Cover Page
Cover Page | 9 Months Ended |
Jul. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 31, 2024 |
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 $0.01 per share |
Trading Symbol | HPQ |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 963,717,799 |
Entity Central Index Key | 0000047217 |
Amendment Flag | false |
Current Fiscal Year End Date | --10-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q3 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Net revenue: | ||||
Total net revenue | $ 13,519 | $ 13,196 | $ 39,504 | $ 39,901 |
Cost of net revenue: | ||||
Total cost of net revenue | 10,613 | 10,374 | 30,687 | 31,378 |
Gross margin | 2,906 | 2,822 | 8,817 | 8,523 |
Research and development | 413 | 354 | 1,248 | 1,167 |
Selling, general and administrative | 1,404 | 1,302 | 4,249 | 4,031 |
Restructuring and other charges | 46 | 75 | 180 | 416 |
Acquisition and divestiture charges | 22 | 48 | 71 | 205 |
Amortization of intangible assets | 81 | 91 | 242 | 262 |
Total operating expenses | 1,966 | 1,870 | 5,990 | 6,081 |
Earnings from operations | 940 | 952 | 2,827 | 2,442 |
Interest and other, net | (113) | (16) | (410) | (357) |
Earnings before taxes | 827 | 936 | 2,417 | 2,085 |
(Provision for) benefit from taxes | (187) | (170) | (548) | 204 |
Net earnings | $ 640 | $ 766 | $ 1,869 | $ 2,289 |
Net earnings per share: | ||||
Basic (usd per share) | $ 0.65 | $ 0.77 | $ 1.90 | $ 2.31 |
Diluted (usd per share) | $ 0.65 | $ 0.76 | $ 1.88 | $ 2.29 |
Weighted-average shares used to compute net earnings per share: | ||||
Basic (in shares) | 979 | 993 | 986 | 991 |
Diluted (in shares) | 990 | 1,002 | 994 | 999 |
Products | ||||
Net revenue: | ||||
Total net revenue | $ 12,750 | $ 12,422 | $ 37,212 | $ 37,615 |
Cost of net revenue: | ||||
Total cost of net revenue | 10,164 | 9,939 | 29,359 | 30,085 |
Services | ||||
Net revenue: | ||||
Total net revenue | 769 | 774 | 2,292 | 2,286 |
Cost of net revenue: | ||||
Total cost of net revenue | $ 449 | $ 435 | $ 1,328 | $ 1,293 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 640 | $ 766 | $ 1,869 | $ 2,289 |
Change in unrealized components of available-for-sale debt securities: | ||||
Unrealized gains arising during the period | 3 | 1 | 7 | 5 |
Change in unrealized components of cash flow hedges: | ||||
Unrealized losses arising during the period | (36) | (68) | (47) | (757) |
(Gains) losses reclassified into earnings | (87) | 68 | (251) | (104) |
Change in unrealized components of cash flow hedges | (123) | 0 | (298) | (861) |
Change in unrealized components of defined benefit plans: | ||||
Gains arising during the period | 0 | 0 | 13 | 5 |
Amortization of actuarial loss and prior service benefit | 1 | 0 | 5 | 0 |
Curtailments, settlements and other | 1 | 0 | 2 | 0 |
Change in unrealized components of defined benefit plans | 2 | 0 | 20 | 5 |
Change in cumulative translation adjustment | 11 | 10 | 25 | 48 |
Other comprehensive (loss) income before taxes | (107) | 11 | (246) | (803) |
Benefit from taxes | 24 | 3 | 54 | 164 |
Other comprehensive (loss) income, net of taxes | (83) | 14 | (192) | (639) |
Comprehensive income | $ 557 | $ 780 | $ 1,677 | $ 1,650 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 2,878 | $ 3,232 |
Accounts receivable, net of allowance for credit losses of $83 and $93, respectively | 4,659 | 4,237 |
Inventory | 7,790 | 6,862 |
Other current assets | 3,988 | 3,646 |
Total current assets | 19,315 | 17,977 |
Property, plant and equipment, net | 2,831 | 2,827 |
Goodwill | 8,606 | 8,591 |
Other non-current assets | 7,307 | 7,609 |
Total assets | 38,059 | 37,004 |
Current liabilities: | ||
Notes payable and short-term borrowings | 1,396 | 230 |
Accounts payable | 15,447 | 14,046 |
Other current liabilities | 10,200 | 10,212 |
Total current liabilities | 27,043 | 24,488 |
Long-term debt | 8,229 | 9,254 |
Other non-current liabilities | 4,179 | 4,331 |
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; 963 and 989 shares issued and outstanding at July 31, 2024 and October 31, 2023, respectively) | 10 | 10 |
Additional paid-in capital | 1,742 | 1,505 |
Accumulated deficit | (2,729) | (2,361) |
Accumulated other comprehensive loss | (415) | (223) |
Total stockholders’ deficit | (1,392) | (1,069) |
Total liabilities and stockholders’ deficit | $ 38,059 | $ 37,004 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 83 | $ 93 |
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) | 963,000,000 | 989,000,000 |
Common stock, shares outstanding (in shares) | 963,000,000 | 989,000,000 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,869 | $ 2,289 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 622 | 638 |
Stock-based compensation expense | 367 | 353 |
Restructuring and other charges | 180 | 416 |
Deferred taxes on earnings | 69 | (774) |
Other, net | (24) | (61) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (447) | 180 |
Inventory | (953) | 364 |
Accounts payable | 1,442 | (1,133) |
Net investment in leases from integrated financing | (123) | (82) |
Taxes on earnings | (89) | 354 |
Restructuring and other | (204) | (244) |
Other assets and liabilities | (583) | (704) |
Net cash provided by operating activities | 2,126 | 1,596 |
Cash flows from investing activities: | ||
Investment in property, plant and equipment, net | (439) | (459) |
Purchases of available-for-sale securities and other investments | 0 | (6) |
Maturities and sales of available-for-sale securities and other investments | 0 | 18 |
Collateral posted for derivative instruments | (60) | (118) |
Payment made in connection with business acquisitions, net of cash acquired | (15) | (5) |
Net cash used in investing activities | (514) | (570) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings with original maturities less than 90 days, net | 0 | 190 |
Proceeds from debt, net of issuance costs | 266 | 177 |
Payment of debt and associated costs | (153) | (1,654) |
Stock-based award activities and others | (67) | (86) |
Repurchase of common stock | (1,200) | (100) |
Cash dividends paid | (812) | (777) |
Collateral returned for derivative instruments | 0 | (200) |
Settlement of cash flow hedges | 0 | (3) |
Net cash used in financing activities | (1,966) | (2,453) |
Decrease in cash, cash equivalents and restricted cash | (354) | (1,427) |
Cash, cash equivalents and restricted cash at beginning of period | 3,232 | 3,145 |
Cash, cash equivalents and restricted cash at end of period | $ 2,878 | $ 1,718 |
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, 2022 | 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 | 469 | 469 | |||
Other comprehensive income (loss), net of taxes | (741) | (741) | |||
Comprehensive income | (272) | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 8,844,000 | ||||
Issuance of common stock in connection with employee stock plans and other | (79) | (79) | |||
Repurchases of common stock (in shares) | (3,624,000) | ||||
Repurchases of common stock (Note 10) | (100) | (4) | (96) | ||
Cash dividends | (518) | (518) | |||
Stock-based compensation expense | 167 | 167 | |||
Balance (in shares) at Jan. 31, 2023 | 985,089,000 | ||||
Balance at end of period at Jan. 31, 2023 | (3,827) | $ 10 | 1,256 | (4,637) | (456) |
Balance (in shares) at Oct. 31, 2022 | 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 | ||||
Other comprehensive income (loss), net of taxes | (639) | ||||
Comprehensive income | $ 1,650 | ||||
Repurchases of common stock (in shares) | (3,600,000) | ||||
Balance (in shares) at Jul. 31, 2023 | 988,220,000 | ||||
Balance at end of period at Jul. 31, 2023 | $ (2,245) | $ 10 | 1,435 | (3,336) | (354) |
Balance (in shares) at Jan. 31, 2023 | 985,089,000 | ||||
Balance at beginning of period at Jan. 31, 2023 | (3,827) | $ 10 | 1,256 | (4,637) | (456) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 1,054 | 1,054 | |||
Other comprehensive income (loss), net of taxes | 88 | 88 | |||
Comprehensive income | 1,142 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 787,000 | ||||
Issuance of common stock in connection with employee stock plans and other | (7) | (7) | |||
Cash dividends | 4 | 4 | |||
Stock-based compensation expense | 95 | 95 | |||
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) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 766 | 766 | |||
Other comprehensive income (loss), 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 | $ (523) | (523) | |||
Stock-based compensation expense | 91 | 91 | |||
Balance (in shares) at Jul. 31, 2023 | 988,220,000 | ||||
Balance at end of period at Jul. 31, 2023 | $ (2,245) | $ 10 | 1,435 | (3,336) | (354) |
Balance (in shares) at Oct. 31, 2023 | 989,000,000 | 988,782,000 | |||
Balance at beginning of period at Oct. 31, 2023 | $ (1,069) | $ 10 | 1,505 | (2,361) | (223) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 622 | 622 | |||
Other comprehensive income (loss), net of taxes | (235) | (235) | |||
Comprehensive income | 387 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 8,677,000 | ||||
Issuance of common stock in connection with employee stock plans and other | (76) | (76) | |||
Repurchases of common stock (in shares) | (17,062,000) | ||||
Repurchases of common stock (Note 10) | (514) | (27) | (487) | ||
Cash dividends | (545) | (545) | |||
Stock-based compensation expense | 177 | 177 | |||
Balance (in shares) at Jan. 31, 2024 | 980,397,000 | ||||
Balance at end of period at Jan. 31, 2024 | $ (1,640) | $ 10 | 1,579 | (2,771) | (458) |
Balance (in shares) at Oct. 31, 2023 | 989,000,000 | 988,782,000 | |||
Balance at beginning of period at Oct. 31, 2023 | $ (1,069) | $ 10 | 1,505 | (2,361) | (223) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 1,869 | ||||
Other comprehensive income (loss), net of taxes | (192) | ||||
Comprehensive income | $ 1,677 | ||||
Repurchases of common stock (in shares) | (37,500,000) | ||||
Balance (in shares) at Jul. 31, 2024 | 963,000,000 | 963,408,000 | |||
Balance at end of period at Jul. 31, 2024 | $ (1,392) | $ 10 | 1,742 | (2,729) | (415) |
Balance (in shares) at Jan. 31, 2024 | 980,397,000 | ||||
Balance at beginning of period at Jan. 31, 2024 | (1,640) | $ 10 | 1,579 | (2,771) | (458) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 607 | 607 | |||
Other comprehensive income (loss), net of taxes | 126 | 126 | |||
Comprehensive income | 733 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 584,000 | ||||
Issuance of common stock in connection with employee stock plans and other | (4) | (4) | |||
Repurchases of common stock (in shares) | (3,474,000) | ||||
Repurchases of common stock (Note 10) | (99) | (6) | (93) | ||
Stock-based compensation expense | 94 | 94 | |||
Balance (in shares) at Apr. 30, 2024 | 977,507,000 | ||||
Balance at end of period at Apr. 30, 2024 | (916) | $ 10 | 1,663 | (2,257) | (332) |
Increase (Decrease) in Stockholders' Equity | |||||
Net earnings | 640 | 640 | |||
Other comprehensive income (loss), net of taxes | (83) | (83) | |||
Comprehensive income | 557 | ||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 2,907,000 | ||||
Issuance of common stock in connection with employee stock plans and other | $ 13 | 13 | |||
Repurchases of common stock (in shares) | (17,000,000) | (17,006,000) | |||
Repurchases of common stock (Note 10) | $ (606) | (30) | (576) | ||
Cash dividends | (536) | (536) | |||
Stock-based compensation expense | $ 96 | 96 | |||
Balance (in shares) at Jul. 31, 2024 | 963,000,000 | 963,408,000 | |||
Balance at end of period at Jul. 31, 2024 | $ (1,392) | $ 10 | $ 1,742 | $ (2,729) | $ (415) |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Stockholders’ Deficit (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jul. 31, 2024 | Jan. 31, 2024 | Jul. 31, 2023 | Jan. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (usd per share) | $ 0.55 | $ 0.55 | $ 0.52 | $ 0.53 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2024 | |
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, 2023 in HP’s Annual Report on Form 10-K, filed on December 18, 2023. The Consolidated Condensed Balance Sheet for October 31, 2023 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. 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. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“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 are required to disclose information about those programs to allow users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude. HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which will be adopted in fiscal year 2025, in line with the effective adoption dates prescribed by the FASB. See Note 6, “Supplementary Financial Information,” for additional disclosure related to HP’s supplier finance programs. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued guidance that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. HP is required to adopt this guidance for its annual period ending October 31, 2026. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. In November 2023, the FASB issued guidance that updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance on an annual and interim basis. HP is required to adopt this guidance for its annual period ending October 31, 2025 and all interim periods thereafter. 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, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information HP’s operations are organized into three reportable segments: Personal Systems, Printing, and Corporate Investments. Personal Systems offers commercial and consumer desktops and notebooks (including HP’s portfolio of AI PCs), detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems, software, solutions including endpoint security, and services. Personal Systems includes support and deployment, configurations and extended warranty services and maintains multi-operating system and multi-architecture strategies using Microsoft Windows and Google Chrome operating systems, and predominantly use processors from Intel Corporation (“Intel”) and Advanced Micro Devices, Inc. (“AMD”). Personal Systems groups its global business capabilities into the following business units when reporting business performance: • Commercial PS consists of devices and accessories, including workstations, thin clients, mobility devices and hybrid systems, for use by enterprise, public sector (which includes education), and small- and medium-sized business (“SMB”) customers. HP offers a range of secure services and solutions to commercial customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base. • Consumer PS consists 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, sharing information, and staying connected, informed and secure. Printing offers consumer and commercial printer hardware, supplies, services and solutions including endpoint security. Printing is also focused on Graphics and 3D Printing and Personalization in the commercial and industrial markets. HP global business capabilities within Printing are described below: • Office Printing Solutions delivers HP’s secure office printers, supplies, services, and solutions to SMBs, public sector and large enterprises. It also includes Original Equipment Manufacturer (“OEM”) hardware and solutions. • Home Printing Solutions delivers innovative and secure printing products, supplies, services and solutions for the home and home business. • 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 & Personalization 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 personalization, 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. 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 and amortization of intangible assets. Segment Operating Results and the reconciliation to HP consolidated results were as follows: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Net revenue: Commercial PS $ 6,677 $ 6,201 $ 18,964 $ 18,499 Consumer PS 2,692 2,731 7,640 7,787 Personal Systems 9,369 8,932 26,604 26,286 Supplies 2,703 2,768 8,430 8,631 Commercial Printing 1,147 1,208 3,579 3,969 Consumer Printing 293 287 877 1,011 Printing 4,143 4,263 12,886 13,611 Corporate Investments 7 1 14 5 Total segment net revenue 13,519 13,196 39,504 39,902 Other — — — (1) Total net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 Earnings before taxes: Personal Systems $ 599 $ 592 $ 1,644 $ 1,498 Printing 715 794 2,416 2,563 Corporate Investments (28) (32) (95) (103) Total segment earnings from operations 1,286 1,354 3,965 3,958 Corporate and unallocated costs and other (101) (97) (278) (280) Stock-based compensation expense (96) (91) (367) (353) Restructuring and other charges (46) (75) (180) (416) Acquisition and divestiture charges (22) (48) (71) (205) Amortization of intangible assets (81) (91) (242) (262) Interest and other, net (113) (16) (410) (357) Total earnings before taxes $ 827 $ 936 $ 2,417 $ 2,085 Realignment Effective at the beginning of its first quarter of fiscal year 2024, HP realigned its business unit financial reporting more closely with its customer market segmentation. The realignment resulted in the transfer of LaserJet printers net revenues from Consumer Printing to Commercial Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of net revenues from Consumer Printing to Commercial Printing. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share (“EPS”). |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Jul. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Summary of Restructuring Plans HP’s restructuring activities 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, 2023 $ 88 $ 18 $ 2 $ 108 Charges 120 8 4 132 Cash payments (141) (11) (4) (156) Non-cash and other adjustments — (3) (2) (5) Accrued balance as of July 31, 2024 $ 67 $ 12 $ — $ 79 Total costs incurred to date as of July 31, 2024 $ 522 $ 49 $ 870 $ 1,441 Reflected in Consolidated Condensed Balance Sheets Other current liabilities $ 67 $ 3 $ — $ 70 Other non-current liabilities $ — $ 9 $ — $ 9 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 HP’s restructuring charges for the three months ended July 31, 2024 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, 2024 $ 27 $ 2 $ 1 $ 30 (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 liabilities 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 year 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 of which 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 non-recurring costs. For the three and nine months ended July 31, 2024, HP incurred $16 million and $48 million of other charges, respectively. For the three and nine months ended July 31, 2023, HP incurred $25 million and $57 million of other charges, respectively. |
Retirement and Post-Retirement
Retirement and Post-Retirement Benefit Plans | 9 Months Ended |
Jul. 31, 2024 | |
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 2024 2023 2024 2023 2024 2023 In millions Service cost $ — $ — $ 9 $ 10 $ 1 $ 1 Interest cost 57 54 11 10 4 4 Expected return on plan assets (61) (65) (13) (13) (4) (4) Amortization and deferrals: Actuarial loss (gain) 6 4 — 1 (3) (4) Prior service cost (credit) — — 1 1 (3) (2) Net periodic benefit (credit) cost 2 (7) 8 9 (5) (5) Settlement gain (loss) — — 1 — — — Special termination benefit cost — — — — — — Total periodic benefit (credit) cost $ 2 $ (7) $ 9 $ 9 $ (5) $ (5) Nine months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post- Retirement Benefit Plans 2024 2023 2024 2023 2024 2023 In millions Service cost $ — $ — $ 27 $ 30 $ 1 $ 1 Interest cost 171 163 34 30 12 11 Expected return on plan assets (184) (194) (39) (39) (12) (10) Amortization and deferrals: Actuarial loss (gain) 20 13 — 3 (11) (12) Prior service cost (credit) — — 4 4 (8) (8) Net periodic benefit (credit) cost 7 (18) 26 28 (18) (18) Settlement loss — — 2 — — — Special termination benefit cost — 105 — — — 34 Total periodic benefit (credit) cost $ 7 $ 87 $ 28 $ 28 $ (18) $ 16 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 2024, HP anticipates making contributions of approximately $45 million to its non-U.S. pension plans, approximately $31 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, 2024, HP contributed $41 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 left 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 was to be paid from the plan for eligible electing EER participants. The retirement incentive benefit was 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 provided 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, 2024 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings Provision for Taxes HP’s effective tax rate was 22.6% and 18.2% for the three months ended July 31, 2024 and 2023, respectively and 22.7% and (9.8)% for the nine months ended July 31, 2024 and 2023, 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. During the three and nine months ended July 31, 2024, HP recorded $3 million of net income tax charges and $14 million of net income tax benefits, respectively, related to discrete items in the provision for taxes. The nine months ended July 31, 2024 included benefits of $17 million related to the filing of tax returns in various jurisdictions. The three and nine months ended July 31, 2024 also included benefits of $10 million and $36 million related to restructuring charges, respectively. These benefits were partially offset by income tax charges of $19 million and $46 million related to uncertain tax positions for the three and nine months ended July 31, 2024, respectively. 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. Uncertain Tax Positions As of July 31, 2024, the amount of gross unrecognized tax benefits was $1.2 billion, of which up to $867 million would affect HP’s effective tax rate if realized. Total gross unrecognized tax benefits increased by $43 million for the nine months ended July 31, 2024. 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, 2024 and 2023, HP had accrued $130 million and $98 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 $21 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, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information Cash, cash equivalents and restricted cash As of July 31, 2024 October 31, 2023 In millions Cash and cash equivalents $ 2,785 $ 3,107 Restricted cash (1) 93 125 $ 2,878 $ 3,232 (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, 2024 In millions Balance at beginning of period $ 93 Benefit of allowance for credit losses (2) Deductions, net of recoveries (8) Balance at end of period $ 83 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, 2024 and October 31, 2023 were not material. The following is a summary of the activity under these arrangements: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Balance at beginning of period (1) $ 181 $ 174 $ 141 $ 185 Trade receivables sold 3,111 3,383 9,256 10,241 Cash receipts (2,983) (3,398) (9,089) (10,286) Foreign currency and other 3 — 4 19 Balance at end of period (1) $ 312 $ 159 $ 312 $ 159 (1) Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets. Inventory As of July 31, 2024 October 31, 2023 In millions Finished goods $ 3,946 $ 3,930 Purchased parts and fabricated assemblies 3,844 2,932 $ 7,790 $ 6,862 Other Current Assets As of July 31, 2024 October 31, 2023 In millions Supplier and other receivables $ 1,546 $ 1,349 Prepaid and other current assets 1,534 1,445 Value-added taxes receivable 908 852 $ 3,988 $ 3,646 Property, Plant and Equipment, Net As of July 31, 2024 October 31, 2023 In millions Land, buildings and leasehold improvements $ 2,456 $ 2,332 Machinery and equipment, including equipment held for lease 5,516 5,384 7,972 7,716 Accumulated depreciation (5,141) (4,889) $ 2,831 $ 2,827 Other Non-Current Assets As of July 31, 2024 October 31, 2023 In millions Deferred tax assets $ 3,131 $ 3,155 Intangible assets 1,365 1,593 Right-of-use assets 1,124 1,188 Deposits and prepaid 338 427 Prepaid pension and post-retirement benefit assets 355 393 Other 994 853 $ 7,307 $ 7,609 Other Current Liabilities As of July 31, 2024 October 31, 2023 In millions Sales and marketing programs $ 2,954 $ 3,053 Deferred revenue 1,377 1,424 Other accrued taxes 1,119 994 Employee compensation and benefit 881 1,046 Warranty 509 569 Operating lease liabilities 435 430 Tax liability 231 217 Other 2,694 2,479 $ 10,200 $ 10,212 Other Non-Current Liabilities As of July 31, 2024 October 31, 2023 In millions Deferred revenue $ 1,473 $ 1,324 Tax liability 869 904 Operating lease liabilities 749 825 Pension, post-retirement, and post-employment liabilities 523 546 Deferred tax liability 28 44 Other 537 688 $ 4,179 $ 4,331 Interest and Other, Net Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Interest expense on borrowings $ (111) $ (134) $ (343) $ (429) Factoring costs (38) (37) (117) (99) Net gain on debt extinguishment — 115 — 107 Non-operating retirement-related credits 4 14 10 40 Other, net 32 26 40 24 $ (113) $ (16) $ (410) $ (357) Net Revenue by Region Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Americas $ 6,086 $ 5,880 $ 17,085 $ 17,052 Europe, Middle East and Africa (“EMEA”) 4,420 4,285 13,461 13,330 Asia-Pacific and Japan 3,013 3,031 8,958 9,519 Total net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 Value of Remaining Performance Obligations As of July 31, 2024, the estimated value of transaction price allocated to remaining performance obligations was $3.9 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $2.2 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, 2024 and October 31, 2023, HP’s contract liabilities balances were $2.8 billion and $2.7 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, 2024, was primarily driven by sales of fixed-price support and maintenance services, partially offset by $1.1 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2023. Supplier Finance Program s HP facilitates voluntary supplier finance programs to provide certain suppliers the opportunity to sell their right to HP’s payment obligations to participating financial institutions. Under this program, HP agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. Participation by suppliers in these programs have no impact on the payment terms and amounts due from HP. HP does not have an economic interest in a supplier's participation in the program and is not a party to the agreement between the supplier and the financial institutions. In connection with these programs, HP does not pledge assets or other forms of guarantees as security for the committed payment to the participating financial institutions. For certain programs, HP pays a monthly service fee to a third-party administrato r that provides the supplier finance platform and related support. HP and the participating financial institutions may terminate the agreement upon at least 30 days notice. As of July 31, 2024 and October 31, 2023, HP had $7.4 billion and $6.6 billion respectively, in obligations outstanding (i.e., unpaid invoices) that were confirmed as valid under the supplier finance programs. Of the amounts confirmed as valid under the program and outstanding, the amounts owed to participating financial institutions were $1.0 billion and $0.9 billion as of July 31, 2024 and October 31, 2023, respectively. These obligations are included within the Accounts payable line item of HP’s Consolidated Condensed Balance Sheet . |
Fair Value
Fair Value | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 As of October 31, 2023 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 $ — $ 990 $ — $ 990 $ — $ 589 $ — $ 589 Government debt (1) 978 — — 978 1,900 — — 1,900 Available-for-Sale Investments: Financial institution instruments — 3 — 3 — 3 — 3 Marketable securities and mutual funds (2) 50 133 — 183 33 45 — 78 Derivative Instruments: Foreign currency contracts — 197 — 197 — 489 — 489 Other derivatives — 3 — 3 — — — — Total assets $ 1,028 $ 1,326 $ — $ 2,354 $ 1,933 $ 1,126 $ — $ 3,059 Liabilities: Derivative Instruments: Interest rate contracts $ — $ 34 $ — $ 34 $ — $ 58 $ — $ 58 Foreign currency contracts — 207 — 207 — 212 — 212 Other derivatives — — — — — 2 — 2 Total liabilities $ — $ 241 $ — $ 241 $ — $ 272 $ — $ 272 (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. (2) As of July 31, 2024, $82 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. 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 $9.4 billion as compared to its carrying amount of $9.6 billion at July 31, 2024. The fair value of HP’s short- and long-term debt was $8.5 billion as compared to its carrying value of $9.5 billion at October 31, 2023. 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, 2024 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents and Available-for-Sale Investments As of July 31, 2024 As of October 31, 2023 Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value In millions Cash Equivalents: Corporate debt $ 990 $ — $ — $ 990 $ 589 $ — $ — $ 589 Government debt 978 — — 978 1,900 — — 1,900 Total cash equivalents 1,968 — — 1,968 2,489 — — 2,489 Available-for-Sale Investments: Financial institution instruments 3 — — 3 3 — — 3 Marketable securities and mutual funds (1) 123 60 — 183 40 38 — 78 Total available-for-sale investments 126 60 — 186 43 38 — 81 Total cash equivalents and available-for-sale investments $ 2,094 $ 60 $ — $ 2,154 $ 2,532 $ 38 $ — $ 2,570 (1) As of July 31, 2024, $82 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. 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, 2024 and October 31, 2023, 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, 2024 Amortized Cost Fair Value In millions Due in one year $ 19 $ 19 Due in one to five years 66 66 $ 85 $ 85 Non-marketable equity securities in privately held companies are included in Other current and non-current assets in the Consolidated Condensed Balance Sheets. These amounted to $106 million and $111 million as of July 31, 2024 and October 31, 2023, 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, 2024. 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 the net fair value of financial instruments fluctuates from contractually established thresholds. 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 $103 million and $91 million as of July 31, 2024 and as of October 31, 2023, 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, 2024 and October 31, 2023. 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. During the nine months ended July 31, 2024, HP entered into a series of forward starting swap agreements with notional amounts totaling $250 million to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of long-term debt. These agreements were designated as cash flow hedges. 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, 2024 and 2023, 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, 2024 As of October 31, 2023 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 $ — $ — $ 18 $ 12 $ 750 $ — $ — $ — $ 58 Cash flow hedges: Foreign currency contracts 14,651 151 30 148 42 15,278 410 70 147 52 Interest rate contracts 250 — — — 4 — — — — — Total derivatives designated as hedging instruments 15,651 151 30 166 58 16,028 410 70 147 110 Derivatives not designated as hedging instruments Foreign currency contracts 3,809 16 — 17 — 4,446 9 — 13 — Other derivatives 149 3 — — — 125 — — 2 — Total derivatives not designated as hedging instruments 3,958 19 — 17 — 4,571 9 — 15 — Total derivatives $ 19,609 $ 170 $ 30 $ 183 $ 58 $ 20,599 $ 419 $ 70 $ 162 $ 110 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, 2024 and October 31, 2023, 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, 2024 Derivative assets $ 200 $ — $ 200 $ 135 $ 47 (1) $ 18 Derivative liabilities $ 241 $ — $ 241 $ 135 $ 107 (2) $ (1) As of October 31, 2023 Derivative assets $ 489 $ — $ 489 $ 178 $ 291 (1) $ 20 Derivative liabilities $ 272 $ — $ 272 $ 178 $ 89 (2) $ 5 (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 2024 $ (113) $ 13 $ (13) 2023 $ (16) $ (6) $ 6 Nine months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2024 $ (410) $ 28 $ (28) 2023 $ (357) $ 15 $ (15) 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 2024 2023 2024 2023 In millions Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives: Foreign currency contracts $ (33) $ (68) $ (44) $ (757) Interest rate contracts (3) — (3) — Total $ (36) $ (68) $ (47) $ (757) 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 2024 2023 2024 2023 2024 2023 2024 2023 In millions Net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 $ 117 $ (37) $ 355 $ 240 Cost of revenue (10,613) (10,374) (30,687) (31,378) (33) (33) (109) (142) Operating expenses (1,966) (1,870) (5,990) (6,081) — (1) (4) (3) Interest and other, net (113) (16) (410) (357) 3 3 9 9 Total $ 87 $ (68) $ 251 $ 104 As of July 31, 2024, HP expects to reclassify an estimated accumulated other comprehensive loss of $26 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 as follows: Gain/(loss) recognized in earnings on derivative instrument Three months ended July 31 Nine months ended July 31 Location 2024 2023 2024 2023 In millions Foreign currency contracts Interest and other, net $ 16 $ (37) $ 23 $ (76) Other derivatives Interest and other, net 7 5 5 5 Total $ 23 $ (32) $ 28 $ (71) |
Borrowings
Borrowings | 9 Months Ended |
Jul. 31, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Notes Payable and Short-Term Borrowings As of July 31, 2024 As of October 31, 2023 Amount Weighted-Average Amount Weighted-Average In millions Current portion of long-term debt $ 1,335 4.9 % $ 179 6.0 % Notes payable to banks, lines of credit and other 61 0.8 % 51 1.0 % Total notes payable and short-term borrowings $ 1,396 $ 230 Long-Term Debt As of July 31, 2024 October 31, 2023 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 2.20%, due June 2025 1,149 1,149 $1,000 issued at discount to par at a price of 99.718% at 3.00%, due June 2027 999 999 $850 issued at discount to par at a price of 99.790% at 3.40%, due June 2030 503 503 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 521 521 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 997 997 $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 676 676 $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 1,098 1,097 $500 issued at par at a price of 100% at 4.75%, due March 2029 3 3 9,043 9,042 Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 599 506 Fair value adjustment related to hedged debt (30) (58) Unamortized debt issuance cost (48) (57) Current portion of long-term debt (1,335) (179) Total long-term debt $ 8,229 $ 9,254 (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. 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. Commercial Paper As of July 31, 2024, 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, 2024, HP maintained a $5.0 billion sustainability-linked senior unsecured committed revolving credit facility, which HP entered into in May 2021. Commitments under the revolving credit facility were available until May 26, 2026. Commitment fees, interest rates and other terms of borrowing under the revolving credit facility varied based on HP’s external credit ratings and certain sustainability metrics. Funds borrowed under the revolving credit facility were permitted to be used for general corporate purposes. As of July 31, 2024, HP was in compliance with the covenants in the credit agreement governing the revolving credit facility. On August 1, 2024, HP entered into a new $5.0 billion 5-year sustainability-linked senior unsecured committed revolving credit facility (the “New Revolving Facility”). Commitments under the New Revolving Facility will be available until August 1, 2029. Commitment fees, interest rates and other terms of borrowing under the New Revolving Facility vary based on HP’s external credit ratings and certain sustainability metrics. Funds borrowed under the New Revolving Facility may be used for general corporate purposes. Commitments under the existing $5.0 billion sustainability-linked senior unsecured committed revolving credit facility were terminated concurrently with the execution of the New Revolving Facility. Available Borrowing Resources As of July 31, 2024, HP had available borrowing resources of $0.9 billion from uncommitted lines of credit in addition to the full capacity of the revolving credit facility. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jul. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Share Repurchase Program HP’s share repurchase program authorizes both open market and private repurchase transactions. During the three and nine months ended July 31, 2024, HP executed share repurchases of 17.0 million and 37.5 million shares and settled total shares for $0.6 billion and $1.2 billion, respectively. Share repurchases executed during the three and nine months ended July 31, 2024 included 0.2 million shares settled in August 2024. 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. The shares repurchased during the nine months ended July 31, 2024 and 2023 were all open market repurchase transactions. As of July 31, 2024, HP had approximately $0.8 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors. On August 27, 2024, HP’s Board of Directors increased HP’s share repurchase authorization to $10 billion in total. Taxes Related to Other Comprehensive Income (Loss) Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Tax effect on change in unrealized components of available-for-sale debt securities: Tax provision on unrealized losses arising during the period $ (1) $ — $ (1) $ (1) Tax effect on change in unrealized components of cash flow hedges: Tax benefit on unrealized gains arising during the period 8 18 12 144 Tax provision (benefit) on losses (gains) reclassified into earnings 19 (15) 49 22 27 3 61 166 Tax effect on change in unrealized components of defined benefit plans: Tax provision on gains arising during the period — — (3) (1) Tax provision on curtailments, settlements and other (2) — (3) — (2) — (6) (1) Tax benefit on other comprehensive income (loss) $ 24 $ 3 $ 54 $ 164 Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Other comprehensive (loss) income, net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized gains arising during the period $ 2 $ 1 $ 6 $ 4 Change in unrealized components of cash flow hedges: Unrealized losses arising during the period (28) (50) (35) (613) (Gains) losses reclassified into earnings (68) 53 (202) (82) (96) 3 (237) (695) Change in unrealized components of defined benefit plans: Gains arising during the period — — 10 4 Amortization of actuarial loss and prior service benefit (1) 1 — 5 — Curtailments, settlements and other (1) — (1) — — — 14 4 Change in cumulative translation adjustment 11 10 25 48 Other comprehensive income (loss), net of taxes $ (83) $ 14 $ (192) $ (639) (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 (loss) income, net of taxes and changes were as follows: Nine months ended July 31, 2024 Net unrealized Net unrealized gains (losses) on cash Unrealized Change in cumulative Accumulated In millions Balance at beginning of period $ 7 $ 230 $ (437) $ (23) $ (223) Other comprehensive gains (losses) before reclassifications 6 (35) 10 25 6 Reclassifications of (gains) losses into earnings — (202) 5 — (197) Reclassifications of settlements into earnings — — (1) — (1) Balance at end of period $ 13 $ (7) $ (423) $ 2 $ (415) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share HP calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock units, stock options, performance-based awards and shares purchased under the 2021 employee stock purchase plan. A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions, except per share amounts Numerator: Net earnings $ 640 $ 766 $ 1,869 $ 2,289 Denominator: Weighted-average shares used to compute basic net EPS 979 993 986 991 Dilutive effect of employee stock plans 11 9 8 8 Weighted-average shares used to compute diluted net EPS 990 1,002 994 999 Net earnings per share: Basic $ 0.65 $ 0.77 $ 1.90 $ 2.31 Diluted $ 0.65 $ 0.76 $ 1.88 $ 2.29 Anti-dilutive weighted-average stock-based compensation awards (1) — 3 2 5 (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, 2024 | |
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, 2024, 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. 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. On August 10, 2023, HP filed a motion for summary judgment of indefiniteness for all asserted claims. On July 1, 2024, the district court denied the motion without prejudice to renew. 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 (“Securities Class Action”). 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 July 21, 2023, HP and the named officers filed a renewed motion to dismiss. On March 27, 2024, the district court issued an order granting in part and denying in part the motion to dismiss. On August 8, 2024, the Court of Appeals for the Ninth Circuit granted HP’s petition for permission to appeal. 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. On May 31, 2024, the court adopted a stipulation in which the derivative plaintiffs and defendants agreed to consolidate the derivative proceedings, close the Lovoi action, and extend the current stay through summary judgment in the Securities Class Action. 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 appealed and the court of appeal has taken the matter under submission. In addition, two putative class actions have been filed against HP in federal court in California, in December 2020, April 2022, and one in federal court in Illinois, in January 2024, arising out of the use of Dynamic Security firmware updates in HP Laserjet printers, in HP Inkjet printers, and in both, respectively. Plaintiffs in these cases seek compensatory damages, restitution, injunctive relief against alleged unfair and anticompetitive business practices, and other relief. In the case directed to Laserjet printers, plaintiffs filed a motion for class certification, and, on December 8, 2023, the court entered an order denying in full plaintiffs’ request to certify a damages class and granting certification of a narrowed injunctive relief class composed of those who did not see HP’s disclosures. In its order, the court declined at this juncture to resolve the merits of the sufficiency of HP’s disclosures. The other cases are in their early stages. Autonomy-Related Legal Proceedings . As the result of an internal investigation, HP obtained information about certain accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred before and in connection with its 2011 acquisition of Autonomy. 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, for breach of their fiduciary duties in causing Autonomy group companies to engage in improper transactions and accounting practices. The claims seek more than $5 billion in damages. Messrs. Lynch and Hussain filed defenses and Mr. Lynch filed a counterclaim seeking $160 million in damages for alleged misstatements regarding Lynch. Trial concluded in January 2020. On May 17, 2022, the court issued its final judgment, finding that HP succeeded on substantially all claims and that Messrs. Lynch and Hussein engaged in fraud, and dismissing Mr. Lynch’s counterclaim. The court deferred its damages ruling to a later, separate judgment to be issued after further proceedings, but indicated that damages awarded may be substantially less than is claimed. The court held a two-week trial on damages in February 2024 and took the matter of damages under submission. 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. In addition, Messrs. Hussein and Lynch, and Stephen Chamberlain, former VP of Finance of Autonomy, were each indicted on federal criminal charges in the Northern District of California. On April 30, 2018, a jury found Mr. Hussein guilty of conspiracy to commit wire fraud, securities fraud, and multiple counts of wire fraud, and that judgment was affirmed on appeal in August 2020. A jury acquitted Messrs. Lynch and Chamberlain for conspiracy to commit wire fraud and wire fraud on June 6, 2024. Nokia Patent Litigation . On October 31, 2023, Nokia filed a complaint for patent infringement against HP in federal court for the District of Delaware asserting ten patents and filed two companion complaints with the U.S. International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act against HP, asserting seven of the ten patents asserted in the federal court case. The complaints allege that HP products that are compliant with certain video coding technology standards, including Advanced Video Coding (H.264) or High Efficiency Video Coding (H.265) standards, infringe Nokia’s patents. In November 2023, the ITC instituted investigations on Nokia’s complaints. On December 11, 2023, HP filed counterclaims against Nokia in the Delaware action, including claims that Nokia violated its commitments to license standard-essential patents on fair, reasonable, and non-discriminatory (“FRAND”) terms, and seeking a court determination of the proper FRAND rate. Nokia’s patent litigation against HP also includes a lawsuit filed in November 2023 against HP and six of its subsidiaries in the European Unified Patent Court (“UPC”) in Germany, 2 lawsuits filed in November 2023 but served in January 2024 against HP and its German subsidiary in state court in Munich, Germany, and a lawsuit filed on December 1, 2023, against a subsidiary, HP Brasil Indústria e Comércio de Equipamentos Eletrônicos Ltda. (“HP Brazil”), in the state court in Rio de Janeiro in Brazil. In Brazil, Nokia alleged that HP’s products contain “skip mode” technology compatible with H.264 video standards that infringes one of Nokia’s Brazilian patents. On December 4, 2023, before HP had received service of the lawsuit, the court granted Nokia an ex parte preliminary injunction against HP Brazil’s commercialization of such products in Brazil. HP appealed the injunction and asked the appellate court to suspend its enforcement. On August 14, 2024, the Brazilian appellate court denied HP’s interlocutory appeal of the preliminary injunction, leaving it unchanged because HP allegedly faces no immediate harm. HP intends to appeal. If HP is not successful in challenging the preliminary injunction, it may take effect and remain in place until the state court revokes or modifies it, or the case is resolved. On January 31, 2024, HP Brazil filed its defense and separately filed a nullity action to invalidate the patent. From July 24-31, 2024, the ITC held the hearing in the first investigation, with an initial decision due on December 9, 2024 and final decision due on April 7, 2025. In the second ITC investigation, the hearing is scheduled for September 9-13, 2024, with an initial determination due on December 20, 2024 and a final determination due on April 21, 2025. Hearings in Germany before the state court in Munich are scheduled for November 21 and December 5, 2024. The hearing before the UPC may be held in early 2025. If HP is not successful in its defenses, it may be subject to injunctions, orders to recall products in Germany and other EU countries, or licensing demands to avoid potential disruptions to its business. R2 Semiconductor Litigation . In November 2022, R2 Semiconductor, Inc. (“R2”) filed a lawsuit in the Dusseldorf Regional Court in Germany against Intel Deutschland GmbH, HP Deutschland GmbH and certain other Intel customers. R2 asserts one European patent is infringed by HP’s products that contain certain Intel processors. R2 seeks an injunction prohibiting the sale of the alleged infringing products. Intel has agreed to defend and indemnify HP and its affiliates against certain losses incurred by HP in connection with the alleged infringement. The Dusseldorf Regional Court conducted a trial on December 7, 2023 and issued an adverse judgment on February 7, 2024. The Court’s judgment imposes an injunction prohibiting sales of the accused products in Germany, an order to stop all other infringing actions, and an order to issue a communication to commercial customers recalling the relevant products sold since March 5, 2020, which could take effect upon notice of R2’s payment of the required sureties and remain in place unless stayed or overturned on appeal or the parties reach an agreement. On February 8, 2024, HP filed an appeal and request for a stay of the judgment pending appeal. On April 3, 2024, R2 filed a lawsuit in France in the first instance court in Paris (Tribunal judiciare de Paris) against Intel Corporation, Intel Corporation SAS, Intel Deutschland GmbH, HP France SAS and certain other Intel customers. R2 asserts the same European patent is infringed. On August 2, 2024, Intel disclosed in its report for the quarter ended June 29, 2024 filed with the U.S. Securities & Exchange Commission that it is in negotiations with R2 and related parties to resolve the injunction enforcement risk and related pending litigation. Given the procedural posture, the nature of the cases, and the relationship with Intel, HP is unable to make a reasonable estimate of the potential loss or range of losses that might arise from this lawsuit and that would not be indemnifiable by Intel. Litigation with Access Advance Patent Pool regarding video codecs . Access Advance LLC (“Access Advance”) is an independent licensing administrator formed to license allegedly essential patents for standards-based video codecs, which it licenses through various licensing pools. In late 2023, members of Access Advance’s HEVC Advance patent pool launched a patent litigation campaign against HP in Germany and Europe. To date, three pool members, Dolby, Mitsubishi Electric (“Mitsubishi”) and Konikijke Philips N.V. (“Philips”) have each filed patent infringement lawsuits against HP and various affiliates. Specifically, Dolby filed a lawsuit against HP and 14 affiliates in the new Unified Patent Court (UPC) in Düsseldorf, and Mitsubishi and Philips each filed a lawsuit against HP and two affiliates in the State Court in Munich, Germany. The complaints allege that HP products that are compliant with the High Efficiency Video Coding (H.265) standard infringe the pool members' respective patents, seek an injunction, and allege that HP has failed to act as a willing licensee of HEVC essential patents based on HP's negotiations with Access Advance. If HP is not successful in its defenses in these suits, it may be subject to injunctions, recall orders, and claims for damages or face licensing demands to avoid potential disruptions to its business. HP has filed a countersuit against Access Advance, Mitsubishi, Philips, and Dolby in Massachusetts state court. In its complaint, HP alleges Access Advance, Dolby, Mitsubishi, and Philips have breached their obligations to license their patents on reasonable and nondiscriminatory terms and asks the court to order the defendants to offer a license to their patents on such terms. 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, 2024 | |
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, 2024 In millions Balance at beginning of period $ 706 Accruals for warranties issued 524 Adjustments related to pre-existing warranties (including changes in estimates) 31 Settlements made (in cash or in kind) (680) Balance at end of period $ 581 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2024 | Apr. 30, 2024 | Jan. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net earnings | $ 640 | $ 607 | $ 622 | $ 766 | $ 1,054 | $ 469 | $ 1,869 | $ 2,289 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Jul. 31, 2024 shares | Jul. 31, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Enrique Lores [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Our directors and officers (as defined in Exchange Act Rule 16a-1(f)) may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Exchange Act. On June 10, 2024, Enrique Lores, our President and Chief Executive Officer, adopted a written plan for the sale of up to (i) 317,252 shares of our common stock underlying employee stock options; (ii) 167,098 shares of our common stock underlying time-based restricted stock units; (iii) 54,221 shares of our common stock underlying performance adjusted restricted stock units, plus any additional shares that vest based on the achievement of the relevant performance criteria; and (iv) shares of our common stock underlying any dividend equivalent units that accrue with respect to these awards. The plan is scheduled to commence on September 12, 2024 and is scheduled to expire on June 30, 2025, or on any earlier date on which all of the shares have been sold. The plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. | |
Name | Enrique Lores | |
Title | President and Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 10, 2024 | |
Expiration Date | June 30, 2025 | |
Arrangement Duration | 291 days | |
Enrique Lores Trading Arrangement, Common Stock Underlying Employee Stock Options [Member] | Enrique Lores [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 317,252 | 317,252 |
Enrique Lores Trading Arrangement, Common Stock Underlying Time-Based Restricted Stock Units [Member] | Enrique Lores [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 167,098 | 167,098 |
Enrique Lores Trading Arrangement, Common Stock Underlying Performance Adjusted Restricted Stock Units [Member] | Enrique Lores [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 54,221 | 54,221 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2023 in HP’s Annual Report on Form 10-K, filed on December 18, 2023. The Consolidated Condensed Balance Sheet for October 31, 2023 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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“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 are required to disclose information about those programs to allow users of financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude. HP adopted this guidance in the first quarter of fiscal year 2024, except for the disclosure on roll forward information which will be adopted in fiscal year 2025, in line with the effective adoption dates prescribed by the FASB. See Note 6, “Supplementary Financial Information,” for additional disclosure related to HP’s supplier finance programs. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued guidance that enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. HP is required to adopt this guidance for its annual period ending October 31, 2026. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. In November 2023, the FASB issued guidance that updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance on an annual and interim basis. HP is required to adopt this guidance for its annual period ending October 31, 2025 and all interim periods thereafter. Early adoption is permitted. HP is currently evaluating the impact of this guidance on its disclosures. |
Segment Information | 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 and amortization of intangible assets. |
Employer Contributions and Funding Policy | 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. |
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, 2024 and October 31, 2023 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 $9.4 billion as compared to its carrying amount of $9.6 billion at July 31, 2024. The fair value of HP’s short- and long-term debt was $8.5 billion as compared to its carrying value of $9.5 billion at October 31, 2023. 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 current and 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 the net fair value of financial instruments fluctuates from contractually established thresholds. 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 $103 million and $91 million as of July 31, 2024 and as of October 31, 2023, 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, 2024 and October 31, 2023. 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. During the nine months ended July 31, 2024, HP entered into a series of forward starting swap agreements with notional amounts totaling $250 million to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of long-term debt. These agreements were designated as cash flow hedges. 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 Instruments |
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, 2024, 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, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Revenue from Segment Operating Results to HP Consolidated Results | Segment Operating Results and the reconciliation to HP consolidated results were as follows: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Net revenue: Commercial PS $ 6,677 $ 6,201 $ 18,964 $ 18,499 Consumer PS 2,692 2,731 7,640 7,787 Personal Systems 9,369 8,932 26,604 26,286 Supplies 2,703 2,768 8,430 8,631 Commercial Printing 1,147 1,208 3,579 3,969 Consumer Printing 293 287 877 1,011 Printing 4,143 4,263 12,886 13,611 Corporate Investments 7 1 14 5 Total segment net revenue 13,519 13,196 39,504 39,902 Other — — — (1) Total net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 Earnings before taxes: Personal Systems $ 599 $ 592 $ 1,644 $ 1,498 Printing 715 794 2,416 2,563 Corporate Investments (28) (32) (95) (103) Total segment earnings from operations 1,286 1,354 3,965 3,958 Corporate and unallocated costs and other (101) (97) (278) (280) Stock-based compensation expense (96) (91) (367) (353) Restructuring and other charges (46) (75) (180) (416) Acquisition and divestiture charges (22) (48) (71) (205) Amortization of intangible assets (81) (91) (242) (262) Interest and other, net (113) (16) (410) (357) Total earnings before taxes $ 827 $ 936 $ 2,417 $ 2,085 |
Schedule of Reconciliation of Operating Profit (Loss) from Segment Operating Results to HP Consolidated Results | Segment Operating Results and the reconciliation to HP consolidated results were as follows: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Net revenue: Commercial PS $ 6,677 $ 6,201 $ 18,964 $ 18,499 Consumer PS 2,692 2,731 7,640 7,787 Personal Systems 9,369 8,932 26,604 26,286 Supplies 2,703 2,768 8,430 8,631 Commercial Printing 1,147 1,208 3,579 3,969 Consumer Printing 293 287 877 1,011 Printing 4,143 4,263 12,886 13,611 Corporate Investments 7 1 14 5 Total segment net revenue 13,519 13,196 39,504 39,902 Other — — — (1) Total net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 Earnings before taxes: Personal Systems $ 599 $ 592 $ 1,644 $ 1,498 Printing 715 794 2,416 2,563 Corporate Investments (28) (32) (95) (103) Total segment earnings from operations 1,286 1,354 3,965 3,958 Corporate and unallocated costs and other (101) (97) (278) (280) Stock-based compensation expense (96) (91) (367) (353) Restructuring and other charges (46) (75) (180) (416) Acquisition and divestiture charges (22) (48) (71) (205) Amortization of intangible assets (81) (91) (242) (262) Interest and other, net (113) (16) (410) (357) Total earnings before taxes $ 827 $ 936 $ 2,417 $ 2,085 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities by Plan | HP’s restructuring activities 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, 2023 $ 88 $ 18 $ 2 $ 108 Charges 120 8 4 132 Cash payments (141) (11) (4) (156) Non-cash and other adjustments — (3) (2) (5) Accrued balance as of July 31, 2024 $ 67 $ 12 $ — $ 79 Total costs incurred to date as of July 31, 2024 $ 522 $ 49 $ 870 $ 1,441 Reflected in Consolidated Condensed Balance Sheets Other current liabilities $ 67 $ 3 $ — $ 70 Other non-current liabilities $ — $ 9 $ — $ 9 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 HP’s restructuring charges for the three months ended July 31, 2024 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, 2024 $ 27 $ 2 $ 1 $ 30 (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 liabilities 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, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Pension and Post-Retirement Benefit (Credit) | 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 2024 2023 2024 2023 2024 2023 In millions Service cost $ — $ — $ 9 $ 10 $ 1 $ 1 Interest cost 57 54 11 10 4 4 Expected return on plan assets (61) (65) (13) (13) (4) (4) Amortization and deferrals: Actuarial loss (gain) 6 4 — 1 (3) (4) Prior service cost (credit) — — 1 1 (3) (2) Net periodic benefit (credit) cost 2 (7) 8 9 (5) (5) Settlement gain (loss) — — 1 — — — Special termination benefit cost — — — — — — Total periodic benefit (credit) cost $ 2 $ (7) $ 9 $ 9 $ (5) $ (5) Nine months ended July 31 U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans Post- Retirement Benefit Plans 2024 2023 2024 2023 2024 2023 In millions Service cost $ — $ — $ 27 $ 30 $ 1 $ 1 Interest cost 171 163 34 30 12 11 Expected return on plan assets (184) (194) (39) (39) (12) (10) Amortization and deferrals: Actuarial loss (gain) 20 13 — 3 (11) (12) Prior service cost (credit) — — 4 4 (8) (8) Net periodic benefit (credit) cost 7 (18) 26 28 (18) (18) Settlement loss — — 2 — — — Special termination benefit cost — 105 — — — 34 Total periodic benefit (credit) cost $ 7 $ 87 $ 28 $ 28 $ (18) $ 16 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash As of July 31, 2024 October 31, 2023 In millions Cash and cash equivalents $ 2,785 $ 3,107 Restricted cash (1) 93 125 $ 2,878 $ 3,232 (1) Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold. |
Schedule of Restricted Cash | Cash, cash equivalents and restricted cash As of July 31, 2024 October 31, 2023 In millions Cash and cash equivalents $ 2,785 $ 3,107 Restricted cash (1) 93 125 $ 2,878 $ 3,232 (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 Credit Losses Related to Accounts Receivable and Changes | The allowance for credit losses related to accounts receivable and changes were as follows: Nine months ended July 31, 2024 In millions Balance at beginning of period $ 93 Benefit of allowance for credit losses (2) Deductions, net of recoveries (8) Balance at end of period $ 83 |
Schedule of Trade Receivables Sold and Cash Received | The following is a summary of the activity under these arrangements: Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Balance at beginning of period (1) $ 181 $ 174 $ 141 $ 185 Trade receivables sold 3,111 3,383 9,256 10,241 Cash receipts (2,983) (3,398) (9,089) (10,286) Foreign currency and other 3 — 4 19 Balance at end of period (1) $ 312 $ 159 $ 312 $ 159 (1) Amounts outstanding from third parties reported in Accounts receivable in the Consolidated Condensed Balance Sheets. |
Schedule of Inventory | Inventory As of July 31, 2024 October 31, 2023 In millions Finished goods $ 3,946 $ 3,930 Purchased parts and fabricated assemblies 3,844 2,932 $ 7,790 $ 6,862 |
Schedule of Other Current Assets | Other Current Assets As of July 31, 2024 October 31, 2023 In millions Supplier and other receivables $ 1,546 $ 1,349 Prepaid and other current assets 1,534 1,445 Value-added taxes receivable 908 852 $ 3,988 $ 3,646 |
Schedule of Property, Plant and Equipment, Net | Property, Plant and Equipment, Net As of July 31, 2024 October 31, 2023 In millions Land, buildings and leasehold improvements $ 2,456 $ 2,332 Machinery and equipment, including equipment held for lease 5,516 5,384 7,972 7,716 Accumulated depreciation (5,141) (4,889) $ 2,831 $ 2,827 |
Schedule of Other Non-Current Assets | Other Non-Current Assets As of July 31, 2024 October 31, 2023 In millions Deferred tax assets $ 3,131 $ 3,155 Intangible assets 1,365 1,593 Right-of-use assets 1,124 1,188 Deposits and prepaid 338 427 Prepaid pension and post-retirement benefit assets 355 393 Other 994 853 $ 7,307 $ 7,609 |
Schedule of Other Current Liabilities | Other Current Liabilities As of July 31, 2024 October 31, 2023 In millions Sales and marketing programs $ 2,954 $ 3,053 Deferred revenue 1,377 1,424 Other accrued taxes 1,119 994 Employee compensation and benefit 881 1,046 Warranty 509 569 Operating lease liabilities 435 430 Tax liability 231 217 Other 2,694 2,479 $ 10,200 $ 10,212 |
Schedule of Other Non-Current Liabilities | Other Non-Current Liabilities As of July 31, 2024 October 31, 2023 In millions Deferred revenue $ 1,473 $ 1,324 Tax liability 869 904 Operating lease liabilities 749 825 Pension, post-retirement, and post-employment liabilities 523 546 Deferred tax liability 28 44 Other 537 688 $ 4,179 $ 4,331 |
Schedule of Interest and Other, Net | Interest and Other, Net Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Interest expense on borrowings $ (111) $ (134) $ (343) $ (429) Factoring costs (38) (37) (117) (99) Net gain on debt extinguishment — 115 — 107 Non-operating retirement-related credits 4 14 10 40 Other, net 32 26 40 24 $ (113) $ (16) $ (410) $ (357) |
Schedule of Net Revenue by Region | Net Revenue by Region Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Americas $ 6,086 $ 5,880 $ 17,085 $ 17,052 Europe, Middle East and Africa (“EMEA”) 4,420 4,285 13,461 13,330 Asia-Pacific and Japan 3,013 3,031 8,958 9,519 Total net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 As of October 31, 2023 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 $ — $ 990 $ — $ 990 $ — $ 589 $ — $ 589 Government debt (1) 978 — — 978 1,900 — — 1,900 Available-for-Sale Investments: Financial institution instruments — 3 — 3 — 3 — 3 Marketable securities and mutual funds (2) 50 133 — 183 33 45 — 78 Derivative Instruments: Foreign currency contracts — 197 — 197 — 489 — 489 Other derivatives — 3 — 3 — — — — Total assets $ 1,028 $ 1,326 $ — $ 2,354 $ 1,933 $ 1,126 $ — $ 3,059 Liabilities: Derivative Instruments: Interest rate contracts $ — $ 34 $ — $ 34 $ — $ 58 $ — $ 58 Foreign currency contracts — 207 — 207 — 212 — 212 Other derivatives — — — — — 2 — 2 Total liabilities $ — $ 241 $ — $ 241 $ — $ 272 $ — $ 272 (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. (2) As of July 31, 2024, $82 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 As of October 31, 2023 Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value In millions Cash Equivalents: Corporate debt $ 990 $ — $ — $ 990 $ 589 $ — $ — $ 589 Government debt 978 — — 978 1,900 — — 1,900 Total cash equivalents 1,968 — — 1,968 2,489 — — 2,489 Available-for-Sale Investments: Financial institution instruments 3 — — 3 3 — — 3 Marketable securities and mutual funds (1) 123 60 — 183 40 38 — 78 Total available-for-sale investments 126 60 — 186 43 38 — 81 Total cash equivalents and available-for-sale investments $ 2,094 $ 60 $ — $ 2,154 $ 2,532 $ 38 $ — $ 2,570 (1) As of July 31, 2024, $82 million of debt securities were restricted to fund benefits received by qualifying employees under a sponsored defined benefit plan. |
Schedule of Contractual Maturities of Investments in Available-for-Sale Debt Securities | Contractual maturities of investments in available-for-sale debt securities were as follows: As of July 31, 2024 Amortized Cost Fair Value In millions Due in one year $ 19 $ 19 Due in one to five years 66 66 $ 85 $ 85 |
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, 2024 As of October 31, 2023 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 $ — $ — $ 18 $ 12 $ 750 $ — $ — $ — $ 58 Cash flow hedges: Foreign currency contracts 14,651 151 30 148 42 15,278 410 70 147 52 Interest rate contracts 250 — — — 4 — — — — — Total derivatives designated as hedging instruments 15,651 151 30 166 58 16,028 410 70 147 110 Derivatives not designated as hedging instruments Foreign currency contracts 3,809 16 — 17 — 4,446 9 — 13 — Other derivatives 149 3 — — — 125 — — 2 — Total derivatives not designated as hedging instruments 3,958 19 — 17 — 4,571 9 — 15 — Total derivatives $ 19,609 $ 170 $ 30 $ 183 $ 58 $ 20,599 $ 419 $ 70 $ 162 $ 110 |
Schedule of Information Related to the Potential Effect of Entity's Master Netting Agreements and Collateral Security Agreements, Offsetting Assets | As of July 31, 2024 and October 31, 2023, 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, 2024 Derivative assets $ 200 $ — $ 200 $ 135 $ 47 (1) $ 18 Derivative liabilities $ 241 $ — $ 241 $ 135 $ 107 (2) $ (1) As of October 31, 2023 Derivative assets $ 489 $ — $ 489 $ 178 $ 291 (1) $ 20 Derivative liabilities $ 272 $ — $ 272 $ 178 $ 89 (2) $ 5 (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 Information Related to the Potential Effect of Entity's Master Netting Agreements and Collateral Security Agreements, Offsetting Liabilities | As of July 31, 2024 and October 31, 2023, 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, 2024 Derivative assets $ 200 $ — $ 200 $ 135 $ 47 (1) $ 18 Derivative liabilities $ 241 $ — $ 241 $ 135 $ 107 (2) $ (1) As of October 31, 2023 Derivative assets $ 489 $ — $ 489 $ 178 $ 291 (1) $ 20 Derivative liabilities $ 272 $ — $ 272 $ 178 $ 89 (2) $ 5 (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 2024 $ (113) $ 13 $ (13) 2023 $ (16) $ (6) $ 6 Nine months ended July 31 Interest rate contract Fixed-rate debt Interest and other, net 2024 $ (410) $ 28 $ (28) 2023 $ (357) $ 15 $ (15) |
Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships Included in Accumulated Other Comprehensive (Loss) Income | 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 2024 2023 2024 2023 In millions Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives: Foreign currency contracts $ (33) $ (68) $ (44) $ (757) Interest rate contracts (3) — (3) — Total $ (36) $ (68) $ (47) $ (757) |
Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships Included in Earnings | 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 2024 2023 2024 2023 2024 2023 2024 2023 In millions Net revenue $ 13,519 $ 13,196 $ 39,504 $ 39,901 $ 117 $ (37) $ 355 $ 240 Cost of revenue (10,613) (10,374) (30,687) (31,378) (33) (33) (109) (142) Operating expenses (1,966) (1,870) (5,990) (6,081) — (1) (4) (3) Interest and other, net (113) (16) (410) (357) 3 3 9 9 Total $ 87 $ (68) $ 251 $ 104 |
Schedule of Pre-Tax Effect of Derivative Instruments Not Designated as Hedging Instruments Recognized in Interest and Other, Net in 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 as follows: Gain/(loss) recognized in earnings on derivative instrument Three months ended July 31 Nine months ended July 31 Location 2024 2023 2024 2023 In millions Foreign currency contracts Interest and other, net $ 16 $ (37) $ 23 $ (76) Other derivatives Interest and other, net 7 5 5 5 Total $ 23 $ (32) $ 28 $ (71) |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Short-Term Borrowings | Notes Payable and Short-Term Borrowings As of July 31, 2024 As of October 31, 2023 Amount Weighted-Average Amount Weighted-Average In millions Current portion of long-term debt $ 1,335 4.9 % $ 179 6.0 % Notes payable to banks, lines of credit and other 61 0.8 % 51 1.0 % Total notes payable and short-term borrowings $ 1,396 $ 230 |
Schedule of Long-Term Debt | Long-Term Debt As of July 31, 2024 October 31, 2023 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 2.20%, due June 2025 1,149 1,149 $1,000 issued at discount to par at a price of 99.718% at 3.00%, due June 2027 999 999 $850 issued at discount to par at a price of 99.790% at 3.40%, due June 2030 503 503 $1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 521 521 $1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 (2) 997 997 $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 676 676 $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 1,098 1,097 $500 issued at par at a price of 100% at 4.75%, due March 2029 3 3 9,043 9,042 Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 599 506 Fair value adjustment related to hedged debt (30) (58) Unamortized debt issuance cost (48) (57) Current portion of long-term debt (1,335) (179) Total long-term debt $ 8,229 $ 9,254 (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. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Taxes Related to Other Comprehensive Income (Loss) | Taxes Related to Other Comprehensive Income (Loss) Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Tax effect on change in unrealized components of available-for-sale debt securities: Tax provision on unrealized losses arising during the period $ (1) $ — $ (1) $ (1) Tax effect on change in unrealized components of cash flow hedges: Tax benefit on unrealized gains arising during the period 8 18 12 144 Tax provision (benefit) on losses (gains) reclassified into earnings 19 (15) 49 22 27 3 61 166 Tax effect on change in unrealized components of defined benefit plans: Tax provision on gains arising during the period — — (3) (1) Tax provision on curtailments, settlements and other (2) — (3) — (2) — (6) (1) Tax benefit on other comprehensive income (loss) $ 24 $ 3 $ 54 $ 164 |
Schedule of Changes and Reclassifications Related to Other Comprehensive (Loss) Income, Net of Taxes | Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes Three months ended July 31 Nine months ended July 31 2024 2023 2024 2023 In millions Other comprehensive (loss) income, net of taxes: Change in unrealized components of available-for-sale debt securities: Unrealized gains arising during the period $ 2 $ 1 $ 6 $ 4 Change in unrealized components of cash flow hedges: Unrealized losses arising during the period (28) (50) (35) (613) (Gains) losses reclassified into earnings (68) 53 (202) (82) (96) 3 (237) (695) Change in unrealized components of defined benefit plans: Gains arising during the period — — 10 4 Amortization of actuarial loss and prior service benefit (1) 1 — 5 — Curtailments, settlements and other (1) — (1) — — — 14 4 Change in cumulative translation adjustment 11 10 25 48 Other comprehensive income (loss), net of taxes $ (83) $ 14 $ (192) $ (639) (1) These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans”. |
Schedule of Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes and Changes | The components of Accumulated other comprehensive (loss) income, net of taxes and changes were as follows: Nine months ended July 31, 2024 Net unrealized Net unrealized gains (losses) on cash Unrealized Change in cumulative Accumulated In millions Balance at beginning of period $ 7 $ 230 $ (437) $ (23) $ (223) Other comprehensive gains (losses) before reclassifications 6 (35) 10 25 6 Reclassifications of (gains) losses into earnings — (202) 5 — (197) Reclassifications of settlements into earnings — — (1) — (1) Balance at end of period $ 13 $ (7) $ (423) $ 2 $ (415) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Number of Shares Used for Basic and Diluted Net EPS 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 2024 2023 2024 2023 In millions, except per share amounts Numerator: Net earnings $ 640 $ 766 $ 1,869 $ 2,289 Denominator: Weighted-average shares used to compute basic net EPS 979 993 986 991 Dilutive effect of employee stock plans 11 9 8 8 Weighted-average shares used to compute diluted net EPS 990 1,002 994 999 Net earnings per share: Basic $ 0.65 $ 0.77 $ 1.90 $ 2.31 Diluted $ 0.65 $ 0.76 $ 1.88 $ 2.29 Anti-dilutive weighted-average stock-based compensation awards (1) — 3 2 5 (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, 2024 | |
Guarantees [Abstract] | |
Schedule of Aggregate Product Warranty Liabilities and Changes | HP’s aggregate product warranty liabilities and changes were as follows: Nine months ended July 31, 2024 In millions Balance at beginning of period $ 706 Accruals for warranties issued 524 Adjustments related to pre-existing warranties (including changes in estimates) 31 Settlements made (in cash or in kind) (680) Balance at end of period $ 581 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Jul. 31, 2024 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 | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Net revenue: | ||||
Total net revenue | $ 13,519 | $ 13,196 | $ 39,504 | $ 39,901 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total segment earnings from operations | 940 | 952 | 2,827 | 2,442 |
Restructuring and other charges | (46) | (75) | (180) | (416) |
Acquisition and divestiture charges | (22) | (48) | (71) | (205) |
Amortization of intangible assets | (81) | (91) | (242) | (262) |
Interest and other, net | (113) | (16) | (410) | (357) |
Earnings before taxes | 827 | 936 | 2,417 | 2,085 |
Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 13,519 | 13,196 | 39,504 | 39,902 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total segment earnings from operations | 1,286 | 1,354 | 3,965 | 3,958 |
Other | ||||
Net revenue: | ||||
Total net revenue | 0 | 0 | 0 | (1) |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Stock-based compensation expense | (96) | (91) | (367) | (353) |
Restructuring and other charges | (46) | (75) | (180) | (416) |
Acquisition and divestiture charges | (22) | (48) | (71) | (205) |
Amortization of intangible assets | (81) | (91) | (242) | (262) |
Interest and other, net | (113) | (16) | (410) | (357) |
Corporate and unallocated costs and other | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Corporate and unallocated costs and other | (101) | (97) | (278) | (280) |
Personal Systems | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 9,369 | 8,932 | 26,604 | 26,286 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total segment earnings from operations | 599 | 592 | 1,644 | 1,498 |
Printing | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 4,143 | 4,263 | 12,886 | 13,611 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total segment earnings from operations | 715 | 794 | 2,416 | 2,563 |
Corporate Investments | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 7 | 1 | 14 | 5 |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total segment earnings from operations | (28) | (32) | (95) | (103) |
Commercial PS | Personal Systems | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 6,677 | 6,201 | 18,964 | 18,499 |
Consumer PS | Personal Systems | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 2,692 | 2,731 | 7,640 | 7,787 |
Supplies | Printing | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 2,703 | 2,768 | 8,430 | 8,631 |
Commercial Printing | Printing | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | 1,147 | 1,208 | 3,579 | 3,969 |
Consumer Printing | Printing | Operating Segments | ||||
Net revenue: | ||||
Total net revenue | $ 293 | $ 287 | $ 877 | $ 1,011 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring Activities by Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | |
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | $ 108 | $ 32 | |
Charges | $ 30 | 132 | 359 |
Cash payments | (156) | (187) | |
Non-cash and other adjustments | (5) | (143) | |
Accrued balance, end of the period | 79 | 79 | 61 |
Total costs incurred to date | 1,441 | 1,441 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 70 | 70 | |
Other non-current liabilities | 9 | 9 | |
Fiscal 2023 Plan | Severance and EER | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | 88 | 0 | |
Charges | 27 | 120 | 318 |
Cash payments | (141) | (135) | |
Non-cash and other adjustments | 0 | (141) | |
Accrued balance, end of the period | 67 | 67 | 42 |
Total costs incurred to date | 522 | 522 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 67 | 67 | |
Other non-current liabilities | 0 | 0 | |
Fiscal 2023 Plan | Non-labor | |||
Restructuring Reserve [Roll Forward] | |||
Accrued balance, beginning of the period | 18 | 0 | |
Charges | 2 | 8 | 38 |
Cash payments | (11) | (15) | |
Non-cash and other adjustments | (3) | (5) | |
Accrued balance, end of the period | 12 | 12 | 18 |
Total costs incurred to date | 49 | 49 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 3 | 3 | |
Other non-current liabilities | 9 | 9 | |
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 | 2 | 32 | |
Charges | 1 | 4 | 3 |
Cash payments | (4) | (37) | |
Non-cash and other adjustments | (2) | 3 | |
Accrued balance, end of the period | 0 | 0 | $ 1 |
Total costs incurred to date | 870 | 870 | |
Reflected in Consolidated Condensed Balance Sheets | |||
Other current liabilities | 0 | 0 | |
Other non-current liabilities | $ 0 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 18, 2022 USD ($) employee | Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Other charges | $ 16 | $ 25 | $ 48 | $ 57 | |
Fiscal 2023 Plan | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected positions to be eliminated | employee | 4,000 | ||||
Fiscal 2023 Plan | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected positions to be eliminated | employee | 6,000 | ||||
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 |
Retirement and Post-Retiremen_3
Retirement and Post-Retirement Benefit Plans - Schedule of Components of Pension and Post-Retirement Benefit (Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Post-Retirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 1 |
Interest cost | 4 | 4 | 12 | 11 |
Expected return on plan assets | (4) | (4) | (12) | (10) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | (3) | (4) | (11) | (12) |
Prior service cost (credit) | (3) | (2) | (8) | (8) |
Net periodic benefit (credit) cost | (5) | (5) | (18) | (18) |
Settlement gain (loss) | 0 | 0 | 0 | 0 |
Special termination benefit cost | 0 | 0 | 0 | 34 |
Total periodic benefit (credit) cost | (5) | (5) | (18) | 16 |
U.S. | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 57 | 54 | 171 | 163 |
Expected return on plan assets | (61) | (65) | (184) | (194) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 6 | 4 | 20 | 13 |
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 2 | (7) | 7 | (18) |
Settlement gain (loss) | 0 | 0 | 0 | 0 |
Special termination benefit cost | 0 | 0 | 0 | 105 |
Total periodic benefit (credit) cost | 2 | (7) | 7 | 87 |
Non-U.S. | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 9 | 10 | 27 | 30 |
Interest cost | 11 | 10 | 34 | 30 |
Expected return on plan assets | (13) | (13) | (39) | (39) |
Amortization and deferrals: | ||||
Actuarial loss (gain) | 0 | 1 | 0 | 3 |
Prior service cost (credit) | 1 | 1 | 4 | 4 |
Net periodic benefit (credit) cost | 8 | 9 | 26 | 28 |
Settlement gain (loss) | 1 | 0 | 2 | 0 |
Special termination benefit cost | 0 | 0 | 0 | 0 |
Total periodic benefit (credit) cost | $ 9 | $ 9 | $ 28 | $ 28 |
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, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Eligible age with twenty years of service for enhanced early retirement program | 55 years | ||||
Restructuring and other charges | $ 30,000 | $ 132,000 | $ 359,000 | ||
Health care coverage extension, enhanced early retirement program, period | 36 months | ||||
Maximum retirement medical savings account employer credits | $ 12 | ||||
Other charges | 16,000 | $ 25,000 | 48,000 | 57,000 | |
Special Termination Benefits | Fiscal 2023 Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring and other charges | 105,000 | ||||
Other charges | $ 34,000 | ||||
Post-Retirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Anticipated contributions | 4,000 | 4,000 | |||
Contributions to benefit plans | 4,000 | ||||
Non-U.S. | Defined Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Anticipated contributions | 45,000 | 45,000 | |||
Contributions to benefit plans | 41,000 | ||||
U.S. | Defined Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Anticipated contributions | $ 31,000 | 31,000 | |||
Contributions to benefit plans | $ 20,000 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 USD ($) country | Jul. 31, 2023 USD ($) | Jul. 31, 2024 USD ($) country | Jul. 31, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 22.60% | 18.20% | 22.70% | (9.80%) |
Income tax reconciliation other discrete items tax charges (credits) | $ 3 | $ (32) | $ (14) | $ (724) |
Tax benefits related to filing of tax returns | 51 | 17 | 15 | |
Tax benefits related to restructuring charges | 10 | 16 | 36 | 82 |
Uncertain tax position charges | 19 | 17 | 46 | 32 |
Tax benefits related to internal reorganization | 697 | |||
Tax effects related to acquisition and divestiture charges | 10 | 37 | ||
Tax charges related to audit settlements | 2 | 60 | ||
Tax charges for extinguishment of debt | 27 | 25 | ||
Unrecognized tax benefits | 1,200 | 1,200 | ||
Unrecognized tax benefits that would impact effective tax rate | 867 | 867 | ||
Unrecognized increase in tax benefits change | 43 | |||
Penalties and interest accrued | 130 | $ 98 | $ 130 | $ 98 |
Likelihood of no resolution period | 12 months | |||
Reasonably possible decrease in existing unrecognized tax benefits within the next 12 months | $ 21 | $ 21 | ||
Other countries with income tax jurisdiction | country | 60 | 60 |
Supplementary Financial Infor_3
Supplementary Financial Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Oct. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 2,785 | $ 3,107 | ||
Restricted cash | 93 | 125 | ||
Cash, cash equivalents and restricted cash | $ 2,878 | $ 3,232 | $ 1,718 | $ 3,145 |
Supplementary Financial Infor_4
Supplementary Financial Information - Schedule of Allowance for Credit Losses Related to Accounts Receivable and Changes (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 93 |
Benefit of allowance for credit losses | (2) |
Deductions, net of recoveries | (8) |
Balance at end of period | $ 83 |
Supplementary Financial Infor_5
Supplementary Financial Information - Schedule of Trade Receivables Sold and Cash Received (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Trade Receivables Sold and Cash Received [Roll Forward] | ||||
Balance at beginning of period | $ 181 | $ 174 | $ 141 | $ 185 |
Trade receivables sold | 3,111 | 3,383 | 9,256 | 10,241 |
Cash receipts | (2,983) | (3,398) | (9,089) | (10,286) |
Foreign currency and other | 3 | 0 | 4 | 19 |
Balance at end of period | $ 312 | $ 159 | $ 312 | $ 159 |
Supplementary Financial Infor_6
Supplementary Financial Information - Schedule of Inventory (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 3,946 | $ 3,930 |
Purchased parts and fabricated assemblies | 3,844 | 2,932 |
Inventory | $ 7,790 | $ 6,862 |
Supplementary Financial Infor_7
Supplementary Financial Information - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier and other receivables | $ 1,546 | $ 1,349 |
Prepaid and other current assets | 1,534 | 1,445 |
Value-added taxes receivable | 908 | 852 |
Other current assets | $ 3,988 | $ 3,646 |
Supplementary Financial Infor_8
Supplementary Financial Information - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | $ 7,972 | $ 7,716 |
Accumulated depreciation | (5,141) | (4,889) |
Property, plant and equipment, net | 2,831 | 2,827 |
Land, buildings and leasehold improvements | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | 2,456 | 2,332 |
Machinery and equipment, including equipment held for lease | ||
Property, Plant and Equipment, Net | ||
Property, plant and equipment, gross | $ 5,516 | $ 5,384 |
Supplementary Financial Infor_9
Supplementary Financial Information - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred tax assets | $ 3,131 | $ 3,155 |
Intangible assets | $ 1,365 | $ 1,593 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Right-of-use assets | $ 1,124 | $ 1,188 |
Deposits and prepaid | 338 | 427 |
Prepaid pension and post-retirement benefit assets | 355 | 393 |
Other | 994 | 853 |
Other non-current assets | $ 7,307 | $ 7,609 |
Supplementary Financial Info_10
Supplementary Financial Information - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales and marketing programs | $ 2,954 | $ 3,053 |
Deferred revenue | 1,377 | 1,424 |
Other accrued taxes | 1,119 | 994 |
Employee compensation and benefit | 881 | 1,046 |
Warranty | $ 509 | $ 569 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Operating lease liabilities | $ 435 | $ 430 |
Tax liability | 231 | 217 |
Other | 2,694 | 2,479 |
Other accrued liabilities | $ 10,200 | $ 10,212 |
Supplementary Financial Info_11
Supplementary Financial Information - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue | $ 1,473 | $ 1,324 |
Tax liability | $ 869 | $ 904 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Operating lease liabilities | $ 749 | $ 825 |
Pension, post-retirement, and post-employment liabilities | 523 | 546 |
Deferred tax liability | 28 | 44 |
Other | 537 | 688 |
Other non-current liabilities | $ 4,179 | $ 4,331 |
Supplementary Financial Info_12
Supplementary Financial Information - Schedule of Interest and Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest expense on borrowings | $ (111) | $ (134) | $ (343) | $ (429) |
Factoring costs | (38) | (37) | (117) | (99) |
Net gain on debt extinguishment | 0 | 115 | 0 | 107 |
Non-operating retirement-related credits | 4 | 14 | 10 | 40 |
Other, net | 32 | 26 | 40 | 24 |
Interest and other, net | $ (113) | $ (16) | $ (410) | $ (357) |
Supplementary Financial Info_13
Supplementary Financial Information - Schedule of Net Revenue by Region (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 13,519 | $ 13,196 | $ 39,504 | $ 39,901 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 6,086 | 5,880 | 17,085 | 17,052 |
Europe, Middle East and Africa (“EMEA”) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,420 | 4,285 | 13,461 | 13,330 |
Asia-Pacific and Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 3,013 | $ 3,031 | $ 8,958 | $ 9,519 |
Supplementary Financial Info_14
Supplementary Financial Information - Value of Remaining Performance Obligations (Narrative) (Details) $ in Billions | Jul. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3.9 |
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 | $ 1.7 |
Remaining performance obligations period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2.2 |
Remaining performance obligations period |
Supplementary Financial Info_15
Supplementary Financial Information - Contract Liabilities (Narrative) (Details) - USD ($) $ in Billions | 9 Months Ended | |
Jul. 31, 2024 | Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract liability | $ 2.8 | $ 2.7 |
Revenue recognized | $ 1.1 |
Supplementary Financial Info_16
Supplementary Financial Information - Supplier Finance Programs (Narrative) (Details) - USD ($) $ in Billions | Jul. 31, 2024 | Oct. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payment terms offered by HP | 30 days | |
Obligations outstanding | $ 7.4 | $ 6.6 |
Amounts owed to participating financial institutions | $ 1 | $ 0.9 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Assets: | ||
Cash Equivalents: | $ 1,968 | $ 2,489 |
Derivative Instruments: | 200 | 489 |
Liabilities: | ||
Derivative Instruments: | 241 | 272 |
Marketable securities and mutual funds | ||
Liabilities: | ||
Debt securities, restricted | 82 | |
Fair Value Measured on a Recurring Basis | ||
Assets: | ||
Total assets | 2,354 | 3,059 |
Liabilities: | ||
Total liabilities | 241 | 272 |
Fair Value Measured on a Recurring Basis | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 990 | 589 |
Fair Value Measured on a Recurring Basis | Government debt | ||
Assets: | ||
Cash Equivalents: | 978 | 1,900 |
Fair Value Measured on a Recurring Basis | Financial institution instruments | ||
Assets: | ||
Available-for-Sale Investments: | 3 | 3 |
Fair Value Measured on a Recurring Basis | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 183 | 78 |
Liabilities: | ||
Debt securities, restricted | 82 | |
Fair Value Measured on a Recurring Basis | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 197 | 489 |
Liabilities: | ||
Derivative Instruments: | 207 | 212 |
Fair Value Measured on a Recurring Basis | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 3 | 0 |
Liabilities: | ||
Derivative Instruments: | 0 | 2 |
Fair Value Measured on a Recurring Basis | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 34 | 58 |
Fair Value Measured on a Recurring Basis | Level 1 | ||
Assets: | ||
Total assets | 1,028 | 1,933 |
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: | 978 | 1,900 |
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: | 50 | 33 |
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 1 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 2 | ||
Assets: | ||
Total assets | 1,326 | 1,126 |
Liabilities: | ||
Total liabilities | 241 | 272 |
Fair Value Measured on a Recurring Basis | Level 2 | Corporate debt | ||
Assets: | ||
Cash Equivalents: | 990 | 589 |
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 | 3 |
Fair Value Measured on a Recurring Basis | Level 2 | Marketable securities and mutual funds | ||
Assets: | ||
Available-for-Sale Investments: | 133 | 45 |
Fair Value Measured on a Recurring Basis | Level 2 | Foreign currency contracts | ||
Assets: | ||
Derivative Instruments: | 197 | 489 |
Liabilities: | ||
Derivative Instruments: | 207 | 212 |
Fair Value Measured on a Recurring Basis | Level 2 | Other derivatives | ||
Assets: | ||
Derivative Instruments: | 3 | 0 |
Liabilities: | ||
Derivative Instruments: | 0 | 2 |
Fair Value Measured on a Recurring Basis | Level 2 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | 34 | 58 |
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 | 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 |
Fair Value Measured on a Recurring Basis | Level 3 | Interest rate contracts | ||
Liabilities: | ||
Derivative Instruments: | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Billions | Jul. 31, 2024 | Oct. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Fair value, short- and long-term debt | $ 9.4 | $ 8.5 |
Carrying value, short- and long-term debt | $ 9.6 | $ 9.5 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Cash Equivalents: | ||
Cost | $ 1,968 | $ 2,489 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 1,968 | 2,489 |
Available-for-Sale Investments: | ||
Cost | 126 | 43 |
Gross Unrealized Gain | 60 | 38 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 186 | 81 |
Total cash equivalents and available-for-sale investments, cost | 2,094 | 2,532 |
Total cash equivalents and available-for-sale investments, gross unrealized gain | 60 | 38 |
Total cash equivalents and available-for-sale investments, gross unrealized loss | 0 | 0 |
Total cash equivalents and available-for-sale investments, fair value | 2,154 | 2,570 |
Corporate debt | ||
Cash Equivalents: | ||
Cost | 990 | 589 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 990 | 589 |
Government debt | ||
Cash Equivalents: | ||
Cost | 978 | 1,900 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 978 | 1,900 |
Financial institution instruments | ||
Available-for-Sale Investments: | ||
Debt securities, cost | 3 | 3 |
Debt securities, gross unrealized gain | 0 | 0 |
Debt securities, gross unrealized loss | 0 | 0 |
Debt securities, fair value | 3 | 3 |
Marketable securities and mutual funds | ||
Available-for-Sale Investments: | ||
Equity securities, cost | 123 | 40 |
Equity securities, gross unrealized gain | 60 | 38 |
Equity securities, gross unrealized loss | 0 | 0 |
Equity securities, fair value | 183 | $ 78 |
Debt securities, restricted | $ 82 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Contractual Maturities of Investments in Available-for-Sale Debt Securities (Details) $ in Millions | Jul. 31, 2024 USD ($) |
Amortized Cost | |
Due in one year | $ 19 |
Due in one to five years | 66 |
Amortized Cost | 85 |
Fair Value | |
Due in one year | 19 |
Due in one to five years | 66 |
Fair Value | $ 85 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Oct. 31, 2023 | |
Derivatives, Fair Value | ||
Fair value of derivatives with credit contingent features in a net liability position | $ 103 | $ 91 |
Period to collateralize | 2 days | |
Notional amount | $ 19,609 | 20,599 |
Loss expected to be reclassified from AOCI into earnings in next 12 months | $ 26 | |
Cash flow hedges: | ||
Derivatives, Fair Value | ||
Foreign currency maturity | 12 months | |
Cash flow hedges: | Forward Contracts | ||
Derivatives, Fair Value | ||
Notional amount | $ 250 | |
Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Cost method and other equity investments | $ 106 | $ 111 |
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, 2024 | Oct. 31, 2023 |
Derivatives, Fair Value | ||
Outstanding Gross Notional | $ 19,609 | $ 20,599 |
Derivative instruments, assets | 200 | 489 |
Derivative instruments, liabilities | $ 241 | $ 272 |
Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Derivative instruments, assets | $ 170 | $ 419 |
Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Derivative instruments, assets | $ 30 | $ 70 |
Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Derivative instruments, liabilities | $ 183 | $ 162 |
Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Derivative instruments, liabilities | $ 58 | $ 110 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 15,651 | 16,028 |
Derivatives designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 151 | 410 |
Derivatives designated as hedging instruments | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 30 | 70 |
Derivatives designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 166 | 147 |
Derivatives designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 58 | 110 |
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 | 18 | 0 |
Derivatives designated as hedging instruments | Fair value hedges: | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 12 | 58 |
Derivatives designated as hedging instruments | Cash flow hedges: | Interest rate contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 250 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges: | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges: | Interest rate contracts | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges: | Interest rate contracts | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 0 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges: | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 4 | 0 |
Derivatives designated as hedging instruments | Cash flow hedges: | Foreign currency contracts | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 14,651 | 15,278 |
Derivatives designated as hedging instruments | Cash flow hedges: | Foreign currency contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 151 | 410 |
Derivatives designated as hedging instruments | Cash flow hedges: | Foreign currency contracts | Other Non-Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 30 | 70 |
Derivatives designated as hedging instruments | Cash flow hedges: | Foreign currency contracts | Other Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 148 | 147 |
Derivatives designated as hedging instruments | Cash flow hedges: | Foreign currency contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value | ||
Derivative instruments, liabilities | 42 | 52 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value | ||
Outstanding Gross Notional | 3,958 | 4,571 |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 19 | 9 |
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 | 17 | 15 |
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 | 3,809 | 4,446 |
Derivatives not designated as hedging instruments | Foreign currency contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 16 | 9 |
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 | 17 | 13 |
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 | 149 | 125 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative instruments, assets | 3 | 0 |
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 | 2 |
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, 2024 | Oct. 31, 2023 | |
Derivative assets | ||
Gross Amount Recognized | $ 200 | $ 489 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 200 | 489 |
Gross Amounts Not Offset | ||
Derivatives | 135 | 178 |
Financial Collateral | 47 | 291 |
Net Amount | 18 | 20 |
Derivative liabilities | ||
Gross Amount Recognized | 241 | 272 |
Gross Amount Offset | 0 | 0 |
Net Amount Presented | 241 | 272 |
Gross Amounts Not Offset | ||
Derivatives | 135 | 178 |
Financial Collateral | 107 | 89 |
Net Amount | $ (1) | $ 5 |
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, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded | $ (113) | $ (16) | $ (410) | $ (357) |
Gain/(loss) recognized in earnings on derivative instruments | 13 | (6) | 28 | 15 |
Gain/(loss) recognized in earnings on hedged item | $ (13) | $ 6 | $ (28) | $ (15) |
Financial Instruments - Sched_6
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships Included in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives | $ (36) | $ (68) | $ (47) | $ (757) |
Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives | (36) | (68) | (47) | (757) |
Foreign currency contracts | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives | (33) | (68) | (44) | (757) |
Interest rate contracts | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in Accumulated other comprehensive (loss) income on derivatives | $ (3) | $ 0 | $ (3) | $ 0 |
Financial Instruments - Sched_7
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships Included in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Net revenue | $ 13,519 | $ 13,196 | $ 39,504 | $ 39,901 |
Cost of revenue | (10,613) | (10,374) | (30,687) | (31,378) |
Operating expenses | (1,966) | (1,870) | (5,990) | (6,081) |
Interest and other, net | (113) | (16) | (410) | (357) |
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | 87 | (68) | 251 | 104 |
Cash flow hedges: | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Net revenue | 13,519 | 13,196 | 39,504 | 39,901 |
Cost of revenue | (10,613) | (10,374) | (30,687) | (31,378) |
Operating expenses | (1,966) | (1,870) | (5,990) | (6,081) |
Interest and other, net | (113) | (16) | (410) | (357) |
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | 87 | (68) | 251 | 104 |
Cash flow hedges: | Net revenue | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | 117 | (37) | 355 | 240 |
Cash flow hedges: | Cost of revenue | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | (33) | (33) | (109) | (142) |
Cash flow hedges: | Operating expenses | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | 0 | (1) | (4) | (3) |
Cash flow hedges: | Interest and other, net | ||||
Pre-tax effect of derivative instruments in cash flow hedging relationships | ||||
Gain/(loss) reclassified from Accumulated other comprehensive (loss) income into earnings | $ 3 | $ 3 | $ 9 | $ 9 |
Financial Instruments - Sched_8
Financial Instruments - Schedule of Pre-Tax Effect of Derivative Instruments Not Designated as Hedging Instruments Recognized in Interest and Other, Net in the Consolidated Condensed Statements of Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in earnings on derivative instrument | $ 23 | $ (32) | $ 28 | $ (71) |
Interest and other, net | Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in earnings on derivative instrument | 16 | (37) | 23 | (76) |
Interest and other, net | Other derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in earnings on derivative instrument | $ 7 | $ 5 | $ 5 | $ 5 |
Borrowings - Schedule of Notes
Borrowings - Schedule of Notes Payable and Short-Term Borrowings (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Amount Outstanding | ||
Current portion of long-term debt | $ 1,335 | $ 179 |
Notes payable to banks, lines of credit and other | $ 1,396 | $ 230 |
Weighted-Average Interest Rate | ||
Current portion of long-term debt | 4.90% | 6% |
Notes payable to banks, lines of credit and other | ||
Amount Outstanding | ||
Notes payable to banks, lines of credit and other | $ 61 | $ 51 |
Weighted-Average Interest Rate | ||
Commercial paper and notes payable to banks, lines of credit and other | 0.80% | 1% |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) | Jul. 31, 2024 | Oct. 31, 2023 |
Long-term debt | ||
Fair value adjustment related to hedged debt | $ (30,000,000) | $ (58,000,000) |
Unamortized debt issuance cost | (48,000,000) | (57,000,000) |
Current portion of long-term debt | (1,335,000,000) | (179,000,000) |
Total long-term debt | 8,229,000,000 | 9,254,000,000 |
U.S. Dollar Global Notes | ||
Long-term debt | ||
Long-term debt | 9,043,000,000 | 9,042,000,000 |
$1,200 issued at discount to par at a price of 99.863% at 6.00%, due September 2041 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,200,000,000 | |
Discount to par (percent) | 99.863% | |
Interest rate (percent) | 6% | |
Long-term debt | $ 1,199,000,000 | 1,199,000,000 |
$1,150 issued at discount to par at a price of 99.769% at 2.20%, due June 2025 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,150,000,000 | |
Discount to par (percent) | 99.769% | |
Interest rate (percent) | 2.20% | |
Long-term debt | $ 1,149,000,000 | 1,149,000,000 |
$1,000 issued at discount to par at a price of 99.718% at 3.00%, due June 2027 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.718% | |
Interest rate (percent) | 3% | |
Long-term debt | $ 999,000,000 | 999,000,000 |
$850 issued at discount to par at a price of 99.790% at 3.40%, due June 2030 | ||
Long-term debt | ||
Face amount of debt instrument | $ 850,000,000 | |
Discount to par (percent) | 99.79% | |
Interest rate (percent) | 3.40% | |
Long-term debt | $ 503,000,000 | 503,000,000 |
$1,000 issued at discount to par at a price of 99.808% at 1.45%, due June 2026 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.808% | |
Interest rate (percent) | 1.45% | |
Long-term debt | $ 521,000,000 | 521,000,000 |
$1,000 issued at discount to par at a price of 99.573% at 2.65%, due June 2031 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.573% | |
Interest rate (percent) | 2.65% | |
Long-term debt | $ 997,000,000 | 997,000,000 |
$1,000 issued at discount to par at a price of 99.767% at 4.00%, due April 2029 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.767% | |
Interest rate (percent) | 4% | |
Long-term debt | $ 999,000,000 | 999,000,000 |
$1,000 issued at discount to par at a price of 99.966% at 4.20%, due April 2032 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,000,000,000 | |
Discount to par (percent) | 99.966% | |
Interest rate (percent) | 4.20% | |
Long-term debt | $ 676,000,000 | 676,000,000 |
$900 issued at discount to par at a price of 99.841% at 4.75%, due January 2028 | ||
Long-term debt | ||
Face amount of debt instrument | $ 900,000,000 | |
Discount to par (percent) | 99.841% | |
Interest rate (percent) | 4.75% | |
Long-term debt | $ 899,000,000 | 899,000,000 |
$1,100 issued at discount to par at a price of 99.725% at 5.50%, due January 2033 | ||
Long-term debt | ||
Face amount of debt instrument | $ 1,100,000,000 | |
Discount to par (percent) | 99.725% | |
Interest rate (percent) | 5.50% | |
Long-term debt | $ 1,098,000,000 | 1,097,000,000 |
$500 issued at par at a price of 100% at 4.75%, due March 2029 | ||
Long-term debt | ||
Face amount of debt instrument | $ 500,000,000 | |
Issuance rate (percent) | 100% | |
Interest rate (percent) | 4.75% | |
Long-term debt | $ 3,000,000 | 3,000,000 |
Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 | ||
Long-term debt | ||
Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 | $ 599,000,000 | $ 506,000,000 |
Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 | Minimum | ||
Long-term debt | ||
Interest rate (percent) | 1.47% | |
Other borrowings at 1.47%-8.30%, due in fiscal years 2024-2030 | Maximum | ||
Long-term debt | ||
Interest rate (percent) | 8.30% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Aug. 01, 2024 | Jul. 31, 2024 |
Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity under credit facility | $ 6,000,000,000 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity under credit facility | 5,000,000,000 | |
Revolving Credit Facility | Subsequent event | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity under credit facility | $ 5,000,000,000 | |
Revolving Credit Facility | New Revolving Facility | Subsequent event | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity under credit facility | $ 5,000,000,000 | |
Revolving credit facility, term | 5 years | |
Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Available borrowing resources | $ 900,000,000 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | Aug. 27, 2024 | |
Components of accumulated other comprehensive income, net of taxes | |||||
Repurchases of common stock (in shares) | 17,000,000 | 0 | 37,500,000 | 3,600,000 | |
Payment in connection with repurchases of shares | $ 600 | $ 1,200 | $ 100 | ||
Shares settled (in shares) | 200,000 | 200,000 | |||
Share repurchase authorization remaining | $ 800 | $ 800 | |||
Subsequent event | |||||
Components of accumulated other comprehensive income, net of taxes | |||||
Share repurchase authorization remaining | $ 10,000 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Taxes Related to Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Components of accumulated other comprehensive income, net of taxes | ||||
Tax benefit on other comprehensive income (loss) | $ 24 | $ 3 | $ 54 | $ 164 |
Tax provision on unrealized 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 | (1) | 0 | (1) | (1) |
Net unrealized gains (losses) on cash flow hedges | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Tax benefit (provision) on unrealized (losses) gains arising during the period | 8 | 18 | 12 | 144 |
Tax effects on reclassification into earnings | 19 | (15) | 49 | 22 |
Tax benefit on other comprehensive income (loss) | 27 | 3 | 61 | 166 |
Tax provision on 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 | 0 | (3) | (1) |
Tax provision on curtailments, settlements and other | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Tax effects on reclassification into earnings | (2) | 0 | (3) | 0 |
Unrealized components of defined benefit plans | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Tax benefit on other comprehensive income (loss) | $ (2) | $ 0 | $ (6) | $ (1) |
Stockholders' Deficit - Sched_2
Stockholders' Deficit - Schedule of Changes and Reclassifications Related to Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2024 | Apr. 30, 2024 | Jan. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Unrealized gains (losses) arising during the period | $ 6 | |||||||
Gains (losses) reclassified into earnings | (197) | |||||||
Other comprehensive (loss) income, net of taxes | $ (83) | $ 126 | $ (235) | $ 14 | $ 88 | $ (741) | (192) | $ (639) |
Unrealized gains arising during the period | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Unrealized gains (losses) arising during the period | 2 | 1 | 6 | 4 | ||||
Gains (losses) reclassified into earnings | 0 | |||||||
Net unrealized gains (losses) on cash flow hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Unrealized gains (losses) arising during the period | (28) | (50) | (35) | (613) | ||||
Gains (losses) reclassified into earnings | (68) | 53 | (202) | (82) | ||||
Other comprehensive (loss) income, net of taxes | (96) | 3 | (237) | (695) | ||||
Gains arising during the period | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Unrealized gains (losses) arising during the period | 0 | 0 | 10 | 4 | ||||
Amortization of actuarial loss and prior service benefit | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Gains (losses) reclassified into earnings | 1 | 0 | 5 | 0 | ||||
Curtailments, settlements and other | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Gains (losses) reclassified into earnings | (1) | 0 | (1) | 0 | ||||
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 | 10 | |||||||
Gains (losses) reclassified into earnings | 5 | |||||||
Other comprehensive (loss) income, net of taxes | 0 | 0 | 14 | 4 | ||||
Change in cumulative translation adjustment | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Unrealized gains (losses) arising during the period | 25 | |||||||
Gains (losses) reclassified into earnings | 0 | |||||||
Change in cumulative translation adjustment | $ 11 | $ 10 | $ 25 | $ 48 |
Stockholders' Deficit - Sched_3
Stockholders' Deficit - Schedule of Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes and Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | $ (916) | $ (2,593) | $ (1,069) | $ (3,025) |
Other comprehensive gains (losses) before reclassifications | 6 | |||
Reclassifications of (gains) losses into earnings | (197) | |||
Balance at end of period | (1,392) | (2,245) | (1,392) | (2,245) |
Accumulated other comprehensive loss | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (332) | (368) | (223) | 285 |
Balance at end of period | (415) | (354) | (415) | (354) |
Net unrealized gains (losses) on available-for-sale debt securities | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | 7 | |||
Other comprehensive gains (losses) before reclassifications | 2 | 1 | 6 | 4 |
Reclassifications of (gains) losses into earnings | 0 | |||
Balance at end of period | 13 | 13 | ||
Net unrealized gains (losses) on cash flow hedges | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | 230 | |||
Other comprehensive gains (losses) before reclassifications | (28) | (50) | (35) | (613) |
Reclassifications of (gains) losses into earnings | (68) | $ 53 | (202) | $ (82) |
Balance at end of period | (7) | (7) | ||
Unrealized components of defined benefit plans | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (437) | |||
Other comprehensive gains (losses) before reclassifications | 10 | |||
Reclassifications of (gains) losses into earnings | 5 | |||
Balance at end of period | (423) | (423) | ||
Change in cumulative translation adjustment | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Balance at beginning of period | (23) | |||
Other comprehensive gains (losses) before reclassifications | 25 | |||
Reclassifications of (gains) losses into earnings | 0 | |||
Balance at end of period | $ 2 | 2 | ||
Reclassifications of settlements into earnings | ||||
Components of accumulated other comprehensive income, net of taxes | ||||
Reclassifications of (gains) losses into earnings | $ (1) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Numerator: | ||||
Net earnings, basic | $ 640 | $ 766 | $ 1,869 | $ 2,289 |
Net earnings, diluted | $ 640 | $ 766 | $ 1,869 | $ 2,289 |
Denominator: | ||||
Weighted-average shares used to compute basic net EPS (in shares) | 979 | 993 | 986 | 991 |
Dilutive effect of employee stock plans (in shares) | 11 | 9 | 8 | 8 |
Weighted-average shares used to compute diluted net EPS (in shares) | 990 | 1,002 | 994 | 999 |
Net earnings per share: | ||||
Basic (usd per share) | $ 0.65 | $ 0.77 | $ 1.90 | $ 2.31 |
Diluted (usd per share) | $ 0.65 | $ 0.76 | $ 1.88 | $ 2.29 |
Anti-dilutive weighted-average stock-based compensation awards (in shares) | 0 | 3 | 2 | 5 |
Litigation and Contingencies (D
Litigation and Contingencies (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 17 Months Ended | |||||||||||||
Oct. 31, 2023 patent claim | Oct. 01, 2015 USD ($) | Apr. 17, 2015 employee subsidiary | Jan. 24, 2013 USD ($) | Dec. 11, 2012 USD ($) | Apr. 21, 2012 USD ($) | May 10, 2010 USD ($) employee | Jan. 31, 2024 claim | Nov. 30, 2023 patent claim subsidiary | Nov. 30, 2022 patent | Oct. 31, 2020 patent | Sep. 30, 2020 patent | Jul. 31, 2024 affiliate member | Apr. 30, 2022 claim | Apr. 20, 2012 USD ($) | Apr. 11, 2012 USD ($) | |
Philips Patent Litigation | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Patents allegedly infringed | patent | 4 | |||||||||||||||
Patents withdrawn | patent | 2 | |||||||||||||||
Dynamic Security Litigation | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
New claims filed | claim | 1 | 2 | ||||||||||||||
Nokia Patent Litigation | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Patents allegedly infringed | patent | 10 | |||||||||||||||
New claims filed | claim | 2 | |||||||||||||||
Number of subsidiaries | subsidiary | 6 | |||||||||||||||
Nokia Patent Litigation | Brazil | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Patents allegedly infringed | patent | 1 | |||||||||||||||
Nokia Patent Litigation, U.S. International Trade Commission | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Patents allegedly infringed | patent | 7 | |||||||||||||||
New claims filed | claim | 2 | |||||||||||||||
R2 Semiconductor Litigation | Europe | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Patents allegedly infringed | patent | 1 | |||||||||||||||
Access Advance Patent Pool, Unified Patent Court | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Number of patent pool members | member | 3 | |||||||||||||||
Access Advance Patent Pool, Unified Patent Court | Düsseldorf, Germany | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Number of affiliates | affiliate | 14 | |||||||||||||||
Access Advance Patent Pool, Unified Patent Court | Munich, Germany | ||||||||||||||||
Litigation and Contingencies | ||||||||||||||||
Number of affiliates | affiliate | 2 | |||||||||||||||
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, 2024 USD ($) | |
Changes in aggregated product warranty liabilities | |
Balance at beginning of period | $ 706 |
Accruals for warranties issued | 524 |
Adjustments related to pre-existing warranties (including changes in estimates) | 31 |
Settlements made (in cash or in kind) | (680) |
Balance at end of period | $ 581 |