 — 17 — Other derivatives 137 6 — — — 122 2 — 1 — Total derivatives not designated as hedging instruments 4,446 15 — 15 — 4,676 14 — 18 — Total derivatives $ 20,688 $ 223 $ 31 $ 266 $ 138 $ 21,440 $ 834 $ 256 $ 224 $ 150 Offsetting of Derivative Instruments HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed 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 July 31, 2023 and October 31, 2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Condensed Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Not Offset Gross Amount Gross Amount Net Amount Derivatives Financial Net Amount In millions As of July 31, 2023 Derivative assets $ 254 $ — $ 254 $ 222 $ 31 (1) $ 1 Derivative liabilities $ 404 $ — $ 404 $ 222 $ 149 (2) $ 33 As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) (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 Condensed 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 Year 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 Three months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2023 $ (16) $ (6) $ 6 2022 $ (70) $ 8 $ (8) Nine months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2023 $ (357) $ 15 $ (15) 2022 $ (141) $ (34) $ 34 The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive (loss) income was as follows: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions (Loss)/gain recognized in Accumulated other comprehensive (loss) income on derivatives: Foreign currency contracts $ (68) $ 264 $ (757) $ 1,097 Interest rate contracts $ — $ 16 $ — $ 85 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 Three months ended July 31 Nine months ended July 31 Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 2023 2022 2023 2022 In millions Net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 $ (37) $ 349 $ 240 $ 548 Cost of revenue (10,374) (11,764) (31,378) (38,564) (33) (23) (142) (58) Other operating expenses (1,870) (1,628) (6,081) (5,754) (1) (1) (3) — Interest and other, net (16) (70) (357) (141) 3 2 9 1 Total $ (68) $ 327 $ 104 $ 491 As of July 31, 2023, HP expects to reclassify an estimated accumulated other comprehensive loss of $49 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 (loss) income 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 Condensed Statements of Earnings for the three and nine months ended July 31, 2023 and 2022 was as follows: Gain/(loss) recognized in earnings on derivative instrument Three months ended July 31 Nine months ended July 31 Location 2023 2022 2023 2022 In millions Foreign currency contracts Interest and other, net $ (37) $ 8 $ (76) $ 3 Other derivatives Interest and other, net 5 14 5 2 Total $ (32) $ 22 $ (71) $ 5 |
Borrowings
Borrowings | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Notes Payable and Short-Term Borrowings As of July 31, 2023 As of October 31, 2022 Amount Weighted-Average Amount Weighted-Average In millions Commercial Paper $ 200 5.5 % $ — — % Current portion of long-term debt 178 6.1 % 165 5.4 % Notes payable to banks, lines of credit and other 65 1.4 % 53 0.6 % $ 443 $ 218 Long-Term Debt As of July 31, 2023 October 31, 2022 In millions U.S. Dollar Global Notes (1) $1,200 issued at discount to par at a price of 99.863% at 6.00%, 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 1,149 $1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027 998 997 $850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 (4) 503 848 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 (4) 521 999 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 997 996 $1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 999 999 $1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 (4) 676 1,000 $900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 899 899 $1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 1,097 1,097 $500 issued at par at a price of 100% at 4.75%, due March 2029 (3) 3 500 9,041 10,683 Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 496 436 Fair value adjustment related to hedged debt (63) (78) Unamortized debt issuance cost (60) (80) Current portion of long-term debt (178) (165) Total long-term debt $ 9,236 $ 10,796 (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 allocated 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) During the nine months ended July 31, 2023, HP repurchased or redeemed and settled $497 million of the March 2029 Notes related to the August 2022 Poly acquisition (4) During the nine months ended July 31, 2023, HP repurchased and settled $1.15 billion in aggregate principal amount of various Global Notes. As disclosed in Note 8, “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. Extinguishment of Debt In July 2023, HP commenced and completed a tender offer to purchase approximately $1.15 billion in aggregate principal amount of its outstanding US Dollar 1.45% Global Notes due June 17, 2026, 3.40% Global Notes due June 17, 2030 and 4.20% Global Notes due April 15, 2032 . This extinguishment of debt resulted in a net gain of $115 million, which was recorded within Interest and other, net on the Consolidated Condensed Statements of Earnings. Commercial Paper As of July 31, 2023, HP maintained a U.S. commercial paper program for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $6.0 billion. The principal amount outstanding under this program and certain short-term borrowings at any time cannot exceed a $6.0 billion authorization by HP’s Board of Directors. Credit Facilities As of July 31, 2023, HP maintained a $5.0 billion sustainability-linked senior unsecured committed revolving credit facility, which HP entered into in May 2021, and a $1.0 billion senior unsecured committed 364-day revolving credit facility, which HP entered into in March 2023. Commitments under the $5.0 billion revolving credit facility will be available until May 26, 2026 and commitments under the $1.0 billion 364-day revolving credit facility will be available until March 19, 2024. Commitment fees, interest rates and other terms of borrowing under the revolving credit facilities vary based on HP’s external credit ratings and, for the $5.0 billion facility, certain sustainability metrics. Funds borrowed under the revolving credit facilities may be used for general corporate purposes. As of July 31, 2023, HP was in compliance with the covenants in the credit agreements governing the revolving credit facilities. Available Borrowing Resources As of July 31, 2023, HP had available borrowing resources of $1.2 billion from uncommitted lines of credit in addition to the revolving credit facilities. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Share Repurchase Program HP’s share repurchase program authorizes both open market and private repurchase transactions. There were no share repurchases during the three months ended July 31, 2023. During the nine months ended July 31, 2023, HP executed share repurchases of 3.6 million shares and settled total shares for $0.1 billion. During the three and nine months ended July 31, 2022, HP executed share repurchases of 29 million shares and 98 million shares and settled total shares for $1.0 billion and $3.5 billion respectively. The shares repurchased during the nine months ended July 31, 2023 and 2022 were all open market repurchase transactions. As of July 31, 2023, HP had approximately $2.0 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors. Tax effects related to Other Comprehensive Income (Loss) Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 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 $ — $ 1 $ (1) $ 2 Tax effect on change in unrealized components of cash flow hedges: Tax benefit (provision) on unrealized (losses) gains arising during the period 18 (159) 144 (305) Tax (benefit) provision on losses (gains) reclassified into earnings (15) 99 22 135 3 (60) 166 (170) Tax effect on change in unrealized components of defined benefit plans: Tax benefit (provision) on gains (losses) arising during the period — — (1) — Tax benefit on amortization of actuarial loss and prior service benefit — (3) — (5) Tax provision on curtailments, settlements and other — — — (1) — (3) (1) (6) Tax effect on change in cumulative translation adjustment — — — 2 Tax benefit (provision) on other comprehensive income (loss) $ 3 $ (62) $ 164 $ (172) Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Other comprehensive income (loss), net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized gains (losses) arising during the period $ 1 $ — $ 4 $ (5) Change in unrealized components of cash flow hedges: Unrealized (losses) gains arising during the period (50) 121 (613) 877 Losses (gains) reclassified into earnings 53 (228) (82) (356) 3 (107) (695) 521 Change in unrealized components of defined benefit plans: Gains (losses) arising during the period — 10 4 12 Amortization of actuarial loss and prior service benefit (1) — 2 — 11 Curtailments, settlements and other — (1) — (2) — 11 4 21 Change in cumulative translation adjustment 10 (14) 48 (54) Other comprehensive income (loss), net of taxes $ 14 $ (110) $ (639) $ 483 (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 and changes were as follows: Nine months ended July 31, 2023 Net unrealized Net unrealized gains (losses) on cash Unrealized Change in cumulative Accumulated In millions Balance at beginning of period $ 6 $ 648 $ (323) $ (46) $ 285 Other comprehensive gain (loss) before reclassifications 4 (613) 4 48 (557) Reclassifications of gain into earnings — (82) — — (82) Balance at end of period $ 10 $ (47) $ (319) $ 2 $ (354) |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net 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: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions, except per share amounts Numerator: Net earnings $ 766 $ 1,122 $ 2,289 $ 3,155 Denominator: Weighted-average shares used to compute basic net EPS 993 1,024 991 1,052 Dilutive effect of employee stock plans 9 11 8 12 Weighted-average shares used to compute diluted net EPS 1,002 1,035 999 1,064 Net earnings per share: Basic $ 0.77 $ 1.10 $ 2.31 $ 3.00 Diluted $ 0.76 $ 1.08 $ 2.29 $ 2.97 Anti-dilutive weighted-average stock-based compensation awards (1) 3 5 5 4 (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 | 9 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [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 July 31, 2023, 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 Company (“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 product and certain requirements for business sales exemptions, and have advocated alternative models of compensation to rights holders. Based on the exemption of levies on business sales and industry opposition to increasing 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. In June 2023, the parties reached an agreement in principle to resolve this matter. The parties are negotiating a formal settlement agreement that, if finalized, would be submitted to the District Court for approval. The case is presently stayed until a hearing for preliminary approval of the settlement set for October 26, 2023. 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 ordered 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, based 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. In August 2021, 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, and a request for further review of that decision by the Supreme Court was denied. On August 16, 2023, the parties informed the court that the stay should be lifted on September 5, 2023. 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. The parties settled and the motion for preliminary approval of settlement was filed on March 3, 2023. Under the terms of the settlement, HP agreed to pay an amount that is immaterial to HP. The district court granted preliminary approval of the settlement on April 7, 2023. On September 6, 2023, the court issued an order approving the settlement and directing entry of final judgment. 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 appealed the decision. On April 11, 2023, the appellate court reversed the district court’s decision and remanded the case to the district court for further proceedings consistent with the appellate opinion, including consideration of HP’s other arguments for dismissal. On June 27, 2023, the district court issued an order setting the briefing schedule for a renewed motion to dismiss. 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 and exhaustion of all related appeals. 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 and exhaustion of all related appeals. Both derivative actions will remain stayed while the district court considers on remand HP’s other arguments for dismissal. 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, the Netherlands, Australia and New Zealand. 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, Israel, Australia and New Zealand 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. In the case directed to Laserjet printers, plaintiffs have filed a motion for class certification. The case involving Inkjet printers remains in its 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. Mr. Lynch’s request for permission to appeal this decision was denied on April 21, 2023, and Mr. Lynch has been extradited to the United States. Trial on the charges against Mr. Lynch and Mr. Chamberlain is set to begin on March 18, 2024, in federal court in the Northern District of California. 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., state, or other governmental entities or private third parties under federal, state, local, or foreign environmental laws, including 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 | 9 Months Ended |
Jul. 31, 2023 | |
Guarantees [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 12, “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: Nine months ended July 31, 2023 In millions Balance at beginning of period $ 876 Accruals for warranties issued 513 Adjustments related to pre-existing warranties (including changes in estimates) 24 Settlements made (in cash or in kind) (660) Balance at end of period $ 753 |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements The Company has revised certain prior period financial statements to correct for an accounting error related to a revenue contract as well as other immaterial errors. See Note 1, “Basis of Presentation” for further information. A summary of revisions to the Company’s previously reported financial statements is presented below. Revised Consolidated Condensed Statements of Earnings For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 13,828 $ (30) $ 13,798 $ 17,028 $ (15) $ 17,013 Cost of revenue $ 11,019 $ (8) $ 11,011 $ 13,643 $ (21) $ 13,622 Research and development $ 403 $ — $ 403 $ 418 $ 60 $ 478 Total costs and expenses $ 13,063 $ (8) $ 13,055 $ 15,669 $ 39 $ 15,708 Earnings from operations $ 765 $ (22) $ 743 $ 1,359 $ (54) $ 1,305 Interest and other, net $ (181) $ — $ (181) $ (32) $ 2 $ (30) Earnings before taxes $ 584 $ (22) $ 562 $ 1,327 $ (52) $ 1,275 Provision for taxes $ (97) $ 4 $ (93) $ (241) $ 18 $ (223) Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 Basic earnings per share $ 0.49 $ (0.02) $ 0.47 $ 1.00 $ (0.03) $ 0.97 Diluted earnings per share $ 0.49 $ (0.02) $ 0.47 $ 0.99 $ (0.03) $ 0.96 For the three months ended April 30, 2023 For the six months ended April 30, 2023 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 12,913 $ (6) $ 12,907 $ 26,741 $ (36) $ 26,705 Cost of revenue $ 9,984 $ 9 $ 9,993 $ 21,003 $ 1 $ 21,004 Total costs and expenses $ 12,151 $ 9 $ 12,160 $ 25,214 $ 1 $ 25,215 Earnings from operations $ 762 $ (15) $ 747 $ 1,527 $ (37) $ 1,490 Earnings before taxes $ 602 $ (15) $ 587 $ 1,186 $ (37) $ 1,149 Benefit from taxes $ 464 $ 3 $ 467 $ 367 $ 7 $ 374 Net earnings $ 1,066 $ (12) $ 1,054 $ 1,553 $ (30) $ 1,523 Basic earnings per share $ 1.08 $ (0.02) $ 1.06 $ 1.57 $ (0.03) $ 1.54 Diluted earnings per share $ 1.07 $ (0.01) $ 1.06 $ 1.56 $ (0.03) $ 1.53 For the three months ended April 30, 2022 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 16,490 $ (15) $ 16,475 $ 33,518 $ (30) $ 33,488 Cost of revenue $ 13,157 $ 21 $ 13,178 $ 26,800 $ — $ 26,800 Research and development $ 425 $ — $ 425 $ 843 $ 60 $ 903 Restructuring and other charges $ 82 $ (15) $ 67 $ 150 $ (15) $ 135 Total costs and expenses $ 15,212 $ 6 $ 15,218 $ 30,881 $ 45 $ 30,926 Earnings from operations $ 1,278 $ (21) $ 1,257 $ 2,637 $ (75) $ 2,562 Interest and other, net $ (39) $ (2) $ (41) $ (71) $ — $ (71) Earnings before taxes $ 1,239 $ (23) $ 1,216 $ 2,566 $ (75) $ 2,491 Provision for taxes $ (239) $ 4 $ (235) $ (480) $ 22 $ (458) Net earnings $ 1,000 $ (19) $ 981 $ 2,086 $ (53) $ 2,033 Basic earnings per share $ 0.95 $ (0.02) $ 0.93 $ 1.96 $ (0.05) $ 1.91 Diluted earnings per share $ 0.94 $ (0.02) $ 0.92 $ 1.94 $ (0.05) $ 1.89 For the three months ended July 31, 2022 For the nine months ended July 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 14,664 $ (16) $ 14,648 $ 48,182 $ (46) $ 48,136 Research and development $ 368 $ — $ 368 $ 1,211 $ 60 $ 1,271 Restructuring and other charges $ 13 $ — $ 13 $ 163 $ (15) $ 148 Total costs and expenses $ 13,392 $ — $ 13,392 $ 44,273 $ 45 $ 44,318 Earnings from operations $ 1,272 $ (16) $ 1,256 $ 3,909 $ (91) $ 3,818 Earnings before taxes $ 1,202 $ (16) $ 1,186 $ 3,768 $ (91) $ 3,677 Provision for taxes $ (83) $ 19 $ (64) $ (563) $ 41 $ (522) Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ (50) $ 3,155 Basic earnings per share $ 1.09 $ 0.01 $ 1.10 $ 3.05 $ (0.05) $ 3.00 Diluted earnings per share $ 1.08 $ — $ 1.08 $ 3.01 $ (0.04) $ 2.97 Revised Consolidated Condensed Statements of Comprehensive Income (Loss) For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 (Losses) gains on unrealized components of defined benefit plans $ (38) $ 37 $ (1) $ 21 $ (20) $ 1 Other comprehensive (loss) income before taxes $ (961) $ 37 $ (924) $ 270 $ (20) $ 250 Benefit from (provision for) taxes $ 192 $ (9) $ 183 $ (26) $ 6 $ (20) Other comprehensive (loss) income, net of taxes $ (769) $ 28 $ (741) $ 244 $ (14) $ 230 Comprehensive (loss) income $ (282) $ 10 $ (272) $ 1,330 $ (48) $ 1,282 For the three months ended April 30, 2023 For the six months ended April 30, 2023 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,066 $ (12) $ 1,054 $ 1,553 $ (30) $ 1,523 Gains (losses) on unrealized components of defined benefit plans $ 6 $ — $ 6 $ (32) $ 37 $ 5 Other comprehensive income (loss) before taxes $ 110 $ — $ 110 $ (851) $ 37 $ (814) (Provision for) benefit from taxes $ (22) $ — $ (22) $ 170 $ (9) $ 161 Other comprehensive income (loss), net of taxes $ 88 $ — $ 88 $ (681) $ 28 $ (653) Comprehensive income $ 1,154 $ (12) $ 1,142 $ 872 $ (2) $ 870 For the three months ended April 30, 2022 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,000 $ (19) $ 981 $ 2,086 $ (53) $ 2,033 Gains on unrealized components of defined benefit plans $ 1 $ — $ 1 $ 22 $ (20) $ 2 Other comprehensive income before taxes $ 453 $ — $ 453 $ 723 $ (20) $ 703 Provision for taxes $ (90) $ — $ (90) $ (116) $ 6 $ (110) Other comprehensive income, net of taxes $ 363 $ — $ 363 $ 607 $ (14) $ 593 Comprehensive income $ 1,363 $ (19) $ 1,344 $ 2,693 $ (67) $ 2,626 For the three months ended July 31, 2022 For the nine months ended July 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ (50) $ 3,155 Gains on unrealized components of defined benefit plans $ 10 $ — $ 10 $ 32 $ (20) $ 12 Other comprehensive (loss) income before taxes $ (48) $ — $ (48) $ 675 $ (20) $ 655 Provision for taxes $ (62) $ — $ (62) $ (178) $ 6 $ (172) Other comprehensive (loss) income, net of taxes $ (110) $ — $ (110) $ 497 $ (14) $ 483 Comprehensive income $ 1,009 $ 3 $ 1,012 $ 3,702 $ (64) $ 3,638 Revised Consolidated Condensed Balance Sheets For the fiscal years ended October 31 2022 As reported Adjustment As revised In millions Inventory $ 7,595 $ 19 $ 7,614 Other current assets $ 4,515 $ (84) $ 4,431 Total current assets $ 19,801 $ (65) $ 19,736 Other non-current assets $ 7,471 $ (28) $ 7,443 Total assets $ 38,587 $ (93) $ 38,494 Accounts payable $ 15,284 $ 19 $ 15,303 Other current liabilities $ 10,651 $ 17 $ 10,668 Total current liabilities $ 26,153 $ 36 $ 26,189 Other non-current liabilities $ 4,556 $ (22) $ 4,534 Accumulated deficit $ (4,413) $ (79) $ (4,492) Accumulated other comprehensive income $ 313 $ (28) $ 285 Total stockholders’ deficit $ (2,918) $ (107) $ (3,025) Total liabilities and stockholders’ deficit $ 38,587 $ (93) $ 38,494 Revised Consolidated Condensed Statements of Cash Flows For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 Deferred taxes on earnings $ (136) $ (4) $ (140) $ 5 $ — $ 5 Accounts receivable $ 244 $ — $ 244 $ 337 $ 25 $ 362 Inventory $ 218 $ 12 $ 230 $ (1,277) $ — $ (1,277) Accounts payable $ (1,712) $ (19) $ (1,731) $ 2,035 $ — $ 2,035 Taxes on earnings $ 220 $ — $ 220 $ (6) $ (17) $ (23) Other assets and liabilities $ 250 $ 29 $ 279 $ (988) $ 26 $ (962) Net cash (used in) provided by operating activities $ (16) $ — $ (16) $ 1,657 $ — $ 1,657 For the six months ended April 30, 2023 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 1,553 $ (30) $ 1,523 $ 2,086 $ (53) $ 2,033 Restructuring and other charges $ 341 $ — $ 341 $ 150 $ (15) $ 135 Deferred taxes on earnings $ (817) $ (8) $ (825) $ (5) $ 4 $ (1) Accounts receivable $ 426 $ — $ 426 $ 91 $ 25 $ 116 Inventory $ 354 $ 20 $ 374 $ (1,270) $ — $ (1,270) Accounts payable $ (1,914) $ (19) $ (1,933) $ 981 $ — $ 981 Taxes on earnings $ 329 $ 1 $ 330 $ (23) $ (25) $ (48) Other assets and liabilities $ (153) $ 36 $ (117) $ (555) $ 64 $ (491) Net cash provided by operating activities $ 620 $ — $ 620 $ 2,165 $ — $ 2,165 For the nine months ended July 31, 2022 As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 3,205 $ (50) $ 3,155 Restructuring and other charges $ 163 $ (15) $ 148 Deferred taxes on earnings $ 47 $ 4 $ 51 Accounts receivable $ 1,076 $ 25 $ 1,101 Taxes on earnings $ (120) $ (45) $ (165) Other assets and liabilities $ (1,677) $ 81 $ (1,596) Net cash provided by operating activities $ 2,559 $ — $ 2,559 Revised Segment Information The Personal Systems segment results were revised for these corrections within Note 2, “Segment Information”, which resulted in a decrease in segment net revenue and segment earnings from operations of $16 million for the three months ended July 31, 2022 and decrease in segment net revenue and segment earnings from operations of $46 million and $106 million, respectively, for the nine months ended July 31, 2022. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Pay vs Performance Disclosure | ||||||||||
Net earnings | $ 766 | $ 1,054 | $ 469 | $ 1,122 | $ 981 | $ 1,052 | $ 1,523 | $ 2,033 | $ 2,289 | $ 3,155 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Condensed Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The interim financial information is unaudited but reflects all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2022 in HP’s Annual Report on Form 10-K, filed on December 6, 2022. The Consolidated Condensed Balance Sheet for October 31, 2022 was derived from audited financial statements. |
Principles of Consolidation | Principles of Consolidation The Consolidated Condensed 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 Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of July 31, 2023, 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 ongoing macroeconomic factors, our estimates may materially change in future periods. |
Recently Adopted Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In November 2021, the FASB issued guidance that enhances the transparency of government assistance by requiring annual disclosure of the types of assistance received, an entity’s accounting for the assistance, and the effect of the assistance on the entity’s financial statements. HP is required to adopt the guidance for its annual period ending on October 31, 2023. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. 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 its disclosures. |
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. |
Employer Contributions and Funding Policy | Employer Contributions and Funding PolicyHP’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. |
Taxes on Earnings | 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 Condensed Statements of Earnings. |
Transfers and Servicing Trade Receivables Policy | 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-recognized from the Consolidated Condensed 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 similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of July 31, 2023 and October 31, 2022 were not material. |
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 8, “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 Condensed 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 $9.1 billion as compared to its carrying amount of $9.7 billion at July 31, 2023. The fair value of HP’s short- and long-term debt was $9.6 billion as compared to its carrying value of $11.0 billion at October 31, 2022. If measured at fair value in the Consolidated Condensed 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 Condensed Balance Sheets, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Condensed 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 Condensed Balance Sheets these would generally be classified within Level 3 of the fair value hierarchy. |
Cash Equivalents and Available-for-Sale Investments | All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. |
Non-Marketable Equity Securities Investments | Non-marketable equity securities in privately held companies are included in Other non-current assets in the Consolidated Condensed Balance Sheets. |
Derivative Instruments | Derivative Instruments HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and option contracts to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. 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 Condensed 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 Condensed Balance Sheets, respectively. The fair value of derivatives with credit contingent features in a net liability position was $174 million and $82 million as of July 31, 2023 and October 31, 2022, 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 July 31, 2023 and October 31, 2022. 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 Condensed Statements of Earnings in the period of change. Cash Flow Hedges HP uses forward contracts, option contracts, treasury rate locks and forward starting swaps 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 Condensed 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. 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 Condensed Statements of Earnings in the period of change. Hedge Effectiveness |
Offsetting of Derivatives Instruments | Offsetting of Derivative InstrumentsHP recognizes all derivative instruments on a gross basis in the Consolidated Condensed 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. |
Net 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. |
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 July 31, 2023, 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 Company (“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. |
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 12, “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) | 9 Months Ended |
Jul. 31, 2023 | |
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: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Net revenue: Commercial PS $ 6,201 $ 6,956 $ 18,499 $ 22,600 Consumer PS 2,731 3,117 7,787 11,171 Personal Systems 8,932 10,073 26,286 33,771 Supplies 2,768 2,814 8,631 9,013 Commercial Printing 974 1,036 3,119 3,117 Consumer Printing 521 725 1,861 2,239 Printing 4,263 4,575 13,611 14,369 Corporate Investments 1 — 5 1 Total segment net revenue 13,196 14,648 39,902 48,141 Other — — (1) (5) Total net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 Earnings before taxes: Personal Systems $ 592 $ 673 $ 1,498 $ 2,331 Printing 794 904 2,563 2,725 Corporate Investments (32) (58) (103) (184) Total segment earnings from operations 1,354 1,519 3,958 4,872 Corporate and unallocated costs and other (97) (76) (279) (373) Stock-based compensation expense (91) (70) (353) (273) Restructuring and other charges (75) (13) (416) (148) Acquisition and divestiture charges (48) (31) (206) (83) Amortization of intangible assets (91) (50) (262) (154) Russia exit charges — (23) — (23) Interest and other, net (16) (70) (357) (141) Total earnings before taxes $ 936 $ 1,186 $ 2,085 $ 3,677 |
Schedule of Reconciliation of Segment Operating Results to HP Consolidated Results | Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Net revenue: Commercial PS $ 6,201 $ 6,956 $ 18,499 $ 22,600 Consumer PS 2,731 3,117 7,787 11,171 Personal Systems 8,932 10,073 26,286 33,771 Supplies 2,768 2,814 8,631 9,013 Commercial Printing 974 1,036 3,119 3,117 Consumer Printing 521 725 1,861 2,239 Printing 4,263 4,575 13,611 14,369 Corporate Investments 1 — 5 1 Total segment net revenue 13,196 14,648 39,902 48,141 Other — — (1) (5) Total net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 Earnings before taxes: Personal Systems $ 592 $ 673 $ 1,498 $ 2,331 Printing 794 904 2,563 2,725 Corporate Investments (32) (58) (103) (184) Total segment earnings from operations 1,354 1,519 3,958 4,872 Corporate and unallocated costs and other (97) (76) (279) (373) Stock-based compensation expense (91) (70) (353) (273) Restructuring and other charges (75) (13) (416) (148) Acquisition and divestiture charges (48) (31) (206) (83) Amortization of intangible assets (91) (50) (262) (154) Russia exit charges — (23) — (23) Interest and other, net (16) (70) (357) (141) Total earnings before taxes $ 936 $ 1,186 $ 2,085 $ 3,677 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Plans | HP’s restructuring activities for the nine months ended July 31, 2023 and 2022 summarized by plan were as follows: Fiscal 2023 Plan Severance and EER Non-labor Other prior-year plans (1) Total In millions Accrued balance as of October 31, 2022 $ — $ — $ 32 $ 32 Charges 318 38 3 359 Cash payments (135) (15) (37) (187) Non-cash and other adjustments (141) (2) (5) 3 (143) Accrued balance as of July 31, 2023 $ 42 $ 18 $ 1 $ 61 Total costs incurred to date as of July 31, 2023 $ 318 $ 38 $ 868 $ 1,224 Reflected in Consolidated Condensed Balance Sheets Other current liabilities $ 42 $ 6 $ 1 $ 49 Other non-current liabilities $ — $ 12 $ — $ 12 Accrued balance as of October 31, 2021 $ — $ — $ 90 $ 90 Charges — — 136 136 Cash payments — — (170) (170) Non-cash and other adjustments — — (36) (36) Accrued balance as of July 31, 2022 $ — $ — $ 20 $ 20 HP’s restructuring charges for the three months ended July 31, 2023 summarized by the plans outlined below were as follows: Fiscal 2023 Plan Severance and EER Non-labor Other prior-year plans (1) Total In millions For the three months ended July 31, 2023 $ 24 $ 25 $ 1 $ 50 (1) Primarily includes the fiscal 2020 plan along with other legacy plans, all of 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”) program of $139 million for pension and post-retirement plan special termination benefits. See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information. |
Retirement and Post-Retiremen_2
Retirement and Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Post-Retirement Benefit (Credit) Cost | The components of HP’s pension and post-retirement benefit (credit) cost recognized in the Consolidated Condensed Statements of Earnings were as follows: Three months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post-Retirement Benefit Plans 2023 2022 2023 2022 2023 2022 In millions Service cost $ — $ — $ 10 $ 14 $ 1 $ 1 Interest cost 54 41 10 5 4 2 Expected return on plan assets (65) (72) (13) (12) (4) (2) Amortization and deferrals: Actuarial loss (gain) 4 1 1 9 (4) (4) Prior service cost (credit) — — 1 1 (2) (2) Net periodic benefit (credit) cost (7) (30) 9 17 (5) (5) Settlement gain — — — (1) — — Total periodic benefit (credit) cost $ (7) $ (30) $ 9 $ 16 $ (5) $ (5) Nine months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post- Retirement Benefit Plans 2023 2022 2023 2022 2023 2022 In millions Service cost $ — $ — $ 30 $ 42 $ 1 $ 1 Interest cost 163 121 30 16 11 6 Expected return on plan assets (194) (221) (39) (37) (10) (6) Amortization and deferrals: Actuarial loss (gain) 13 4 3 28 (12) (12) Prior service cost (credit) — — 4 4 (8) (8) Net periodic benefit (credit) cost (18) (96) 28 53 (18) (19) Settlement gain — — — (1) — — Special termination benefit cost 105 — — — 34 — Total periodic benefit (credit) cost $ 87 $ (96) $ 28 $ 52 $ 16 $ (19) |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash As of July 31, 2023 October 31, 2022 In millions Cash and cash equivalents $ 1,673 $ 3,145 Restricted cash (1) 45 — $ 1,718 $ 3,145 (1) Restricted Cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold. |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash As of July 31, 2023 October 31, 2022 In millions Cash and cash equivalents $ 1,673 $ 3,145 Restricted cash (1) 45 — $ 1,718 $ 3,145 (1) Restricted Cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold. |
Schedule of Allowance for Doubtful Accounts Related to Accounts Receivable | The allowance for credit losses related to accounts receivable and changes were as follows: Nine months ended July 31, 2023 In millions Balance at beginning of period $ 107 Benefit of allowance for credit losses (7) Deductions, net of recoveries (9) Balance at end of period $ 91 |
Schedule of Transferred Trade Receivables Not Collected from Third Parties | The following is a summary of the activity under these arrangements: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Balance at beginning of period (1) $ 174 $ 173 $ 185 $ 131 Trade receivables sold 3,383 2,918 10,241 8,887 Cash receipts (3,398) (2,897) (10,286) (8,811) Foreign currency and other — (5) 19 (18) Balance at end of period (1) $ 159 $ 189 $ 159 $ 189 (1) Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets. |
Schedule of Inventory | Inventory As of July 31, 2023 October 31, 2022 In millions Finished goods $ 4,171 $ 4,885 Purchased parts and fabricated assemblies 3,026 2,729 $ 7,197 $ 7,614 |
Schedule of Other Current Assets | Other Current Assets As of July 31, 2023 October 31, 2022 In millions Supplier and other receivables 1,868 1,377 Prepaid and other current assets 1,451 2,086 Value-added taxes receivable 862 968 $ 4,181 $ 4,431 |
Schedule of Property, Plant and Equipment, Net | Property, Plant and Equipment, net As of July 31, 2023 October 31, 2022 In millions Land, buildings and leasehold improvements $ 2,305 $ 2,255 Machinery and equipment, including equipment held for lease 5,385 5,337 7,690 7,592 Accumulated depreciation (4,907) (4,818) $ 2,783 $ 2,774 |
Schedule of Other Non-Current Assets | Other Non-Current Assets As of July 31, 2023 October 31, 2022 In millions Deferred tax assets $ 3,054 $ 2,167 Intangible assets 1,690 1,933 Right-of-use assets 1,171 1,236 Prepaid pension and post-retirement benefit assets 559 642 Deposits and prepaids 470 474 Other 828 991 $ 7,772 $ 7,443 |
Schedule of Other Current Liabilities | Other Current Liabilities As of July 31, 2023 October 31, 2022 In millions Sales and marketing programs $ 3,031 $ 2,984 Deferred revenue 1,379 1,393 Other accrued taxes 1,014 1,064 Employee compensation and benefit 905 954 Warranty 584 619 Operating lease liabilities 439 405 Tax liability 366 286 Other 2,906 2,963 $ 10,624 $ 10,668 |
Schedule of Other Non-Current Liabilities | Other Non-Current Liabilities As of July 31, 2023 October 31, 2022 In millions Deferred revenue $ 1,271 $ 1,171 Tax liability 957 911 Operating lease liability 829 875 Pension, post-retirement, and post-employment liabilities 595 600 Deferred tax liability 25 121 Other 774 856 $ 4,451 $ 4,534 |
Schedule of Interest and Other, Net | Interest and other, net Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Interest expense on borrowings $ (134) $ (96) $ (429) $ (229) Net gain on debt extinguishment 115 — 107 — Non-operating retirement-related credits 14 38 40 110 Factoring costs (1) (37) — (99) — Other, net 26 (12) 24 (22) $ (16) $ (70) $ (357) $ (141) (1) For the three and nine months ended July 31, 2022, Factoring costs were included in Selling, general and administrative and were not material. |
Schedule of Net Revenue by Region | Net revenue by region Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Americas $ 5,880 $ 6,379 $ 17,052 $ 20,111 Europe, Middle East and Africa 4,285 4,712 13,330 16,670 Asia-Pacific and Japan 3,031 3,557 9,519 11,355 Total net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
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 July 31, 2023 As of October 31, 2022 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 $ — $ 460 $ — $ 460 $ — $ 904 $ — $ 904 Government debt (1) 362 — — 362 1,289 — — 1,289 Available-for-Sale Investments: Financial institution instruments — 3 — 3 — 5 — 5 Marketable securities and mutual funds 28 48 — 76 17 41 — 58 Derivative Instruments: Foreign currency contracts — 248 — 248 — 1,088 — 1,088 Other derivatives — 6 — 6 — 2 — 2 Total assets $ 390 $ 765 $ — $ 1,155 $ 1,306 $ 2,040 $ — $ 3,346 Liabilities: Derivative Instruments: Interest rate contracts $ — $ 63 $ — $ 63 $ — $ 78 $ — $ 78 Foreign currency contracts — 341 — 341 — 295 — 295 Other derivatives — — — — — 1 — 1 Total liabilities $ — $ 404 $ — $ 404 $ — $ 374 $ — $ 374 (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) | 9 Months Ended |
Jul. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Cash Equivalents and Available-for-Sale Investments | Cash Equivalents and Available-for-Sale Investments As of July 31, 2023 As of October 31, 2022 Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value In millions Cash Equivalents: Corporate debt $ 460 $ — $ — $ 460 $ 904 $ — $ — $ 904 Government debt 362 — — 362 1,289 — — 1,289 Total cash equivalents 822 — — 822 2,193 — — 2,193 Available-for-Sale Investments: Financial institution instruments 3 — — 3 5 — — 5 Marketable securities and mutual funds 41 35 — 76 50 8 — 58 Total available-for-sale investments 44 35 — 79 55 8 — 63 Total cash equivalents and available-for-sale investments $ 866 $ 35 $ — $ 901 $ 2,248 $ 8 $ — $ 2,256 |
Schedule of Contractual Maturities | Contractual maturities of investments in available-for-sale debt securities were as follows: As of July 31, 2023 Amortized Cost Fair Value In millions Due in one year $ 3 $ 3 |
Schedule of Gross Notional and Fair Value of Derivative Financial Instruments in the Consolidated Condensed Balance Sheets | The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows: As of July 31, 2023 As of October 31, 2022 Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities Outstanding Gross Notional Other Current Assets Other Non-Current Assets Other Current Liabilities Other Non-Current Liabilities In millions Derivatives designated as hedging instruments Fair value hedges: Interest rate contracts $ 750 $ — $ — $ — $ 63 $ 750 $ — $ — $ — $ 78 Cash flow hedges: Foreign currency contracts 15,492 208 31 251 75 16,014 820 256 206 72 Total derivatives designated as hedging instruments 16,242 208 31 251 138 16,764 820 256 206 150 Derivatives not designated as hedging instruments Foreign currency contracts 4,309 9 — 15 — 4,554 12 — 17 — Other derivatives 137 6 — — — 122 2 — 1 — Total derivatives not designated as hedging instruments 4,446 15 — 15 — 4,676 14 — 18 — Total derivatives $ 20,688 $ 223 $ 31 $ 266 $ 138 $ 21,440 $ 834 $ 256 $ 224 $ 150 |
Schedule of Offsetting Assets | As of July 31, 2023 and October 31, 2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Condensed Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Not Offset Gross Amount Gross Amount Net Amount Derivatives Financial Net Amount In millions As of July 31, 2023 Derivative assets $ 254 $ — $ 254 $ 222 $ 31 (1) $ 1 Derivative liabilities $ 404 $ — $ 404 $ 222 $ 149 (2) $ 33 As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) (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 Liabilities | As of July 31, 2023 and October 31, 2022, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: In the Consolidated Condensed Balance Sheets (i) (ii) (iii) = (i)–(ii) (iv) (v) (vi) = (iii)–(iv)–(v) Gross Amounts Not Offset Gross Amount Gross Amount Net Amount Derivatives Financial Net Amount In millions As of July 31, 2023 Derivative assets $ 254 $ — $ 254 $ 222 $ 31 (1) $ 1 Derivative liabilities $ 404 $ — $ 404 $ 222 $ 149 (2) $ 33 As of October 31, 2022 Derivative assets $ 1,090 $ — $ 1,090 $ 290 $ 616 (1) $ 184 Derivative liabilities $ 374 $ — $ 374 $ 290 $ 86 (2) $ (2) (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 in a Fair Value Hedging Relationship | 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 Year 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 Three months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2023 $ (16) $ (6) $ 6 2022 $ (70) $ 8 $ (8) Nine months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2023 $ (357) $ 15 $ (15) 2022 $ (141) $ (34) $ 34 |
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 Accumulated other comprehensive (loss) income was as follows: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions (Loss)/gain recognized in Accumulated other comprehensive (loss) income on derivatives: Foreign currency contracts $ (68) $ 264 $ (757) $ 1,097 Interest rate contracts $ — $ 16 $ — $ 85 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 Three months ended July 31 Nine months ended July 31 Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 2023 2022 2023 2022 In millions Net revenue $ 13,196 $ 14,648 $ 39,901 $ 48,136 $ (37) $ 349 $ 240 $ 548 Cost of revenue (10,374) (11,764) (31,378) (38,564) (33) (23) (142) (58) Other operating expenses (1,870) (1,628) (6,081) (5,754) (1) (1) (3) — Interest and other, net (16) (70) (357) (141) 3 2 9 1 Total $ (68) $ 327 $ 104 $ 491 |
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 Condensed Statements of Earnings for the three and nine months ended July 31, 2023 and 2022 was as follows: Gain/(loss) recognized in earnings on derivative instrument Three months ended July 31 Nine months ended July 31 Location 2023 2022 2023 2022 In millions Foreign currency contracts Interest and other, net $ (37) $ 8 $ (76) $ 3 Other derivatives Interest and other, net 5 14 5 2 Total $ (32) $ 22 $ (71) $ 5 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Short-Term Borrowings | Notes Payable and Short-Term Borrowings As of July 31, 2023 As of October 31, 2022 Amount Weighted-Average Amount Weighted-Average In millions Commercial Paper $ 200 5.5 % $ — — % Current portion of long-term debt 178 6.1 % 165 5.4 % Notes payable to banks, lines of credit and other 65 1.4 % 53 0.6 % $ 443 $ 218 |
Schedule of Long-Term Debt | Long-Term Debt As of July 31, 2023 October 31, 2022 In millions U.S. Dollar Global Notes (1) $1,200 issued at discount to par at a price of 99.863% at 6.00%, 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 1,149 $1,000 issued at discount to par at a price of 99.718% at 3.0%, due June 2027 998 997 $850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 (4) 503 848 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 (4) 521 999 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 997 996 $1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 999 999 $1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 (4) 676 1,000 $900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 899 899 $1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 1,097 1,097 $500 issued at par at a price of 100% at 4.75%, due March 2029 (3) 3 500 9,041 10,683 Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 496 436 Fair value adjustment related to hedged debt (63) (78) Unamortized debt issuance cost (60) (80) Current portion of long-term debt (178) (165) Total long-term debt $ 9,236 $ 10,796 (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 allocated 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) During the nine months ended July 31, 2023, HP repurchased or redeemed and settled $497 million of the March 2029 Notes related to the August 2022 Poly acquisition (4) During the nine months ended July 31, 2023, HP repurchased and settled $1.15 billion in aggregate principal amount of various Global Notes. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Tax Effects Related to Other Comprehensive Income (Loss) | Tax effects related to Other Comprehensive Income (Loss) Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 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 $ — $ 1 $ (1) $ 2 Tax effect on change in unrealized components of cash flow hedges: Tax benefit (provision) on unrealized (losses) gains arising during the period 18 (159) 144 (305) Tax (benefit) provision on losses (gains) reclassified into earnings (15) 99 22 135 3 (60) 166 (170) Tax effect on change in unrealized components of defined benefit plans: Tax benefit (provision) on gains (losses) arising during the period — — (1) — Tax benefit on amortization of actuarial loss and prior service benefit — (3) — (5) Tax provision on curtailments, settlements and other — — — (1) — (3) (1) (6) Tax effect on change in cumulative translation adjustment — — — 2 Tax benefit (provision) on other comprehensive income (loss) $ 3 $ (62) $ 164 $ (172) |
Schedule of Changes and Reclassifications Related to Other Comprehensive Income (Loss), Net of Taxes | Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions Other comprehensive income (loss), net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized gains (losses) arising during the period $ 1 $ — $ 4 $ (5) Change in unrealized components of cash flow hedges: Unrealized (losses) gains arising during the period (50) 121 (613) 877 Losses (gains) reclassified into earnings 53 (228) (82) (356) 3 (107) (695) 521 Change in unrealized components of defined benefit plans: Gains (losses) arising during the period — 10 4 12 Amortization of actuarial loss and prior service benefit (1) — 2 — 11 Curtailments, settlements and other — (1) — (2) — 11 4 21 Change in cumulative translation adjustment 10 (14) 48 (54) Other comprehensive income (loss), net of taxes $ 14 $ (110) $ (639) $ 483 (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 Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of Accumulated other comprehensive income (loss), net of taxes and changes were as follows: Nine months ended July 31, 2023 Net unrealized Net unrealized gains (losses) on cash Unrealized Change in cumulative Accumulated In millions Balance at beginning of period $ 6 $ 648 $ (323) $ (46) $ 285 Other comprehensive gain (loss) before reclassifications 4 (613) 4 48 (557) Reclassifications of gain into earnings — (82) — — (82) Balance at end of period $ 10 $ (47) $ (319) $ 2 $ (354) |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
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: Three months ended July 31 Nine months ended July 31 2023 2022 2023 2022 In millions, except per share amounts Numerator: Net earnings $ 766 $ 1,122 $ 2,289 $ 3,155 Denominator: Weighted-average shares used to compute basic net EPS 993 1,024 991 1,052 Dilutive effect of employee stock plans 9 11 8 12 Weighted-average shares used to compute diluted net EPS 1,002 1,035 999 1,064 Net earnings per share: Basic $ 0.77 $ 1.10 $ 2.31 $ 3.00 Diluted $ 0.76 $ 1.08 $ 2.29 $ 2.97 Anti-dilutive weighted-average stock-based compensation awards (1) 3 5 5 4 (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) | 9 Months Ended |
Jul. 31, 2023 | |
Guarantees [Abstract] | |
Schedule of Changes in Aggregate Product Warranty Liabilities and Changes | HP’s aggregate product warranty liabilities and changes were as follows: Nine months ended July 31, 2023 In millions Balance at beginning of period $ 876 Accruals for warranties issued 513 Adjustments related to pre-existing warranties (including changes in estimates) 24 Settlements made (in cash or in kind) (660) Balance at end of period $ 753 |
Revision of Prior Period Fina_2
Revision of Prior Period Financial Statements (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Revision of Prior Period Financial Statements | A summary of revisions to the Company’s previously reported financial statements is presented below. Revised Consolidated Condensed Statements of Earnings For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 13,828 $ (30) $ 13,798 $ 17,028 $ (15) $ 17,013 Cost of revenue $ 11,019 $ (8) $ 11,011 $ 13,643 $ (21) $ 13,622 Research and development $ 403 $ — $ 403 $ 418 $ 60 $ 478 Total costs and expenses $ 13,063 $ (8) $ 13,055 $ 15,669 $ 39 $ 15,708 Earnings from operations $ 765 $ (22) $ 743 $ 1,359 $ (54) $ 1,305 Interest and other, net $ (181) $ — $ (181) $ (32) $ 2 $ (30) Earnings before taxes $ 584 $ (22) $ 562 $ 1,327 $ (52) $ 1,275 Provision for taxes $ (97) $ 4 $ (93) $ (241) $ 18 $ (223) Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 Basic earnings per share $ 0.49 $ (0.02) $ 0.47 $ 1.00 $ (0.03) $ 0.97 Diluted earnings per share $ 0.49 $ (0.02) $ 0.47 $ 0.99 $ (0.03) $ 0.96 For the three months ended April 30, 2023 For the six months ended April 30, 2023 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 12,913 $ (6) $ 12,907 $ 26,741 $ (36) $ 26,705 Cost of revenue $ 9,984 $ 9 $ 9,993 $ 21,003 $ 1 $ 21,004 Total costs and expenses $ 12,151 $ 9 $ 12,160 $ 25,214 $ 1 $ 25,215 Earnings from operations $ 762 $ (15) $ 747 $ 1,527 $ (37) $ 1,490 Earnings before taxes $ 602 $ (15) $ 587 $ 1,186 $ (37) $ 1,149 Benefit from taxes $ 464 $ 3 $ 467 $ 367 $ 7 $ 374 Net earnings $ 1,066 $ (12) $ 1,054 $ 1,553 $ (30) $ 1,523 Basic earnings per share $ 1.08 $ (0.02) $ 1.06 $ 1.57 $ (0.03) $ 1.54 Diluted earnings per share $ 1.07 $ (0.01) $ 1.06 $ 1.56 $ (0.03) $ 1.53 For the three months ended April 30, 2022 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 16,490 $ (15) $ 16,475 $ 33,518 $ (30) $ 33,488 Cost of revenue $ 13,157 $ 21 $ 13,178 $ 26,800 $ — $ 26,800 Research and development $ 425 $ — $ 425 $ 843 $ 60 $ 903 Restructuring and other charges $ 82 $ (15) $ 67 $ 150 $ (15) $ 135 Total costs and expenses $ 15,212 $ 6 $ 15,218 $ 30,881 $ 45 $ 30,926 Earnings from operations $ 1,278 $ (21) $ 1,257 $ 2,637 $ (75) $ 2,562 Interest and other, net $ (39) $ (2) $ (41) $ (71) $ — $ (71) Earnings before taxes $ 1,239 $ (23) $ 1,216 $ 2,566 $ (75) $ 2,491 Provision for taxes $ (239) $ 4 $ (235) $ (480) $ 22 $ (458) Net earnings $ 1,000 $ (19) $ 981 $ 2,086 $ (53) $ 2,033 Basic earnings per share $ 0.95 $ (0.02) $ 0.93 $ 1.96 $ (0.05) $ 1.91 Diluted earnings per share $ 0.94 $ (0.02) $ 0.92 $ 1.94 $ (0.05) $ 1.89 For the three months ended July 31, 2022 For the nine months ended July 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions, except per share amounts Net revenue $ 14,664 $ (16) $ 14,648 $ 48,182 $ (46) $ 48,136 Research and development $ 368 $ — $ 368 $ 1,211 $ 60 $ 1,271 Restructuring and other charges $ 13 $ — $ 13 $ 163 $ (15) $ 148 Total costs and expenses $ 13,392 $ — $ 13,392 $ 44,273 $ 45 $ 44,318 Earnings from operations $ 1,272 $ (16) $ 1,256 $ 3,909 $ (91) $ 3,818 Earnings before taxes $ 1,202 $ (16) $ 1,186 $ 3,768 $ (91) $ 3,677 Provision for taxes $ (83) $ 19 $ (64) $ (563) $ 41 $ (522) Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ (50) $ 3,155 Basic earnings per share $ 1.09 $ 0.01 $ 1.10 $ 3.05 $ (0.05) $ 3.00 Diluted earnings per share $ 1.08 $ — $ 1.08 $ 3.01 $ (0.04) $ 2.97 Revised Consolidated Condensed Statements of Comprehensive Income (Loss) For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 (Losses) gains on unrealized components of defined benefit plans $ (38) $ 37 $ (1) $ 21 $ (20) $ 1 Other comprehensive (loss) income before taxes $ (961) $ 37 $ (924) $ 270 $ (20) $ 250 Benefit from (provision for) taxes $ 192 $ (9) $ 183 $ (26) $ 6 $ (20) Other comprehensive (loss) income, net of taxes $ (769) $ 28 $ (741) $ 244 $ (14) $ 230 Comprehensive (loss) income $ (282) $ 10 $ (272) $ 1,330 $ (48) $ 1,282 For the three months ended April 30, 2023 For the six months ended April 30, 2023 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,066 $ (12) $ 1,054 $ 1,553 $ (30) $ 1,523 Gains (losses) on unrealized components of defined benefit plans $ 6 $ — $ 6 $ (32) $ 37 $ 5 Other comprehensive income (loss) before taxes $ 110 $ — $ 110 $ (851) $ 37 $ (814) (Provision for) benefit from taxes $ (22) $ — $ (22) $ 170 $ (9) $ 161 Other comprehensive income (loss), net of taxes $ 88 $ — $ 88 $ (681) $ 28 $ (653) Comprehensive income $ 1,154 $ (12) $ 1,142 $ 872 $ (2) $ 870 For the three months ended April 30, 2022 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,000 $ (19) $ 981 $ 2,086 $ (53) $ 2,033 Gains on unrealized components of defined benefit plans $ 1 $ — $ 1 $ 22 $ (20) $ 2 Other comprehensive income before taxes $ 453 $ — $ 453 $ 723 $ (20) $ 703 Provision for taxes $ (90) $ — $ (90) $ (116) $ 6 $ (110) Other comprehensive income, net of taxes $ 363 $ — $ 363 $ 607 $ (14) $ 593 Comprehensive income $ 1,363 $ (19) $ 1,344 $ 2,693 $ (67) $ 2,626 For the three months ended July 31, 2022 For the nine months ended July 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Net earnings $ 1,119 $ 3 $ 1,122 $ 3,205 $ (50) $ 3,155 Gains on unrealized components of defined benefit plans $ 10 $ — $ 10 $ 32 $ (20) $ 12 Other comprehensive (loss) income before taxes $ (48) $ — $ (48) $ 675 $ (20) $ 655 Provision for taxes $ (62) $ — $ (62) $ (178) $ 6 $ (172) Other comprehensive (loss) income, net of taxes $ (110) $ — $ (110) $ 497 $ (14) $ 483 Comprehensive income $ 1,009 $ 3 $ 1,012 $ 3,702 $ (64) $ 3,638 Revised Consolidated Condensed Balance Sheets For the fiscal years ended October 31 2022 As reported Adjustment As revised In millions Inventory $ 7,595 $ 19 $ 7,614 Other current assets $ 4,515 $ (84) $ 4,431 Total current assets $ 19,801 $ (65) $ 19,736 Other non-current assets $ 7,471 $ (28) $ 7,443 Total assets $ 38,587 $ (93) $ 38,494 Accounts payable $ 15,284 $ 19 $ 15,303 Other current liabilities $ 10,651 $ 17 $ 10,668 Total current liabilities $ 26,153 $ 36 $ 26,189 Other non-current liabilities $ 4,556 $ (22) $ 4,534 Accumulated deficit $ (4,413) $ (79) $ (4,492) Accumulated other comprehensive income $ 313 $ (28) $ 285 Total stockholders’ deficit $ (2,918) $ (107) $ (3,025) Total liabilities and stockholders’ deficit $ 38,587 $ (93) $ 38,494 Revised Consolidated Condensed Statements of Cash Flows For the three months ended January 31, 2023 For the three months ended January 31, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 487 $ (18) $ 469 $ 1,086 $ (34) $ 1,052 Deferred taxes on earnings $ (136) $ (4) $ (140) $ 5 $ — $ 5 Accounts receivable $ 244 $ — $ 244 $ 337 $ 25 $ 362 Inventory $ 218 $ 12 $ 230 $ (1,277) $ — $ (1,277) Accounts payable $ (1,712) $ (19) $ (1,731) $ 2,035 $ — $ 2,035 Taxes on earnings $ 220 $ — $ 220 $ (6) $ (17) $ (23) Other assets and liabilities $ 250 $ 29 $ 279 $ (988) $ 26 $ (962) Net cash (used in) provided by operating activities $ (16) $ — $ (16) $ 1,657 $ — $ 1,657 For the six months ended April 30, 2023 For the six months ended April 30, 2022 As reported Adjustment As revised As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 1,553 $ (30) $ 1,523 $ 2,086 $ (53) $ 2,033 Restructuring and other charges $ 341 $ — $ 341 $ 150 $ (15) $ 135 Deferred taxes on earnings $ (817) $ (8) $ (825) $ (5) $ 4 $ (1) Accounts receivable $ 426 $ — $ 426 $ 91 $ 25 $ 116 Inventory $ 354 $ 20 $ 374 $ (1,270) $ — $ (1,270) Accounts payable $ (1,914) $ (19) $ (1,933) $ 981 $ — $ 981 Taxes on earnings $ 329 $ 1 $ 330 $ (23) $ (25) $ (48) Other assets and liabilities $ (153) $ 36 $ (117) $ (555) $ 64 $ (491) Net cash provided by operating activities $ 620 $ — $ 620 $ 2,165 $ — $ 2,165 For the nine months ended July 31, 2022 As reported Adjustment As revised In millions Cash flows from operating activities: Net earnings $ 3,205 $ (50) $ 3,155 Restructuring and other charges $ 163 $ (15) $ 148 Deferred taxes on earnings $ 47 $ 4 $ 51 Accounts receivable $ 1,076 $ 25 $ 1,101 Taxes on earnings $ (120) $ (45) $ (165) Other assets and liabilities $ (1,677) $ 81 $ (1,596) Net cash provided by operating activities $ 2,559 $ — $ 2,559 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Jul. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Reconciliation of Segment Operating Results to HP Consolidated Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Net revenue: | ||||||||||
Total net revenue | $ 13,196 | $ 12,907 | $ 13,798 | $ 14,648 | $ 16,475 | $ 17,013 | $ 26,705 | $ 33,488 | $ 39,901 | $ 48,136 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Operating Income (Loss) | 952 | 747 | 743 | 1,256 | 1,257 | 1,305 | 1,490 | 2,562 | 2,442 | 3,818 |
Restructuring and other charges | (75) | (13) | (67) | (135) | (416) | (148) | ||||
Acquisition and divestiture charges | (48) | (31) | (205) | (83) | ||||||
Amortization of intangible assets | (91) | (50) | (262) | (154) | ||||||
Russia exit charges | 0 | (23) | 0 | (23) | ||||||
Interest and other, net | (16) | (181) | (70) | (41) | (30) | (71) | (357) | (141) | ||
Earnings before taxes | 936 | $ 587 | $ 562 | 1,186 | $ 1,216 | $ 1,275 | $ 1,149 | $ 2,491 | 2,085 | 3,677 |
Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 13,196 | 14,648 | 39,902 | 48,141 | ||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Operating Income (Loss) | 1,354 | 1,519 | 3,958 | 4,872 | ||||||
Corporate and unallocated costs and other | ||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Corporate and unallocated costs and other | (97) | (76) | (279) | (373) | ||||||
Other | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 0 | 0 | (1) | (5) | ||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Stock-based compensation expense | (91) | (70) | (353) | (273) | ||||||
Restructuring and other charges | (75) | (13) | (416) | (148) | ||||||
Acquisition and divestiture charges | (48) | (31) | (206) | (83) | ||||||
Amortization of intangible assets | (91) | (50) | (262) | (154) | ||||||
Russia exit charges | 0 | (23) | 0 | (23) | ||||||
Interest and other, net | (16) | (70) | (357) | (141) | ||||||
Personal Systems | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 8,932 | 10,073 | 26,286 | 33,771 | ||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Operating Income (Loss) | 592 | 673 | 1,498 | 2,331 | ||||||
Printing | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 4,263 | 4,575 | 13,611 | 14,369 | ||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Operating Income (Loss) | 794 | 904 | 2,563 | 2,725 | ||||||
Corporate Investments | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 1 | 0 | 5 | 1 | ||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Operating Income (Loss) | (32) | (58) | (103) | (184) | ||||||
Commercial PS | Personal Systems | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 6,201 | 6,956 | 18,499 | 22,600 | ||||||
Consumer PS | Personal Systems | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 2,731 | 3,117 | 7,787 | 11,171 | ||||||
Supplies | Printing | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 2,768 | 2,814 | 8,631 | 9,013 | ||||||
Commercial Printing | Printing | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | 974 | 1,036 | 3,119 | 3,117 | ||||||
Consumer Printing | Printing | Operating Segments | ||||||||||
Net revenue: | ||||||||||
Total net revenue | $ 521 | $ 725 | $ 1,861 | $ 2,239 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | $ 32 | $ 90 | |
Charges | $ 50 | 359 | 136 |
Cash payments | (187) | (170) | |
Non-cash and other adjustments | (143) | (36) | |
Accrued balance, end of the period | 61 | 61 | 20 |
Total costs incurred to date | 1,224 | 1,224 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 49 | 49 | |
Other non-current liabilities | 12 | 12 | |
Fiscal 2023 Plan | Severance and EER | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | 0 | 0 | |
Charges | 24 | 318 | 0 |
Cash payments | (135) | 0 | |
Non-cash and other adjustments | (141) | 0 | |
Accrued balance, end of the period | 42 | 42 | 0 |
Total costs incurred to date | 318 | 318 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 42 | 42 | |
Other non-current liabilities | 0 | 0 | |
Fiscal 2023 Plan | Non-labor | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | 0 | 0 | |
Charges | 25 | 38 | 0 |
Cash payments | (15) | 0 | |
Non-cash and other adjustments | (5) | 0 | |
Accrued balance, end of the period | 18 | 18 | 0 |
Total costs incurred to date | 38 | 38 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 6 | 6 | |
Other non-current liabilities | 12 | 12 | |
Fiscal 2023 Plan | Special Termination Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 105 | ||
Non-cash and other adjustments | 139 | ||
Other prior-year plans | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | 32 | 90 | |
Charges | 1 | 3 | 136 |
Cash payments | (37) | (170) | |
Non-cash and other adjustments | 3 | (36) | |
Accrued balance, end of the period | 1 | 1 | $ 20 |
Total costs incurred to date | 868 | 868 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 1 | 1 | |
Other non-current liabilities | $ 0 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Narrative (Details) employee in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 18, 2022 USD ($) employee | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | $ 25 | $ 7 | $ 57 | $ 12 | |
Fiscal 2023 Plan | Labor and Non-Labor Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 1,000 | ||||
Fiscal 2023 Plan | Labor Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated pre-tax charges | $ 700 | ||||
Minimum | Fiscal 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected positions to be eliminated | employee | 4 | ||||
Maximum | Fiscal 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected positions to be eliminated | employee | 6 |
Retirement and Post-Retiremen_3
Retirement and Post-Retirement Benefit Plans - Schedule of Pension and Post-Retirement Benefit (Credit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Post-Retirement Benefit Plans | ||||
Retirement and post-retirement benefit plans | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 1 |
Interest cost | 4 | 2 | 11 | 6 |
Expected return on plan assets | (4) | (2) | (10) | (6) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | (4) | (4) | (12) | (12) |
Prior service cost (credit) | (2) | (2) | (8) | (8) |
Net periodic benefit (credit) cost | (5) | (5) | (18) | (19) |
Settlement gain | 0 | 0 | 0 | 0 |
Special termination benefit cost | 34 | 0 | ||
Total periodic benefit (credit) cost | (5) | (5) | 16 | (19) |
U.S. | Defined Benefit Plans | ||||
Retirement and post-retirement benefit plans | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 54 | 41 | 163 | 121 |
Expected return on plan assets | (65) | (72) | (194) | (221) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 4 | 1 | 13 | 4 |
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (7) | (30) | (18) | (96) |
Settlement gain | 0 | 0 | 0 | 0 |
Special termination benefit cost | 105 | 0 | ||
Total periodic benefit (credit) cost | (7) | (30) | 87 | (96) |
Non-U.S. | Defined Benefit Plans | ||||
Retirement and post-retirement benefit plans | ||||
Service cost | 10 | 14 | 30 | 42 |
Interest cost | 10 | 5 | 30 | 16 |
Expected return on plan assets | (13) | (12) | (39) | (37) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 1 | 9 | 3 | 28 |
Prior service cost (credit) | 1 | 1 | 4 | 4 |
Net periodic benefit (credit) cost | 9 | 17 | 28 | 53 |
Settlement gain | 0 | (1) | 0 | (1) |
Special termination benefit cost | 0 | 0 | ||
Total periodic benefit (credit) cost | $ 9 | $ 16 | $ 28 | $ 52 |
Retirement and Post-Retiremen_4
Retirement and Post-Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Retirement and post-retirement benefit plans | |||||
Eligible age with twenty years of service for enhanced early retirement program | 55 years | ||||
EER benefit, minimum | 140 days | ||||
EER benefit, maximum | 364 days | ||||
Restructuring charges | $ 50,000 | $ 359,000 | $ 136,000 | ||
Health care coverage extension, enhanced early retirement program, period | 36 months | ||||
Maximum retirement medical savings account employer credits | $ 12 | ||||
Other charges | 25,000 | $ 7,000 | 57,000 | $ 12,000 | |
Special Termination Benefits | Fiscal 2023 Plan | |||||
Retirement and post-retirement benefit plans | |||||
Restructuring charges | 105,000 | ||||
Other charges | 34,000 | ||||
Post-Retirement Benefit Plans | |||||
Retirement and post-retirement benefit plans | |||||
Anticipated contributions | 4,000 | 4,000 | |||
Contributions to benefit plans | 4,000 | ||||
Non-U.S. | Defined Benefit Plans | |||||
Retirement and post-retirement benefit plans | |||||
Anticipated contributions | 36,000 | 36,000 | |||
Contributions to benefit plans | 27,000 | ||||
U.S. | Non-qualified plan | |||||
Retirement and post-retirement benefit plans | |||||
Anticipated contributions | $ 32,000 | 32,000 | |||
Contributions to benefit plans | $ 20,000 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 USD ($) country | Jul. 31, 2022 USD ($) | Jul. 31, 2023 USD ($) country | Jul. 31, 2022 USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 18.20% | 5.40% | (9.80%) | 14.20% |
Income tax reconciliation other discrete items tax charges (credits) | $ 32 | $ 150 | $ 724 | $ 111 |
Tax effects of internal reorganization | 87 | 697 | 87 | |
Tax benefits related to restructuring charges | 16 | 3 | 82 | 31 |
Tax benefits related to filing of tax returns in various jurisdictions | 51 | 167 | 15 | 150 |
Effective income tax rate reconciliation, business combination, amount | 10 | 37 | ||
Tax benefits related to audit settlements | 2 | 10 | 60 | 19 |
Effective income tax rate reconciliation, uncertain tax position charges, amount | 17 | 98 | 32 | 93 |
Extinguishment of debt, gain (loss), income tax | 27 | 25 | ||
Tax charges related to foreign withholding taxes | 55 | |||
Tax benefits related to share-based payment arrangement | 32 | |||
Unrecognized tax benefits | 1,200 | 1,200 | ||
Unrecognized tax benefits that would impact the effective tax rate | 861 | 861 | ||
Unrecognized tax benefits change | 106 | |||
Penalties and interest accrued | 98 | $ 76 | $ 98 | $ 76 |
Likelihood of no resolution period | 12 months | |||
Reasonably possible decrease in existing unrecognized tax benefits within the next 12 months | $ 44 | $ 44 | ||
Other countries with income tax jurisdiction | country | 60 | 60 |
Supplementary Financial Infor_3
Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Oct. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,673 | $ 3,145 | ||
Restricted cash | 45 | 0 | ||
Cash, cash equivalents and restricted cash | $ 1,718 | $ 3,145 | $ 5,386 | $ 4,299 |
Supplementary Financial Infor_4
Supplementary Financial Information - Allowance for Doubtful Accounts (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 107 |
Benefit of allowance for credit losses | (7) |
Deductions, net of recoveries | (9) |
Balance at end of period | $ 91 |
Supplementary Financial Infor_5
Supplementary Financial Information - Schedule of Transferred Trade Receivables Not Collected from Third Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Trade Receivables Sold and Cash Received [Roll Forward] | ||||
Balance at beginning of period | $ 174 | $ 173 | $ 185 | $ 131 |
Trade receivables sold | 3,383 | 2,918 | 10,241 | 8,887 |
Cash receipts | (3,398) | (2,897) | (10,286) | (8,811) |
Foreign currency and other | 0 | (5) | 19 | (18) |
Balance at end of period | $ 159 | $ 189 | $ 159 | $ 189 |
Supplementary Financial Infor_6
Supplementary Financial Information - Inventory (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 4,171 | $ 4,885 |
Purchased parts and fabricated assemblies | 3,026 | 2,729 |
Inventory | $ 7,197 | $ 7,614 |
Supplementary Financial Infor_7
Supplementary Financial Information - Other Current Assets (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier and other receivables | $ 1,868 | $ 1,377 |
Prepaid and other current assets | 1,451 | 2,086 |
Value-added taxes receivable | 862 | 968 |
Other current assets | $ 4,181 | $ 4,431 |
Supplementary Financial Infor_8
Supplementary Financial Information - Property Plant & Equipment (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | $ 7,690 | $ 7,592 |
Accumulated depreciation | (4,907) | (4,818) |
Property, plant and equipment, net | 2,783 | 2,774 |
Land, buildings and leasehold improvements | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | 2,305 | 2,255 |
Machinery and equipment, including equipment held for lease | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | $ 5,385 | $ 5,337 |
Supplementary Financial Infor_9
Supplementary Financial Information - Other Non-Current Assets (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred tax assets | $ 3,054 | $ 2,167 |
Intangible assets | 1,690 | 1,933 |
Right-of-use assets | $ 1,171 | $ 1,236 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Prepaid pension and post-retirement benefit assets | $ 559 | $ 642 |
Deposits and prepaids | 470 | 474 |
Other | 828 | 991 |
Other non-current assets | $ 7,772 | $ 7,443 |
Supplementary Financial Info_10
Supplementary Financial Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales and marketing programs | $ 3,031 | $ 2,984 |
Deferred revenue | 1,379 | 1,393 |
Other accrued taxes | 1,014 | 1,064 |
Employee compensation and benefit | 905 | 954 |
Warranty | $ 584 | $ 619 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Operating lease liabilities | $ 439 | $ 405 |
Tax liability | 366 | 286 |
Other | 2,906 | 2,963 |
Other accrued liabilities | $ 10,624 | $ 10,668 |
Supplementary Financial Info_11
Supplementary Financial Information - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue | $ 1,271 | $ 1,171 |
Tax liability | 957 | 911 |
Operating lease liability | $ 829 | $ 875 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Pension, post-retirement, and post-employment liabilities | $ 595 | $ 600 |
Deferred tax liability | 25 | 121 |
Other | 774 | 856 |
Other non-current liabilities | $ 4,451 | $ 4,534 |
Supplementary Financial Info_12
Supplementary Financial Information - Interest and Other, Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jul. 31, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Interest expense on borrowings | $ (134,000,000) | $ (96,000,000) | $ (429,000,000) | $ (229,000,000) | ||||
Net gain on debt extinguishment | 115,000,000 | 0 | 107,000,000 | 0 | ||||
Non-operating retirement-related credits | 14,000,000 | 38,000,000 | 40,000,000 | 110,000,000 | ||||
Factoring costs | (37,000,000) | 0 | (99,000,000) | 0 | ||||
Other, net | 26,000,000 | (12,000,000) | 24,000,000 | (22,000,000) | ||||
Interest and other, net | $ (16,000,000) | $ (181,000,000) | (70,000,000) | $ (41,000,000) | $ (30,000,000) | $ (71,000,000) | $ (357,000,000) | (141,000,000) |
Selling, General and Administrative Expenses | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Factoring costs | $ 0 | $ 0 |
Supplementary Financial Info_13
Supplementary Financial Information - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Total net revenue | $ 13,196 | $ 12,907 | $ 13,798 | $ 14,648 | $ 16,475 | $ 17,013 | $ 26,705 | $ 33,488 | $ 39,901 | $ 48,136 |
Americas | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total net revenue | 5,880 | 6,379 | 17,052 | 20,111 | ||||||
Europe, Middle East and Africa | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total net revenue | 4,285 | 4,712 | 13,330 | 16,670 | ||||||
Asia-Pacific and Japan | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total net revenue | $ 3,031 | $ 3,557 | $ 9,519 | $ 11,355 |
Supplementary Financial Info_14
Supplementary Financial Information - Value of Remaining Performance Obligations (Details) $ in Billions | Jul. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 | |
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]: 2024-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2 |
Remaining performance obligations period |
Supplementary Financial Info_15
Supplementary Financial Information - Costs of Obtaining Contracts (Details) - USD ($) $ in Billions | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract liability | $ 2.6 | $ 2.5 |
Revenue recognized | $ 1 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Assets: | ||
Cash Equivalents: | $ 822 | $ 2,193 |
Derivative Instruments: | 254 | 1,090 |
Liabilities: | ||
Derivative Instruments: | 404 | 374 |
Fair value, short- and long-term debt | 9,100 | 9,600 |
Carrying value, short- and long-term debt | 9,700 | 11,000 |
Fair Value Measured on a Recurring Basis | ||
Assets: | ||
Total assets | 1,155 | 3,346 |
Liabilities: | ||
Total liabilities | 404 | 374 |
Fair Value Measured on a Recurring Basis | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 460 | 904 |
Fair Value Measured on a Recurring Basis | Government debt | ||
Assets: | ||
Cash Equivalents: | 362 | 1,289 |
Fair Value Measured on a Recurring Basis | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments: | 3 | 5 |
Fair Value Measured on a Recurring Basis | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 76 | 58 |
Fair Value Measured on a Recurring Basis | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 63 | 78 |
Fair Value Measured on a Recurring Basis | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 248 | 1,088 |
Liabilities: | ||
Derivative Instruments: | 341 | 295 |
Fair Value Measured on a Recurring Basis | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 6 | 2 |
Liabilities: | ||
Derivative Instruments: | 0 | 1 |
Fair Value Measured on a Recurring Basis | Level 1 | ||
Assets: | ||
Total assets | 390 | 1,306 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Government debt | ||
Assets: | ||
Cash Equivalents: | 362 | 1,289 |
Fair Value Measured on a Recurring Basis | Level 1 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 28 | 17 |
Fair Value Measured on a Recurring Basis | Level 1 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 0 | 0 |
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 1 | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 0 | 0 |
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 2 | ||
Assets: | ||
Total assets | 765 | 2,040 |
Liabilities: | ||
Total liabilities | 404 | 374 |
Fair Value Measured on a Recurring Basis | Level 2 | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 460 | 904 |
Fair Value Measured on a Recurring Basis | Level 2 | Government debt | ||
Assets: | ||
Cash Equivalents: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 2 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments: | 3 | 5 |
Fair Value Measured on a Recurring Basis | Level 2 | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 48 | 41 |
Fair Value Measured on a Recurring Basis | Level 2 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 63 | 78 |
Fair Value Measured on a Recurring Basis | Level 2 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 248 | 1,088 |
Liabilities: | ||
Derivative Instruments: | 341 | 295 |
Fair Value Measured on a Recurring Basis | Level 2 | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 6 | 2 |
Liabilities: | ||
Derivative Instruments: | 0 | 1 |
Fair Value Measured on a Recurring Basis | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Government debt | ||
Assets: | ||
Cash Equivalents: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 0 | 0 |
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 0 | 0 |
Liabilities: | ||
Derivative Instruments: | $ 0 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Cash Equivalents: | ||
Cost | $ 822 | $ 2,193 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 822 | 2,193 |
Available-for-Sale Investments: | ||
Cost | 44 | 55 |
Gross Unrealized Gain | 35 | 8 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 79 | 63 |
Total cash equivalents and available-for-sale investments, Cost | 866 | 2,248 |
Total cash equivalents and available-for-sale investments, Gross Unrealized Gain | 35 | 8 |
Total cash equivalents and available-for-sale investments, Gross Unrealized Loss | 0 | 0 |
Total cash equivalents and available-for-sale investments, Fair Value | 901 | 2,256 |
Corporate debt | ||
Cash Equivalents: | ||
Cost | 460 | 904 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 460 | 904 |
Government debt | ||
Cash Equivalents: | ||
Cost | 362 | 1,289 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 362 | 1,289 |
Financial institution instruments | ||
Available-for-Sale Investments: | ||
Debt securities, cost | 3 | 5 |
Debt securities, Gross Unrealized Gain | 0 | 0 |
Debt securities, Gross Unrealized Loss | 0 | 0 |
Debt securities, Fair value | 3 | 5 |
Marketable securities and mutual funds | ||
Available-for-Sale Investments: | ||
Equity securities, Cost | 41 | 50 |
Equity securities, Gross Unrealized Gain | 35 | 8 |
Equity securities, Gross Unrealized Loss | 0 | 0 |
Equity securities, Fair Value | $ 76 | $ 58 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Contractual Maturities of Available for-sale Debt Securities (Details) $ in Millions | Jul. 31, 2023 USD ($) |
Amortized Cost | |
Due in one year | $ 3 |
Fair Value | |
Due in one year | $ 3 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Derivatives, Fair Value | ||
Fair value of derivatives with credit contingent features in a net liability position | $ 174 | $ 82 |
Period to collateralize | 2 days | |
Loss expected to be reclassified from Accumulated OCI into earnings in next 12 months | $ 49 | |
Cash flow hedges | ||
Derivatives, Fair Value | ||
Foreign currency maturity | 12 months | |
Other Non-Current Assets | Equity securities in privately held companies | ||
Derivatives, Fair Value | ||
Cost method and other equity investments | $ 112 | $ 110 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Gross Notional and Fair Value of Derivative Financial Instruments in the Consolidated Condensed Balance Sheets (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Derivatives, Fair Value | ||
Outstanding Gross Notional | $ 20,688 | $ 21,440 |
Derivative Instruments, assets | 254 | 1,090 |
Derivative Instruments, liabilities | 404 | 374 |
Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | $ 223 | $ 834 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | $ 31 | $ 256 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | $ 266 | $ 224 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | $ 138 | $ 150 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | $ 16,242 | $ 16,764 |
Derivatives designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 208 | 820 |
Derivatives designated as hedging instruments | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 31 | 256 |
Derivatives designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 251 | 206 |
Derivatives designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 138 | 150 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 750 | 750 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 0 | 0 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 0 | 0 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 63 | 78 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 15,492 | 16,014 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 208 | 820 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 31 | 256 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 251 | 206 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign currency contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 75 | 72 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 4,446 | 4,676 |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 15 | 14 |
Derivatives not designated as hedging instruments | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 0 | 0 |
Derivatives not designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 15 | 18 |
Derivatives not designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 4,309 | 4,554 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 9 | 12 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 15 | 17 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 137 | 122 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 6 | 2 |
Derivatives not designated as hedging instruments | Other derivatives | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Instruments, assets | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | 0 | 1 |
Derivatives not designated as hedging instruments | Other derivatives | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Instruments, liabilities | $ 0 | $ 0 |
Financial Instruments - Sched_4
Financial Instruments - Schedule of Information Related to the Potential Effect of Entity's Master Netting Agreements and Collateral Security Agreements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Derivative assets | ||
Gross Amount Recognized | $ 254 | $ 1,090 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 254 | 1,090 |
Gross Amounts Not Offset | ||
Derivatives | 222 | 290 |
Financial Collateral | 31 | 616 |
Net Amount | 1 | 184 |
Derivative liabilities | ||
Gross Amount Recognized | 404 | 374 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 404 | 374 |
Gross Amounts Not Offset | ||
Derivatives | 222 | 290 |
Financial Collateral | 149 | 86 |
Net Amount | $ 33 | $ (2) |
Period to collateralize | 2 days |
Financial Instruments - Sched_5
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship (Details) - Interest rate contracts - Interest and other, net - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Derivative Instruments, Gain (Loss) | ||||
Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded | $ (16) | $ (70) | $ (357) | $ (141) |
Gain/(loss) recognized in earnings on derivative instruments | (6) | 8 | 15 | (34) |
Gain/(loss) recognized in earnings on hedged item | $ 6 | $ (8) | $ (15) | $ 34 |
Financial Instruments - Sched_6
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||||||||
(Loss)/gain recognized in Accumulated other comprehensive (loss) income on derivatives | $ (68) | $ 280 | $ (757) | $ 1,182 | ||||||
Total amounts of income/(expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | 952 | $ 747 | $ 743 | 1,256 | $ 1,257 | $ 1,305 | $ 1,490 | $ 2,562 | 2,442 | 3,818 |
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (68) | 327 | 104 | 491 | ||||||
Cash flow hedges | ||||||||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||||||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (68) | 327 | 104 | 491 | ||||||
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 | 13,196 | 14,648 | 39,901 | 48,136 | ||||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (37) | 349 | 240 | 548 | ||||||
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 | (10,374) | (11,764) | (31,378) | (38,564) | ||||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (33) | (23) | (142) | (58) | ||||||
Cash flow hedges | Other 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 | (1,870) | (1,628) | (6,081) | (5,754) | ||||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (1) | (1) | (3) | 0 | ||||||
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 | (16) | (70) | (357) | (141) | ||||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | 3 | 2 | 9 | 1 | ||||||
Foreign currency contracts | Cash flow hedges | ||||||||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||||||||
(Loss)/gain recognized in Accumulated other comprehensive (loss) income on derivatives | (68) | 264 | (757) | 1,097 | ||||||
Interest rate contracts | Cash flow hedges | ||||||||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||||||||
(Loss)/gain recognized in Accumulated other comprehensive (loss) income on derivatives | $ 0 | $ 16 | $ 0 | $ 85 |
Financial Instruments - Sched_7
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments not Designated as Hedging Instruments on the Consolidated Condensed Statements of Earnings (Details) - Interest and other, net - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Derivative Instruments, Gain (Loss) | ||||
Gain/(loss) recognized in earnings on derivative instrument | $ (32) | $ 22 | $ (71) | $ 5 |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(loss) recognized in earnings on derivative instrument | (37) | 8 | (76) | 3 |
Other derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(loss) recognized in earnings on derivative instrument | $ 5 | $ 14 | $ 5 | $ 2 |
Borrowings - Schedule of Notes
Borrowings - Schedule of Notes Payable and Short-Term Borrowings (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Amount Outstanding | ||
Current portion of long-term debt | $ 178 | $ 165 |
Notes payable to banks, lines of credit and other | $ 443 | $ 218 |
Weighted-Average Interest Rate | ||
Current portion of long-term debt | 6.10% | 5.40% |
Commercial Paper | ||
Amount Outstanding | ||
Commercial Paper | $ 200 | $ 0 |
Weighted-Average Interest Rate | ||
Commercial Paper & Notes payable to banks, lines of credit and other | 5.50% | 0% |
Notes payable to banks, lines of credit and other | ||
Amount Outstanding | ||
Notes payable to banks, lines of credit and other | $ 65 | $ 53 |
Weighted-Average Interest Rate | ||
Commercial Paper & Notes payable to banks, lines of credit and other | 1.40% | 0.60% |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Long-term debt | ||
Fair value adjustment related to hedged debt | $ (63,000,000) | $ (78,000,000) |
Unamortized debt issuance cost | (60,000,000) | (80,000,000) |
Current portion of long-term debt | (178,000,000) | (165,000,000) |
Total long-term debt | 9,236,000,000 | 10,796,000,000 |
U.S. Dollar Global Notes | ||
Long-term debt | ||
Long-term debt | 9,041,000,000 | 10,683,000,000 |
Payment for debt extinguishment | 1,150,000,000 | |
$1,200 issued at discount to par at a price of 99.863% at 6.00%, due September 2041 | ||
Long-term debt | ||
Long-term debt | 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 | ||
Long-term debt | ||
Long-term debt | $ 1,149,000,000 | 1,149,000,000 |
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 | ||
Long-term debt | ||
Long-term debt | $ 998,000,000 | 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 | ||
Long-term debt | ||
Long-term debt | $ 503,000,000 | 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 | ||
Long-term debt | ||
Long-term debt | $ 521,000,000 | 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 | ||
Long-term debt | ||
Long-term debt | $ 997,000,000 | 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 | ||
Long-term debt | ||
Long-term debt | $ 999,000,000 | 999,000,000 |
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 99.966% at 4.20%, due April 2032 | ||
Long-term debt | ||
Long-term debt | $ 676,000,000 | 1,000,000,000 |
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.966% | |
Interest rate (percent) | 4.20% | |
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | ||
Long-term debt | ||
Long-term debt | $ 899,000,000 | 899,000,000 |
Face amount of debt instrument | $ 900,000,000 | |
Discount to par (percent) | 99.841% | |
Interest rate (percent) | 4.75% | |
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | ||
Long-term debt | ||
Long-term debt | $ 1,097,000,000 | 1,097,000,000 |
Face amount of debt instrument | $ 1,100,000,000 | |
Discount to par (percent) | 99.725% | |
Interest rate (percent) | 5.50% | |
$500 issued at par at a price of 100% at 4.75%, due March 2029 | ||
Long-term debt | ||
Long-term debt | $ 3,000,000 | 500,000,000 |
Face amount of debt instrument | $ 500,000,000 | |
Issuance rate (percent) | 100% | |
Interest rate (percent) | 4.75% | |
Payment for debt extinguishment | $ 497,000,000 | |
Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 | ||
Long-term debt | ||
Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 | $ 496,000,000 | $ 436,000,000 |
Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 | Minimum | ||
Long-term debt | ||
Interest rate (percent) | 1.58% | |
Other borrowings at 1.58%-8.30%, due in calendar years 2023-2030 | Maximum | ||
Long-term debt | ||
Interest rate (percent) | 8.30% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Jul. 31, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||||
Net gain on debt extinguishment | $ 115,000,000 | $ 0 | $ 107,000,000 | $ 0 | ||
Commercial Paper | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | $ 6,000,000,000 | 6,000,000,000 | 6,000,000,000 | |||
Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||
Credit facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Available borrowing resources | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | |||
U.S. Dollar Global Notes Due June 2026, June 2030 And April 2032 | ||||||
Line of Credit Facility [Line Items] | ||||||
Repurchased amount | 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | |||
Net gain on debt extinguishment | $ 115,000,000 | |||||
$1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 1.45% | 1.45% | 1.45% | |||
$850 issued at discount to par at a price of 99.790% at 3.4%, due June 2030 | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 3.40% | 3.40% | 3.40% | |||
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 4.20% | 4.20% | 4.20% | |||
364-Day Revolving Credit Facility | Revolving credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity under credit facility | $ 1,000,000,000 | |||||
Revolving credit facility, term | 364 days |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
Repurchases of common stock (shares) | 0 | 29,000,000 | 3,600,000 | 98,000,000 |
Payment in connection with repurchases of shares | $ 1,000 | $ 100 | $ 3,547 | |
Share repurchase authorization remaining | $ 2,000 | $ 2,000 |
Stockholders' Deficit - Tax Eff
Stockholders' Deficit - Tax Effects Related to Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on other comprehensive income (loss) | $ 3 | $ (22) | $ 183 | $ (62) | $ (90) | $ (20) | $ 161 | $ (110) | $ 164 | $ (172) |
Tax benefit (provision) on unrealized (losses) gains arising during the period | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on unrealized (losses) gains arising during the period | 0 | 1 | (1) | 2 | ||||||
Tax effect on change in unrealized components of cash flow hedges | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on unrealized (losses) gains arising during the period | 18 | (159) | 144 | (305) | ||||||
Tax effects on reclassification into earnings | (15) | 99 | 22 | 135 | ||||||
Tax benefit (provision) on other comprehensive income (loss) | 3 | (60) | 166 | (170) | ||||||
Tax benefit (provision) on gains (losses) arising during the period | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on unrealized (losses) gains arising during the period | 0 | 0 | (1) | 0 | ||||||
Tax benefit on amortization of actuarial loss and prior service benefit | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax effects on reclassification into earnings | 0 | (3) | 0 | (5) | ||||||
Tax provision on curtailments, settlements and other | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax effects on reclassification into earnings | 0 | 0 | 0 | (1) | ||||||
Tax effects on change in unrealized components of defined benefit plans | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on other comprehensive income (loss) | 0 | (3) | (1) | (6) | ||||||
Tax effect on change in cumulative translation adjustment | ||||||||||
Components of accumulated other comprehensive income, net of taxes | ||||||||||
Tax benefit (provision) on other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 2 |
Stockholders' Deficit - Changes
Stockholders' Deficit - Changes and Reclassifications Related to Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | $ (557) | |||||||||
(Gains) losses reclassified into earnings | (82) | |||||||||
Other comprehensive income (loss), net of taxes | $ 14 | $ 88 | $ (741) | $ (110) | $ 363 | $ 230 | $ (653) | $ 593 | (639) | $ 483 |
Unrealized gains (losses) arising during the period | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | 1 | 0 | 4 | (5) | ||||||
(Gains) losses reclassified into earnings | 0 | |||||||||
Change in unrealized components of cash flow hedges | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | (50) | 121 | (613) | 877 | ||||||
(Gains) losses reclassified into earnings | 53 | (228) | (82) | (356) | ||||||
Other comprehensive income (loss), net of taxes | 3 | (107) | (695) | 521 | ||||||
Gains (losses) arising during the period | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | 0 | 10 | 4 | 12 | ||||||
Amortization of actuarial loss and prior service benefit | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
(Gains) losses reclassified into earnings | 0 | 2 | 0 | 11 | ||||||
Curtailments, settlements and other | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
(Gains) losses reclassified into earnings | 0 | (1) | 0 | (2) | ||||||
Change in unrealized components of defined benefit plans | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | 4 | |||||||||
(Gains) losses reclassified into earnings | 0 | |||||||||
Other comprehensive income (loss), net of taxes | 0 | 11 | 4 | 21 | ||||||
Change in cumulative translation adjustment | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized gains (losses) arising during the period | 48 | |||||||||
(Gains) losses reclassified into earnings | 0 | |||||||||
Change in cumulative translation adjustment | $ 10 | $ (14) | $ 48 | $ (54) |
Stockholders' Deficit - Accumul
Stockholders' Deficit - Accumulated Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | $ (2,593) | $ (1,960) | $ (3,025) | $ (1,644) |
Other comprehensive gain (loss) before reclassifications | (557) | |||
Reclassifications of gain into earnings | (82) | |||
Balance at end of period | (2,245) | (2,376) | (2,245) | (2,376) |
Accumulated other comprehensive income (loss) | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (368) | 348 | 285 | (245) |
Balance at end of period | (354) | 238 | (354) | 238 |
Net unrealized gains (losses) on available-for-sale debt securities | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | 6 | |||
Other comprehensive gain (loss) before reclassifications | 1 | 0 | 4 | (5) |
Reclassifications of gain into earnings | 0 | |||
Balance at end of period | 10 | 10 | ||
Net unrealized gains (losses) on cash flow hedges | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | 648 | |||
Other comprehensive gain (loss) before reclassifications | (50) | 121 | (613) | 877 |
Reclassifications of gain into earnings | 53 | $ (228) | (82) | $ (356) |
Balance at end of period | (47) | (47) | ||
Unrealized components of defined benefit plans | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (323) | |||
Other comprehensive gain (loss) before reclassifications | 4 | |||
Reclassifications of gain into earnings | 0 | |||
Balance at end of period | (319) | (319) | ||
Change in cumulative translation adjustment | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (46) | |||
Other comprehensive gain (loss) before reclassifications | 48 | |||
Reclassifications of gain into earnings | 0 | |||
Balance at end of period | $ 2 | $ 2 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Numerator: | ||||||||||
Net earnings, basic | $ 766 | $ 1,122 | $ 2,289 | $ 3,155 | ||||||
Net earnings, diluted | $ 766 | $ 1,122 | $ 2,289 | $ 3,155 | ||||||
Denominator: | ||||||||||
Weighted-average shares used to compute basic net EPS (in shares) | 993,000 | 1,024,000 | 991,000 | 1,052,000 | ||||||
Dilutive effect of employee stock plans (shares) | 9,000 | 11,000 | 8,000 | 12,000 | ||||||
Weighted-average shares used to compute diluted net EPS (in shares) | 1,002,000 | 1,035,000 | 999,000 | 1,064,000 | ||||||
Net earnings per share: | ||||||||||
Basic earnings (usd per share) | $ 0.77 | $ 1.06 | $ 0.47 | $ 1.10 | $ 0.93 | $ 0.97 | $ 1.54 | $ 1.91 | $ 2.31 | $ 3 |
Diluted earnings (usd per share) | $ 0.76 | $ 1.06 | $ 0.47 | $ 1.08 | $ 0.92 | $ 0.96 | $ 1.53 | $ 1.89 | $ 2.29 | $ 2.97 |
Anti-dilutive weighted-average stock-based compensation awards (shares) | 3,000 | 5,000 | 5,000 | 4,000 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | 1 Months Ended | 17 Months Ended | |||||||||||
Nov. 11, 2020 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 ($) | Apr. 11, 2012 USD ($) | |
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 Litigation | |||||||||||||
Litigation and Contingencies | |||||||||||||
New claims filed | claim | 2 | ||||||||||||
Forsyth, et al. v. HP Inc. and Hewlett Packard Enterprise | |||||||||||||
Litigation and Contingencies | |||||||||||||
Minimum age of plaintiff | age | 40 | ||||||||||||
India Directorate of Revenue Intelligence Proceedings | |||||||||||||
Litigation and Contingencies | |||||||||||||
Number of current employees | employee | 7 | ||||||||||||
Number of former employee | 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 |
Guarantees, Indemnifications _3
Guarantees, Indemnifications and Warranties (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2023 USD ($) | |
Changes in aggregated product warranty liabilities | |
Balance at beginning of period | $ 876 |
Accruals for warranties issued | 513 |
Adjustments related to pre-existing warranties (including changes in estimates) | 24 |
Settlements made (in cash or in kind) | (660) |
Balance at end of period | $ 753 |
Revision of Prior Period Fina_3
Revision of Prior Period Financial Statements - Revised Consolidated Condensed Statements of Earnings (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Revised Consolidated Statements of Earnings [Line Items] | ||||||||||
Net revenue | $ 13,196 | $ 12,907 | $ 13,798 | $ 14,648 | $ 16,475 | $ 17,013 | $ 26,705 | $ 33,488 | $ 39,901 | $ 48,136 |
Cost of revenue | 10,374 | 9,993 | 11,011 | 11,764 | 13,178 | 13,622 | 21,004 | 26,800 | 31,378 | 38,564 |
Research and development | 354 | 403 | 368 | 425 | 478 | 903 | 1,167 | 1,271 | ||
Restructuring and other charges | 75 | 13 | 67 | 135 | 416 | 148 | ||||
Total costs and expenses | 12,244 | 12,160 | 13,055 | 13,392 | 15,218 | 15,708 | 25,215 | 30,926 | 37,459 | 44,318 |
Earnings from operations | 952 | 747 | 743 | 1,256 | 1,257 | 1,305 | 1,490 | 2,562 | 2,442 | 3,818 |
Interest and other, net | (16) | (181) | (70) | (41) | (30) | (71) | (357) | (141) | ||
Earnings before taxes | 936 | 587 | 562 | 1,186 | 1,216 | 1,275 | 1,149 | 2,491 | 2,085 | 3,677 |
(Provision for) benefit from taxes | (170) | 467 | (93) | (64) | (235) | (223) | 374 | (458) | 204 | (522) |
Net earnings | $ 766 | $ 1,054 | $ 469 | $ 1,122 | $ 981 | $ 1,052 | $ 1,523 | $ 2,033 | $ 2,289 | $ 3,155 |
Basic earnings per share (usd per share) | $ 0.77 | $ 1.06 | $ 0.47 | $ 1.10 | $ 0.93 | $ 0.97 | $ 1.54 | $ 1.91 | $ 2.31 | $ 3 |
Diluted earnings per share (usd per share) | $ 0.76 | $ 1.06 | $ 0.47 | $ 1.08 | $ 0.92 | $ 0.96 | $ 1.53 | $ 1.89 | $ 2.29 | $ 2.97 |
As reported | ||||||||||
Revised Consolidated Statements of Earnings [Line Items] | ||||||||||
Net revenue | $ 12,913 | $ 13,828 | $ 14,664 | $ 16,490 | $ 17,028 | $ 26,741 | $ 33,518 | $ 48,182 | ||
Cost of revenue | 9,984 | 11,019 | 13,157 | 13,643 | 21,003 | 26,800 | ||||
Research and development | 403 | 368 | 425 | 418 | 843 | 1,211 | ||||
Restructuring and other charges | 13 | 82 | 150 | 163 | ||||||
Total costs and expenses | 12,151 | 13,063 | 13,392 | 15,212 | 15,669 | 25,214 | 30,881 | 44,273 | ||
Earnings from operations | 762 | 765 | 1,272 | 1,278 | 1,359 | 1,527 | 2,637 | 3,909 | ||
Interest and other, net | (181) | (39) | (32) | (71) | ||||||
Earnings before taxes | 602 | 584 | 1,202 | 1,239 | 1,327 | 1,186 | 2,566 | 3,768 | ||
(Provision for) benefit from taxes | 464 | (97) | (83) | (239) | (241) | 367 | (480) | (563) | ||
Net earnings | $ 1,066 | $ 487 | $ 1,119 | $ 1,000 | $ 1,086 | $ 1,553 | $ 2,086 | $ 3,205 | ||
Basic earnings per share (usd per share) | $ 1.08 | $ 0.49 | $ 1.09 | $ 0.95 | $ 1 | $ 1.57 | $ 1.96 | $ 3.05 | ||
Diluted earnings per share (usd per share) | $ 1.07 | $ 0.49 | $ 1.08 | $ 0.94 | $ 0.99 | $ 1.56 | $ 1.94 | $ 3.01 | ||
Adjustment | ||||||||||
Revised Consolidated Statements of Earnings [Line Items] | ||||||||||
Net revenue | $ (6) | $ (30) | $ (16) | $ (15) | $ (15) | $ (36) | $ (30) | $ (46) | ||
Cost of revenue | 9 | (8) | 21 | (21) | 1 | 0 | ||||
Research and development | 0 | 0 | 0 | 60 | 60 | 60 | ||||
Restructuring and other charges | 0 | (15) | (15) | (15) | ||||||
Total costs and expenses | 9 | (8) | 0 | 6 | 39 | 1 | 45 | 45 | ||
Earnings from operations | (15) | (22) | (16) | (21) | (54) | (37) | (75) | (91) | ||
Interest and other, net | 0 | (2) | 2 | 0 | ||||||
Earnings before taxes | (15) | (22) | (16) | (23) | (52) | (37) | (75) | (91) | ||
(Provision for) benefit from taxes | 3 | 4 | 19 | 4 | 18 | 7 | 22 | 41 | ||
Net earnings | $ (12) | $ (18) | $ 3 | $ (19) | $ (34) | $ (30) | $ (53) | $ (50) | ||
Basic earnings per share (usd per share) | $ (0.02) | $ (0.02) | $ 0.01 | $ (0.02) | $ (0.03) | $ (0.03) | $ (0.05) | $ (0.05) | ||
Diluted earnings per share (usd per share) | $ (0.01) | $ (0.02) | $ 0 | $ (0.02) | $ (0.03) | $ (0.03) | $ (0.05) | $ (0.04) |
Revised Consolidated Statements
Revised Consolidated Statements of Earnings - Revised Consolidated Condensed Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Revised Consolidated Statements of Comprehensive Income (Loss) [Line Items] | ||||||||||
Net earnings | $ 766 | $ 1,054 | $ 469 | $ 1,122 | $ 981 | $ 1,052 | $ 1,523 | $ 2,033 | $ 2,289 | $ 3,155 |
Gains arising during the period | 0 | 6 | (1) | 10 | 1 | 1 | 5 | 2 | 5 | 12 |
Other comprehensive income (loss) before taxes | 11 | 110 | (924) | (48) | 453 | 250 | (814) | 703 | (803) | 655 |
Benefit from (provision for) taxes | 3 | (22) | 183 | (62) | (90) | (20) | 161 | (110) | 164 | (172) |
Other comprehensive income (loss), net of taxes | 14 | 88 | (741) | (110) | 363 | 230 | (653) | 593 | (639) | 483 |
Comprehensive income | $ 780 | 1,142 | (272) | 1,012 | 1,344 | 1,282 | 870 | 2,626 | $ 1,650 | 3,638 |
As reported | ||||||||||
Revised Consolidated Statements of Comprehensive Income (Loss) [Line Items] | ||||||||||
Net earnings | 1,066 | 487 | 1,119 | 1,000 | 1,086 | 1,553 | 2,086 | 3,205 | ||
Gains arising during the period | 6 | (38) | 10 | 1 | 21 | (32) | 22 | 32 | ||
Other comprehensive income (loss) before taxes | 110 | (961) | (48) | 453 | 270 | (851) | 723 | 675 | ||
Benefit from (provision for) taxes | (22) | 192 | (62) | (90) | (26) | 170 | (116) | (178) | ||
Other comprehensive income (loss), net of taxes | 88 | (769) | (110) | 363 | 244 | (681) | 607 | 497 | ||
Comprehensive income | 1,154 | (282) | 1,009 | 1,363 | 1,330 | 872 | 2,693 | 3,702 | ||
Adjustment | ||||||||||
Revised Consolidated Statements of Comprehensive Income (Loss) [Line Items] | ||||||||||
Net earnings | (12) | (18) | 3 | (19) | (34) | (30) | (53) | (50) | ||
Gains arising during the period | 0 | 37 | 0 | 0 | (20) | 37 | (20) | (20) | ||
Other comprehensive income (loss) before taxes | 0 | 37 | 0 | 0 | (20) | 37 | (20) | (20) | ||
Benefit from (provision for) taxes | 0 | (9) | 0 | 0 | 6 | (9) | 6 | 6 | ||
Other comprehensive income (loss), net of taxes | 0 | 28 | 0 | 0 | (14) | 28 | (14) | (14) | ||
Comprehensive income | $ (12) | $ 10 | $ 3 | $ (19) | $ (48) | $ (2) | $ (67) | $ (64) |
Revised Consolidated Statemen_2
Revised Consolidated Statements of Earnings - Revised Consolidated Condensed Balance Sheets (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 |
Revised Consolidated Statements of Earnings [Line Items] | ||||||
Inventory | $ 7,197 | $ 7,614 | ||||
Other current assets | 4,181 | 4,431 | ||||
Total current assets | 17,463 | 19,736 | ||||
Other non-current assets | 7,772 | 7,443 | ||||
Total assets | 36,632 | 38,494 | ||||
Accounts payable | 14,123 | 15,303 | ||||
Other current liabilities | 10,624 | 10,668 | ||||
Total current liabilities | 25,190 | 26,189 | ||||
Other non-current liabilities | 4,451 | 4,534 | ||||
Accumulated deficit | (3,336) | (4,492) | ||||
Accumulated other comprehensive (loss) income | (354) | 285 | ||||
Total stockholders’ deficit | (2,245) | $ (2,593) | (3,025) | $ (2,376) | $ (1,960) | $ (1,644) |
Total liabilities and stockholders’ deficit | $ 36,632 | 38,494 | ||||
As reported | ||||||
Revised Consolidated Statements of Earnings [Line Items] | ||||||
Inventory | 7,595 | |||||
Other current assets | 4,515 | |||||
Total current assets | 19,801 | |||||
Other non-current assets | 7,471 | |||||
Total assets | 38,587 | |||||
Accounts payable | 15,284 | |||||
Other current liabilities | 10,651 | |||||
Total current liabilities | 26,153 | |||||
Other non-current liabilities | 4,556 | |||||
Accumulated deficit | (4,413) | |||||
Accumulated other comprehensive (loss) income | 313 | |||||
Total stockholders’ deficit | (2,918) | |||||
Total liabilities and stockholders’ deficit | 38,587 | |||||
Adjustment | ||||||
Revised Consolidated Statements of Earnings [Line Items] | ||||||
Inventory | 19 | |||||
Other current assets | (84) | |||||
Total current assets | (65) | |||||
Other non-current assets | (28) | |||||
Total assets | (93) | |||||
Accounts payable | 19 | |||||
Other current liabilities | 17 | |||||
Total current liabilities | 36 | |||||
Other non-current liabilities | (22) | |||||
Accumulated deficit | (79) | |||||
Accumulated other comprehensive (loss) income | (28) | |||||
Total stockholders’ deficit | (107) | |||||
Total liabilities and stockholders’ deficit | $ (93) |
Revised Consolidated Statemen_3
Revised Consolidated Statements of Earnings - Revised Consolidated Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities: | ||||||||||
Net earnings | $ 766 | $ 1,054 | $ 469 | $ 1,122 | $ 981 | $ 1,052 | $ 1,523 | $ 2,033 | $ 2,289 | $ 3,155 |
Restructuring and other charges | 341 | 135 | 416 | 148 | ||||||
Deferred taxes on earnings | (140) | 5 | (825) | (1) | (774) | 51 | ||||
Accounts receivable | 244 | 362 | 426 | 116 | 180 | 1,101 | ||||
Inventory | 230 | (1,277) | 374 | (1,270) | 364 | (570) | ||||
Accounts payable | (1,731) | 2,035 | (1,933) | 981 | (1,133) | (491) | ||||
Taxes on earnings | 220 | (23) | 330 | (48) | 354 | (165) | ||||
Other assets and liabilities | 279 | (962) | (117) | (491) | (704) | (1,596) | ||||
Net cash provided by operating activities | (16) | 1,657 | 620 | 2,165 | $ 1,596 | 2,559 | ||||
As reported | ||||||||||
Cash flows from operating activities: | ||||||||||
Net earnings | 1,066 | 487 | 1,119 | 1,000 | 1,086 | 1,553 | 2,086 | 3,205 | ||
Restructuring and other charges | 341 | 150 | 163 | |||||||
Deferred taxes on earnings | (136) | 5 | (817) | (5) | 47 | |||||
Accounts receivable | 244 | 337 | 426 | 91 | 1,076 | |||||
Inventory | 218 | (1,277) | 354 | (1,270) | ||||||
Accounts payable | (1,712) | 2,035 | (1,914) | 981 | ||||||
Taxes on earnings | 220 | (6) | 329 | (23) | (120) | |||||
Other assets and liabilities | 250 | (988) | (153) | (555) | (1,677) | |||||
Net cash provided by operating activities | (16) | 1,657 | 620 | 2,165 | 2,559 | |||||
Adjustment | ||||||||||
Cash flows from operating activities: | ||||||||||
Net earnings | $ (12) | (18) | $ 3 | $ (19) | (34) | (30) | (53) | (50) | ||
Restructuring and other charges | 0 | (15) | (15) | |||||||
Deferred taxes on earnings | (4) | 0 | (8) | 4 | 4 | |||||
Accounts receivable | 0 | 25 | 0 | 25 | 25 | |||||
Inventory | 12 | 0 | 20 | 0 | ||||||
Accounts payable | (19) | 0 | (19) | 0 | ||||||
Taxes on earnings | 0 | (17) | 1 | (25) | (45) | |||||
Other assets and liabilities | 29 | 26 | 36 | 64 | 81 | |||||
Net cash provided by operating activities | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Revision of Prior Period Fina_4
Revision of Prior Period Financial Statements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Reclassification [Line Items] | ||||||||||
Net revenue | $ 13,196 | $ 12,907 | $ 13,798 | $ 14,648 | $ 16,475 | $ 17,013 | $ 26,705 | $ 33,488 | $ 39,901 | $ 48,136 |
Earnings from operations | 952 | 747 | 743 | 1,256 | 1,257 | 1,305 | 1,490 | 2,562 | 2,442 | 3,818 |
Operating Segments | ||||||||||
Reclassification [Line Items] | ||||||||||
Net revenue | 13,196 | 14,648 | 39,902 | 48,141 | ||||||
Earnings from operations | 1,354 | 1,519 | 3,958 | 4,872 | ||||||
Operating Segments | Personal Systems | ||||||||||
Reclassification [Line Items] | ||||||||||
Net revenue | 8,932 | 10,073 | 26,286 | 33,771 | ||||||
Earnings from operations | $ 592 | 673 | $ 1,498 | 2,331 | ||||||
Adjustment | ||||||||||
Reclassification [Line Items] | ||||||||||
Net revenue | (6) | (30) | (16) | (15) | (15) | (36) | (30) | (46) | ||
Earnings from operations | $ (15) | $ (22) | (16) | $ (21) | $ (54) | $ (37) | $ (75) | (91) | ||
Adjustment | Operating Segments | Personal Systems | ||||||||||
Reclassification [Line Items] | ||||||||||
Net revenue | (16) | (46) | ||||||||
Earnings from operations | $ (16) | $ (106) |